Guide to performing a Job Evaluation

make to per runing a blood line EvaluationWhat ar the master(prenominal) issues faced by the residents in Portugal? Click on the play button to chink the exposure. Highlight the issues and look for the solutions. Sh ar your opinions in the LMS Forum.MMP Create video screen and embed video as shown in linkSource http//www.y issueube.com/watch?v=0vKDyPJmQD0 melody valuation is the fulfill of determining the expenditure of short letters appoint to employees.The expense of a work is determined by the demand for it in relation to its vocation description, subscriber line specification and the expected outcomes from that put-on. In whatsoever cases, it is found that an employee who holds a similar position as his colleague whitethorn hold a different role, and have different responsibilities and accountability. In such cases, he/she should receive different give birth.This chapter discusses the importance of business organisation rating, staple calling evaluation orders, the hay guide map rule, and inputs to refer to when pricing undertakings. frolic Evaluation and Its Importance patronage evaluation is the offset of determining the protect of unmatched logical argument in proportion to the opposite melodys deep down the geological formation so a fair salary musical ar deviatement toilette be found. The blood line evaluation process is the to the highest degree usual method enjoyment to provide a rationale for a even out social organisation and to specify a commercial enterprise to a tolerate variety.Job evaluation piece of ass also be defined as a practical proficiency for trained and experienced employees to judge the size of one line of merchandise intercourse to other(a)s. It does not now determine the collapse takes but establishes the basis for an midland ranking of crafts.Among other definitions atomic effect 18 as followsJob evaluation is interested with assessing the coition demands of differ ent arguments deep down the organisation. Its usual purpose is to provide a basis for relating differences in pass judgment of pay to different in- transmission line requirements. It is on that pointfore a in like mannerl which cornerstone be employ to help determine a pay structure.(Advisory Conciliation and Arbitration Service (ACAS), London 1984)A furrow evaluation frame consists of compens up to(p) actors and a weighting scheme ground on the importance of from severally one compensable factor to the organisation. Compensable factors argon the characteristics of jobs that an organisation values and chooses to pay for. These characteristics may include job interlacingity, usable designers, necessary education, infallible experience and responsibility.(Noe et. al. 2003)Job evaluation is a arrogant procedure to determine the relational worth or value of jobs. Although in that respect ar several different approaches, all(prenominal) one considers the duties, responsibilities and work conditions of the job. The mark of job evaluation is to identify which jobs should be remunerative much than others.(Schwind et. al. 1999)The objectives of a job evaluation process in an organisation argon as followsEstablishes the relative value or size of jobs, i.e. internal relatives.Produces the information required to design and maintain equitable and defensible grade and pay structures, circumstantial in any organisation.Provides as a basis for grading jobs within a grade structure, thus enabling unvarying decisions to be do about job grading.Ensures that the organisation meets ethical and legal equal pay for work of equal value obligtions.More recently the use of job evaluation is the hinge of most equal pay cases. Despite its popularity, it is practically misunderstood. So, the following facts about job evaluation mustiness be do clearSELF-CHECKWhat is job evaluation and why is it cardinal?What argon the quartette facts about job evaluat ion?Job Evaluation schemesThe human pick management is usually responsible for administering the job evaluation programme. However, actual job evaluation is typically done by a deputation. The committee baron include the human resource director as the chairperson and the finance, marketing and achievement heads.Job Evaluation CommitteeChairperson(Human Resource Director) well of FinanceHead ofMarketingHead of w atomic number 18ion put down 8.1 The job evaluation programme is typically performedby a committee within the organisationSmall and medium sized organisations may elect to use outside consultants as they often lack job evaluation experience. When employing a qualified consultant, management should require the consultant to develop an internal job evaluation programme and train fellowship employees to administer it correctly. This can be done by reviewing information obtained through job analysis regarding the duties, responsibilities and working conditions of the org anisation. With this friendship, the relative worth of jobs is determined and the consultant go forth be able to shape a job evaluation programme suitable to the company by selecting an appropriate job evaluation method.Figure 8.2 The 10 basic steps in conducting an effectivejob evaluationThere are quaternary basic job evaluation methods normalalityly used by organisations. They are job ranking, job classification (or job grading), factor comparison and the point system. Job ranking and job classification are reason as non quantitative methods while factor comparison and the point system are classified as quantitative methods. A job evaluation committee or an outside consultant needs to choose one method and modify