2012 job evaluation

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  • 8/10/2019 2012 Job Evaluation

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    OBJECTIVESTo determine equitable wage differentials between diff jobs

    To eliminate wage inequityTo establish a rational basis for incentives and bonusschemesTo minimise wage discrimination on the basis of age,

    caste etc

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    PROCESS OF J.E1. GAINING ACCEPTANCE2.CONSTITUTING J.E COMMITTEE

    3.SELECTING JOBS TO BE EVALAUATED4.DESCRIBING THE JOBS5.SELECTING THE METHOD OF EVALAUTION6.WEIGHTING THE JOB FACTORS7.ASSIGNING MONEY VALUES8.PERIODIC REVIEW

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    Methods of Job Evaluation1. Non-quantitative Methods A) Ranking or Job comparison

    B)Grading or Job Classification

    2.Quantitative Methods A)Point Rating Method

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    Ranking method: Paired Comparison

    PAIR MORE DIFFICULT JOB RANK

    ASST. UDC ASST 1UDC - LDC UDC 2LDC - PEON LDC 3 ASST. LDC ASST.

    ASST. - PEON ASSTUDC - PEON UDC

    PEON 4

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    JOB CLASSIFICATION OR GRADING

    METHOD A job grade is a group of diff jobs of similar difficulty .

    Each job is classified into an appropriate gradedepending on how well its characteristics match thegrade definitions. A different wage rate is fixed for each

    job grade.

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    GRADE DESCRIPTION

    Unskilled Jobs in this grade involve manual work. Little mental abilityis required. No formal education is necessary

    Skilled Jobs in this grade are clerical in nature. Little physical effort

    is involved as desk work is performed. High schoolcertificate is essential.Supervisory Jobs in this grade require ability to apply established

    procedures and to guide others. Graduate degree isessential.

    Executive Jobs in this grade involve decision making andadministrative work. Professional qualifications arenecessary.

    Policy Jobs in this grade involve policy making and control.Considerable work experience at policy levels is required

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    POINT METHOD1.Select key jobs2.Select the factors

    3.Define the factors4.Determine the degrees5.Determine relative values of job factors6.Assign point values to degrees7.Find point value of the job8.Assign Money values

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    Job Evaluation:

    The Point MethodDevelop a list of compensable factors

    A set of standards the organization uses to distinguishamong jobs for pay purposesExamples of commonly used compensable factors:

    Degree of responsibility, supervisionKnowledge needed to perform the jobDiscretion in performing the job, independent judgment Job conditionsEffortHazardConsequence of error

    Define the degrees of each factor

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    10/16ORG434: Advanced HRM 10

    Job Evaluation:

    The Point MethodCreate a matrix of points for the degrees of eachfactor

    Judgment and Decision Making:1st degree = 50 points2nd degree = 100 points3rd degree = 225 points4th degree = 350 points5th degree = 500 points

    6th degree = 700 pointsCommunication, Work Environment, Coaching,Innovation, Knowledge Education - Experience

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    FACTOR SUBFACTORS

    SKILL Education, Experience, Training, Judgement

    EFFORTS Physical and Mental

    RESPONSIBILITY Quality of Output, Raw materials,Machinery, Equipment, Safety ofothers

    WORKINGCONDITIONS

    Working Environment, Accidents,Hazards, Discomfort etc

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    Relative values of Job FactorsFactor Maximum PointsSkill 400

    Effort 175Responsibility 300 Working conditions 125

    Total 1000

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    Same no. of degrees for all subfactors eg. No. ofdegrees 5

    Skill Education 75 (15 *5)Experience - 125 (25*5)Training -100 (20*5) Judgement - 100 (20*5)

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    Degree of Education1. Should be able to do ordinary counting and tounderstand verbal instructions

    2.Should be able to read and write VIIIth3.Should be able to carry out mathematicalcalculations matric4.Requires ability to compare written material and to

    make advanced calculations - Graduate

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    Assignment of Point values todegrees

    1 2 3 4 51. Education 15 30 45 60 75

    2.Experience 25 50 75 100 125

    3.Training 20 40 60 80 100

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    Conversion of job Points into

    Rupee WagesPoint Range Daily wage rate Job Grade

    101-200 Rs.50-80 1201-300 Rs. 81-100 2

    301-400 Rs.101-120 3401-500 Rs. 121-140 4501-600 Rs.141-160 5601-700 Rs.161-180 6

    701-800 Rs.181-200 7801-900 Rs.201-220 8901-1000 Rs.221-240 9