Productivity of an administration to a big extent depends on the morale and motive of its employees. One of the chief factors impacting is the wage policy and “ wage construction “ of the administration. If we pay the employees less than the work they perform, it generates dissatisfaction which leads to low morale. On the other manus, the concealed cost of paying employees more than necessary besides is non desirable. It is uneconomical on a common-sense degree, but it is even more harmful because of its impact on employees who see other employees making occupations with less duty and being paid more than what is perceived as just. This feeling could take to defeat and lowering of morale and hence loss of productiveness. An administration needs a system, which will try to forestall such state of affairss when developed and to decide them to the satisfaction of all concerned.
Meaning
In general, Equity means “ justness or equity ” . Internal Equity defines the balanced relationship between the rewards and wages of assorted places within the endeavor. For wage unfairnesss, occupation rating is the solution.
STRUCTURE OF JOB
Occupation
Job rating
Measuring
comparative worth of a
Occupation
Job Analysis
Procedure of
Roll uping occupation
related informations
Job Description Statement of a occupation responsibilities and duties
Joule
Job specification Statement of minimal acceptable Human qualities
Human qualities
Introduction TO JOB EVALUATION
Job rating is a chronological procedure of deducing the worth of a occupation in relation to other occupations in an administration. It is procedure of set uping the values of the occupation. Some people erroneously say that public presentation assessment and occupation rating are the same thing but it is incorrect.
DIFINATION OF JOB EVALUATION
Job rating is defined as “ an effort to find and compare demands which the normal public presentation of a peculiar occupation makes on normal workers without taking into history the single abilities or public presentation of the workers concerned. ”
International labor organization
Job rating is defined as “ a systematic and orderly procedure of finding the worth of a occupation in relation to other occupations ” .
– Edwin B.FLIPPO
“ Job rating as the procedure of analysis and appraisal of occupations to determine faithfully their negative worth utilizing the appraisal as the footing for a balanced rewards construction ” .
– BRITISH INSTITUTE OF MANAGEMENT
“ Job rating is attempt to find the comparative value of every occupation in a works to find what the just pay for a occupation should be. ”
-KIMBALL
CHARACTERISTIC OF JOB EVALUATION
The chief end of occupation rating is to bring forth a protective ranking of occupations on which a logical and satisfactory compensations construction policy should be prepared. Essential features of occupation rating discussed as:
1. Job rating appraises the occupation, non the work force.
2. The occupation rating standards is comparative, non absolute.
3. Information which helps to finish the occupation ratings are incur from
Job analysis.
4. Job ratings are executed by groups, non by individual people.
5. Job rating besides depends on the subjectiveness of occupation.
6. Job rating does non fix the compensation construction, but merely provides a base for measuring a logical pay construction.
OBJECTIVES OF JOB EVALUATION
The important aim of occupation rating is to supply surety sing just wage for comparative worth of a occupation. The aims of occupation rating are to:
1. Supply a standard process for ascertain the comparative value of every occupation in an organisation.
2. Ensure just compensation for a occupation and sensible pay derived functions between different occupations in a hierarchal organisation.
3. Stipulate the rate of wage for each occupation which is sensible and impartial with relation to other occupations in the administration and industry
4. Terminate compensation instabilities.
5. Job rating is used as a base for puting out the inducements and other non-monetary benefits
6. Rendering information sing work organisation, employee ‘s choice, arrangement, preparation and development programme.
7. Supply a criterion to excite calling planning for the employees in the organisation and.
8. Make certain that same rewards are provided to all skilled workers for same work.
Principles OF JOB EVALUATION
The rule on which occupation rating system are based is that of identify and measure the worth of all occupations in the administration in footings of a figure of factors, the comparative importance of which varies from occupation to occupation ” . The occupation rating has definite rules. These rules should to be kept in the head of judge at the clip of occupation rating. Harmonizing to Kress, these rules are:
1. Rate the occupation and the employer. Each constituent should be rated on the footing of what the occupation itself expects.
2. The elements should be clearly explained and decently elected.
3. A occupation evaluation program must be sold to chiefs and employees. The success in selling it will depend on a distinct description and illustration of the program.
4. Foreman provides rates to the occupations in their ain sections.
5. Employees can supply maximal co-operation when they themselves have an chance to discourse occupation evaluations.
Procedure OF JOB EVALUATION
The procedure of occupation rating involves the undermentioned stairss:
1. Preliminary Phase This is the first phase for puting the occupation rating programme. Current operation of the administration is measured, after that determination is taken about the demand for alteration, reorganise the bing programmes and a pick is made for executing the occupation rating.
