(d) Job evaluation is carried out by groups, not by individuals. The job contents may be decided upon in two ways, i.e. The information obtained in job analysis is recorded in the precise language of a job description. A consistent policy can be pursued through job evaluation. The grade definitions may refer to such job characteristics as skill, decision making and responsibility. 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. 1.2 Equal Pay for Equal Value – the Legal Position Job Evaluation – Definitions by Some Eminent Scholars Like Kimball & Kimball, John A. Shubin, Flippo, Dale Yoder, Wendell French and Other Institutions, Job Evaluation – Factors that Job Evaluators Consider while Evaluating a Job, Job Evaluation – Principles: According to Kress, Job Evaluation – 4 Important Methods: Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits). Importance 6. 2. For example, refer to the following table: When compensable factors are available more systematically. job evaluation definition: 1. the process of comparing a job with other jobs in an organization and deciding how much the…. 9. These rates must be determined on the basis of points. Jump to: Position Classification Staff Wage Grade Determination When is a Job Evaluation Plans commonly used today represent variations of these basic methods. The term Job Evaluation has been defined by some eminent scholars as follows: Kimball & Kimball, “Job Evaluation represents an effort to determine the relative value of every job in a planned way and to determine what the fair basic wage for such a job should be.”, John A. Shubin, “Job Evaluation is a systematic procedure of measuring the relative value and importance of occupations on the basis of their common factors like skill, training, efforts etc. The jobs are evaluated on the basis of its content and the complexity involved in its operations and thus, positioned according to its importance. . Under this method of job evaluation, first of all key factors for all the jobs are determined. On the basis of analytical study of above definitions, it may be concluded that job evaluation is a technique by which different job of an enterprise are evaluated for the specific purpose of determining the wages and salary structure of enterprise. Wages for different jobs are determined on the basis of a survey. (v) It is an important tool in fixing wages – Job evaluation involves rating or ranking of the jobs which enables organization to fix suitable wage or salary for the job. About-10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades. These jobs may be marked as Job A, Job B, Job C, Job D etc. According to Kress, these principles are: (1) The elements should be clearly defined and properly selected. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions. (1) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. Job evaluation manual become more effective if “Job description” and Job specification can be redrafted in terms of factors identified for each cluster. © 2012 Farlex, Inc. Job evaluation is the systematic process of determining the relative value of different jobs in an organization. It is on the basis of job evaluation that various incentive methods of wage payments can be introduced by determining the base compensation of job. Its main objective is to adopt suitable wage structure. Organisation chart showing the location of the job under review. Define job evaluation. Job evaluation describes "a systematic process that enables the design and establishment of human resources improvement procedures and fair reward systems" and thereby "concerns the assessment of a value system that encapsulates the importance of the parameters that reflect the global responsibilities and duties of a job" (Spyridakos et al., 2001: 376). Often several basic factors are chose initially and then sub-divided into sub-factors. This system suffers from the following defects: (i) The system is rather rigid and unsuitable for a large organisation or for very varied work. Why are job evaluations important? ; According to Alford and Beatty, “Job Evaluation is the … Comprehensibility of job evaluation programme – Job evaluation programme should be understandable to all categories of employees. Job evaluation aims to determine a job’s relative worth.The job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. determination of job worth for the purpose of compensation through a comprehensive job evaluation system. by deciding that one job is “more important” than another, and not going any deeper in why—in terms of specific job-related factors; or by comparing one job to another by focusing on certain basic factor, which may be common in each job. Each job is rated using the job evaluation instrument. Job evaluation as a process is advantageous to a company in many ways: Steps Involved in Evaluation Procedure 9. Job evaluation is a systematic and objective process used by organizations to compare the jobs within the organization to determine the relative value or worth of each job. Under this system, a number of pre-determined grades or classifications are first established by a committee and then the various jobs are assigned within each grade or class. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Job evaluation suffers from the following disadvantages: (i) It may fail to consider all the factors – Job evaluation may not consider all the factors like skill required, service condition, social status etc., which influence the value of job. 200%. The comparison of jobs may be made on the basis of different factors like duties, liabilities, working conditions, efforts, etc. 2. Job Evaluation 1.1 Job evaluation is a method of comparing different jobs and placing them into a rank order according to their size. Analyse and Prepare Job Description – This requires the preparations of a job description and also an analysis of job requirement for successful performance. 