Although it is complex and may require the participation of management, once completed the point method of job evaluation is easy to use and is not likely to need frequent updating. Once trained, the members do the decision-making, and, the consultant can be brought in from time to time to review the process and make any, Organizational studies and human resource management. The system of job evaluation is a powerful tool in the hands of management in managing manpower. If the observer or job analyst is an employee of the same organization, the process may involve his or her personal likes and dislikes. The committee must include members with the necessary expertise and backgrounds. A better alternative could be to hire an evaluation consultant to organise the evaluation process, and train the job evaluation committee. Disadvantages: The value of the job is expressed in monetary terms. 1. Though job analysis is a very efficient method of understanding the job requirements when done properly; but most often the analysis is distorted by personal likes and dislikes. The award of point values results in developing a ceiling and floor for each job. Can be applied to a wide range of jobs. Jobs can easily be arranged in different categories. Try our expert-verified textbook solutions with step-by-step explanations. So the same method of job analysis and the same questions and evaluation systems will not suffice for the different jobs; tailor-made questions are required for the different jobs for their proper job analysis. Companies that do not take the time to prepare helpful evaluations can create several disadvantages. People act differently in different situations. Most workers of organisations prefer this method since it is the most accurate. May work well for smaller companies. 3. This method places groups of jobs into job classes or job grades. The main disadvantage to job ranking is that it's based on judgment and isn't scientific. The first two are quantitative and the latter two are non-quantitative. If job analyst is not aware of the objective of job analysis process or does not possess appropriate skills to conduct the process, it is a sheer wastage of company’s resources. Then this information of job analysis is portrayed as significant and consistent. Each level in the grade/category structure has a description and associated job titles. Often it occurs that the analyst himself is not worthy of doing the analysis work; with an unworthy analyst, a proper job analysis is impossible to do. This method enjoys the following merits: 1. Moreover, this method is well-appreciated in speeding up the process of job evaluation. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. Research shows that skills, one of the compensable factors, accounts for ____ percent or more of the variance in job evaluation … Disadvantages: (1) Point values result in developing a ceiling and floor for each job. • The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities). Point Method Job Evaluation Example. There are a number of ways to approach job evaluation, but there are four primary methods that all HR professionals should know. in order to contribute to the accuracy of the evaluation process. Job analysis is defined as a process of determining the skills, duties and responsibilities, in a systematic way, required for a particular job. The process of the point-factor job evaluation method included the following components: 1. Because of small sample size, the source of collecting data is extremely small. The use of limited number of factors (usually five) ensures less chances of overlapping and over-weighting of factors. Submitting the position questionnaire to the administrators to determine their responsibilities, knowledge, work conditions, etc; 2. External point evaluations for common jobs are widely available. This makes the source of data small and only the information collected from a few workers who may even be influenced by their own personal opinions is recorded and analyzed. Adjusting salary structure 2. Training 3. If this is the case then the job analysis is nonsense and misuse of time, effort, and money. A major limitation is that evaluators have to redo the ranking system for every new job or … Therefore, general standards cannot be set for mental abilities. The four primary methods of job evaluations used to set compensation levels are point factor, factor comparison, job ranking, and job classification. Point Method: The “point method” of job evaluation is a quantitative method, and when compared to other methods, it is most widely used in one form or the other. Businesses and employees can enjoy a number of advantages when evaluations are fair and accurate. Rankings are based on the opinions of evaluators and can seem unfair to those performing the jobs. The pay for each factor is … Talent Pool Potential HRM2605su_8_performance_management.notes.pdf, hrm2605_2012_study_notes_inherited_and_updated_aug_2012_quantum[1].docx. 2. The usual process followed in this method is as under: 1. Evaluations usually cover key functions of an employee’s job, and it is up to management to review the worker’s performance in those areas. Ranking Method: This is the simplest and an inexpensive job evaluation method, wherein the jobs are ranked from he highest to the lowest on the basis of their importance in the organization. The drawback which discourages most people from doing a job analysis is the lengthy procedure and unnecessary time-consumption and time-wastage during the interviews or observations. The steps for implementing the point method of job evaluation are summarized in Exhibit 8.13. PricewaterhouseCoopers