It focuses on the nature and requirements of the job itself, rather than on the skills or qualifications of a particular incumbent. Job evaluation is the assessment of the content of a job by reference to its core components, such as skill, effort and responsibility, for the purpose of placing jobs in order of hierarchy.. Job evaluation establishes a basis for management, employees and trade unions to agree on the relative value of jobs to form the basis of career structures and to establish a fair pay system. The objective of this process is to determine the correct rate of pay. Definition: The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. This helps in promotion and transfer of employees. If a unanimous decision is not reached, the appeal is referred to the 2nd level,which is the Job Evaluation Review Board (Review Board), on behalf of the appellant. A point rating plan defines a number of factors, which are common to the jobs being evaluated (job difficulty, accountability, job knowledge, supervision given, contacts and working conditions). If it is determined that the job description is an accurate representation of the job, discuss the evaluation results with the employee. It is the process of establishing the value of jobs in a job hierarchy. Specifically it means job rating or the grading of occupations in terms of duties; generally, means the entire field of wage and salary administration along modern lines. Another drawback is subjectivity, as there are no definite or consistent standards by which to justify the rankings and the fact that because jobs are only ranked in terms of the order, we have no knowledge of the distance between the ranks. There are changes to the job’s working conditions, tools, technology, etc. A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals. Arthurs, in International Encyclopedia of the Social & Behavioral Sciences, 2001. Consult the Job Evaluation unit for advice regarding this. It is possible even if the plants are situated in different areas. These elements should be rated on the basis of what job itself requires. The expression Job Evaluation has been precisely defined by various authors on management science. Job Evaluation | Meaning & Definition | Principles | Objectives, Indian Standard Institution (ISI) – Objectives, Procedure, Functions, Advantages & Disadvantages of Cooperative Societies, 10 Most Important functions of a Group Leader, Advantages of Technologies enabled business, Personality factors that influence Behaviour of an Employee, 6 Major Problems faced by Public Utilities, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. These elements should be fixed, definite and easily explainable. 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 an overview of the methodology, an online resource developed by Korn Ferry Hay Group is available through the online Learning and Development Calendar. Point rating job evaluation is one method of determining the relative value of jobs. Each job has certain definite and fixed elements. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Provision is also made for the periodical review of the wage structure. The Review Board conducts a hearing. According to A.R. Job evaluation, as a scientific approach, is based upon certain sound principles. In job classification, a job analysis and evaluation occurs when a new position is created. Clear-cut explanations and illustrations of the plan shall avoid misunderstanding and frustration. The job evaluation should assess and score each job in terms of the demands made on the employee under ‘job factors’. Job evaluation is defined by the British Institute of Management as, “the process of analysis and assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis for a balanced wage structure.” When wage rates for various jobs are established on a scientific basis, they will constitute a valuable guide for the management to evaluate the performance of the employees in terms of the job. Adopted by the GNWT and the UNW in 1999, the Hay Method of Evaluation is the most widely used process for evaluating management, professional and technical jobs. Job evaluation enables the business enterprise to maintain a high degree of standardization in wage levels in all its plants. STEP 6: Establish a job hierarchy STEP 7: Apply job hierarchy to developing new HR programs It would be unwise to adopt an occupational wage for each in terms of point values. Besides, necessary information needed for community wage surveys can be obtained. This involves the assignment of currency value to each job. all job evaluation process of this process is needed to store your needs to ask questions in the ranking. job difficulty is divided into complexity and judgement elements). Job evaluation is the basis for fair compensation. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got … Job Evaluation The process of determining how valuable a position is to a company. Job evaluation is a method that is used to produce a hierarchy of jobs in an organization as the basis for determining relative pay levels. 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. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The broad features can be discussed with the employees but the basic secrets should not be disclosed to them. Kress, there are eight principles of job evaluation. A job evaluation does not judge the person in a position, but the position itself. Concept of Job Evaluation. Any job evaluation plan if implemented should be clearly explained to the foremen and employees. A.J. The appellant and supervisor of the position are excused from the hearing and the Appeal Board deliberates. These elements should be rated on the basis of what job itself requires. Job evaluation has been defined as a process of analysis and assessment of … This step is the heart of the job evaluation process. Factors are clearly identifiable aspects of jobs that can be defined and measured. Then the job elements are graded and the wage rates are established. Employees are encouraged to discuss any concerns regarding the content of their job description (or evaluation of their position) with their supervisor prior to filing an appeal. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. Job evaluation techniques aim to eliminate such inequalities by assuring fair and proper wages for the work done by each position throughout the organization. That is wages are to be based on the relative role of each job. The appeal process differs depending on whether the position in question is unionized or excluded: UNW employees may appeal the evaluation of their position at any time while they occupy the position. The Deputy Head will refer the appeal to the Manager, Job Evaluation & Organizational Design, who in turn refers it to the Job Evaluation Appeal Board. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. The relative role of each job should be assessed on a scientific basis. Each job has certain definite and fixed elements. The process of job evaluation involves following steps: Securing acceptance from employees after explaining the purpose and use of job evaluation programme. From these definitions, it is clear that job evaluation is a scientific approach to ascertain the labour worth of each job. 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