Everything you need to know about job evaluation in human resource management. 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. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs.
The objective of this process is to determine the correct rate of pay. Job evaluation is the process of assessing or measuring the relative worth of Jobs. Its main objective is to adopt suitable wage structure. It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. In other words it is the rating of jobs in an organization.
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. 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.”
Learn about:- 1. What is Job Evaluation? 2. Definition of Job Evaluation 3. Objectives 4. Features 5. Importance 6. Factors 7. Principles 8. Steps Involved in Evaluation Procedure 9. Methods 10. Programme 11. Advantages and Disadvantages.
Job Evaluation : Definition, Objectives, Features, Importance, Factors , Principles, Procedure, Steps, Programme and More..
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Contents:
- What is Job Evaluation?
- Definition of Job Evaluation
- Objectives of Job Evaluation
- Features of Job Evaluation
- Importance of Job Evaluation
- Factors that Job Evaluators Consider for Evaluating Job
- Principles of Job Evaluation
- Steps Involved in Job Evaluation Procedure
- Methods of Job Evaluation
- Job Evaluation Programme
- Advantages and Disadvantages of Job Evaluation
Job Evaluation Meaning – 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. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. The objective of this process is to determine the correct rate of pay.
It is an attempt to assess and compare the demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned. Individual abilities or efforts are reflected in the workers’ earnings, but this is something entirely different from the ratings of the job. Job evaluation rates the job, not the man.
Job evaluation is a system in which a particular job of an enterprise is compared with its other jobs. In the present industrial age, there are different types of jobs to be performed in every business and industrial enterprise. Comparative study of these jobs is very essential because on the basis of such study the structure of wages for different type of job is prepared.
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The comparison of jobs may be made on the basis of different factors like duties, liabilities, working conditions, efforts, etc. In brief it may be said that job evaluation is a process in which a particular job of a business and industrial enterprise is compared with other jobs of the enterprise. Some scholars name it the determination of job rate also.
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.
There are two essential features or characteristics of job evaluation. First, the focus of job evaluation is upon the job itself, its content or its demands upon the normal average or standard worker performing it rather than upon the person doing it and what he/she may choose to put into it.
Second, the reliance of job evaluation is upon the exercise of human judgement as the method by which ranking of relative work or value of the different jobs in the family or population is arrived at. Together, these distinguish job evaluation as a category of wages and salary determination.
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John—Evaluation is Not an Exact Science:
John Beatty and Henri Fayol are of this opinion that by exact science, we mean direct relationship between cause and effect. Job evaluation is a technique of personnel management whose subject matter is man. As because the nature of man is never exact, hence techniques or principle of social sciences can never produce exact results in all circumstances.
They are always subjected to certain limitations so in the case with job evaluation technique of personnel management it also has certain limitations which should not be ignored while analysing the results of job evaluation.
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. But it has been called that job-evaluation is a systematic technique. Though job evaluation cannot be regarded as exact science, yet it is a scientific and systematic technique of determining the relative worth of the job within the organisation taking into consideration the following two factors i.e. –
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(1) Internal factors- like skill, responsibility, initiative etc.; and
(2) External factors- like demand and supply of labour, existing wage structure in the industry and the region and so on.
It helps to avoid several anamolies in wage and salary structure which would be the root cause of dispute between employer and employees.
Job Evaluation – Definitions by Some Eminent Scholars Like Kimball & Kimball, John A. Shubin, Flippo, Dale Yoder, Wendell French and Other Institutions
Job evaluation is the process of assessing or measuring the relative worth of Jobs. Its main objective is to adopt suitable wage structure. It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. In other words it is the rating of jobs in an organization.
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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. for the purpose of determining wage and salary differentials.”
Edwin B. Flippo, “The system and Orderly process of .measuring the work of jobs within an’ organisation, is called job evaluation,”
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Dale Yoder, “Job Evaluation is a practice which seeks to provide a category of objectivity in measuring the comparative value on jobs within an organisation and among similar organisations. It is essentially a job rating process, not unlike the rating of employees.”
