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Chapter
6
Job Evaluation
Meaning, Scope & Process
Methods of Job Evaluation
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QUIZ : HR & PM 26th August 2010Marks : 10Explain any 2 of the following 5 questions.
1. What is the difference between HRM and Personnel Management
2. Give 4 functions of Human Resource Management3. What are the principles of personnel management ?4. What is HR Planning?5. Explain demand forecasting & Supply forecasting.6. What is the difference between Recruitment & Selection7. What are the steps in Selection process8. What are the challenges of Recruitment9. What is an ideal recruitment method. Discuss with an example.10. What are the factors affecting compensation/remuneration ?
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Test : Next time
20 MarksComplete Syllabus
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Determining an Internally Aligned Job Structure
Internal
alignment Job analysis Job description Job evaluation Job structure
Some Major Decisions in Job Evaluation
Establish purpose of evaluation Decide whether to use single or multiple plans
Choose among alternative approaches
Obtain involvement of relevant stakeholders
Evaluate plans usefulness
Work relationships within the
organization
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Premise
The differences in the rates paid for different jobsand skills affect the ability of managers to achievetheir business objectives.
Differences in pay matter.
They matter to employees, because theirwillingness to take on more responsibility andtraining, to focus on adding value for customersand improving quality of products, and to be
flexible enough to adapt to change all depend atleast in part on how pay is structured for differentlevels of work.
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Premise(continued)
Differences in the rates paid for different jobs andskills also influences how fairly employees believethey are being treated. Unfair treatment isultimately counterproductive.
Job evaluation has evolved into many differentforms and methods. Consequently, wide variationsexist in its use and how it is perceived.
No matter how job evaluation is designed, its
ultimate use is to help design and manage work-related, business-focused, and agreed-upon paystructure.
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Job Evaluation Process of systematically determining the relative worth
of jobs to create a job structure for the organization.
The evaluation is based on a combination of job content,skills required, value to the organization, organizational
culture, and the external market. This potential to blend internal forces and external
market forces is both a strength and a challenge to jobevaluation.
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Aspects of Job Evaluation
J ob Evaluation is: Assumption
A measure of job Content has an innate value outside of external market.
content
A measure of relative Relevant groups can reach consensus on relative value
value.
Link with external Job worth cannot be specified without external market market
information.
Measurement device Honing instruments will provide objective measures.
Negotiation Puts face of rationality to a social / political process.Establishes rules of the game.
Invites participation.
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Resulting Internal Structures: Job, Skill, and Competency
Based
Supervisors
Project Leaders
Managers
Division General
Managers
Vice Presidents
Job
Evaluation
TechnicianMachinist I
CoremakerClerk / Messenger
Scientist
Associate Scientist
Senior Associate
Scientist
Head / Chief
Scientist
Drill Press Operator
Rough Grinder
Assembler II
Materials Handler
Inspector II
Packer
Assembler I
Inspector I
Word Processor
Administrative
Secretary
Principal Adminis-
trative Secretary
Administrative
Assistant
Job
Evaluation
Competency-
Based
Skill
Based
Manufacturing
Group
Administrative
Group
Technical GroupManagerial
Group
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For Instance :Operations & Technology Head
Marketing Manager
Regional Director
Area Sales Managers
TeleSales Officers, Feet onStreet
Discuss :- Content ?
- Value ?- Skills required ?
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Job Evaluation Methods
Job Ranking Raters examine job description and arrange jobs according
to value to company
Job Classification Classes or grades are defined to describe a group of jobs.
Point Method
Numerical values are assigned to specific job components;sum of values provides quantitative assessment of jobsworth (Hay Guide Chart-Profile Method)
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Comparison of Job Evaluation Methods
Advantage DisadvantageRanking Fast, simple, easy to
explain.
Cumbersome as number
of jobs increases. Basis
for comparisons is not
called out.
Classification Can group a wide range
of work together in one
system.
Descriptions may leave
too much room for
manipulation.
Point Compensable factors call
out basis forcomparisons.
Compensable factors
communicate what is
valued.
Can become
bureaucratic and rule-bound.
