Transcript lecture 9 - Head Scratching Notes

Suggestion Schemes: Job
Evaluation
Prepared by: Bhakti Joshi
Date: February 20, 2013
Job Evaluation
…is a process of determining the relative worth
of a job.
Aims at…
• Reduction in inequalities in salary structure
• Specialisation
• Selection in employees
• Harmony between employees and manager
• Standardisation
• Creating relevance for new jobs
Job Evaluation: Pre-requisites
•
•
•
•
•
Job content – job description and specification
Top management support
Cooperation of union and individual workers
Comparison of Jobs
Involvement of expert in job-evaluation
techniques
Job Evaluation Methods
Non-Analytical Methods
Ranking Method
Classification
Method
Methods designed on the
basis of the jobs as a
whole
Analytical Methods
Factor
Comparison
Point Method
Methods designed on the
basis of the requirements
and elements of the jobs
Example: Ranking Method
Rank
1.
2.
3.
4.
5.
6.
Job
Accountant
Accounts Clerk
Purchase Assistant
Machine-Operator
Typist
Office Boy
Monthly Salaries
Rs 60,000
Rs 30,000
Rs 25,000
Rs 20,000
Rs 17,000
Rs. 15,000
Ranking Method
• Worth of a job based on:
Judgement of skill; Effort (physical and mental); Responsibility (supervisory
and fiscal); Working conditions; Ranked in descending order from best to
worst
• Processes:
– Make a list of benchmark jobs or list of each position in a business
(benchmark jobs as in producers, maintainers, administrators, cashiers,
etc) [NOT employees]
– Write short description or primary duties of each position
– Determine the characteristics that is considered most important for the
company
– Jobs are perceived to be the ones with the highest and lowest value;
selecting a job mid-way and finally choosing others at lower or higher
intermediate points.
– Divide the ranked jobs into grades and an initial estimate (based on
common features among groups to bring about distinction between
groups)
Ranking Method (Contd…)
– Presentations and continuous iterations
• Simple, quick and inexpensive only if agreement of the jobs
and ranks are reached easily
• Used in small organisations
LIMITATIONS:
• Highly subjective.
• Not diagnostic to point the specific areas of weakness and
strength of a worker.
• Existing jobs must be re-ranked to accommodate new
position
• Requires detailed knowledge of every job for evaluation
and ranking and difficult when a large number of jobs are
under consideration
• Difficult to justify slotting new jobs
Example: Classification Method
CLASS I
Executives:
Office manager, Deputy office manager, Office
superintendent, Departmental supervisor, etc.
CLASS II
Skilled Workers:
Purchasing assistant, Cashier, Receipts Clerk, etc
CLASS III
Semi-Skilled Workers:
Stenotypists, Machine-operators, Switchboard
operators, etc.
CLASS IV
Semi-Skilled Workers:
Daftaris (book-binders), File clerks, Office boys,
etc.
Classification Method
• One whole job
• Slots jobs into grades
• Hierarchy of grade definitions
–
–
–
–
–
Skill
Competence
Experience
Initiative
Responsibility
• Grades are limited to 4 to 8 levels and more than 8
grades become unmanageable
• Simplicity and easily understood
Classification Method (Contd…)
Limitations
• Cannot cope with complex jobs
• Grade definitions tend to be generalised – When
individual job descriptions and grade descriptions do
not match well, evaluators have a tendency to
classify job using subjective judgements
• Requirements of different jobs differ but are
combined in the single category
Factor Comparison Method
Analytical extension of Classification Method
1. Select a number of “key jobs” (generally 15
to 20) [NOT whole but separate]
2. Analyse them on certain critical factors. For
example, 5 critical factors are identified
i.
ii.
iii.
iv.
v.
