Human Resource Management - Job Evaluation, Study notes of Human Resource Management

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JOB EVALUATION

 What is job evaluation? Job evaluation is the process of methodically establishing a structure of jobs within an organization based on a systematic consideration of job content and requirements. The purpose of the job structure or hierarchy is to provide a basis for the pay structure. The job structure, as seen in previous lessons, is only one of the determinants of the wage structure. But it is an important one often used. According to Wendell French, “job evaluation is a process of determining the worth of the various jobs within the organization, so that differential wages may to jobs of different worth.”

• (^) Objectives of Job

Evaluation

The general purpose of job evaluation may include a number of more specific goals:

1. To provide a basis for a simpler, more rational wage structure;
2. To provide an agreed-upon means of classifying new or changed jobs;
3. To provide a base for individual performance measurements;
4. To reduce pay grievances by reducing their scope and providing an agreed-upon means of resolving disputes;
5. To provide incentives for employees to strive for

Job Evaluation System There are four major methods of job evaluation:

• (^) Ranking
• (^) Classification
• (^) Factor Comparison
• (^) Point Plans

Methods of Job Evaluation  Classification Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared.

Methods of Job Evaluation  Classification Example:  (^) GS-5 includes all classes of positions the duties of which are (1) to perform, under general supervision, difficult and responsible work in office, business, or fiscal administration…  (^) GS-9 includes all classes of positions the duties of which are (1) to perform, under general supervision, very difficult and responsible work along special technical, supervisory, or administrative experience…

Methods of Job Evaluation

• (^) Factor Comparison Very complex and requires total rework each year to determine the market pay rates. Can perpetuate equity issues from the market.

Methods of Job Evaluation  Point Method These systems have three common characteristics: ◦Compensable elements ◦Factor degrees are numerically scaled ◦Weights reflecting the relative importance of each factor

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