The I.L.O. defines job evaluation as an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.
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. 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 the words of the Netherlands Committee of Experts on Job Evaluation, “job evaluation is a method which helps to establish a justified rank order of jobs as a whole, being a foundation for the setting of wages. Job evaluation is the only one of the starting points for establishing the relative differentiation of base wage rates.
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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. The variables which are assumed to be related to value produced. The variables which are assumed to be related to value produced are such factors as responsibility, skill, effort and working conditions.
We may define job evaluation as a process of analysing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements.
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.
Job Evaluation – Objectives
International labour organisation describes the objects of job evaluation in its report as, “The object of job evaluation is to determine the relative value of jobs of an enterprise and to determine the equal wage for equal jobs on the basis of some rational facts.” The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the relative importance of which varies from job to job.
(1) To provide a standard procedure for determining the relative worth of each job in a plant;
(2) To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant;
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(3) To ensure that like wages are paid to all qualified employees for like work;
(4) To promote a fair and accurate consideration of all employees for advancement and transfer;
(5) To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community of industry?
(6) To provide a factual, basis for the consideration of wage rates for & similar jobs in a community and in an industry;
(7) To provide information for work organisation, employees selection, placement, training and numerous other similar problems.
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 does this by providing a ground for the following matters:
(i) Equity and objectivity of salary administration, i.e. paying the people whose work is alike the same wages, and establishing appropriate wage differentials between jobs calling for different skills and responsibilities;
(ii) Effective wage and salary control;
(iii) Union-management negotiations on wages;
(iv) Comparison of wage and salary rate with those of other employees.
Besides setting wages, job evaluation also helps in:
(a) Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union of internal wage structure and differentials;
(b) Clarifying the functions, authority and responsibility of employees;
(c) Providing standardisation of and improvement in, working conditions;
(d) Developing personnel statistics; and
(d) Developing machinery for a systematic reviewing of job rates as job contents changes.
Knowles and Thomson state that job evaluation is useful in eliminating many of the evils to which nearly all systems of wage and salary payments are subject.
These are:
(1) Payment of high wages and salaries of persons who hold jobs and positions not requiring great skill, effort and responsibility;
(2) Paying beginners less that they are entitled to receive in terms of what is required of them;
(3) Payment of widely varied wages and salary for the same or closely related jobs and positions;
(4) Giving a raise to persons whose performance does not justify the raise;
(5) Deciding rates of pay on the basis of seniority rather than ability;
(6) Payment of unequal wages and salaries on the basis of race, sex, religion or political differences.
It may, however, be noted that a job evaluation system does not accomplish all the purpose; rather it facilitates them. Basically, it provides a systematic catalogue of the jobs in an organisation, which is indispensable for management purposes.
Job Evaluation – 6 Important Features
The purpose of job evaluation is to produce a defensive ranking of jobs on which a rational and acceptable pay structure can be built.
The important features of job evaluation may be summarised thus:
(a) It tries to assess jobs, not people.
(b) The standards of job evaluation are relative, not absolute.
(c) The basic information on which job evaluation are made is obtained from job analysis.
(d) Job evaluation is carried out by groups, not by individuals.
(e) Some degree of subjectivity is always present in job evaluation.
(f) Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure. .
Job Evaluation – Importance
The human resource is very vital for any organisation. Since it has immense potentialities, the efficient handling of this resource can produce unthinkable results and can crown the business organisation with success. But it is to be seen whether this resource is being properly utilised. Job evaluation is a process applied to assess the work put in by a worker.
The importance of job evaluation may be enumerated as follows:
1. It ensures rational wage and salary structure. A consistent policy can be pursued through job evaluation. So, it is a valuable technique in the hands of management.
2. Job evaluation offers advantages of job analysis process such as proper recruitment, selection, training, promotion, transfers etc.
3. Job evaluation ensures harmonious structural relationships in the organisation. This is possible because job evaluation establishes a rational and consistent wage structure.