2. Programme planning After placing the demand for occupation rating, a judge group drawn up a programme for the rating of the specific occupation. Before it starts all the occupation holder is to be informed sing this program and its contents
Preliminary Phase
Plan the programme
Internal Factor
Analyse Job
External Factor
Design construction
Rating the occupations
Develop care process
Implementing the programme
Reviewing sporadically
3. Analyse occupation Job analysis is based upon the information which are collected from two factors i.e. internal factor and external factor
Internal Factor: Job rating is based on the appellations ( G.M, Supervisor, Officer, and Clerk ) and provides the ranks as per the appellations like degree 1 to G.M and level 2 to superior and so on.
External Factor: Job rating is done on the footing of market rate. The organisation will analyze the same sort of unit and will look into the wage and rewards policy of the other organisation and seek to implement the same sort of rating programme in its ain organisation.
4. Design Structure After analyzing the internal and external factor of occupation rating, judges drafts the construction of occupation rating holding tonss if benchmarks and compensation construction on the footing of demands for the occupations in the organisation.
5. Rating the occupations As per the fixed benchmarks classs are provided to the occupations after measuring. In this single rating besides done on the footing of single public presentation, and their public presentations are matched with the benchmarks for supplying class to occupation and employee.
6. Develop maintenance process Before execution, a concluding checking is done in the programme and some care and alterations is to be done if necessary
7. Installing the programme: Once the rating procedure is completed and a intercession is ready, direction must depict it to employees and set it into operation.
8. Reviewing sporadically: with mention to alterations in environmental conditions ( engineering, merchandises, services, etc. ) occupations need to be examined closely. For illustration, the traditional clerical maps have undergone a rapid alteration in sectors like banking, insurance and railroads, after computerisation. New occupation descriptions need to be written and the accomplishment needs of new occupations need to be punctually incorporated in the rating procedure. Otherwise, employees may experience that all the relevant occupation factors – based on which their wage has been determined – have non been evaluated decently.
Benefits
The wage offs from occupation rating may be stated therefore:
I. It tries to set up relation between compensation and the demands of the occupation.
two. It offers a chronological system for finding the comparative value of occupations. Jobs are ranked on the footing of rational standards such as accomplishment, instruction, experience, duties, jeopardies, etc. , and are priced consequently.
three. An impartial compensation construction is a natural consequence of occupation rating. An indifferent occupation rating tends to cut down salary unfairnesss by puting occupations holding similar demands in the same salary scope.
four. Employees every bit good as trade brotherhoods members plants as an judge of occupation rating commission while make up one’s minding rate classs for different occupations. This helps in work outing compensation related differences rapidly.
v. when Job rating, conducted decently and in rational mode with flawlessness helps to measure and provides the chance of new occupations.
.
METHODS OF JOB EVALUATION
Factor Comparison Method
Point Rate Method
Job rating
Method
Ranking Method
In the superior method, a whole occupation is compared with others and rank is provided on the footing of this comparing. The usual procedure followed in this method is as under:
1. On the footing of occupation analysis, each member of the occupation rating commission ranks each occupation independently either against the benchmark occupation or against all other occupations. The ranking is provided to the occupation on the footing of this comparing.
2. In order to increase the dependability of ranking, this exercising is undertaken twice or thrice by the members.
3. If there are important differences of sentiments among the members about the ranking of a peculiar occupation, the affair is settled by common audience, or by working out the norm.
Merits
Ranking method has certain facial virtues. Some of these virtues are as follows:
1. The method is relatively simple, easy apprehensible, and largely acceptable by labour brotherhoods. It is suited for relatively smaller administrations which may non wish to set about more arduous exercisings.
2. The method is less dearly-won to set about and keep as compared to other systems.
Demerits
Since ranking method of occupation rating is qualitative and non-analytical. it suffers from the undermentioned restrictions:
1. Ranking method is judgemental and, hence, it is affected by personal penchants of occupation judges.
2. This method ranks assorted occupations in order of their comparative worth. It does non stipulate the existent difference between two jobs.. For illustration, the exact difference between occupation ranked at first and the occupation ranked at 2nd can non be specified.