5. Evaluation factors – The factors selected for evaluation should be measurable and definable and represent job content. job evaluation definition in English dictionary, job evaluation meaning, synonyms, see also 'programme evaluation and review technique',evacuation',evaluator',evaluative'. Positions are measured in relation to each other, usually hierarchical and with related or comparable roles. Job evaluation is the process of assessing or measuring the relative worth of Jobs. Features 5. It is intended to provide a rational, orderly hierarchy of jobs based on their worth to the company by analysing the difficulty of the work performed and the importance of the work to the organisation. paying the people whose work is alike the same wages, and establishing appropriate wage differentials between jobs calling for different skills and responsibilities; (iii) Union-management negotiations on wages; (iv) Comparison of wage and salary rate with those of other employees. 7. So, Job evaluation is the process of determining and quantifying the value of jobs. (2) Job Classification or Grading Method: Job Evaluation Programme– : Prerequisites, Guidelines and Measures Adopted. It is difficult to explain to supervisors and employees. 4. Further, it has been said that it is inaccurate to claim scientific exactness for the results of job evaluation, no judgement, however, well informed is exact in a scientific sense. Learn more. Job evaluation is a process of determining the relative worth of a job. Disclaimer 8. Job Analysis and Job Evaluation are important to an organization to ensure a sound organizational structure, internal pay equity and external market competitiveness. 5. During a job evaluation, a combination of factors is used to determine the relative worth of a job and how it compares to other jobs in the organization. The first two systems are called the non-analytical or non-quantitative or summary systems, because they utilise new-quantitative methods of listing jobs in order of difficulty and are, therefore, simple. What is a job evaluation? In spite of these drawbacks, this system is used by most organisations because its greater accuracy possibly justifies the large expenditure of time and money. (iv) Helps to maintain good industrial relation – Job evaluation helps to minimise wage differentials of employees. THE BASIC STEPS FOR DEVELOPING A JOB EVALUATION IN YOUR ORGANIZATION: STEP 1: Define the jobs STEP 2: Select a job evaluation method The process of defining a job is called job analysis. 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 … The Bureau of Labour Statistics, U.S.A. says that “job evaluation is the evaluation or rating of jobs to determine then position in the job hierarchy. Consultation with operating manager – Operating manager should be taken into confidence about the techniques and programme of job evaluation. two people on the same ‘level’ with different salaries, Compare remuneration with other companies, Design new jobs, departments and functions, Rework their pay framework after a company re-organisation. The job of highest importance to the enterprise is paid the wages at highest rate and the job of comparatively less importance to the enterprise is paid the wages at lower rate. What is Job Evaluation? Definition of JOB EVALUATION in the Definitions.net dictionary. The rates of wages must be fixed according to the market rates. In fact, the primary purpose of job evaluation is to set wages and salary on the basis of the relative work or jobs in the organisation. It is based on an initial definition of the number and characteristics of the grades into which jobs will be placed. Job Evaluation definition A systematic, formal process that allows organisations to compare jobs to others across the company and the industry. A definition. (iii) This method is more scientific than other methods. What is Job Evaluation – Meaning 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. (vi) Helps in determining the training need and type of persons required – As job evaluation involves analysis of different components of job, it enables organization to determine training need and type of persons required to handle such job. It is the line manager’s responsibility to ensure that all documents are complete in final form prior to making a request for job … While some other system (say Hay system in the States) focuses on know-how, problem-solving and accountability. It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure. Job evaluation is a technique of personnel management whose subject matter is man. Some jobs are ‘worth’ more than others. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. (2) Rankingby job title and jobcontent.Here,thejobcontent is used toassistin judging the relative importance ofthe jobs. Job evaluation is the process of assessing or measuring the relative worth of Jobs. Job evaluation explained. 5. