After reading this article you will learn about the quantitative and qualitative methods of job evaluation.
Qualitative Methods of Job Evaluation:
Evaluation of a thing can be done by keeping in view the qualitative as well quantitative aspects. Since quality is an important aspect of measurement and evaluation, it is of immense importance.
Following qualitative methods are generally used in job evaluation:
(i) Ranking Method and
(ii) Job Grading Method.
(i) Ranking Method:
All the jobs are ranked in order of their importance from simplest to the toughest order, each job being higher than the previous one in the sequence. A committee of several executives is constituted, which analyse the description of jobs and ranks them in order of importance.
The committee does not have specific factors before it but the things like nature of job, working conditions, supervision required, responsibilities involved etc. are considered while ranking the jobs. These factors are not given any weightage.
Following steps are taken in ranking:
(a) Preparation of Job Description:
The first step in job evaluation procedure is the preparation of job description. Though it is not essential to prepare job description under ranking system but it is better and helpful in this system. Many people assigned with the job of ranking will give different ranking to the jobs.
(b) Selection of Raters:
The next step in the process of raining is the selection of raters. The jobs may be ranked department wise or in groups of workmen (Factory jobs, clerical jobs, unskilled jobs). Factory jobs should not be compared with clerical jobs or unskilled jobs because of their different nature.
(c) Selection of Rates and Key Jobs:
First of all certain key jobs are identified, selected and then compared with other jobs. The key jobs are carefully chosen from major departments or main functions.
(d) Ranking of all Jobs:
Comparison of similar jobs is made to establish its exact ranking in the scale. All the jobs are then ranked from lowest to highest or vice-versa.
The ranking method is suitable in small concerns only where each job can be compared with the other for determining their ranks.
Ranking method of job evaluation has the following benefits:
1. It is very easy to understand and easy to explain to employees.
2. This method is economical in operation as compared to other methods.
3. It can be installed without any delay as it requires minimum time.
This method suffers from the following drawbacks:
1. The ranking is not based on standard criterion so human bias due to presence of human factor cannot be ruled out.
2. Because factors like skill, responsibility, efforts etc. are not analysed separately, the wage rates paid for different jobs influence the rates.
3. Under this system the jobs are only ranked in some order and the exact difference between different jobs is not determined.
4. The chances of inaccurate ranking cannot be neglected.
5. The employees/workers may resent arbitrary ranking of jobs.
(ii) Job Grading Method:
In this method jobs are classified or graded in groups and each job is assigned to one of the grades or classes. With the help of job analysis, information about different jobs is collected and they are put under different grades as per their nature, importance, responsibility and other requirements.
For each grade or class there is different rate of wages. The jobs may be graded as skilled, unskilled, clerical, administrative, etc. This method is considered to be an improvement over ranking method in that a predetermined scale of values is provided.
The following steps are involved in grading system:
1. Preparation of Grade Descriptions:
The first step involved in this method is to prepare grade description to evolve classification of jobs. A number of grades, different from each other, are selected. The grading should be done by considering the nature of duties required for the job, supervising responsibilities etc. Each job is then, attached to an appropriate grade.
2. Selection of Grades and Key Jobs:
A number of jobs are graded, normally between 10 to 20 are selected. Key jobs are carefully chosen from important functions and major departments.
3. Grading the Key Jobs:
Key jobs are assigned appropriate grade level and their relationship with each other is studied.
4. All the Jobs are put in Relevant Grades or Classifications:
For example, all unskilled jobs are put in one class, clerical jobs in another class, and technical jobs in still other class and so on. The jobs in one class receive the same wage rates.
1. A systematic criterion is followed in grading various jobs. It is easy for the workers to understand the standard used for classification.
2. The method is simple to understand and easy to operate. It does not require any technical background.
3. It is easy to determine and implement pay scales for various grades or classes.
4. This method is successfully used in government departments.
1. The classification of jobs is done by some of the executives, human bias exist in this method because no set standards are available for classification.
2. No job analysis is essential in this method there is a possibility of wrong classification for jobs.
3. With the increase in number of jobs, the system becomes difficult to implement.
4. The system is not suitable for large organizations because of its non-flexibility.
Quantitative Methods of Job Evaluation:
Following quantitative methods are used in job evaluation:
(a) Point System and
(b) Factor Comparison Method.
(a) Point System:
This is the most widely used technique of job evaluation. It involves quantitative and analytical approach to the measurement of job value. A number of important factors to be considered in each job are identified. The degree of each factor is also determined for assigning points.
Various factors are assigned points and sum of them gives US an index for the relative importance or weightage of the job that are rated The point system is based on these assumptions that important factors of each job can be determined for evaluating it. The points of different jobs are later on, converted into wage rates.