Volt
Ranking Method
Non-quantitative/ Non-analytical
Quantitative/ Analytical
Job Evaluation Method
There are four indispensable methods of occupation rating:
ranking method
occupation rating method
point rate method and
factor comparing method
Out of these four, foremost ranking method and scaling method are comes under the non-quantitative techniques and besides known as traditional, non-analytical or drumhead methods/techniques. The point rate and factor comparing method comes under the quantitative, besides known as analytical methods/techniques. The basic difference between qualitative and quantitative methods is in footings of
( 1 ) Consideration of the occupation as a whole versus consideration of different constituents of a occupation ; and
( 2 ) Judgment and comparing occupations with each other versus delegating numerical tonss on a evaluation graduated table.
Normally, in pattern ; a combination of different methods is followed.
NON-QUANTITATIVE METHODS
The major types of non-quantitative occupation rating techniques are ranking and occupation scaling.
1. Ranking METHOD
In the superior method, a whole occupation is compared with others and rank is provided on the footing of this comparing. The usual procedure followed in this method is as under:
1. On the footing of occupation analysis, each member of the occupation rating commission ranks each occupation independently either against the benchmark occupation or against all other occupations. The ranking is provided to the occupation on the footing of this comparing.
2. In order to increase the dependability of ranking, this exercising is undertaken twice or thrice by the members.
3. If there are important differences of sentiments among the members about the ranking of a peculiar occupation, the affair is settled by common audience, or by working out the norm.
Occupations are normally ranked in each section and so the section rankings are combined to develop an organizational ranking. The undermentioned tabular array is a conjectural illustration of ranking of occupations.
Jobs harmonizing to the Ranking Method
Rank Monthly wages
1. Accountant Rs 3000
2. Histories clerk Rs 1800
3. Purchase helper Rs 1700
4. Machine-operator Roentgen 1400
5. Typist Rs 900
6. Office boy Rs 600
Merits
Ranking method has certain virtues. Some of these virtues are as follows:
1. The method is relatively simple, easy apprehensible, and largely acceptable by labour brotherhoods. It is suited for relatively smaller administrations which may non wish to set about more arduous exercisings.
2. The method is less dearly-won to set about and keep as compared to other systems.
Demerits
Since ranking method of occupation rating is qualitative and non-analytical. It has following restrictions:
1. Ranking method is judgemental and, hence, it is affected by personal penchants of occupation judges.
2. This method ranks assorted occupations in order of their comparative worth. It does non stipulate the existent difference between two occupations. For illustration, the exact difference between occupation ranked at first and the occupation ranked at 2nd can non be specified.
2. Scaling Method
Job rating method besides known as occupation categorization method establishes assorted classs for different classs of occupations. The procedure followed in this method is as under:
1. At the initial phase a figure of occupation categories or classs are decided on the footing of occupation analysis. Job classs can be determined on either of two bases. First, all occupations may foremost be ranked and their natural categories may be determined. The description of each occupation category is prepared covering all occupations falling in a category.
Second, the occupation rating commission may fix a series of occupation category description in progress on the footing of which assorted occupations may be graded.
2. Different features of each occupation are matched with description of occupation category and a occupation is placed in the category with which it matches best.
For illustration, occupations of an operative may be classified as unskilled, semi-skilled, skilled and highly-skilled.
I. Class I – Executives: Office Manager, Deputy Office director, Office overseer, Departmental supervisor, etc.
two. Class II – Skilled workers: Cashier, Receipts clerk, etc.
iii.Class III – Semiskilled workers: Stenotypists, Machine-operators, Switchboard operator etc.
four. Class IV – Unskilled workers: Draftaris, Office boys, etc.
Merits
Rating system of occupation rating peculiarly in authorities occupations is rather popular as this has certain virtues over the superior method. These are as follows:
1. It is rather simple to run and understand as the relevant information is provided by occupation analysis which serves other intents excessively.
2. Job rating done on rating method makes pay and salary finding easier as these are fixed in footings of assorted classs of occupations.
Demerits
This system of occupation rating suffers with the undermentioned restrictions:
1. Job grade description is obscure and personal prejudices may falsify occupation rating as the method is non based on any scientific analysis.
2. There are opportunities of employees ‘ opposition when new bunchs of occupations are prepared. This is apparent by the craze that authorities employees agitate when recommendations of a new wage committee semen.
QUANTITATIVE METHODS
Quantitative methods divide occupations into constituent parts and necessitate absolute or comparative value opinions about how much of a component portion a peculiar occupation requires. The two most popular types of quantitative systems are the point evaluation and factor comparing methods.
