(iv) Responsibility for achievement and failures etc. Purposes: Job evaluation helps following purposes: Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. Job evaluation is not as simple as employers and workers think and it is a complex process that can only be undertaken by well trained and experienced individuals. (2) It helps in proper placement of workers in job. Salary or wage ranges are thereafter fixed for each class or sub-class. The objective of job evaluation is to determine which jobs should get more pay than others. Depending upon these characteristics job demand is of varying degrees of the various qualifications, skill, experience etc., on the part of operators performing the jobs. The most common request for job classification re-evaluation that I have experienced occurs when an employee has taken on new responsibilities or more work. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. For example, some jobs require physical ability; others may need a high degree of mental ability, while a third category may need skill, experience and high education. Job evaluation is a procedure for developing a wage structure that is somehow based upon an evaluation of the job. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. It cannot be applied easily to scientific and research pursuits. Why Would an Employer Perform a Job Evaluation? Each job is reviewed to place the job in its appropriate grade. • It tries to make a systematic comparison between jobs to access their relative worth for the purpose of establishing a rational pay structure. This method is useful in a small unit where jobs are a few and are known to raters. Job requirements, job specifications, and employee specifications are not considered in the evaluation. (5) Supervisors are trained in the essential function of judging, controlling and helping the workers. When should a job description be submitted to the Job Evaluation & Organizational Design unit? Rather, it involves examining the functions of the job itself. Analysing and preparing job description. The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. A legal update on whether documents relating to a job evaluation scheme undertaken for the purpose of obtaining legal advice during equal pay litigation were protected by privilege. A Job Profile Outlines the Key Components of a Job—Use It Wisely, How Unconscious Bias Can Impact the Workplace and Job Search, Understanding the Chain of Command in Your Workplace, To determine what positions and job responsibilities are similar for purposes of. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It may be undertaken during yearly performance reviews or any other performance management system instituted by a company. In many cases, job evaluation is done is order to help in assigning the appropriate salary group and range to all job groups in an organization. Evaluation is a continuous process and a periodic exercise. Likewise, you'll also get feedback telling you about the … (4) It helps in formulating the internal training plan. As the name suggests, employee self-evaluation involves an employee self-appraising. Proper job evaluation helps in divising a wage structure which is acceptable to the workers as well as the organisation. The job classification is evaluated each time a significant change occurs in a job. In a job evaluation that results in decisions about a job classification, factors such as decision-making authority, the scope, and range of the responsibilities performed, the level of the duties performed, and the relationship of the position to other jobs in the organization are considered and compared. A job description should be submitted when: The usual process followed in this method is as under: 1. It is a standardize process of determining the wage differentials for various jobs. (2) Wage rates can be reviewed easily if a job evaluation machinery exists in the organisation. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. She has covered HR for The Balance Careers since 2000. According to A.R.Kress, following are the principles of job evaluation. Job evaluations can help you create an equitable compensation system through appropriate job classification. (4) By job evaluation proper and rational wage structure can be formulated and implemented. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Prohibited Content 3. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. The ranking is provided to the job on the basis of this comparison. Job Review and Analysis includes job review, job analysis and job classification. One of her first tasks was to perform a What Is Job Classification and How Do Employers Use It to Pay Staff? • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Creating job evaluation committee consisting of experienced employees, union representatives and HR experts. Purpose and audience: This mid-term evaluation is being undertaken to inform UNDP and its partners of lessons learned, results achieved and areas for improvements. Want to Understand the Basic Job Description and Duties of a Manager? Do You Get Paid Extra for Working on a Holiday? It measures the differences between jobs on the job requirements, and establishes the differential numerically (job rating), so that it can be converted to … What Is Law Enforcement Availability Pay? Another drawback is subjectivity, as there are no definite or consistent standards by which to justify the rankings and the fact that because jobs are only ranked in terms of the order, we have no knowledge of the distance between the ranks. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. In other words job evaluation grades all jobs with reference to their main characteristics so that the relative merit of each job in terms of work value may be determined. Proper job evaluation helps in divising a wage structure which is acceptable to the workers as well as the organisation. It helps in forming the values of judgement, educational status, or achievement of student. Susan Heathfield is an HR and management consultant with an MS degree. Outlining the job. Selecting method of evaluation, according to the job factors and organisational demand… It is to be noted that first two methods are simple and suitable for application in small factories. The purpose of conducting job evaluation is to fairly determine the monetary value / worth of a job in relation to other jobs in an organization. These factors are outlined in a manual which also prescribes the weightage to be applied to each such factor. (v) Job-hazards or complex nature of job and. Each factor is, thereafter, valued and aggregate values are compared to determine relative worth of each job. Job standardisation is the development and standardisation of the most suitable arrangements, motions and times for production based on time and motion study. In other words job evaluation grades all jobs with reference to their main characteristics so that the relative merit of each job in terms of work value may be determined. Job evaluation (or job rating) is a systematic procedure for measuring the relative value and importance of occupations on the basis of their common factors (skill, training, effort) for the purpose of determining wage differentials. 