Job Evaluation A job description is a key element of the job evaluation process. Basically, a company will set up a … As a result, job evaluation systems are becoming more intuitive. Hence, it indicates what activities and accountability the job entails. Create the appropriate pay grades and pay ranges in the pay structure and along with policies and procedures setting out employee progress within the range. It provides information relating to activities and duties to be performed in a job. Job Evaluation does not design wage structure, it helps in rationalizing the system by reducing number of separate and different rates. different operations in a product line or process which can improve the production or job performance. Job analysis provides the information related to the job and this data can be used to make the process or job simple. Your goal in employee evaluation is to motivate a high level of quality and quantity in the work that the employee produces. Meaning of Job Evaluation Job evaluation : Systematic way of … In such a situation, job evaluation may face resistance from the employees. Gather information on each job within the organization. Payment of unequal wages and salaries on the basis of race, sex, religion, or political differences. 2. “The aim of the majority of systems of job evaluation is to establish, on an agreed logical basis, the relative value of different jobs in a plant/industry.” Objectives of Job Evaluation: (i) To determine equitable wage differentials between different jobs in the organisation. In the words of Maurice B. Cumming, “Job Evaluation is a technique of assessing the worth of a job in comparison with all other jobs throughout an organisation”. The point system evaluates the skill, effort, responsibility and working conditions involved in the job; here, each of these factors is subdivided into sub factors to provide standards against which each job is rated to determine its relative worth. There are four common methods that are used in job evaluation and these four are categorized under two types of job evaluation methods. Job Evaluation – Meaning, Definition, Objectives and Process, Practical Problems in Using Job Evaluation Technique, Concepts of Job Description and Job Specification, Personnel Administration Data Systems (PADS). Linking jobs, based on job evaluation, and wages and salaries is not completely possible because of the operation of several forces in the environment. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. Employees benefit because job evaluation provides an agreed framework for setting questions affecting jobs and so helps to prevent arbitrary decisions. 2. Various problems involved in job evaluation may be grouped into two categories: technical and operational. For example, often the question is asked: ‘Should grass-cutters (gardeners) get more than gas-cutters (welders)’? Job evaluations can be used to help to attract desirable job candidates and retain high performance employees due to fair and equitable pay scales. Job evaluation is the process of determining the relative worth of different categories of jobs by analyzing their responsibilities and consequently, fixation of their remuneration. Points Rating: This is the most widely used method of job evaluation. Then the deviation (if any) is found out that has taken place during the course of action. It provides bases for wage negotiation founded on facts. “Job Evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs.”. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. The main objective of job evaluation as was stated earlier is to establish from INDUSTRIAL 001 at International School of Business Management It differs from performance evaluations and assessment in that the main goal of a job evaluation is to rate the job in itself, not the person responsible for doing it. Therefore, a job hierarchy, which may be workable at one point of time, may not work at another point of time. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Job hierarchy created through job evaluation may create human problems in an organization particularly if it has been taken for the first time and results into fundamental differences as compared to the existing system. The process can ensure that an organization’s pay system is equitable, understandable, legally defensible, and externally competitive. Additional information is often requested in order that one document can fulfil the needs of several processes, such as: recruitment and selection; appraisal; job evaluation and training. The main objective of conducting job analysis is to know whether the job description and job specification which was mentioned to hire right quality of work force by the company is appropriate or not. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. It states the minimum acceptable qualifications that an incumbent must possess to perform the assigned duty successfully. Goal setting is an essential process to build a … It differentiates one job from another by introducing unique characteristics of each job. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. AUDITING Multiple Choice Questions :- 1. Following are the main objectives or purposes of job analysis: A job description is a job profile which describes the contents, environment, and condition of jobs. Often it has been observed that these external factors change with the time, e.g., previously, engineers were the highest earners but now the sequence is followed by medicos, MBAs and now information technology professionals in ascending order through over the period of time, their job factors have remained the same. Therefore, many organizations do not prefer to take it in a formal way. The employee perfor… The aim of job evaluation is to establish, on agreed logical basis, the relative values of different jobs, it aims at determining the relative worth of a job. The goals of the best employee performance evaluations also include employee development and organizational improvement. This basic objective of job evaluation serves a number of purposes which may be grouped into three categories: wage and salary fixation, restructuring job hierarchy and overcoming anomalies. The job description identifies the main tasks to be performed by an employee. Job Evaluation is the output provided by job Analysis. Evaluate each position utilizing the chosen method and link the ranked job to the organization’s existing compensation system or to a newly developed pay structure. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). The aims of Job analysis is to always ascertain and record the job-related information of the employment measures like training, selection, payment, and performance assessment. Job analysis also provides required information which is necessary for evaluating the worthiness of jobs. Job Evaluation helps the management to maintain high levels of employee productivity and employee satisfaction. If a foreman gets fewer wages than the supervisor, it is a case of internal inconsistency. It is not compulsory To define satisfactory wage and salary differentials Job is rated before the employee is appointed to occupy None of the above The system of job evaluation is a powerful tool in the hands of management in managing manpower. 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It claims the following points to its credit. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. Standard means minimum acceptable qualities or results or performance or rewards regarding a particular job. For fixing compensation to different jobs, it is essential that there is internal equity and consistency among different job holders. Objectives of Job Analysis Job analysis is a process which determines the duties and skill requirements of a job. