JOb Evaluation - slides by SIMON (BUBT)
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JOB EVALUATION
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Job evaluation is a way of breaking down a job into measurableparts, so each part of a job can be given a points value. To do
this, job evaluation looks at all aspects of the job. Job evaluation
is about the job and not the person doing the job.
These relative values of jobs assist in deciding wage rate and
salaries for different jobs.
Main stages in the Job Evaluation process:
Continued
WHAT IS JOB EVALUATION?
Strategic
Objective
HR
Plan
Job
Analysis
Job
Evaluation
Reward
Structure
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Some Major Decisions in Job Evaluation: Determine overall strategy & objectives.
To get right people with right skill in the right place at the
right time.
Getting information about job. Evaluate plans usefulness.
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IMPORTANCE OF JOB EVALUATION
Job evaluation has some benefits. The organization,management and employees enjoy these benefits directly orindirectly. The benefits of job evaluation are listed below:
Wage structure:
Job evaluation helps management establish an acceptable paystructure in the organization.
Measuring importance of jobs:Job evaluation makes pricing of jobs determining status andimportance of jobs.
Reduction of discrimination:It reduces discrimination among same level of jobs through
determining relative importance of jobs.
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Measure of work:It helps constitute standard of work and wages, which are
acceptable to various levels of employees.
Labor-management relations:Another benefit of job evaluation is the establishment of good
human relation among management and labor.
Data collection:For making the job evaluation a success, several data and
information can be collected.
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Nature of work:Management comes to know about the nature of work for many
purposes. Job evaluation helps in this respect.
Price determination:
Management can determine worth of each job in relation to
other jobs with the help of job evaluation program.
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Objectives/Purposes
Job evaluation is done to achieve a number of objectives
in the organization. These objectives are given below:
To provide systematic, definite and factual information
for determining the relative worth of the jobs of anorganization.
To provide a basis for equity in wage and salary
administration within the organization.
To enable the management to predict and control pay
roll cost more accurately.
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To serve as a basis for negotiation with theemployees unions and collective bargaining agentof the organization.
To help in selecting, placing, training, promotingand transferring of the employees of theorganization.
To provide a frame work for periodic review of thewages and salaries of the employees in theorganization
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JOB EVALUATION METHODS
Four techniques are widely used by the rater orevaluator.
These are:
Ranking method.
Job classification method.
Point system.
Factor Comparison method
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JOB EVALUATION METHODS
Ranking method:In the ranking method jobs of the organization are arranged
or values in order of their increasing levels i.e. from lower
position to higher position.
In another way it can be said that, the different jobs,
depending upon their requirements, responsibilities
involved and their importance to the organization ere
ranked, graded or placed from top to bottom.
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For Example:Jobs: A B C D
Arrangements on departmental level:
Department -1 Department -2 Department -3
Jobs Ranks Jobs Ranks Jobs Ranks
B 3 A 4 A 4
C 1 B 3 C 2
A 4 D 1 B 3
D 2 C 2 D 1
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Job Classification Method:In this method first major job classes of the organization are establishedwith necessary job descriptions. Then each job of the organization is
compared and fitted or placed in the related job class on the basis of job
descriptions.For Example:
Job class for clerical positions:
Job Classification Job Descriptions
A grade clerk Capable of handling complicated work.
B grade clerk Must assume more clerical responsibilities.
C grade clerk Must be skilled for the clerical job by a knowledge of
details.
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Point Method:In this method the evaluator first of all decides a number of factors
Which are more or less common to all jobs of the organization. Then
some point values / weight values are assigned to each of these
factors on the basis of their relative importance to the jobs of the
organization.
For Example:Factors Point Values
A (Skills) 500
1 1002 125
3 75
4 150
5 50
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Point Method:For Example:
Factors Point Values
B (Efforts) 250
1 50
2 50
3 50
4 50
5 50
Each degree is awarded certain points, these points are totaled
and then they indicate the importance of job.
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Factor Comparison Method:In this method the evaluator first of all selects number key jobs
from among the jobs of the organization.
Then the evaluator will select a number of factors which arecommon more or less to all jobs of the organization.
Then key jobs are ranked on the basis of their relative importance
to the organization. This ranking is done in two ways:
Firstly- On overall basis.
Secondly- Factor by factor basis.
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This method depends upon four factors: Skill ( the experience, training, ability, and education ).
Mental or Physical effort ( the measurement of the physical or
mental exertion needed for performance).
Responsibility (the extent to which an employer depends on the
employee to perform the job as expected, with emphasis on the
importance of job obligation).
Working condition (hazards, dust, smoke, noise, temperature).
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COMPARISON OFJOB EVALUATION METHODS
ADVANTAGE DISADVANTAGE
It rates the job and
determines the compensationfor it.
It rates the man and
determines the compensationto him for his services.
RANKING METHOD
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ADVANTAGE DISADVANTAGE
Can group a wide range of work
together in one system, simple,
more accurate than raking
method.
Not useful for large org, time
consuming, not involved
detailed job analysis
CLASSIFICATIONMETHOD
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POINT METHOD
ADVANTAGE DISADVANTAGE
Compensable factors call out basis
for comparisons.
Compensable factors communicate
what is valued.
Can become bureaucratic and
rule bound.
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ADVANTAGE DISADVANTAGE
Finds wages for a job, wages can
be calculated speedily, greaterconsistency in the judgment, size
of jobs can be measured.
Expensive, Time Consuming
FACTOR COMPARISONMETHOD
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