the method to suit the organisations particular need.Figure 8.3 Job evaluation methodsJob Ranking modeIn the ranking method, jobs are compared to each other and arranged in order according to their worth to the organisation. The worth of a job is usually based on judgements of skill, case ( sensible and mental), responsibility (supervisory and fiscal), and working conditions.The steps involved in ranking jobs areRank JobsMake an overall comparison between jobs, by way on certain factors such as, responsibility, skills, apparent motion, and working conditions. It is possible that elements of or so jobs may be overlooked or weighed too heavily.Rank jobs from the spunkyest to the lowest. The highest and lowest are rank first, followed by the coterminous highest to the next lowest, until all jobs are ranked. channel job analysis and write job descriptions. payment scales are established based on the rankings, where more important jobs are paid more. However, as the ranking of jobs are subjective and lack precision, the pay trains may be inaccurate.The job ranking method is perhaps the guilelessst method of job evaluation but it is also known to be the least precise among the foursome evaluation methods.WEB-SITEFind out the ten worst jo bs in the US of 2010. Go tohttp//www.huffingtonpost.com/2010/01/06/worst-jobs-2010-careercas_n_413511.htmlJob ClassificationJob classification is a form of evaluation that assigns jobs to an existing grade/ family structure according to their relative worth to the organisation. First, job grades or categories are established and each is presumption a standard description, as shown in Table 8.1.Table 8.1 A Job Classification schedule for use with Job Grading MethodJob GradeStandard DescriptionI mold is simple and highly insistent done under close supervision requires stripped-down training and little responsibility, or initiative.IIWork is simple and repetitive done under close supervision requires some training or skill. Employee is only rarely expected to assume responsibility or evince initiative.IIIWork is simple, with little variation done under cosmopolitan supervision training or skill is required. Employee has minimum responsibility and must take some initiative to perfo rm satisfactorily.IVWork is more or less complex, with some variation done under general supervision requires high take skills. Employee is responsible for equipment and safety, and must exhibit initiative regularly.VWork is complex and varied done under general supervision requires advance(a) level skills. Employee is responsible for equipment and safety, and must show a high stage of initiative.Next, the standard description that most nearly matches a job description determines the grade of that job.Job classification or job grading is slightly more sophisticated than job ranking, but it too is not actually precise.Factor ComparisonIn the factor comparison method, each job is ranked according to a series of factors. This method includes atomic number 23 major steps.Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors (as shown in Figure 8.3).Figure 8.4 The five universal job factorsJob evaluators must then identify factor s germane(predicate) and common in a broad range of jobs as shown in Table 8.2. A numerical point value is assigned to each job factor. The weights might be different for different job positions. some(prenominal) organisations use different factors for managerial, professional, sales and other positions.Table 8.2 Factors relevant and common in a broad range of jobsJobMental aptitudePhysical rightWorking ConditionSystem Analyst14213Data Entry shop clerk41141Programmer23324Operator32432NoteIn the mental requirement, systems analyst ranked highest (1), followed by programmer (2), operator (3) and clerk (4).The evaluation allows the committee to determine the relative importance of each job. In this method, pay will be assigned by comparing the weights of the factors required for each job. This method of job evaluation is more systematic. turn on SystemThis method evaluates the searing factors of each job. But instead of using earningss, as the factor comparison method does, it us es points. Under the point rating system, a number of factors such as skill, effort, responsibility and working conditions are determine as being common to all jobs being evaluated. Each factor is then apt(p) a weighting indicating its values relative to the others and for each factor on that point are varying degrees (as shown in Table 8.3).Table 8.3 Point system matrixNo.Critical FactorsLevels or DegreesMinimumI funkyIIModerateIIIHighIV1ResponsibilitySafety of others255075100Equipment and materials20406080Assisting trainees5206050Product/ Service Quality204060802SkillExperience4590135180 education / Training2550751003 crusadePhysical255075100Mental25701051504Working Condition offensive condition20206080Hazards20406080Total Points100A job description is watchful for each job and a committee then considers each description in turn, comparing it factor by factor, with the degree definitions. Points are al primed(p) for each factor and the total point value determines the relativ e worth of each job.A point system is more precise than the factor comparison method because it can put acrossle critical factors in more detail. This method is also used more than the other methods. Some 95% of the major corporations in the US are thought to use some variation of this method to evaluate jobs.AccountabilityAccuracyAnalysis and viewComplexityContact and diplomacyCreativityDecision-makingDexterity (clever, skilful, neatness)Education cause of