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. The process of evaluating a job involves systematically determining the value of a position within an organization. ADVERTISEMENTS: Thus, inequalities in wages must be removed. According to Scott, Clothier and Spriegel, “Job Evaluation or job rating is the operation of evaluating a particular job in relation to other jobs either within or outside the organisation.”, In the words of Dale Yoder, “Job Evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among similar organisations.”, In the words of John A. Shubin, “Job Evaluation is a systematic procedure for measuring the relative value and importance of an occupation on the basis of their common factor (skill, training, efforts) for the purpose of determining wages and salary differentials.”. Depending upon these characteristics job demand is of varying degrees of the various qualifications, skill, experience etc., on … It is prepared on the basis of data collected through job analysis. Job evaluation is a costly and technical exercise. Job analysis provides the information about the job and standard of each can be established using this information, Training and Development Process of BARC Bank Limited. Under this method, jobs are … It is the systematic scoring and comparison of jobs along organizationally determined dimensions of job worth, such as, in the effort, responsibility, complexity, importance, skills and the working conditions of a job. This establishes the relative worth of a job in relation to the value of other jobs in the workplace. When should you do a job evaluation? Everyone benefits from a system which enables the pay for new and revised jobs to be settled in the same way as for existing job by preventing anomalies. It is the process of studying and collecting information relating to operations and responsibilities of a specific job. are being paid. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. 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. Specialization For the reason, division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. The main purpose of any job descriptionis to outline the main duties and responsibilities that are involved in a particular job. Goal Setting Is Integral To Systematic Evaluation. What is the main objective of job evaluation? The worth of each job within the organization is determined through the Job Evaluation process (job analysis, job descriptions, & job evaluations). The primary objective of job Evaluation is to find out the value of work, but this is a value which varies from time to time and from place to place under the influence of certain economic pressure. A job is defined as a collection of duties and responsibilities which are given together to an individual employee. 2. Objectives of Performance Appraisal The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. How to Motivate Your Team Through Mobile Messages, Supportive Communication - Meaning and Attributes, 4 Key Things Employees Are Looking for From Their Next Workplace, Understanding Different Types of Supply Chain Risk, Supply Chain Integration Strategies - Vertical and Horizontal Integration, Various problems involved in job evaluation. Learn how your comment data is processed. Thus, in order to make job evaluation effective, it should be undertaken at regular intervals. Job Evaluation is done by group of experts. Job evaluation can be defined as, “the process of determining the relative worth of jobs and it provides an objective determination of the value of each job” (K.Quible, 2005). (a) selection ADVERTISEMENTS: (b) placement … HRM (Human Resource Management) MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management Page-5 section-1 d) None of the above . According to Bethel, Atwater and Smith, “Job Evaluation as a personal term has both a specific and genetic meaning specifically, it means job rating or the grading of occupations in terms of duties, generally it means the entire field of wages and salary administration along modern lines”. It also helps to ensure that differences in skill and responsibility are properly recognized. Similar such questions may be raised if there is lack of objectivity. Following are the main objectives or purposes of job analysis: Job analysis is a process which determines the duties and skill requirements of a job. So, Job evaluation is the process of determining and quantifying the value of jobs. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. Job evaluations typically follow these steps: Job Evaluation is advantageous to management, workers, trade unions and organisations as well. You saw that the tool is most effective when evaluation includes well-developed goals and objectives that are developed with the needs of both the organization and employee in mind. Required fields are marked *. The M&E is separated into two distinguished categories: evaluation and monitoring. The evaluation may be achievement through assignment of points or the use of some other systematic rating method for essential job requirements such as skill, experience and responsibility”. In fact, this should be undertaken. Multiple choice questions are mostly used in the objective section of tests and/or exams. What is Job Evaluation Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. According to Bureau of Labor Statistics, “Job Evaluation is the evaluation or rating of job to determine their position in job hierarchy. 7. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. After the preparation of job description and job specification statements, it assists for the evaluation of actual performance against the predetermined standard. An evaluation is a systematic and objective examination concerning the relevance, effectiveness, efficiency and impact of activities in the light of specified objectives. Job evaluation is a tool to compare jobs consistently and classify them into appropriate pay ranges. Ensure that each job description lists pertinent accountabilities and responsibilities; revise or expand job descriptions using the information collected. Aims and Objectives of Job Evaluation: The overall aim of job evaluation is to assess and evaluate the nature of the work to be done in a particular job; the key tasks to be carried out, and the balance, difficulty, value, frequency and importance of these. Review the choices of job evaluation methods such as job ranking, classification, factor comparison and point factor analysis and select the method most appropriate to meet the organization’s needs. Work simplification means dividing the job into small parts i.e. These are the five goals of an effective employee evaluation process. The main objective of job-evaluation is to have external and internal consistency in wages structure. Hence, it … d) None of the above . What Should You Include in a Companies Operating Agreement? The main objective of job evaluation is to determine relative worth of different jobs in an organisation to serve as a basis for developing equitable salary structure. Moreover, job evaluation helps to establish the value of different jobs in a hierarchical order which allows comparing jobs one from another. The primary objective of job Evaluation is to find out the value of work, but this is a value which varies from time to time and from place to place under the influence of certain economic pressure. ... For the purpose of job evaluation, the evidence from job analysis should be treated with caution. Job Evaluation is the output provided by job Analysis. Management has the advantage of greater order in its pay arrangement and more stable wage structure. The objective of job evaluation is to determine which jobs should get more pay than others. The employee and the supervisor are clear about the employees goals, required outcomes or outputs, and how the success of the contributions will be assessed. Your email address will not be published. It includes the information relating to the requirements of skills and abilities to perform a specific task. Job specification is another notable objective of job analysis. Technical Problems: There are some technical problems involved in effective job evaluation, which are of the following nature. The job specification statement identifies the knowledge, skills, abilities needed to perform that task effectively. Union can play a more important role in determining the relation between different levels of pay and in the joint regulation of work place conditions. 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