Process of job evaluation in HRM
For fixing compensation to different jobs, it is essential that there is internal equity and consistency among different job holders. Job evaluation aims to provide this equity and consistency by defining the relative worth of different jobs in an organization. Job evaluation is the process of determining the relative worth of different categories of jobs by analyzing their responsibilities and consequently, fixation of their remuneration. Show
So, Job evaluation is the process of determining and quantifying the value of jobs. It is the systematic scoring and comparison of jobs along organizationally determined dimensions of job worth, such as, in the effort, responsibility, complexity, importance, skills and the working conditions of a job. Job evaluation is a tool to compare jobs consistently and classify them into appropriate pay ranges. The worth of each job within the organization is determined through the Job Evaluation process (job analysis, job descriptions, & job evaluations). This establishes the relative worth of a job in relation to the value of other jobs in the workplace. The process can ensure that an organization’s pay system is equitable, understandable, legally defensible, and externally competitive. Job evaluations can be used to help to attract desirable job candidates and retain high performance employees due to fair and equitable pay scales. Definitions of Job Evaluation
Features of Job EvaluationThe primary objective of job Evaluation is to find out the value of work, but this is a value which varies from time to time and from place to place under the influence of certain economic pressure. The main features of job Evaluations are as follows:
Objectives of Job EvaluationThe basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organizational objectives. This basic objective of job evaluation serves a number of purposes which may be grouped into three categories: wage and salary fixation, restructuring job hierarchy and overcoming anomalies.
Steps in the Job Evaluation ProcessJob evaluations typically follow these steps:
Read More: Job Evaluation Process Advantages of Job EvaluationJob Evaluation is advantageous to management, workers, trade unions and organisations as well. Management has the advantage of greater order in its pay arrangement and more stable wage structure. Unions benefit from a greater sense of fairness and reasons in pay matters. Union can play a more important role in determining the relation between different levels of pay and in the joint regulation of work place conditions. Employees benefit because job evaluation provides an agreed framework for setting questions affecting jobs and so helps to prevent arbitrary decisions. It also helps to ensure that differences in skill and responsibility are properly recognized. Everyone benefits from a system which enables the pay for new and revised jobs to be settled in the same way as for existing job by preventing anomalies. Problems in Job EvaluationLike any other technique of human resource management, job evaluation is not free from certain shortcomings and limitations. Various problems involved in job evaluation may be grouped into two categories: technical and operational. Technical Problems: There are some technical problems involved in effective job evaluation, which are of the following nature.
Operational Problems: Besides the technical problems, there are some operational problems too in job evaluation. These are of the following types:
The existence of various problems in job evaluation does not mean that it should not be undertaken. In fact, this should be undertaken. The problems identified above indicate that suitable safeguards should be provided while undertaking job evaluation to make it more productive. What is the process of job evaluation?Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. 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 as qualifications and skills required.
How many steps are there in the job evaluation process?There are two steps involved in this process: Job Analysis and Job Description: Using a "job profile," the content of each job is analyzed to identify key duties, responsibilities and qualifications necessary to perform the job. Written job descriptions are then prepared to contain this information.
What is job analysis process in HRM?Job analysis is the process of gathering and analyzing information about the content and the human requirements of jobs, as well as, the context in which jobs are performed. This process is used to determine placement of jobs.
What are the five methods of job evaluation?There are four basic methods of job evaluation: ranking method, job grading method, point method and factor comparison method. Out of these, first two methods are non-quantitative and also known as traditional, non-analytical or summary methods.
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