errorsEffortInitiativeJudgmentKnow-howKnowledge and skillMental effortMental FatiguePhysical demandsPhysical skillsPlanning and coordination enigma-solvingResponsibility for hard cash/material/confidential tuition equipment, process, record and reportsSocial skillsSupervision addicted/receivedTask completionTraining and experienceWork conditionWork pressureFigure 8.5 A list of factors used most frequently in the point rating methodas prepared by the International Labour Organisation (ILO)SELF-CHECKDescribe how each of the fou r job evaluation methods below determine the worth of a job to an organisation.a) Job rankingb) Job classificationc) Factor comparisond) Point systemHay Guide chartThe job evaluation process is enormously time consuming, complex and often a frustrating travail as it is subjected to political pressures and biases that is natural among committee members who represent different functional areas. It has been proven that the job evaluation process is easier to do if the committee compares factors common to all jobs (compensable factors).For evaluating management jobs, the Hay Guide Chart Profile Method is the most popular method. This method provides a common language, an organised good example and the criteria to ensure that judgements applied can be tested and defended in an objective, consistent and equitable manner. This method is based on assessing ternary main factors, which areknow howproblem solvingaccountabilityINPUTPROCESS partKNOW-HOWPROBLEM SOLVINGACCOUNTABILITYFigure 8.6 The Hay Guide Chart Method(a) Know HowKnowledge, skills and experience needed for acceptable job performance. It consists of three dimensions which areScientific disciplines, work techniques, and practical proceduresThe depth and range of specialised knowledge required to perform the job. It requires a deep authoritative knowledge in areas of considerable significance to the organisation disciplines or general knowledge required to deal with strategic issues at the most senior level within the organisation.Managerial know-howRequirements needed in the job to plan, supervise, coordinate and shuffle different activities, resources or parts of the organisation.Human relation skillsSkills needed to drop dead with and influence individuals and groups within and outside the organisation to achieve the necessary results.(b) Problem SolvingThe span, complexity and level of analytical, evaluative and innovative thought required in the job. The problem solving factor has two components. They are thinking environmentThe environment in which thinking takes place. Identifies and addresses problems that arise. Depends on the absence or presence of policy, procedure, supervision as well as other guidance. thought challengeThinking done to assess the complexity of problems encountered, ranging from simple to complex situations. Also involves the extent of original thinking needed to arrive at conclusions.(c) AccountabilityDiscretion given to the job holder to influence or determine the course of events and his/her answerability for the consequences of his/her decisions and actions. Accountability has three dimensions which are independence to ActAssesses the degree of freedom of action given to a job by the organisation.MagnitudeGauges how much of the organisation is effected by the job holders accomplishment of the job.Job impact on end resultsConcerned with how directly the job affects end results in that area.SELF-CHECKExplain the three factors that the Hay Guide Char t method considers in evaluating the worth of a job to the organisation. impairment JobsPricing jobs are divided into two activitiesEstablishing the appropriate pay level for each job.Grouping the different pay levels into a structure that can be managed effectively.It would not be unusual, for instance, for the personnel manager of Motorola to regularly percent wage data on account positions. Firms in the community equivalent Hewlett Packard identify job positions such as maintenance engineer, electrical engineer, list punch operators or clerk-typists and give comprehensive descriptions of these jobs.During the wage survey, various information can be call for (as shown in Figure 8.7).Figure 8.7 Information that can be requestedwhen conducting a wage survey(a) Pay LevelThe appropriate pay level for any job reflects its relative and absolute worth. A jobs relative internal worth is determined by its ranking through the job evaluation process. The absolute worth of the job is con trolled by what the labour market pays for similar jobs.Figure 8.8 Pay levelSource http//www.nursingtimes.net/whats-new-in-nursing/acute-care/pay-levels-confirm-lower-status-of-nurses/5008226.article(b) ScattergramIn order to set the right pay level, the job evaluation ranking and the survey wage rates (the going rates in the industry) are combined through the use of a graph called the scattergram.GD Insert image of scattergramFigure 8.9 Scattergram(c) Wage-trend lineThrough the dots that represent key jobs, a wage-trend line is drawn as close to as many points as possible (the line can be drawn freehand). most importantly, this method can be used to identify jobs whose pay is out of the trend line. When a jobs pay rate is too high, it should be identified as a red circle rate. Undervalued rates (wage rate is too low) carry a green circle and attempts should be made to generate these jobs an average pay maturation.Figure 8.10 Wage-trend line(d) Pay structureJobs that are simila r, in terms of class grades and points, are grouped together. For instance, pay grade 1 may cover 0-100 points, pay grade 2 from 1-200 points, and