4. The logical sequence of different steps as ensured in the job evaluation process determines the worth of jobs. It also works as a safeguard against industrial disputes.
5. 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.
Job Evaluation – Factors that Job Evaluators Consider while Evaluating a Job
Factors that job evaluators generally consider while evaluating a job are:
(a) Specific training need or qualification requirements to perform the assigned tasks better
(b) Requisite knowledge and skills for successful accomplishment of the job
(c) Complexity or intricacy of tasks demanding special skills
(d) Interaction with different departments of the organization
(e) Problem-solving skills and independent judgement for promptness
(f) Accountability and responsibility for fault-free activities
(g) Decision-making authority to develop leadership skills
(h) Degree of supervision required for the task
(i) Cross-training requirements for multiskilling and multitasking
(j) Working conditions such as illumination, noise, ventilation, etc. in which the job is performed
Job Evaluation – Principles: According to Kress
There are certain broad principles, which should be kept in mind before putting the job evaluation programme into practice.
According to Kress, these principles are:
(1) The elements should be clearly defined and properly selected.
(2) The elements selected for rating purposes should be easily explainable in terms and as few in number as will cover the necessary requisites for every job without any overlapping.
(3) Rate the job and not the man. Each element should be rated of the basis of what the job itself requires.
(4) Any job rating plan must be sold to foremen and employees. The success in selling it will depend on a clear-cut explanation and illustration of the plan.
(5) Foremen should participate in the rating of jobs in their own departments.
(6) Maximum co-operation can be obtained from employees when they themselves have an opportunity to discuss job ratings.
(7) In talking to foremen and employees, any discussion of money value should be avoided. Only point values and degrees of each element should be discussed.
Job Evaluation – 4 Basic Steps
The basic procedure of job evaluation is to compare the content of jobs in relation to one another, in terms of their responsibility or skills. The job contents may be decided upon in two ways, i.e. either by making an intuitive “overview” i.e. 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. These factors are called compensable factors—which determine the definition of job content; that determine how jobs compare to each other; and they also help determine the compensation paid for each jobs.
The organisation might develop its own compensable factors or use those factors adopted by others. For example, the “Equal pay for equal Work” Act focuses on four factors: Working conditions responsibility, efforts and skills. While some other system (say Hay system in the States) focuses on know-how, problem-solving and accountability. Often several basic factors are chose initially and then sub-divided into sub-factors.
For example, refer to the following table:
When compensable factors are available more systematically. Each job is compared with all the on sub- factors, and number of degrees. Some time job these factors, stating the “human requirements” of the factors like education, skills, problem-solving and decision making.
In India, the Indian Institute of Personnel Management, Calcutta, has laid down the following steps:
Step # 1. Analyse and Prepare Job Description – This requires the preparations of a job description and also an analysis of job requirement for successful performance.
Step # 2. Select and Prepare a Job Evaluation Plan – 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.
Step # 3. Install the Programme – This involves explaining it to employees and putting it into operation.
Step # 4. Classify Jobs – This requires grouping or arranging jobs in a correct sequence in terms of value to the firm, and relating them to the money terms in order to ascertain their relative value.
Step # 5. Maintain the Programme – Jobs cannot continue without updating new jobs and change in obedience to changing conditions and situations.
Job Evaluation – 4 Important Methods: Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits)
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. 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. The last two systems are known the analytical or quantitative systems, because they use quantitative techniques in listing the jobs. They are more complex and are time-consuming.
The principal differences between these methods reflect. (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. Plans commonly used today represent variations of these basic methods.
Now we shall discuss these methods in detail:
(1) The Ranking System:
Under this system, all jobs are arranged or ranked in the order of their importance from the simplest to the hardest, or in the reverse order, each successive job being higher or lower than the previous one in the sequence. It is not necessary to have job descriptions, although they may be useful.
Sometimes, a series of grades or zones are established, and all the jobs in the organisation are arranged into these. A more common practice is to arrange all the jobs according to their requirements by rating them and then to establish the group or classification. The usually adopted technique is to rank jobs according to “the whole job” rather than a number of compensable factors.