or others, who can offer experience and expertise in this area. The method relies heavily on job title instead of detailed verification of job contents. The last drawback seen in job analysis is that the mental aptitudes like intelligence, sentiments, knowledge, and wisdom, propensity, patience, and stamina are never to be seen as these are intangible characteristics of each individual. The human management and senior management team incorporates one the methods that is geared to managing the evaluation processing (George and Jones, 2005). Therefore, information collected from few individuals needs to be standardized. Disadvantages each position fairly in comparison with all other positions within the organisation. Once established, the job evaluation system should be flexible and reviewed periodically, which, can be conducted by the evaluation committee since they are familiar with the compensation, The first decision a job evaluation committee will make, is whether the organisation should. Job evaluation requires, the best input from individuals within the organisation, as it is impossible for one individual to, have adequate knowledge of all the jobs in the organisation, a job evaluation committee is, necessary. 6-7. Separate classes may include office, clerical, managerial, personnel, etc. As every job carries different information and there is no set pattern, customized information is to be collected for different jobs. Training the six members (the job evaluation committee) and The ranking method is the simplest method of job evaluation, where each job as a whole is compared with; other i.e., “the whole job” is compared rather than compensable factors. Training and development Process in Nestle, Report on Appraisal Form for the Employees and Faculties of United International University, Report on Human Resource Management at Premier Bank, Sample Invitation Letter and Schedule Confirmation, Sample Application format for College Fee Refund. This preview shows page 86 - 88 out of 105 pages. 1. According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This is the same as in other methods of job evaluation. The job analysis process is a method by which an organization can filter the employees and select the best suited workers for their organization. produce a job evaluation system or hire outside consultants such as Delloitte. 3. Disadvantages • The pay for each factor is based on judgments that are subjective. Thank you! Each job is treated as a whole in determining its It is fairly easy method to explain to employees. It will never be any good for the organization or the workers. broad that they do not relate to specific, classifications, job evaluators may abuse, Due to its quantitative nature, it is easy, It is relatively time-consuming and costly, Not easily adapted to changes in the jobs, The process of job evaluation is expensive and not completely objective. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. Job Evaluation: Ranking This method is one of the simplest to administer. 2. Point Rating technique is the most widely used system of job evaluation.The method evaluates the compensable factors of each job. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. Find answers and explanations to over 1.2 million textbook exercises. In this session…. Human resources managers evaluate jobs at companies to help place them into the organization chart, determine the qualifications needed to fill those jobs, assign titles, and help set appropriate benefits and compensation levels. A job is defined as a collection of duties and responsibilities which are given together to an individual employee. The prolonged time required for completing a job analysis is a major drawback and becomes more of a hindrance as the employee can change the job before the manager or supervisor has completed the job analysis. STEPS IN THE POINT METHOD STEP 1: SELECT THE JOB CLUSTER AND THE JOBS TO BE EVALUATED. (3) This method is more effective because even the major factors are sub-divided which ensures accuracy of evaluation. Point Method: This is widely used method of job evaluation. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. Though job analysis also has disadvantages, the advantages prove to be superior to the advantages. The classification of a position is decided by comparing the … The various drawbacks of Job Analysis are-. 4. Instead, Robert also assigned Marco the task of completing the company's first affirmative action plan, which was already two weeks overdue. The ranking is provided to the job on the basis of this comparison. 2. Examples • a dog pound attendant was rated more highly than a child care worker • zookeeper rated more highly than day care worker Point Method of Job Evaluation Advantages of using the point method 1. It is helpful in logical ranking of job and determining its worth. 4. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. It involves a more detailed, quantitative and analytical approach to the measurement of job work. It claims the following points to its credit. It is a major limitation especially when jobs change frequently. In this method, the overall job is compared with the other set of jobs and then is given a rank on the basis of its content and complexity in performing it. It helps to improve industrial relations by reducing employee grievances arising out of wages. The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. The method can be used for a very long time in the organisation. 5. The accurate information will get every time as this scheme is based on algorithms which offer consistent results only. 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