Mental Requirement
Physical requirements
Skill requirements
Working conditions
Responsibility
Factor Comparison Method
(Contd…)
3. Rank each key-job within each factor which
will be different for different jobs
4. Assign wages to each factor. Wages should be
in proportion to the estimated total price of a
job
5. Calculate total wage for a job by adding wage
rate for each factor. This provides a job
comparison scale and insert key jobs in it
Factor Comparison Method
(Contd…)
6. Evaluate the job under consideration based
on the job comparison scale identified above.
Then evaluate and compare each job with
other jobs in terms of each factor
7. Design, adjust and operate the wage
structure
Example: Factor Comparison
Method – Tools Workshop
Job
Tool maker
Skill
Mental
Physical
Responsibilities Working
Requirement requirement
conditions
1
1
4
1
4
Craft worker
2
2
3
2
3
Process
Operator
3
3
2
4
2
Maintenance
assistant
4
4
1
3
1
Ranking Jobs by Factors
Example: Factor Comparison
Method – Tools Workshop
Job
Tool maker
Skill
Mental
Physical
Responsibilities Working
Requirement requirement
conditions
35
30
5
20
10
Craft worker
30
25
15
15
15
Process
Operator
30
30
15
10
15
Maintenance
assistant
20
15
25
15
25
Relative Importance of Jobs
Example: Factor Comparison
Method
Job
Tool maker
Skill
Mental
Physical
Responsibilities Working
Requirement requirement
conditions
91
78
13
52
26
Craft worker
66
55
33
33
33
Process
Operator
54
54
27
18
27
Maintenance
assistant
32
24
40
24
40
Allocation of Money Values
(in Rs)
Example: Factor Comparison
Method – Tools Workshop
Benchmark Jobs
(Rs)
Job
Tool maker
91
Craft worker
66
Process Operator
54
Assembler
42
Maintenance
Assistant
32
Non-Benchmark
jobs (Rs)
Slotting Non-Benchmark jobs
Jobs evaluation
based on:
• Education
• Financial
Responsibility
• Job-related
experience
• Supervision
• Teamwork
• Creativity
Factor Comparison Method:
Advantages
• Job comparison on factor-to-factor basis
• Rankings made by defining factors thus
avoiding imprecise definitions
• Not need to convert points to money value –
leads directly to a price for a job
• Useful for medium to large organisations
Factor Comparison Method:
Disadvantages
• Complete dependence on the benchmark
jobs…How do you believe that the benchmark
jobs lead to equal incomes?
• Could be held to be discriminatory
• Though analytical still requires subjective
judgement
Example 2: Factor Comparison
Method
Job
Secretary
Admin
Assistant
Supervisor
Manager
Hourly
Rate
Skill
Physical
Responsibilities Working
requirement
conditions
Rs. 90
Rs 45
Rs 20
Rs 20
Rs 5
Rs 110
Rs 55
Rs 25
Rs 25
Rs 5
Rs 150
Rs 60
Rs 35
Rs 40
Rs 15
Rs 210
Rs 90
Rs 35
Rs 70
Rs 15
Point-Method
1. Select job cluster and the jobs to be evaluated
2. Jobs should be analysed and job
descriptions/specifications should be prepared
3. Select compensable factors
4. Define each factors’ specifications
i. Working conditions: noise levels, temperature
ii. Education: SSC, HSC, Undergraduate,
Graduate,Post-graduate
iii. Experience: Entry-level, 0 – 2 years, 3-5 years, etc
Point Method (Contd…)
5. Define factor degrees:
i. Degree 1 for entry-level, Degree 2 for 0-2 years of
experience, Degree 3 for 3 – 5years of experience, etc.
6. Determine total points in plan
i.
ii.
iii.
iv.
v.
Degree 1 for entry-level = 30 points
Degree 2 for 0-2 years of experience = 75 points
Degree 3 for 3 – 5 years of experience = 120 points
Degree 4 for 6-10 years of experience = 165 points
Degree 5 for 11 to 25 years = 255 points, Degree 6 for
26 to 40 years = 300 points
Point Method (Contd…)
7. Evaluate jobs
i. Key jobs are known
ii. Then other jobs are evaluated based on the
factors identified
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