1. Indicate METHOD
Point method of occupation rating is widely used in concern administrations. It is an analytical and quantitative method which determines the comparative worth of a occupation on the footing of points allotted to each specific factor of a occupation. The sum sum to these points allotted to assorted occupation factors is the worth of the occupation. This sum is compared with that of other occupations and comparative worth of assorted occupations is determined. The process involved may be explained therefore:
I. Select cardinal occupations. Identify the factors common to all the identified occupations such as accomplishment, attempt, duty, etc.
two. Divide each major factor into a figure of sub factors. Each bomber factor is defined and expressed clearly in the order of importance, sooner along a graduated table. The most frequent factors employed in point systems are ( one ) Skill ( cardinal factor ) ; Education and preparation required, Breadth/depth of experience required, Social accomplishments required, Problem-solving accomplishments, Degree of discretion/use of opinion, Creative thought ( two ) Responsibility/Accountability: Breadth of duty, Specialized duty, Complexity of the work, Degree of freedom to move, Number and nature of low-level staff, Extent of answerability for equipment/plant, Extent of answerability for product/materials ; ( three ) Attempt: Mental demands of a occupation, Physical demands of a occupation, Degree of possible emphasis.
The educational demands ( sub factor ) under the accomplishment ( cardinal factor ) may be expressed therefore in the order of importance.
Degree Define
1 Able to transport out simple computations ; High School educated
2 Does all the clerical operations ; computing machine literate ; alumnus
3 Handles mail, develops contacts, takes inaugural and does work
independently ; station alumnus
Assign point values to grades after repairing a comparative value for each cardinal factor.
Point Valuess to Factors along a Scale
Factor
Point values for Degrees
Entire
1
2
3
4
5
Skill
10
20
30
40
50
150
Physical attempt
8
16
24
32
40
120
Mental attempt
5
10
15
20
25
75
Duty
7
14
21
28
35
105
Working conditions
6
12
18
24
30
90
Maximum entire points of all factors depending on their importance to occupation = 540
three. Find the maximal figure of points assigned to each occupation ( after adding up the point values of all sub-factors of such a occupation ) . This would assist in happening the comparative worth of a occupation. For case, the maximal points assigned to an officer ‘s occupation in a bank come to 540. The director ‘s occupation, after adding up cardinal factors + sub factors points, may be acquiring a point value of say 650 from the occupation rating commission. This occupation is now priced at a higher degree.
four. Once the worth of a occupation in footings of entire points is expressed, the points are converted into money values maintaining in position the hourly/daily pay rates. A pay study is normally undertaken to roll up pay rates of certain cardinal occupations in the administration.
Conversion of Job Grade Points into Money Value
Point scope
Daily Wage rate ( Rs )
Job classs of cardinal bank functionaries
500-600
300-400
1 Military officer
600-700
400-500
2 Accountant
700-800
500-600
3 Manager I Scale
800-900
600-700
4 Manager II Scale
900-1000
700-800
5 Manager III Scale
Merits
The point evaluation has several advantages. The major virtues of the method are:
1. It is the most comprehensive and accurate method of occupation rating
2. Prejudice and human opinion are minimised. The method can non be manipulated.
3. Bing the systematic method, workers of the organisation favor this method.
4. The graduated tables developed in this method can be used for long clip.
5. Occupations can be easy placed in distinguishable classs.
Demerits
The points evaluation method besides has some disadvantages. The major demerits of the method are:
1. It is both time-consuming and expensive method.
2. It is hard to understand for an mean worker.
3. A batch of clerical work is involved in entering evaluation graduated tables.
4. it is non suited for managerial occupations wherein the work content is non mensurable in quantitative footings.
FACTOR COMPARISON METHOD
This method, besides known as cardinal occupation method, was originally developed at the Philadelphia Rapid Transit Company ; USA by Eugene J.Benge in 1926 to get the better of two major jobs faced in point method of occupation rating viz. finding the comparative importance of factors and depicting their grades. In this method, each factor of a occupation is compared with the same factor of the other occupations or the cardinal occupation either defined or bing one. When all factors are compared, the concluding evaluation is arrived at by adding the value received at each comparing. For this intent, Benge identified five factors-mental attempt, accomplishment, physical attempt, duty and working conditions. The process for factor comparing method of occupation rating is as follows:
1. At the initial phase, some key occupations which are good recognised are selected. These occupations, totaling about 15-20, should be from a cross-section of sections. These should stand for all degrees of rewards and wages which are considered just, both internally every bit good as externally.
2. Assorted factors of the occupations which are to be considered for comparing should be identified. These factors may be mental demand accomplishments, physical demand, duty and working conditions.
3. Each factor of a occupation is compared with the same factor of the cardinal occupation and rank is awarded. This exercising is repeated for all other factors.