The ranking system of job evaluation usually measures each job in comparison with other jobs in terms of the relative importance of the following five factors:
(i) Supervision and leadership of subordinates;
(ii) Probability and consequences of errors (in terms of waste, damage, to equipment, delays, complaints, confusion, spoilage of product, discrepancies, etc.);
(iii) Co-operation with associates outside the line of authority;
(iv) Minimum experience requirement; and
(v) Minimum education required;
(1) It requires less time, fewer forms and less work, unless it is carried to a detailed point used by company.
(2) The system is simple, easily understood, and easy to explain to employees (or a union). Therefore, it is suitable for small organisations with clearly defined jobs.
(3) It is far less expensive to put into effect than other systems, and requires little effort for maintenance.
(1) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. Often a rater’s judgment is strongly influenced by present wage rates.
(2) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. It only gives us its rank or tells us that it is higher or more difficult than another; but it does not indicate how much higher or more difficult.
(3) As there is no standard for an analysis of the whole job position, different bases of comparison between rates occur. The process is initially based on judgment and, therefore, tends to be influenced by variety of personal biases.
(2) Job Classification or Grading Method:
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. Grade descriptions are the result of the basic job information which is usually derived from a job analysis.
After formulating and studying job descriptions and job specifications, jobs are grouped into classes or grades which represent different pay levels ranging from low to high. Common tasks, responsibilities, knowledge blind experience can be identified by the process of job analysis. Certain jobs may then be grouped together into a common grade or classification.
Mechanism:
The following, five steps are generally involved:
(i) The preparation of job descriptions, which gives us basic job information, usually derived form a job analysis.
(ii) The preparation of grade descriptions, so that different levels or grades of jobs may be identified. Each grade level must be distinct from the grade level adjacent to it; at the same time, it should represent a typical step in a continuous way and not a big jump or gap. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, non- supervisory responsibilities and supervisory responsibilities.
(iii) Grading the Key Jobs. Key jobs are assigned to an appropriate grade level and their relationship to each other studied.
(iv) Selection of Grades and Key Jobs. About-10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades.
(v) Classification of all Jobs. Jobs are classified by grade definitions. All the jobs in the same grade receive the same wage orange of rates. For example, minerals may be put into one class; clerks in another; junior officers in a higher class; and the top executive the top class.
(i) The use of fully described job classes meets the need for employing systematic criteria in ordering jobs to their importance. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand makings.
(ii) This method is simple to operate and understand, for it does not take much time or require technical help.
(iii) If an organisation consists of 500 people holding to different jobs, the jobs might be brown up into perhaps 5 classes, arranged in order of importance from high to low, and described class by class. This class description broadly reflects level of education, mental skill, profit impact or some combination of these.
(iv) It is used in important government services and operates efficiently; but it is rarely used in an industry.
(v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. Pay grades are determined for, and assigned to, all the job classification.
This system suffers from the following defects:
(i) The system is rather rigid and unsuitable for a large organisation or for very varied work.
(ii) Although it represents an advance in accuracy over the ranking method, it still leaves much to be desired because personal evaluations by executives (unskilled in such work) establish the major classes, and determine into which classes each job should be placed.
(iii) It is difficult to know how much of a job’s rank is influenced by the man on the job.
(iv) It is relatively difficult to write a grade description. The system becomes difficult to operate as the number of jobs increases.
(v) Since no detailed analysis of a job is done, the judgment in respect of a whole range of jobs may produce an incorrect classification.
(3) Point Method:
This method of job evaluation is most popular method for evaluating different jobs of an enterprise. Under this method, the jobs are assigned on the points according to their importance. Thus, the process of evaluation is completed in different steps under this method.
These steps areas follow:
i. Selection of Key Factors:
Under this method of job evaluation—key factors are selected. These are the factors which affect a job. These factors may again be sub-divided into sub factors. Generally, there are four key factors affecting a job: (i) Skill; (ii) Responsibilities; (iii) Efforts; and (iv) Working Conditions.
