According to Bureau of Labor Statistics, “Job Evaluation is the evaluation or rating of job to determine their position in job hierarchy. The system of job evaluation is a powerful tool in the hands of management in managing manpower. Job analysis also provides required information which is necessary for evaluating the worthiness of jobs. The 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. Job evaluation … 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. For fixing compensation to different jobs, it is essential that there is internal equity and consistency among different job holders. The point system evaluates the skill, effort, responsibility and working conditions involved in the job; here, each of these factors is subdivided into sub factors to provide standards against which each job is rated to determine its relative worth. An evaluation is a systematic and objective examination concerning the relevance, effectiveness, efficiency and impact of activities in the light of specified objectives. Therefore, many organizations do not prefer to take it in a formal way. 2. Objectives of Job Analysis Job analysis is a process which determines the duties and skill requirements of a job. ... For the purpose of job evaluation, the evidence from job analysis should be treated with caution. Though there are various methods developed for this purpose, these are not completely objective. The objective of job evaluation is to determine which jobs should get more pay than others. Your email address will not be published. The employee perfor… An employee evaluation is the assessment and review of a worker’s job performance. Hence, it indicates what activities and accountability the job entails. Review the choices of job evaluation methods such as job ranking, classification, factor comparison and point factor analysis and select the method most appropriate to meet the organization’s needs. In the words of Maurice B. Cumming, “Job Evaluation is a technique of assessing the worth of a job in comparison with all other jobs throughout an organisation”. Operational Problems: Besides the technical problems, there are some operational problems too in job evaluation. Your goal in employee evaluation is to motivate a high level of quality and quantity in the work that the employee produces. Often it has been observed that these external factors change with the time, e.g., previously, engineers were the highest earners but now the sequence is followed by medicos, MBAs and now information technology professionals in ascending order through over the period of time, their job factors have remained the same. The 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. Objectives of Performance Appraisal The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Under this method, jobs are … The objective of this process is to determine the correct rate of pay. A job is defined as a collection of duties and responsibilities which are given together to an individual employee. The job specification statement identifies the knowledge, skills, abilities needed to perform that task effectively. Depending upon these characteristics job demand is of varying degrees of the various qualifications, skill, experience etc., on … The main objective of job-evaluation is to have external and internal consistency in wages structure. Your email address will not be published. Job evaluation is, generally, suited to large organizations where. The main purpose of any job descriptionis to outline the main duties and responsibilities that are involved in a particular job. The main objective of job-evaluation is to have external and internal consistency in wages structure. Payment of unequal wages and salaries on the basis of race, sex, religion, or political differences. In fact, this should be undertaken. Job Evaluation – Meaning, Definition, Objectives and Process, Practical Problems in Using Job Evaluation Technique, Concepts of Job Description and Job Specification, Personnel Administration Data Systems (PADS). Points Rating: This is the most widely used method of job evaluation. d) None of the above . 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. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. Specialization For the reason, division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. It includes the information relating to the requirements of skills and abilities to perform a specific task. The main features of job Evaluations are as follows: The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organizational objectives. It claims the following points to its credit. Performance evaluation is a tool that helps managers align individual performance with organizational goals and objectives. Job Evaluation is the output provided by job Analysis. There are substantial differences between job factors and the factors emphasized by the human resource market. It is not compulsory To define satisfactory wage and salary differentials Job is rated before the employee is appointed to occupy None of the above Job Evaluation determines the value of job and the value of each of the aspects of job such as skill and responsibility levels are also related and studied in connection with the job. Then the deviation (if any) is found out that has taken place during the course of action. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. 7. Another problem in establishing job hierarchy through job evaluation comes in the form of changing profile of job factors because of changes in environmental variables such as technology, social structure and processes, and international impact. Moreover, job evaluation helps to establish the value of different jobs in a hierarchical order which allows comparing jobs one from another. For example, often the question is asked: ‘Should grass-cutters (gardeners) get more than gas-cutters (welders)’? Thus, in order to make job evaluation effective, it should be undertaken at regular intervals. The worth of each job within the organization is determined through the Job Evaluation process (job analysis, job descriptions, & job evaluations). The employee and the supervisor are clear about the employees goals, required outcomes or outputs, and how the success of the contributions will be assessed. How to Motivate Your Team Through Mobile Messages, Supportive Communication - Meaning and Attributes, 4 Key Things Employees Are Looking for From Their Next Workplace, Understanding Different Types of Supply Chain Risk, Supply Chain Integration Strategies - Vertical and Horizontal Integration, Various problems involved in job evaluation. The job description identifies the main tasks to be performed by an employee. It states the minimum acceptable qualifications that an incumbent must possess to perform the assigned duty successfully. Required fields are marked *. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Classification method. The M&E is separated into two distinguished categories: evaluation and monitoring. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. It differs from performance evaluations and assessment in that the main goal of a job evaluation is to rate the job in itself, not the person responsible for doing it. These are the five goals of an effective employee evaluation process. The aims of Job analysis is to always ascertain and record the job-related information of the employment measures like training, selection, payment, and performance assessment. What Should You Include in a Companies Operating Agreement? The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. Following are the main objectives or purposes of job analysis: A job description is a job profile which describes the contents, environment, and condition of jobs. Unions benefit from a greater sense of fairness and reasons in pay matters. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Every job has its own characteristics. You saw that the tool is most effective when evaluation includes well-developed goals and objectives that are developed with the needs of both the organization and employee in mind. Work simplification means dividing the job into small parts i.e. What Makes a Successful Business Website? Similar such questions may be raised if there is lack of objectivity. The goals of the best employee performance evaluations also include employee development and organizational improvement. Like any other technique of human resource management, job evaluation is not free from certain shortcomings and limitations. Job Evaluation A job description is a key element of the job evaluation process. are being paid. Evaluation. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. The process of evaluating a job involves systematically determining the value of a position within an organization. Job evaluation aims to provide this equity and consistency by defining the relative worth of different jobs in an organization. It is prepared on the basis of data collected through job analysis. “The aim of the majority of systems of job evaluation is to establish, on an agreed logical basis, the relative value of different jobs in a plant/industry.” Objectives of Job Evaluation: (i) To determine equitable wage differentials between different jobs in the organisation. It also helps to ensure that differences in skill and responsibility are properly recognized. Therefore, a job hierarchy, which may be workable at one point of time, may not work at another point of time. This establishes the relative worth of a job in relation to the value of other jobs in the workplace. Job Evaluation helps the management to maintain high levels of employee productivity and employee satisfaction. Linking jobs, based on job evaluation, and wages and salaries is not completely possible because of the operation of several forces in the environment. Following are the main objectives or purposes of job analysis: Learn how your comment data is processed. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. The main features of job Evaluations are as follows: It attempts to assess jobs, not people. Job hierarchy created through job evaluation may create human problems in an organization particularly if it has been taken for the first time and results into fundamental differences as compared to the existing system. This site uses Akismet to reduce spam. (a) selection ADVERTISEMENTS: (b) placement … HRM (Human Resource Management) MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management Page-5 section-1 d) None of the above . Ensure that each job description lists pertinent accountabilities and responsibilities; revise or expand job descriptions using the information collected. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Technical Problems: There are some technical problems involved in effective job evaluation, which are of the following nature. 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. The main objective of job evaluation is to determine relative worth of different jobs in an organisation to serve as a basis for developing equitable salary structure. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. Goal Setting Is Integral To Systematic Evaluation. The main objective of conducting job analysis is to know whether the job description and job specification which was mentioned to hire right quality of work force by the company is appropriate or not. 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 evaluations typically follow these steps: Job Evaluation is advantageous to management, workers, trade unions and organisations as well. After the preparation of job description and job specification statements, it assists for the evaluation of actual performance against the predetermined standard. Job analysis is a process which determines the duties and skill requirements of a job. Supportive Communication – Meaning and Attributes, Supply Chain Integration Strategies – Vertical and Horizontal Integration, Understanding the Importance of International Business Strategy, Employee Participation and Organization Performance, Evolution of Logistics and Supply Chain Management (SCM), Case Study on Entrepreneurship: Mary Kay Ash, Case Study on Corporate Governance: UTI Scam, Schedule as a Data Collection Technique in Research, Role of the Change Agent In Organizational Development and Change, Case Study of McDonalds: Strategy Formulation in a Declining Business, Case Study: Causes of the Recent Decline of Tesla, International Labor Organization (ILO) has defined a, According to Alford and Beatty, “Job Evaluation is the application of the, According to Kimball and Kimball Jr., “Job Evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.”. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Rather, they prefer to go through prevailing practices. Management has the advantage of greater order in its pay arrangement and more stable wage structure. So, Job evaluation is the process of determining and quantifying the value of jobs. Aims and Objectives of Job Evaluation: The overall aim of job evaluation is to assess and evaluate the nature of the work to be done in a particular job; the key tasks to be carried out, and the balance, difficulty, value, frequency and importance of these. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job evaluation is a tool to compare jobs consistently and classify them into appropriate pay ranges. Some of the main objectives of job-evaluation are as follows: 1. When should you do a job evaluation? According to Scott, Clothier and Spriegel, “Job Evaluation or job rating is the operation of evaluating a particular job in relation to other jobs either within or outside the organisation.”, In the words of Dale Yoder, “Job Evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among similar organisations.”, In the words of John A. Shubin, “Job Evaluation is a systematic procedure for measuring the relative value and importance of an occupation on the basis of their common factor (skill, training, efforts) for the purpose of determining wages and salary differentials.”. 2. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got … Job evaluation is a costly and technical exercise. Various problems involved in job evaluation may be grouped into two categories: technical and operational. The process can ensure that an organization’s pay system is equitable, understandable, legally defensible, and externally competitive. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Create the appropriate pay grades and pay ranges in the pay structure and along with policies and procedures setting out employee progress within the range. Job Evaluation does not design wage structure, it helps in rationalizing the system by reducing number of separate and different rates. Multiple choice questions are mostly used in the objective section of tests and/or exams. The main objective of job evaluation as was stated earlier is to establish from INDUSTRIAL 001 at International School of Business Management Standard means minimum acceptable qualities or results or performance or rewards regarding a particular job. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. Hence, it indicates what activities and accountability the job entails. Evaluate each position utilizing the chosen method and link the ranked job to the organization’s existing compensation system or to a newly developed pay structure. As a result, job evaluation systems are becoming more intuitive. Basically, a company will set up a … Job evaluations can be used to help to attract desirable job candidates and retain high performance employees due to fair and equitable pay scales. ADVERTISEMENTS: Thus, inequalities in wages must be removed. Job specification is another notable objective of job analysis. 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