so on. The result is a hierarchy of wages. The more important jobs are paid more, and as individuals assume jobs of greater importance, they rise within the wages structure.Figure 8.11 Pay structureSource http//skorcareer.com.my/images/salary-survey-asia.jpgRate ranges are simply pay ranges for each job class. For example, the wage-trend line indicates that $8.00 is the average hourly rate for a particular job class. With a rate range of $1 for each class, a marginal performer is placed at a nerve center or $8.00. When performer appraisals indicate above-average performance, the employee may be given a merit rise of, say 25 cents per hour. Once the employee reaches the top of the wage range, no more wage increase will be forthcoming. either a promotion or a general across-the-board pay raise needs to occur for this worker to exceed $8.5 0 an across-the-board increase moves the entire wage trend line upward.As new jobs are created, the wage and salary section of the personnel department performs a job evaluation. For this evaluation, the new job is assigned to an appropriate job class. If rate ranges are used, the new incumbent will start at the bottom of the range and receive raises, where appropriate, to the top of the rate range.SELF-CHECKWhat are the inputs that can be requested when conducting a wage survey to price jobs?Case StudyThe Thai Silk caller-out, Ltd.Source http//www.retireearlylifestyle.com/ThaiSilk.html(a) Thai Silk IndustryThe production of Thai silk involves a number of stages. The earliest fiber production, was carried out by approximately 500,000 individual small fry families primarily in the economically-depressed northern portion of the country. Several hundred family firms placed in the larger provincial towns and in Bangkok undertook intermediate stages dyeing, whirl and weaving. The f inal stages printing, converting and retailing were dominated by fewer than 100 enterprises primed(p) in Bangkok.(b) Finishing and ConvertingThai silk moved directly from weavers into retail take to be sold as fabric. However, a portion was finished (e.g. printed with a design) and/or converted (e.g. made into a pillow case, garment, window drape, etc.) forrader reaching retail. There were seven finishing establishments in the country, all located in Bangkok. The largest of these was a 51%-owned joystick venture of Thai Silk Company Ltd. (TSC). It contained 16 hand painting tables compared to only 10 by its next largest competitor. It was the only finisher in the country specialising in silk to own an self-loading printing machine.(c) Proposed New Weaving MillOn top of these changes, an important new development is currently under consideration. It involves a proposed 51-owned weaving joint venture, the Thai Silk Handweaving Co. Ltd. (TSHC). The plant was to be located at Pak thongchai in Korat responsibleness about 100 miles northeast of Bangkok. It would initially contain 120 hand looms of the tradiational variety with capacity to supply about 20% of TSCs fabric needs. Currently, there are plans for an increase in the number of looms to 600 over a 6 year period. TSCs share of initial capitalisation would amount to 2.4 million Baht.SELF-CHECKThe silk production involves many processes and stages, from dyeing to printing and retailing. As the Human Resource manager, how would you price the pay for employees working in the different stages of the silk production?SummaryThis chapter introduced you to job evaluation, its methods, the hay guide chart method, and inputs to refer to when pricing jobs. We have well-educated thatJob evaluation is the process of determining the value of one job in comparison to the other jobs within the organisation so a fair salary system can be established. It is the most common method used to provide a rationale for a pay st ructure and to assign a job to a pay grade.Job evaluation is usually administered by the human resource manager. However, it is typically performed by either a committee within the organisation or by outside consultants.The four basic job evaluation methods commonly used by organisations areJob rankingJob classification (or job grading)Factor comparisonThe point systemThe hay guide chart method of evaluating jobs assesses three main factorsKnow-howProblem solvingAccountabilityWhen perform a job survey to price jobs, the following information can be requestedPay levelScattergramWage-trend linePay structureGlossaryTermsDefinitionFactor comparisonEach job is ranked according to a series of factors, namely mental requirement, skill, physical requirement, responsibilities and working conditions.Hay guide chart methodA job evaluation method that considers know-how, problem solving and accountability.Job classification/Job gradingA form of evaluation that assigns jobs to an existing grade /category structure according to their relative worth to the organisation.Job evaluationThe process of determining the value of one job in comparison to the other jobs within the organisation so a fair salary system can be established.Job rankingJobs are compared to each other and arranged in order according to their worth to the organisation.Pay levelWhat the labour market pays for similar jobs.Pay structureJobs that are similar, in terms of class grades and points, are grouped together.Point system methodEvaluates the critical factors of each job. But instead of using wages, as the factor comparison method does, it uses points.ScattergramA graph that uses plotted points to represent a set of data.Wage-trend lineA line drawn as closely as possible to as many points representing key jobs in a graph.