These factors may age in be sub-divided into sub-factors as follows:
Skill = Education, Training and Experience
Responsibilities = Duties and rights
Efforts = Mental and physical
Working conditions = Risks and Hazards
ii. Preparation of Scale of Factors:
After deciding and dividing key factors, the factors are assigned the points according to their importance. After that these factors are divided into sub-factors.
For example:
Education may again be sub-divide into following sub-factors:
The jobs are evaluated only on the basis of education.
The scale of factors and sub-factors may be prepared all the basis of above example.
iii. Determination of Wages:
Wages for different jobs are determined on the basis of a survey. All efforts should be made to determine equal wage for equal jobs. The rates of wages must be fixed according to the market rates. These rates must be determined on the basis of points.
It may be explained by the following tables:
Above table makes it clear that the jobs having a total of points between 100 to 200, will be paid the basic wages of Rs. 200%. If the total of points of job is 150, it will be in this category and its wages will be Rs. 200. The wages for all other jobs may be determined on the similar base.
Merits:
Following are the merits of this method:
(i) It considers all the aspects related to a particular job.
(ii) It makes a clear distinction between different jobs.
(iii) This method is more scientific than other methods.
Demerits:
The system suffers from the following shortcomings:
(1) The use of five factors is a growth of the technique developed by its organisations. Yet using the same five factors for all organisations and for all jobs in an organisation may not always be appropriate.
(2) It is costly to install, and somewhat difficult to operate for anyone who is not acquainted with the general nature of job evaluation techniques.
(3) Money rates, when used as a basis of rating, tend to influence the actual rate more than the abstract point.
(4) Wage levels change from time to time, and their minor inconsistencies may be adjusted to bring all the jobs into alignment. Jobs in which discrepancies are too wide are discarded as key jobs.
(5) The system is complex and cannot be easily explained to, and understood by, every day non- supervisory organisational employee.
(4) Factors Comparison Method:
This method is also known as Benge Plan because this method was formulated 1928 by Evgene Benge.
This method involves the following four steps:
i. Selection of Key Jobs:
After selecting key factors of all the jobs, some key jobs are selected on the basis of these key factors. There are some key jobs in every enterprise. These jobs may be marked as Job A, Job B, Job C, Job D etc.
ii. Selection of Key Factors:
Under this method of job evaluation, first of all key factors for all the jobs are determined. This method is based on the assumption that there are some key factors for every job. Main key factors of the jobs may be as under: (i) Skill; (ii) Responsibility; (iii) Efforts; (iv) Working Conditions.
iii. Determination of Rate of Wages for Key Jobs:
After making a selection of key jobs, the rate of wages for these jobs is determined. Rate of wages is determined on the basis of importance of job. 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.
iv. To Classify Key Factors for Key Jobs:
After determining the rate of wages for every job, key factors of the enterprise are classified for some key jobs of the enterprise. This classification made on the basis of importance of different jobs.
For example:
Above analysis makes it clear that job A is most important from the point of view of skill. Job B is most important from the point of view of responsibilities. Job C is most important from the point of view of efforts. Job D is most important from the point of view of working conditions.
v. Comparison of Other Jobs:
On other basis of wage scales prepared above, different jobs are compared, and on the basis of such comparison the rate of wages for these jobs is determined.
This may be made clear from the following table:
Thus, the rate of wages for Job X will be Rs. 2.90 per hour.
Merits:
The system enjoys the following merits:
(1) It gives us a numerical basis for wage differentials; by analysis a job by factors it is usually possible to obtain a high measure of agreement on job value.
(2) Once the scales are developed, they can be used for a long time;
(4) It has the ability of handling a large number of jobs and enjoys stability as long as the factors remain relevant.
(5) Definitions are written in terms applicable to the type of jobs being evaluated, and these can be understood by all.
(6) Prejudice and human judgment are minimised, i.e., the system cannot be easily manipulated.
