Amity Global Business School, Noida

AMITY GLOBAL BUSINESS

SCHOOL
MBA, Semester 1

Human Resource Management

Ms. Mamta Chawla
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AGENDA
1. Job Analysis 2. Job evaluation 3. Methods of Job Evaluation

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JOB ANALYSIS
Job analysis is a systematic way of gathering
information about a job.Job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay-equity between jobs.

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JOB EVALUATION
Job evaluation is a systematic way of determining the value of a job in relation to other jobs in an organization .It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. It needs to be differentiated from job analysis.

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Objectives of Job evaluation PROCESS or FLOW CHART

Job Description

Job Specification

Job evaluation programme

Wage Survey

Employee classification

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FEATURES
1.Tries to assess jobs, not people 2.Carried out by groups, not by individuals 3.Standards are relative, not absolute 4.Degree of subjectivity is always present 5.Not fixation pay scales

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PROCESS

1.GAINING ACCEPTANCE: Before undertaking job evaluation,top mgt. must explain the aims and uses of the programme to the employees and unions. 2.CREATING JOB EVALUATION COMMITTEE:Usually a job evaluation committee consisting of experienced employees,union representatives and HR experts is created to set the ball rolling.

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3. FINDING THE JOBS TO BE EVALUATED:Every job need not to be evaluated.This may be too taxing and costly.Certain key jobs in each department may be identified. 4. ANALYSING AND PREPARING JOB DESCRIPTION:This requires the preparation of a job description and also an analysis of job needs for successful performance. 5. SELECTING THE METHOD OF EVALUATION:The most important method of evaluating the jobs must be identified now,keeping the job factors as well as organisational demands in mind. 6. CLASSIFYING JOBS:The relative worth of various jobs in an organisation may be found out after arranging jobs in order of importance using criteria such as skill requirements,experience needed,under which conditions job is performed.

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7.INSTALLING THE PROGRAMME:Once the evaluation process is over and a plan of action is ready,mgt. must explain it to employees and put it into operation. 8.REVIEWING PERIODICALLY:In the light of changes in environmental conditions(tec hnology,products,services,etc.)jobs need to be examined closely.

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Main stages in the job evaluation process

Strategic objective

Hr plan

job analysis

Job evaluation

Reward structure

Some Major Decisions in Job Evaluation determine overall strategy & objectives to get right people with right skill in the right place at the right time. getting information about job. Evaluate plans usefulness

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Guidelines for conducting job evaluation:

Rate the job- not the person or employee on the job. Strive to collect all the facts accurately. Look especially for distinguishing features of jobs and for relationships to other jobs. Study jobs independently and objectively,and then discuss views thoroughly and open-mindedly before reaching final decisions. It must be conducted systematically,based on factual and accurate information. Its results must be fair and rational and unbiased.

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BENEFITS
1.It tries to link pay with the requirements of the job. 2.It offers a systematic procedure for determining the relative worth of jobs. 3.An equitable wage structure is a natural outcome. 4.It helps in solving wage related grievances quickly. 5.JE when conducted properly and with care,helps in evaluation of new jobs.

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METHODS OF JOB EVALUATION

Job Evaluation

Analytical/ QUNANITITATIVE

Non-Analytical

Point Method

Factor Comparison

Ranking

Job Grading Method

Banding

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Quantitative Job Evaluation Methods

Factor Comparison Job Evaluation Method Step 1. Obtain job information Step 2. Select key benchmark jobs Step 3. Rank key jobs by factor Step 4. Distribute wage rates by factors Step 5. Rank key jobs according to wages assigned to each factor Step 6. Compare the two sets of rankings to screen out unusable key jobs Step 7. Construct the job-comparison scale Step 8. Use the job-comparison scale
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Amity Global Business School, Noida Sample Definitions of Factors Typically Used in the Factor Comparison Method
1. Mental Requirements
Either the possession of and/or the active application of the following: A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression, ability to get along with people, and imagination. B. (acquired) General education, such as grammar and arithmetic; or general information as to sports, world events, etc. C. (acquired) Specialized knowledge such as chemistry, engineering, accounting, advertising, etc.

2.

Skill
A. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful coordinations, dexterity, assembling, sorting, etc. B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by performance of the work and not to be confused with general education or specialized knowledge. It is very largely training in the interpretation of sensory impressions. Examples 1. In operating an adding machine, the knowledge of which key to depress for a subtotal would be skill. 2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill. 3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be shoveled over the surface would be skill.

3. Physical Requirements
A. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount exercised and the degree of the continuity should be taken into account. B. Physical status, such as age, height, weight, sex, strength, and eyesight.
Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration , p. 181. 1954, revised 1983. Reprinted by permission of Prentice Hall, Upper Saddle River, NJ.

