Job Evaluation New

8/6/2019 Job Evaluation New

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MEANING AND DEFINITIONMEANING AND DEFINITION

y Job evaluation is an orderly and

systematic technique which aims at

determining the worth of the job. It is the

formal system of determining the base

compensation of jobs. The basic objective

of job evaluation is to ascertain the

relative worth of each job. Job evaluationrates the job and not the man.



y According to I.L.O, ³ Job evaluation may be

defined simply as an attempt to determine and

compare the demands which the normal

performance of particular jobs makes on

normal workers without taking into account of

the individual abilities or performance of the

workers concerned.´

y The British Institute of Management has defined

job evaluation as, ³ T he process of analysis and

assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis

for a balanced wage structure.´



JOB EVALUATION METHODS JOB EVALUATION METHODS

y NON-QUANTITATIVE METHODS

a) Ranking or Job Comparison method

b) Grading or Job Classification method.

� QUANTITATIVE METHODS

a) P

oint rating method b) Factor comparison method



NONNON--QUANTITATIVE METHODQUANTITATIVE METHOD

y Utilizes non-quantitative methods for

listing the job in the order of difficulty.

The comparison and evaluation is on the

basis by ranking or classifying the jobsfrom the lowest to highest. Non-

quantitative method is of 2 types

y Ranking methody Grading method



1. RANKING METHOD1. RANKING METHOD

y Simplest method. According to this method,

jobs are arranged from highest to lowest, in

order of their value or merit to the organization.

Jobs also can be arranged according to therelative difficulty in performing them. The jobs

are examined as a whole rather than on the basis

of important factors in the job.

� The purpose of ranking is to determine whether a job involves same level of duties,

responsibilities while comparing with others.



Eg: Rank Monthly salaries

y 1. Accountant Rs 5,000

y

2. Accounts clerk Rs 3,800y 3. Purchase assistant Rs 2,500

y 4. Machine-operator Rs 2,000

y

5. Typist Rs 1,000y 6. Office boy Rs 750



ME RITS:� Simple, quick and inexpensive

� Suitable for small organization

� Easy to explain to the employees andtrade union.

D EME RITS:

�

It simply make a job order., but does notindicate how much one job is differ from

other.

� Not suitable for large organization.



2. JOB GRADING METHOD2. JOB GRADING METHODy Improved method over ranking method.

Under this system, a number of pre-

determined grades or classifications are

first established and the various jobs areassigned within each grade or class. For

each class a general specification is

prepared indicating the nature of work and

responsibilities that are included. One

strong point in favor of the method is that

it takes into account all the factors that a

job comprises.



y Eg. Class I - Executives: Further classificationunder this category may be Office manager,

Deputy office manager, Office superintendent,

Departmental supervisor, etc.

y Class II - Skilled workers: U nder this categorymay come the P urchasing assistant, Cashier,

Receipts clerk, etc

y Class III - Semiskilled workers: U nder this

category may come Steno typists, M achine-

operators, Switchboard operators, etc.

y Class IV - Semiskilled workers: This category

comprises File clerks, Office boys, etc.



ME RITS:

�

Easy to understand and suitable for smallorganizations.

� Pay determination is easier to handle.

� This system can be effectively used for a

variety of jobs.

D EME RITS:

� Unsuitable for large organization.

�

Even when the requirements of different jobsdiffer, they may be combined into a single

category, depending on the status a job carries.

� It is difficult to write all-inclusive descriptions

of a grade.



QUANTITIVE METHODQUANTITIVE METHOD

y In this method, various factors of jobs are

considered and points are assigned to

them according to their relative worth.

This is based on some calculations.Quantitative methods are of two types:

y Point Rating method

y Factor comparison method



1. POINT RATING METHOD1. POINT RATING METHOD

y This method is widely used currently.

Here, jobs are expressed in terms of key

factors. Points are assigned to each factor

after prioritizing each factor in the order of importance. The points are summed up

to determine the wage rate for the job.

Jobs with similar point totals are placed in

similar pay grades. This method was

originally designed and developed by

Western Electric Company.



y EgPoint values for Degrees

Factor J 1 J 2 J 3 J 4 J 5

y

Skill 10 20 30 40 50y Physical effort 8 16 24 32 40

y Mental effort 5 10 15 20 25

y Responsibility 7 14 21 28 35

y Working conditions 6 12 18 24 30

Total 36 72 108 144 180



2. FACTOR COMPARISON2. FACTOR COMPARISON

METHODMETHODy Thomas E Hilton was the first to originate

Factor comparison method. This method is often

used to evaluate the white collar, professional

and managerial positions although it is equallysuitable for grading other jobs as well. It is

essentially a combination of both ranking and

point method. Like ranking method it rates the

jobs by comparing one job with the other andlike point system it is more analytical of

subdividing jobs into compensable factors.



Continued«Continued«

y Under this method, instead of ranking

complete jobs, each job is ranked

according to a series of factors. These

factors include mental effort, physicaleffort, skill needed, supervisory

responsibility, working conditions and

other relevant factors. Pay will beassigned in this method by comparing the

weights of the factors required for each

job.



LABOUR WELFARELABOUR WELFARE

y According to ILO Labour Welfare is

such services, facilities and amenities as

adequate canteens, rest and recreation

facilities, arrangements for travel to andfrom work and for the accommodation of

workers employed at a distance from their

houses and such other services, amenitiesand facilities as contribute to improve the

conditions under which workers are

employed.



y Labour Welfare is the physical,

psychological and well-being of the

working population. Or in simple terms

Labour welfare implies providing goodworking conditions for the employees.