10 steps to developing a successful job evaluation 1. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice b… It is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. (2) By Job evaluation, right worker is put in the right place, with the result there is reduction in the labour turnover. Job evaluation is therefore the basis for fair compensation. When Does Job Evaluation and Classification Occur? The Purpose and Nature of Job Evaluation Job evaluation is a systematic process for deciding on the relative worth or size of jobs within an organization. The finding of this mid-term evaluation will inform the development of the fourth phase of the Global Programme along with the final evaluation. (2) Job factors should be clearly defined- The job factors should be in limited numbers should be clearly defined and explained. (These are also factors in point rating method). Thus, the job evaluation results in a job classification that remains the same. But jobs involving high degree of mental applications or hazards cannot be accurately evaluated in fixed factor points. As it eliminates wage inequalities within the organization so it helps in maintaining harmonious relationship between labour and management. To determine what positions and job responsibilities are similar for purposes of pay, promotions, lateral moves, transfers, assignments and assigned work, and other internal parity issues. Under this method, certain key jobs are selected and each selected job is further analyzed into: (v) Working conditions. A job evaluation allows an … With the result, better workers join the firm more willingly. (1) It helps in devising an acceptable wage. Deciding the job to be evaluated, which may represent the type of work performed in the organisation. Content Guidelines 2. The process of job evaluation involves following steps: Securing acceptance from employees after explaining the purpose and use of job evaluation programme. It is an exercise undertaken by an employer where he/she asks employees to rate their job performance and accomplishment. A job evaluation is a tool used by an organization, often by the human resources department, to identify the value of a job. Points are allocated to each of the factor or characteristics. Disclaimer 9. How Is a Salary Range Determined and How Does It Work? Job evaluation is the process of review, analysis and systematic classification of a job in accordance with its characteristics i.e., varying factors it demands from the employees. Job evaluation as a process is advantageous to a company in many ways: (1) By bringing uniformity in wage rates, it brings about simplification of wage administration. TOS 7. The job classification re-evaluation is generally requested by an employee through his or her supervisor. The Balance Careers uses cookies to provide you with a great user experience. He examined the characteristics of work and pay, the primary focus of the job evaluation system is to relate these two aspects of productivity in a way which both management and workers find reasonable, equitable and fair. Laura was hired as a human resources administrator at a local company. Before publishing your articles on this site, please read the following pages: 1. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. Wages scales or ranges are fixed for each of these grades. Besides, there is no pre-determined scale of values for the rates to be used. Job review is to identify person needed to fill the job and conditions which affect the rate of pay of the person needed to fill it. (3) It helps the personnel department to recruit the right person for a job since requirement of each job are clearly indicated. Job evaluation is the basis for fair compensation. The purpose of the job evaluation is to enable you to establish pay levels for positions in a fair, consistent, orderly and equitable manner based on the worth of each job (Figure 1). On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. The purpose of job evaluation is also to weigh the value of a given job in a consistent and uniform manner (Understanding the Job Evaluation Process, n.d.). It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. Job evaluation is a process of determining the relative worth of a job. Here is a clear step by step guide to undertaking a job evaluation that should help you on your way to providing a fair and equal pay structure that will benefit you in all of these ways. Plagiarism Prevention 4. Every job has its own characteristics. Ever wondered how members of an organisation undertake job evaluation, and for what purpose this exercise is done? Copyright 10. Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job and increasing personnel as well as organizational productivity. (5) It helps to avoid wage and other discrimination for similar jobs in same organisation or a group of organisations under the same management. Job analysis is analysis and synthesis of the data obtained by job review in order to determine degree of duties, skills, exertion, responsibilities, conditions etc. Why might an organization adopt a system of job evaluations for job classification? It does not focus on how well an employee is doing the job. The evaluation may be achieved through the assignment of points or the use of some other systematic rating method for essential job requirements, such as skill, experience, and responsibility. Under this method of job evaluation jobs are analyzed into its various characteristics or factors and then evaluated in terms of points. Job evaluation is a systematic process which enables an organisation to find out the importance of the various jobs in the company, and assess their worth to the company's profitability. (1) Job evaluation rates the job and not the man- Under this techniques the evaluator has to rate the job by considering the requirements of the job. Image Guidelines 5. 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