Here we detail about the meaning, purpose, advantages, limitations, steps and methods of job evaluation!
Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Every job has its own characteristics. Depending upon these characteristics job demand is of varying degrees of the various qualifications, skill, experience etc., on the part of operators performing the jobs.
For example, some jobs require physical ability; others may need a high degree of mental ability, while a third category may need skill, experience and high education. Job evaluation is the process of review, analysis and systematic classification of a job in accordance with its characteristics i.e., varying factors it demands from the employees.
In other words job evaluation grades all jobs with reference to their main characteristics so that the relative merit of each job in terms of work value may be determined. Proper job evaluation helps in divising a wage structure which is acceptable to the workers as well as the organisation.
Job evaluation helps following purposes:
(1) It helps in devising an acceptable wage,
(2) It helps in proper placement of workers in job.
(3) It helps the personnel department to recruit the right person for a job since requirement of each job are clearly indicated.
(4) It helps in formulating the internal training plan.
(5) It helps to avoid wage and other discrimination for similar jobs in same organisation or a group of organisations under the same management.
Advantages to the Employer:
(1) By bringing uniformity in wage rates, it brings about simplification of wage administration.
(2) Wage rates can be reviewed easily if a job evaluation machinery exists in the organisation.
(3) Disputes and grievances regarding wage rates are settled which result in uninterrupted going on of work.
(4) By job evaluation proper and rational wage structure can be formulated and implemented. With the result, better workers join the firm more willingly.
(5) Supervisors are trained in the essential function of judging, controlling and helping the workers.
Advantages to Employees:
(1) Workers are rewarded on the basis of their performances. It provides effective motivation to workers.
(2) By Job evaluation, right worker is put in the right place, with the result there is reduction in the labour turnover.
Limitations of Job Evaluation:
There are certain limitations. It cannot be applied easily to scientific and research pursuits. Sometimes, it is seen that workers are not available at the wage suggested by the job evaluation.
Steps of Job Evaluation:
In job evaluation there are some major steps to be carried out in sequence:
(1) Invention and construction,
(2) Job Standardisation,
(3) Job review and analysis, comprising determination of relative values of jobs and grouping of jobs into classes for which minimum and maximum remuneration are established.
Invention and Construction involve the timely development, design and production of the right type of jigs, tools, gauges and auxiliaries required for performing the jobs. Job standardisation is the development and standardisation of the most suitable arrangements, motions and times for production based on time and motion study. Job Review and Analysis includes job review, job analysis and job classification. Job review is to identify person needed to fill the job and conditions which affect the rate of pay of the person needed to fill it.
Job analysis is analysis and synthesis of the data obtained by job review in order to determine degree of duties, skills, exertion, responsibilities, conditions etc. needed in relation to a job. Job classification is the procedure of sorting the standard job-description specifications into a small number of groups.
Methods of Job Evaluation:
There are mainly three methods of job classification:
(1) Ranking Methods,
(2) Grading Method,
(3) The Point System and
(4) The Factor Comparison Method.
(1) Ranking Method:
Under this system different jobs are graded from the highest to the lowest ranks on some basis. The hierarchy for each job group is thus outlined and pay scales are determined. Its greatest merit is simplicity, which is also its great limitation that is the measurement is quite crude. Besides, there is no pre-determined scale of values for the rates to be used. This method is useful in a small unit where jobs are a few and are known to raters.
(2) Grading or Job Classification Method:
In this method individual jobs are classified into a number of grades or classes, for example: skilled, semi-skilled, unskilled, assistant foreman, foreman executives and work manager etc. For each class or grade a general specification is prepared, indicating the types of responsibility and work that may be included. Salary or wage ranges are thereafter fixed for each class or sub-class.
Each job is reviewed to place the job in its appropriate grade. The chief merit of the method is its simplicity but this is useful only in small units, since in large organisation job-specifications are quite complicated.
(3) The Point-rating Method:
Under this method of job evaluation jobs are analyzed into its various characteristics or factors and then evaluated in terms of points. Points are allocated to each of the factor or characteristics.
The factors may be:
(i) Education or mental application,
(ii) Physical application of effort,
(iii) Experience, expertise or skill,
(iv) Responsibility for achievement and failures etc.
(v) Job-hazards or complex nature of job and
(vi) Working conditions.
These factors are outlined in a manual which also prescribes the weightage to be applied to each such factor. Wages scales or ranges are fixed for each of these grades.
(4) The Factor Comparison Method:
Under this method, certain key jobs are selected and each selected job is further analyzed into:
(i) Mental application
(ii) Physical application,
(iii) Skill required
(iv) Responsibility and
(v) Working conditions. (These are also factors in point rating method). Each factor is, thereafter, valued and aggregate values are compared to determine relative worth of each job.
It is to be noted that first two methods are simple and suitable for application in small factories. The last two methods are analytical in approach. But jobs involving high degree of mental applications or hazards cannot be accurately evaluated in fixed factor points.