Following steps are taken for job evaluation:
Type of Jobs to be evaluated:
There are a number of jobs in every organization and these may range from top executive to unskilled one. Similar jobs should be put in the same class or category for evaluation purpose. There should be separate evaluation procedure for each class because the factors affecting them will be different. The job requirement of supervisor will be different from that of an unskilled worker or semi-skilled labour.
Number of Factors to be used:
It is very difficult to select the number of factors required for evaluating a job. The number of factors should be such that all aspects of a job are evaluated.
The number of factors to be used varies from enterprise to enterprise ranking from 3 to as many as 50. The common factors to be selected are education, training, skills, physical ability, mental requirements, responsibility, job conditions and other similar requirements.
Determination of Degrees:
Each factor of evaluation should be further subdivided into degrees for example, experience which is commonly used factor in each job may be subdivided into five degrees.
The first degree may have experience of 3 to 6 months with 5 point, second degree points having experience from 6 months to 1 year with 10 points 15 for experience between 1 to 2 years, 20 points for experience of 2 to 4 years and 25 points for experience of over 4 years and so on.
Assigning of Weights:
Each factor may be assigned a weight as per its significance. For executives mental requirements will have more weightage than physical requirements.
Assigning Money Values to Points:
The points assigned to each factor are summed up for finding out the value of job. The values of jobs are translated into terms of money with a pre-determined formula. “If it is assumed that 1 point is equal to Rs. 20 then 160 points are equivalent to Rs. 3200 in money value. In this manner, the evaluation is done in the point system.”
Point system has the following merits:
1. It gives us a numerical basis for wage differentials.
2. The scale, once decided can be used for fairly a long period.
3. A job can easily be evaluated in money terms as these are assigned according to points connected with that job.
4. The system of job evaluation being systematic and objective is more acceptable to workers as well as management.
5. The element of human basis is reduced to a minimum level.
6. This method is useful even if the number of jobs is very large. The system enjoys stability so far as factors remain relevant to these methods.
7. This method is more accurate as compared to-earlier methods adopted for evaluation.
The point system of job evaluation suffers from the following limitations:
1. The use of this method involves high cost it cannot be adopted by medium or small scale units.
2. The task of defining job factors and then degree of factors is a time consuming task.
3. The selection of factors and then sub factors is a difficult proposition.
4. The allotting of marks to various factors and sub-factors is also a difficult job.
(b) Factor Comparison Method:
This method is a combination ranking and point system of job evaluation. It was first developed by E.J. Benge in 1926 In this method the relative rank of the various jobs is evaluated in relation of monetary scale Some key jobs are identified in the organization at the first instance and then ranked by considering one factor at a time, In this method five factors are generally evaluated for each job; i.e. mental effort, skill, physical effort, responsibilities and working conditions.
Following steps are taken under factor comparison method:
1. Selecting Factors to be used:
The first step under this method is the selection of factors to be ‘ utilized for evaluation. The persons preparing the job descriptions should be given the proper explanation of these factors.
The universally used factors are:
(i) Mental efforts
(ii) Physical efforts
(iii) Skill needed
(iv) Responsibility and
(v) Working conditions.
2. Selections of Key Jobs:
The selection of key jobs is the next very important step. They constitute a standard and all other jobs are to be compared with key jobs. All key jobs should be exact and well understood and there should be no conflict between management and employees about them. The job so identified should cover the range from lowest to the highest paid ones etc.
3. Ranking of Key Jobs:
The various jobs are ranked on the basis of each of the five factors given earlier.
4. Valuing the Factors:
Each factor of key job is then allocated a basic pay. The pay for such jobs should range from the lowest to the highest.
5. Comparison of Jobs:
All jobs are compared with key job factor by factor to find out their relative importance and position in the scale of jobs. The money value of jobs is also determined with this comparison.
6. Establishing Wage Structure:
By assigning money value to each factor of various jobs, a wage structure is determined by summing up the various values.
Factor comparison method enjoys the following advantages:
1. This system is systematic where every job factor is quantified.
2. It can easily be explained to workers.
3. The relative value of each job is determined by comparison with some key job.
4. The number of factors used being limited, it helps in avoiding overlapping.
5. It can be used for evaluation of unlike jobs.
This system suffers from the following draw backs:
1. It is difficult to operate as selection of unfairly paid jobs as key jobs can result in considerable error.
2 There may be frequent changes in wage levels requiring adjustment in key jobs.
3. The system is complex and cannot be easily understood by non-supervisory staff or unskilled labour.
4. This method is expensive and small units cannot afford to use it.
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