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The Point Plan Process (1 of 2)Step One: Conduct Job Analysis
A representative sample of benchmark jobs
The content of these jobs is basis for compensablefactors
Step Two: Determine Compensable Factors
Based on the work performed (what is done)
Based on strategy and values of the organization (whatis valued)
Acceptable to those affected by resulting pay structure(what is acceptable)
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The Point Plan Process (2 of 2)Step Three: Scale the Factors
Use examples to anchor
Step Four: Weight the Factors Can reflect judgment of organization leaders,
committee
Can reflect a negotiated structure Can reflect a market-based structure
Step Five: Apply to Non-benchmark Jobs
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Characteristics of Benchmark Jobs The contents are well-known, relatively stable, and
agreed upon by the employees involved
The supply and demand for these jobs are relativelystable and not subject to recent shifts
They represent the entire job structure under study
A majority of the work force is employed in these jobs
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Compensable Factors -
A Definition (1 of 2)
Compensable factors are paid-for, measurable qualities,features, requirements, or constructs that are common tomany different kinds of jobs.
These factors are qualities intrinsic to the job and must beaddressed in an acceptable manner if the job is to beperformed satisfactorily.
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Compensable Factors -
A Definition (2 of 2) In addition to being quantifiable, compensable factors
should be relatively easy to describe and document.
Those involved in using compensable factors tomeasure job worth should consistently arrive at similarresults.
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Universal Compensable Factors
Skill: the experience, training, ability, andeducation required to perform a job underconsideration - not with the skills an employeemay possess
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Universal Factor - Skill
Technical Know-how
Specialized Knowledge
Organizational Awareness
Educational Levels
Specialized Training
Years of Experience Required Interpersonal Skills
Degree of Supervisory Skills
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Universal Compensable Factors
Effort:themeasurement of the
physical or mentalexertion needed forperformance of a job
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Universal Factor - Effort
Diversity of Tasks
Complexity of Tasks
Creativity of Thinking
Analytical Problem Solving
Physical Application of Skills
Degree of Assistance Available
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Universal Compensable Factors
Responsibility:the extent to which anemployer depends on the employee to performthe job as expected, with emphasis on the
importance of job obligation.
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Universal Factor - Responsibility
Decision-making Authority
Scope of the organization under control
Scope of the organization impacted
Degree of integration of work with others
Impact of failure or risk of job
Ability to perform tasks without supervision
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Universal Compensable Factors
Working Conditions:
hazards
physical surroundingsof the job.
U i l F W ki
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Universal Factor - Working
Conditions
Potential Hazards Inherent in Job
Degree of Danger Which Can be Exposed to Others
Impact of Specialized Motor or Concentration Skills
Degree of Discomfort, Exposure, or Dirtiness in Doing Job
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Example: The Hay System
Know-How
Practical, Specialized, & Technical Breadth
Breadth of Management
Human Relations
Problem Solving
Thinking Environment Thinking Challenge
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Example: The Hay System
Accountability
Freedom to Act
Magnitude Impact
a) Remote
b) Contributory
c) Shared
d) Primary
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How Many Points to Allow?
Relative Weight of theFactors
How to Allocate PointsAcross Factors andDegrees
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Overview of the Point System
Job
Factor Weight 1 2 3 4 5
1. Education 50% 100 200 300 400 500
2. Respon-
sibility
30% 75 150 225 300
3. Physicaleffort
12% 24 48 72 96 120
4. Working
conditions
8% 25 51 80
Degree of Factor
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Who Should Be Involved?
The Design ProcessMatters
Appeals / ReviewProcedures
I Know I Speak for All
of Us When I Say ISpeak for All of Us
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Review Questions (continued)
4. Why bother with job evaluation? Why not simplymarket price? How can job evaluation link internalalignment and external market pressure?
5. Consider your college or school. What are thecompensable factors required for your college toevaluate jobs? How would you go about identifyingthese factors? Should the schools educationalmission be reflected in your factors? Or are generic
factors okay? Discuss.6. As the manager of a 10 person workgroup, how doyou reassure the group when they learn their jobsare going to be evaluated?
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