(7) Factors are rated by points which make it possible for one to be consistent in assigning money values to the total job points.
(8) The workers acceptance of the system is favourable because it is more systematic and objective than other job evaluation methods.
The availability of a number of ready-made plans probably accounts for the wide use of points plans in job evaluation.
Demerits:
The drawbacks of the system are:
(1) The task of defining job factors and factor degrees is a time-consuming and difficult task.
(2) It is difficult to determine the factor levels within factors and assigned values to them. It is difficult to explain to supervisors and employees. Workers find it difficult to fully comprehend the meaning of concepts and terms, such as factors degrees and points.
(3) The development and installing of the system calls for heavy expenditure.
(4) If many rates are used, considerable clerical work is entailed in recording and summarising the rating scales.
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.
Job Evaluation Programme– : Prerequisites, Guidelines and Measures Adopted
Prerequisites of a Job Evaluation Programme:
1. Coverage of all aspects of job content – Compensation factors should reflect all major aspects of job content. Compensation criteria should be definable and measurable.
2. Consultation with operating manager – Operating manager should be taken into confidence about the techniques and programme of job evaluation. They should be trained in fixing and revising wage based on job evaluation.
3. Education of employees on job evaluation technique – All employees should be enlightened on job evaluation techniques and programme.
4. Coverage of employees – Job evaluation programme should include all categories of employees.
5. Comprehensibility of job evaluation programme – Job evaluation programme should be understandable to all categories of employees.
6. Cooperation of Unions – The cooperation of trade unions is important for a job evaluation programme.
7. Evaluation factors – The factors selected for evaluation should be measurable and definable and represent job content.
8. Cost of job evaluation – It should not involve high cost of installation and administration.
9. Focus – Focus should be on rating the job and not the job holder. It should not affect adversely the terms and conditions of the existing worker.
10. Top management support – The support of top management should be secured.
Guidelines for Conducting Job Evaluation Programme:
i. Rate the job and not the person.
ii. Strive to collate all facts pertaining to job.
iii. Find out special features of each job and study the inter-relationship among the jobs.
iv. Study the jobs or evaluate the jobs objectively and open-mindedly.
v. Conduct job evaluation systematically based on facts and figures.
vi. The results of job evaluation must be fair, rational and unbiased to individual.
Essentials of the Success of Job Evaluation Programmes:
To install effective evaluation programme the following measures may be adopted:
1. Supervisors should have full knowledge of the system.
2. Supervisors should receive training in advance of actual introduction of the plan, to enable them to explain the policies, principles and procedures.
3. The management must give widest publicity to every phase of the programme.
4. Separate pay structure should be maintained for major groups of employees.
5. The details of administration of the plan should be as simple, as possible.
Job Evaluation – Advantages and Disadvantages
Advantages:
The following are the important advantages of job evaluation:
(i) It helps to minimise wage inequalities – Job evaluation is a process of ranking the job which in turn helps to develop equitable wage and salary structure based on the relative worth of jobs.
(ii) Simplifies wage structure – Job evaluation helps to simplify wage administration by establishing uniformity in wage rates.
(iii) Helps in the process of recruitment and selection – Since job evaluation also involves detailed analysis of job, information collected about job helps in the process of proper recruitment and selection of employees.
(iv) Helps to maintain good industrial relation – Job evaluation helps to minimise wage differentials of employees. Therefore it helps to avoid conflict and maintain good industrial relation between employer and employees.
(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.
(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.
(vii) It helps in wage negotiation and collective bargaining – Job evaluation provides basis for wage negotiation and collective bargaining in the organization.
Disadvantages:
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.
(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. Under such circumstances human error may considerably influence on the fixation of suitable wage structure.
(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. Frequent evaluation of job is a time consuming and expensive process.
(iv) It may give scope for doubt or suspicion – If the job evaluation process is applied for the first time in the organization it may create doubt in the minds of workers who may feel that it will do away with collective bargaining for fixing wage rate.
(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. Therefore job evaluation is not suitable for determining the relative worth of managerial job.