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. The organisation might develop its own compensable factors or use those factors adopted by others. It is a complex of job analysis, the study of jobs, job description, the statements of the results of the analysis upon which follows job grading, the placing of jobs in a sequence or ranking which is the basis of job assessment and the establishment of fair pay based on job grading. (3) The development and installing of the system calls for heavy expenditure. Other stakeholders, such as employees and unions, may ascribe greater importance to certain factors than employers. This means that a job must be broken down into its components part, i.e., it should be involve the selection of factors, elements need for the performance of all jobs for which money is paid, determining their value and preparing written instructions for evaluation. The evaluation may be achieved through the assignment of points or the use of other systematic method for essential job requirements, such as skills, experience and responsibility.”. In every case it is the job that is evaluated not the person doing the job. Definition of Job Evaluation 3. The purpose of the job evaluation is to have a satisfactory wage differential. (iii) It is time consuming and expensive – Due to change in contents and work conditions, frequent evaluation of job is necessary by an expert or competent persons. Rate of wages is determined on the basis of importance of job. Meaning: Job evaluation is an orderly and systematic process of determining the wages (or worth) of the job in relation to other jobs.It is a process of rewarding the job after it has been analysed. job evaluation meaning: 1. the process of comparing a job with other jobs in an organization and deciding how much the…. Job evaluation and its objective. (iv) Selection of Grades and Key Jobs. (ii) Influence of human error – There is no standard list of factors to be considered and there is a difficulty in measuring the some factors. ADVERTISEMENTS: Job-Evaluation: it’s Meaning and Definition! The wages for all other jobs may be determined on the similar base. This requires the preparations of a job description and also an analysis of job requirement for successful performance. Generally, there are four key factors affecting a job: (i) Skill; (ii) Responsibilities; (iii) Efforts; and (iv) Working Conditions. (5) The system is complex and cannot be easily explained to, and understood by, every day non- supervisory organisational employee. The principal differences between these methods reflect. There are four basic, traditional systems of job evaluation: (1) the ranking system; (2) the grading or job classification system; (3) the point system; and (4) the factor comparison system. Job evaluation and compensation. Therefore, it is suitable for small organisations with clearly defined jobs. Job analysis also provides the required information that is necessary for evaluating the worthiness of jobs. As a result, job evaluation is used to set remuneration. For the purposes of fair pay, organisations would ‘evaluate’ the jobs performed within them to determine their value to the organisation. Job evaluation definition is - systematic qualitative appraisal of each job or position in an establishment either through the assignment of points for job characteristics or through comparison of job factors (as mental effort, experience, and responsibility required) for the purpose of determining the relative position of the job in the job hierarchy and for fixing wage rates. The results of job evaluation must be fair, rational and unbiased to individual. vi. : Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits), Prerequisites of a Job Evaluation Programme, Guidelines for Conducting Job Evaluation Programme. Objectives, Features, Importance, Factors , Definitions by Some Eminent Scholars Like, Dale Yoder, Wendell French and Other Institutions, – Factors that Job Evaluators Consider while Evaluating a Job, Step # 1. This may be made clear from the following table: Thus, the rate of wages for Job X will be Rs. Maintain the Programme – Jobs cannot continue without updating new jobs and change in obedience to changing conditions and situations. It is a process which is helpful even for framing compensation plans by the personnel manager. (v) It is not suitable for managerial job – Jobs like planning decision making etc., are skill oriented and hence cannot be measured in quantitative terms. The last two systems are known the analytical or quantitative systems, because they use quantitative techniques in listing the jobs. Education of employees on job evaluation technique – All employees should be enlightened on job evaluation techniques and programme. The details of administration of the plan should be as simple, as possible. in which the job is performed. Learn more. Analyse and Prepare Job Description –. iii. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone. Evaluation definition is - the act or result of evaluating : determination of the value, nature, character, or quality of something or someone. (d) Secure willing co-operation and support of supervisors on job evaluation. The data and analysis resulting from these two processes will be critical for other human resource processes such as recruitment and selection, training and development, performance appraisal, as well as various … Job evaluation can be quite an invasive process, particularly if the analysis runs deeply, which means HR must consider and mitigate the effect on employees. Job Evaluation is a systematic method of assessing the relative sizes of jobs within an organisation by comparing a job or group of jobs with other jobs. (1) Consideration of the ‘job as a whole’, versus consideration of compensable factors; and (2) judging and comparing jobs with each other rather than assigning numerical scores on a rating scale. 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