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Human Resource Management

Human Resource Management

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Published by Ankur Bairwa

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Published by: Ankur Bairwa on Sep 03, 2010
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HUMAN RESOURCE MANAGEMENT (HRM

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JOB EVALUATION
Learning Objectives
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What is job evaluation?
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Distinguish between job evaluation and performance appraisal
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Process of job evaluation
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Methods of job evaluation
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Limitations of job evaluation

Overview
Job evaluation is a systematic way of determining the value/worth 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.

Job Evaluation (JE) Vs Performance Appraisal (PA)
PA is the systematic description of an employee¶s job-related strengths and weaknesses. The basic purpose of PA is to find out how well the employee is doing the job and establish a plan for improvement. The aim of job evaluation is to find the relative value/worth of a job and determine what a fair wage for such a job should be. Characteristic Job Evaluation Performance Appraisal Define Find the relative worth of a job Find the worth of a job holder Aim Determine wage rates for different jobs Determine incentives and rewards for superior performance Shows How much a job is worth? How well an individual is doing an assigned work?

Process of Job Evaluation
Gaining acceptance: Before undertaking job evaluation, top management must explain the aims and uses of the program to employees and unions Job evaluation committee: A single person cannot evaluate all the key jobs in an organization Jobs to be evaluated: All jobs need not be evaluated as it can lead to high costs and can become too taxing Analyzing and preparing job description Selecting the method of evaluation: The most important method evaluating the jobs must be identified keeping the job factors and organizational demands in mind 2. JOB ANALYSIS, JOB DESIGN & JOB EVALUATION RAHEJA COLLEGE - SEM. V ± ACADEMIC YEAR 2009-2010 10

Class .HUMAN RESOURCE MANAGEMENT (HRM) Classifying jobs: The jobs should be arranged in order of importance using criteria such as skill requirements. Factor Comparison Method: A most complex method but is consistent. 4. Classification Method: A pre-determined number of job groups or classes are created and jobs are assigned according to these classifications. 2.hence a periodic review is a must. supervisory responsibility. for e. The points are summed up to determine the wage rate for the job Job evaluation is a process of determining the relative worth of a job. 3. Under this method. Jobs are expressed in terms of key factors.Through job evaluation. working conditions and other such factors. Specialization . experience needed.III: Semiskilled workers Class . management must explain it to its employees and put it into operation Reviewing periodically: Traditional clerical jobs of the past have undergone a sea change due to technological developments . harmonious and congenial relations can be maintained between employees and management. Job evaluation as a process is advantageous to a company in many ways: 1. .The job evaluation information can be helpful at the time of selection of candidates. Helps in selection of employees .IV: Unskilled workers. so that all kinds of salaries controversies can be minimized. This is possible only through job evaluation. Job Evaluation Methods Ranking Method: Jobs are arranged from highest to the lowest.Because of division of labour and thereby specialization. Therefore. physical effort. The factors that are determined for job evaluation can be taken into account while selecting the employees. a large number of enterprises have got hundred jobs and many employees to perform them. Point method: is currently widely used. instead of ranking complete jobs. Points are assigned to each factor after prioritizing each factor in order of importance. Installing the program: Once the evaluation process is over and a plan of action is ready. These factors include mental effort. skill needed. responsibility.g. responsibilities.I: Executives Class . Reduction in inequalities in salary structure . It is a process which is helpful even for framing compensation plans by the personnel manager.It is found that people and their motivation is dependent upon how well they are being paid. in order of their merit or value to the organization. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. Harmonious relationship between employees and manager . an attempt should be made to define a job and thereby fix salaries for it. each job is ranked according to a series of factors. etc.II: Skilled workers Class . under what conditions are jobs performed.

6.The process of determining the salary differentials for different jobs become standardized through job evaluation. Standardization . This helps in bringing uniformity into salary structure.5. Relevance of new jobs . one can understand the relative value of new jobs in a concern .Through job evaluation .

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