EMPLOYEE MORALEEMPLOYEE MORALEy Morale is a mental condition or attitude

of individual and groups which

determines their willingness to cooperate.

y Morale may be defined as an attitude or satisfaction with the desire to continue in

a willingness to strive for the goals of a

particular group or organization.

y Employee morale is the combination of

attitude towards the company, job and the

immediate supervisor



EFFECTS OF LOW MORALEEFFECTS OF LOW MORALE

y High rate of absenteeism

y High Labour turnover

y Strike

y Lack of pride in work

y Wastage and spoilage



MEASURES TO BUILD UP HIGHMEASURES TO BUILD UP HIGH

EMPLOYEE MORALEEMPLOYEE MORALEy Unity of interest

y Leadership confidence

y Sound wage structure

y Favourable work environment

y Employee counselling

y Grievance redressal procedure

y Good promotion policy

y Good induction and Training programmes



JOB SATISFACTION JOB SATISFACTION

y Job satisfaction is the amount of overall

positive effect or feelings that individuals

have towards their jobs.

y It is the employee¶s general attitude

towards his job.



DETERMINANTS OF JOBDETERMINANTS OF JOB

SATISFACTIONSATISFACTIONy ENV IRO NMEN TAL FACTORS

Job content

Occupational level

Pay and promotion Work group

Supervision

� PE

RSO N

AL CHARACT E

RISTICS Age

Gender

Educational level

Experience



WORKERS PARTICIPATION INWORKERS PARTICIPATION IN

MANAGEMENTMANAGEMENTy Workers participation in management

means giving scope for workers to

influence the managerial decision making

process at different levels by variousforms in the organization. The principal

forms through which workers

participation are information sharing, jointconsultation and suggestion schemes.



METHODS OF PARTICIPATIONMETHODS OF PARTICIPATIONy Participation at board level.

y Participation through ownership

y Participation through joint councils and

committees.y Participation through control

y Participation through collective

bargainingy Participation through suggestion schemes

y Participation through quality circles

y Empowered teams



NEED AND IMPORTANCENEED AND IMPORTANCE

y Reduced industrial unrest

y Reduced misunderstanding

y Increased organization balance

y Improved communication

y Higher productivity

y Increased commitment

y Development of individuals

y Less resistance to change



QUALITY CIRCLESQUALITY CIRCLESy A Quality Circle is a small group of

employees doing similar or related work

who meets regularly to identify, analyse

and solve product-quality problems and to

improve general operations.

y The ideal size of a group is 6-8 members.

y The workers who have a shared area of

responsibility meet periodically to discuss,

analyse, and propose solutions to ongoing

problems.



Features of QCFeatures of QC

y QC is a voluntary group

y Represents a collective effort

y Intends to improve the quality of output

y It facilitates frequent meetings and

discussions of members for improving

quality.

y No discrimination on the basis of age,

position etc«..



Advantages of QCAdvantages of QC

y Generation of creative ideas

y Improvement in productivity

y Better team work

y Higher motivation

y Development of problem solving skills



Conditions for making QC EffectiveConditions for making QC Effective

y Top management support

y Education and training of management

and workers

y Timely implementation of ideasgenerated by QC

y Sharing gains in productivity with

workersy Facilities for meeting and discussion

y Regular monitoring of working of quality

circles



TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

y TQM may be defined as creating anorganizational culture committed to the

continuous improvement of skills,

teamwork, process, product and service

quality and customer satisfaction.

y Everyone in the organization from the

CEO to the lower level employees are

involved in the TQM process.

y It is a process and means of maintaining

the leadership position through continuous

change, adaptation and improvement .



Components of TQMComponents of TQM

y Customer Orientation

y Continuous improvement

y Employee¶s Involvement



Steps in TQM processSteps in TQM processy Lay down policies and objectives of TQMy Chalk out the methods to achieve TQM

objectives

y Educate and train workers and managers to

understand and meet the requirements of TQM

y Implementation of change

y Observe the results

y Analyse resultsy Prevent undesired effects in Quality

improvement

y Measures for improvement



Innovative techniques in TQMInnovative techniques in TQM

y

Re-engineering : is the fundamental rethinkingand radical redesign of business processes to

achieve improvements in performance such as

cost, quality and service

y Benchmarking: It is the process of comparingwork and service methods against the best

practices for the purpose of identifying changes

that will result in higher quality output.

y Empowerment: occurs when employees areadequately trained, provided with all relevant

information and the best possible tools fully

involved in key decisions and fairly rewarded

for results.



QUALITY OF WORK LIFEQUALITY OF WORK LIFEy QWL is a process of work organization which

enables its members at all levels to participate

actively and efficiently in shaping the

organization¶s environment, methods and

outcomes. It is a value based process which is

aimed towards meeting the twin goals of

enhanced effectiveness of the organization and

improved quality of life at work for the

employees.

y QWL is the degree to which members of a work

organisation are able to satisfy their personal

needs through their experience in the

organization.



Scope of QWLScope of QWL

y Fair and reasonable pay

y Favourable and safer environment

y Benefits for employees

y Job security

y Job satisfaction

y Scope for better career opportunities

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Job Evaluation New