Under this method, certain key jobs are selected and each selected job is further analyzed into: (v) Working conditions. It measures the differences between jobs on the job requirements, and establishes the differential numerically (job rating), so that it can be converted to … It does not focus on how well an employee is doing the job. (1) Workers are rewarded on the basis of their performances. It provides effective motivation to workers. According to Alford and Beatty, “Job Evaluation is the application of the Job Analysis technique to the qualitative measurement of relative job worth, for the purpose of establishing consistent wage rate differentials by objective means. With the result, better workers join the firm more willingly. Job evaluation is concerned with assessing the value of one jot in relation to another in order to build a sound wage or salary structure. Take a Look at What It Means to Have Exempt Employee Status. Report a Violation, Quick Notes on Job Evaluation: Meaning, Methods and Advantages, Merit Rating: Meaning, Advantages and Limitations. Besides, there is no pre-determined scale of values for the rates to be used. Want to Understand the Basic Job Description and Duties of a Manager? Do You Get Paid Extra for Working on a Holiday? The job classification is evaluated each time a significant change occurs in a job. Here is a clear step by step guide to undertaking a job evaluation that should help you on your way to providing a fair and equal pay structure that will benefit you in all of these ways. When Does Job Evaluation and Classification Occur? 10 steps to developing a successful job evaluation 1. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Here we detail about the meaning, purpose, advantages, limitations, steps and methods of job evaluation! Job Review and Analysis includes job review, job analysis and job classification. It helps in forming the values of judgement, educational status, or achievement of student. He examined the characteristics of work and pay, the primary focus of the job evaluation system is to relate these two aspects of productivity in a way which both management and workers find reasonable, equitable and fair. Thus, the job evaluation results in a job classification that remains the same. The purpose of job evaluation is also to weigh the value of a given job in a consistent and uniform manner (Understanding the Job Evaluation Process, n.d.). The employee is often disappointed to learn that more work does not equate to a change in scope, range, decision-making authority, or higher level responsibilities. Each job is reviewed to place the job in its appropriate grade. Job evaluation is a procedure for developing a wage structure that is somehow based upon an evaluation of the job. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. What Is Law Enforcement Availability Pay? A job description should be submitted when: There are certain limitations. Job evaluations are performed for these reasons. (2) Wage rates can be reviewed easily if a job evaluation machinery exists in the organisation. • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs 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. • It tries to make a systematic comparison between jobs to access their relative worth for the purpose of establishing a rational pay structure. The purpose of the job evaluation is to enable you to establish pay levels for positions in a fair, consistent, orderly and equitable manner based on the worth of each job (Figure 1). The Paterson Job Evaluation System was developed by Dr. T. T. Paterson in Scotland. Job evaluation needs to be differentiated from job analysis. In a job evaluation that results in decisions about a job classification, factors such as decision-making authority, the scope, and range of the responsibilities performed, the level of the duties performed, and the relationship of the position to other jobs in the organization are considered and compared. A legal update on whether documents relating to a job evaluation scheme undertaken for the purpose of obtaining legal advice during equal pay litigation were protected by privilege. (1) By bringing uniformity in wage rates, it brings about simplification of wage administration. In job evaluation there are some major steps to be carried out in sequence: (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. Analysing and preparing job description. The Balance Careers uses cookies to provide you with a great user experience. The hierarchy for each job group is thus outlined and pay scales are determined. (3) Disputes and grievances regarding wage rates are settled which result in uninterrupted going on of work. Learn the Difference Between an Exempt and a Non-Exempt Employee. Why Would an Employer Perform a Job Evaluation? Selecting method of evaluation, according to the job factors and organisational demand… The objective of job evaluation is to price the ob rather than the man. Content Guidelines 2. (5) It helps to avoid wage and other discrimination for similar jobs in same organisation or a group of organisations under the same management. The job classification re-evaluation is generally requested by an employee through his or her supervisor. 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. needed in relation to a job. Job evaluation as a process is advantageous to a company in many ways: There are mainly three methods of job classification: Under this system different jobs are graded from the highest to the lowest ranks on some basis. The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. Job evaluation is the basis for fair compensation. Wages scales or ranges are fixed for each of these grades. Plagiarism Prevention 4. It is a process which is helpful even for framing compensation plans by the personnel manager. Job classification is the procedure of sorting the standard job-description specifications into a small number of groups. Content Filtrations 6. Privacy Policy 8. Disclaimer 9. Deciding the job to be evaluated, which may represent the type of work performed in the organisation. 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. Job requirements, job specifications, and employee specifications are not considered in the evaluation. For each class or grade a general specification is prepared, indicating the types of responsibility and work that may be included. It’s the bridging gap between the relative worth of a position to the organization and the pay range structure into which the position falls. (2) Job factors should be clearly defined- The job factors should be in limited numbers should be clearly defined and explained. Image Guidelines 5. Evaluation is a continuous process and a periodic exercise. Job evaluations can help you create an equitable compensation system through appropriate job classification. (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. As the name suggests, employee self-evaluation involves an employee self-appraising. Purpose of Job Analysis. 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. (4) It helps in formulating the internal training plan. 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 process of determining the relative worth of a job. (v) Job-hazards or complex nature of job and. 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. Susan Heathfield is an HR and management consultant with an MS degree. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. A Job Profile Outlines the Key Components of a Job—Use It Wisely, How Unconscious Bias Can Impact the Workplace and Job Search, Understanding the Chain of Command in Your Workplace, To determine what positions and job responsibilities are similar for purposes of. One of her first tasks was to perform a (1) It helps in devising an acceptable wage. The most common request for job classification re-evaluation that I have experienced occurs when an employee has taken on new responsibilities or more work. According to A.R.Kress, following are the principles of job evaluation. In fact, the role of some Human Resources staff consists primarily of job evaluation and job classification. It is a standardize process of determining the wage differentials for various jobs. (2) By Job evaluation, right worker is put in the right place, with the result there is reduction in the labour turnover. 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. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. 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