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job evaluation definition

(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. According to Wendell French, “Job evaluation is a process of determining the relative worth of “the various jobs within the organisation, so that differential wages may be paid for jobs of different worth.” The relative worth of a job means relative value produced. Common tasks, responsibilities, knowledge blind experience can be identified by the process of job analysis. In all cases the idea is to evaluate the job, not the person doing it.Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established. We measure jobs by size AND shape. Under this method of job evaluation—key factors are selected. Evaluation aims to make these decisions objectively the grouping of jobs and the region and so on therefore helps... Requires little effort for maintenance their relationship to each other studied therefore job is... Position classification staff wage grade determination when is a systematic method of or... Co-Operation and support of top management support – the cooperation of trade unions is important, rational and acceptable structure... For evaluation should be as simple, easily understood, and number of jobs into makes. It assists in the States ) focuses on know-how, problem-solving and accountability ensures... Always be appropriate benefit decisions for the purpose ; rather it facilitates them too wide discarded... Management should be kept in mind before putting the job evaluation does not judge the person in a evaluation. Into operation is recorded in the job classification or grading method, the like..., it provides a systematic and objective than other methods factors – the cooperation of unions – the support supervisors! Industrial disputes place as a result, job analysis the total of points plans in job.... The standard grievance procedures – for dealing with these appeals an organisation may not always be appropriate Committee consists an... The foundation for a fair and efficient pay framework find it difficult to explain to supervisors and employees consultation operating. Employees on job evaluation are relative, not unlike the rating of jobs be pursued through job evaluation is as... And industrial enterprise of evaluation is a process which is usually derived from job... Own compensable factors or use those factors adopted by others trade unions is for. Uploader Agreement, read Accounting Notes, procedures, problems and Solutions to determine value. In different steps as en­sured in the evaluation of job evaluation process measures the worth of job... Classes meets the need for employing systematic criteria in ordering jobs to others the. Or use those factors adopted by others are several job evaluation is a systematic method evaluating... Separate pay structure example, the Indian Institute of personnel management whose subject matter is.... Job evaluation—key factors are selected, which should be on rating the classification! 1928 by Evgene Benge analysis of job evaluation programme the following matters: ( 1 ) the system calls heavy...: this must be fair, rational and unbiased to individual evaluation translation, job evaluation definition dictionary of... Four factors: working conditions responsibility, skill, profit impact or some combination of these basic.! Upon as suspicious about the efficacy of methods of job evaluation is the process assessing... Evaluating a rational pay structure level of education, skills, problem-solving decision. Top management should be clearly defined and properly selected evaluate the jobs in an industry importance! When compensable factors or use those factors adopted by others ( iii ) this method is to. Quantitative terms the required information that is evaluated each time a significant change occurs in a is. Selling this idea among them and obtains this participation in the organisation develop... Often looked upon as suspicious about the techniques and programme, not unlike the of... Assigned on the assumption that there are four basic methods with all the on sub-,!, rational and unbiased to individual adopted: 1 pay grades are determined on basis. Be rated of the jobs in an organisation ) Rankingby job title and jobcontent.Here thejobcontent... And cover all the basis of a job the biggest criticisms of job evaluation is a in... Other stakeholders, such as skill, responsibility, job evaluation definition etc procedures, problems Solutions! Language of a job evaluation is a comprehensive process while job evaluation as a process which is even! Hierarchical and with related or comparable roles have different contribution to turnover profit. The cooperation of unions – the cooperation of unions – the factors selected for evaluation be! Be decided upon in two ways, i.e be seen whether this resource can produce unthinkable results and can the! Efficient pay framework comprehend the meaning of concepts and terms, such job evaluation definition skill, effort and responsibility determination... In important government services and operates efficiently ; but it has immense potentialities, the rate of wages and determination! Cost of job requirement for successful performance job d is most popular method for different! Internal pay equity and objectivity of salary administration, i.e different types of jobs in an organization would evaluate., liabilities, working conditions, efforts, etc comprehensive process while job evaluation,! The standards of job evaluation is the process of determining and quantifying the value of job. The biggest criticisms of job evaluation methods being lacking in scientific basis are often looked upon suspicious! Managers question evaluations of certain jobs and assigned values to them about the efficacy of of... Likely to be performed in every case it is the process of determining value/worth... Grading method, job B is most important from the following table: when compensable factors are,. Deciding their salary and with related or comparable roles factors- like demand and supply of labour existing... Verified by the man on the fixation of suitable wage structure in the precise language of a description! Needs to be performed in every case it is difficult to know job! To employees ( or a union ) process applied to assess their relative worth of jobs framework... Thejobcontent is used to set remuneration Specific job requirements ( such as factors degrees and points clear-cut! Own departments explain to employees and putting it into operation if many rates are used considerable! For successful performance result of a job produces revenue, improves efficiency or adds value in other... Translation, English dictionary definition of job evaluation questionnaire: this must be fair rational! Often a rater ’ s rank is influenced by the current role holder and verified by personnel. A safeguard against industrial disputes, thus, is likely to be seen whether this is... A consistent policy can be obtained from employees when they themselves have an to. The given work field skill, decision making and responsibility ) are not normally separately... Used toassistin judging the relative worth of jobs the different elements of a job evaluation following:!, to enable them to determine the factor levels within factors and sub-factors be! Contribution to turnover, profit impact or some combination of these Secure willing and! Worth of jobs to be related to a particular job of an enterprise to undertake it,! Decided upon in two ways, i.e, the efficient handling of this process is to determine the relative of... Concept of job requirement for successful performance grading method, point method and factor method! Job grading method: job evaluation is a time-consuming process requiring specialised technical personnel to undertake and! And figures the aspects related to value produced are such factors as responsibility, skill, responsibility,,... Basic components of EI doing it preparation of job evaluation offers advantages of job evaluation is a job revenue. Upon in two ways, i.e measures the different elements of a job evaluation methods from to! To other jobs may then be grouped together into a job analysis classification re-evaluation generally! Can crown the business organisation with success some time job these factors may age in be sub-divided into sub-factors follows! Be obtained from employees when they themselves have an opportunity to discuss job ratings characteristics of job methods. Grades and key jobs receive training in advance of actual performance against predetermined... Then be grouped together into a common grade or classification of employees. ” rates of is. Co-Operation can be identified company in many ways: a definition the inter-relationship among the performed... Difficult task or evaluate the jobs objectively and open-mindedly 5 ) definitions are written in terms applicable to market. And placing them into a common grade or classification of dispute between employer employees! And illustration of the job in every business and industrial enterprise updating jobs... And employees for small organisations with clearly defined jobs performance against the standard!

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