Amity Global Business School, Noida Sample Definitions of Five Factors Typically Used in the Factor Comparison Method
4. Responsibilities
A. For raw materials, processed materials, tools, equipment, and property. B. For money or negotiable securities. C. For profits or loss, savings or methods improvement. D. For public contact. E. For records. F. For supervision. 1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a secondary feature. Planning, direction, coordination, instruction, control, and approval characterize this kind of supervision. 2. Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates, but A received much closer immediate supervision than B, then B would be entitled to a higher rating than A in the supervision factor. To summarize the four degrees of supervision: Highest degreegives muchgets little High degreegives muchgets much Low degreegives nonegets little Lowest degreegives nonegets much

5. Working Conditions
A. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion, fellow workers, etc. B. Hazardsfrom the work or its surroundings. C. Hours.
Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration , p. 181. 1954, revised 1983. Reprinted by permission of Prentice Hall, Upper Saddle River, NJ.

Ranking Key Jobs by Factors1

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Ranking Key Jobs by Wage Rates1

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Comparison of Factor and Wage Rankings

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Job (Factor)-Comparison Scale

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The Point Method of Job Evaluation

Step 2. Collect job information

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Step 1. Determine clusters of jobs to be evaluated

Step 3. Select compensable factors

Step 4. Define compensable factors Step 5. Define factor degrees Step 6. Determine relative values of factors

Example of One Factor (Complexity/Problem Solving) Amity Global Business School,in Noida a Point Factor System

Source: Richard W. Beatty and James R. Beatty,Job Evaluation, in Ronald A. Berk (ed.), Performance Assessment: Methods and Applications (Baltimore, MD: Johns Hopkins University Press, 1986), p. 322.

Evaluation Points Assigned to Factors and Degrees

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RANKING METHOD
It is the simplest method of job evaluation.In this method,jobs are arranged from highest to lowest.Jobs are examined as a whole rather than on the basis of important factors in the job;job at the top of the list has the highest value and at the bottom of the list will have the lowest value.

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CLASSIFICATION METHOD
Class1:Executives:under this category may be office manager,deputy office manager,departmental supervisor,etc. Class2:Skilled workers:under this category may come the purchasing assistant,cashier,receipts clerk,etc. Class3:Semi skilled workers:under this category may come stenotypists,machine-operators,switch board operator,etc. Class4:Semi skilled workers:under this category comprises daftaris,file clerks,office boys,etc.

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MERITS
Less subjective Easy to understand Acceptable to almost all employees Effectively used for a variety of jobs It takes into account all the factors that a job comprises.

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DEMERITS
Difficult to write all-inclusive description of a grade. The method over simplifies sharp differences b/w different jobs and grades. Depends on the status a job carries.

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FACTOR COMPARISON
A more systematic and scientific method of job evaluation.It is consistent and appreciable.In this method,instead of ranking complete jobs,each job is ranked according to a series of factors.Wages are assigned to the job in comparison to its ranking on each job factor.

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STEPS:
Select key jobs,representing salary levels across the organisation. Find the factors in terms of which the jobs are evaluated. Rank the selected jobs under each factor. Assign money value to each factor and determine the wage rates for each key job. The wage rate for a job is apportioned along the identified factors. All other jobs are compared with the list of key jobs and wage rates are determined.

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MERITS
Analytical and objective. Relative and valid Flexible,as there is no upper limitation on the rating of a factor. Money values are assigned in a fair way based on an agreed rank.

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DEMERITS
Difficult to understand,explain and operate. Its use of the same criteria to assess all jobs is questionable as jobs differ across and within organisations. Time consuming and costly.

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POINT METHOD
This method is widely used currently.Jobs are expressed in terms of key factors.Points are assigned to each factor after prioritising each factor in order of importance.Jobs with similar point totals are placed in similar pay grades.

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PROCEDURE
1.Select key jobs.Identify the factors common to all the identified jobs such as skill,effort,responsibility,etc. 2.Divide each major factor into a number of sub factors. 3.Find the maximum number of points assigned to each job. 4.Once the worth of a job in terms of total points is expressed,the points are converted into money values keeping in view the daily wage rates.

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LIMITATION OF JOB EVALUATION

It is not exactly scientific. The factors taken by the programme are not exhaustive The modes operandi of most of the techniques is difficult to understand,even for the supervisors. There may be wide fluctuations in compensible factors in view of changes in technology,values and aspiration of employees. Employees,trade union leaders, mgt. and the programme operators may design different weightage to different factors.

DIFFERENCE
POINT DEFINE JOB EVALUATION Find the relative worth of a job

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PERFORMANCE APPRAISAL Find the worth of a job holder

AIM

Determine wage rates for different jobs

Determine incentives and rewards for superior performance

How well an individual is doing an assigned work

SHOWS

How much a job is worth

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QUERIES ??????
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