4. The comparative worth of a occupation is determined by adding the ranks obtained by different factors of a occupation. Sometimes, the rank is expressed in footings of pecuniary values and these values are added together to acquire the right pay rate for the occupation.
An illustration of how the factor comparing method works is given below:
An Example of Factor Comparison Method
Factors
Daily Wage Rate
Physical attempt
Mental attempt
Skill
Duty
Working conditions
Electrician
60
11 ( 3 )
14 ( 1 )
15 ( 1 )
12 ( 1 )
8 ( 2 )
Fitter
50
14 ( 1 )
10 ( 2 )
9 ( 2 )
8 ( 2 )
9 ( 1 )
Welder
40
12 ( 2 )
7 ( 3 )
8 ( 3 )
7 ( 3 )
6 ( 3 )
Cleansing agent
30
9 ( 4 )
6 ( 4 )
4 ( 5 )
6 ( 4 )
5 ( 4 )
Laborer
25
8 ( 5 )
4 ( 5 )
6 ( 4 )
3 ( 5 )
4 ( 5 )
After the pay rate for a occupation is distributed along the identified and graded factors, all other occupations in the section are compared in footings of each factor. Suppose the occupation of a ‘painter ‘ is found to be similar to electrician in accomplishment ( 15 ) , fitter in mental attempt ( 10 ) , welder in physical attempt ( 12 ) cleansing agent in duty ( 6 ) and laborer in working conditions ( 4 ) . The pay rate for this occupation would be ( 15+10+12+6+4 ) is 47.
Merits
The factor comparing method is more systematic and analytical as compared to any other method and offers following virtues:
1. It provides more accurate information about the comparative worth of a occupation as different comparable factors are compared with cardinal occupations.
2. Since merely limited Numberss of factors relevant for the effectual occupation public presentation are compared, there are decreased opportunities of overlapping.
3. Since the rating is more systematic and analytical, its logic can be accepted by trade brotherhoods and workers.
Demerits
However, factor evaluation method has its ain opera4onal jobs which restrict its adaptability. The major jobs are as follows:
1. This method is rather dearly-won and clip devouring to put in and hard to understand by those non to the full familiar with occupation rating procedure.
2. If pay rates are adopted for doing comparing the system may go disused really shortly as there may non be proportionate addition in rewards sfor all occupations.
3. This system considers merely limited factors of occupation for comparing. This may be a positive point so far as turning away of duplicate and simpleness of process are concerned, but may disregard other factors which may be of import for the public presentation of the occupation.
ADVANTAGES OF JOB EVALUATION
Harmonizing to the International Labour Organization, occupation rating offers the undermentioned advantages:
1. Job rating being a logical procedure and nonsubjective technique helps in developing an just and consistent pay and salary construction based on the comparative worth of occupations in an organisation.
2. By extinguishing pay derived functions within the organisation, occupation rating helps in minimising struggle between labour brotherhoods and direction and, in bend, helps in advancing harmonious dealingss between them.
3. Job rating simplifies pay disposal by set uping uniformity in pay rates.
4. It provides a logical footing for pay dialogues and corporate bargaining.
5. In the instance new occupations, occupation rating facilitates descrying them into the bing pay and salary construction.
6. In the modern times of mechanization, public presentation depends much on the machines than on the worker himself/herself. In such instances, occupation rating provides the realistic footing for finding of rewards.
7. The information generated by occupation rating may besides be used for betterment of choice, transportation and publicity processs on the footing of comparative occupation demands.
8. Job rating rates the occupation, non the workers. Organizations have big figure of occupations with specializations. It is occupation rating here once more which helps in evaluation all these occupations and finding the rewards and salary and besides taking ambiguity in them.
LIMITATIONS OF JOB EVALUATION
In malice of many advantages, occupation rating suffers from the undermentioned drawbacks/limitations: –
1. Job rating is susceptible because of human mistake and subjective opinion. While there is no standard list of factors to be considered for occupation rating, there are some factors that can non be measured accurately.
2. There is a fluctuation between rewards fixated through occupation rating and market forces.
3. When occupation rating is applied for the first clip in an organisation, it creates uncertainties in the heads of workers whose occupations are evaluated and trade brotherhoods that it may make away with corporate bargaining for repairing pay rates.
4. Job rating methods being missing in scientific footing are frequently looked upon as leery about the efficaciousness of methods of occupation rating.
5. Job rating is a time-consuming procedure necessitating specialised proficient forces to set about it and, therefore, is likely to be dearly-won besides.
6. Job rating is non found suited for set uping the comparative worth of the managerial occupations which are skill-oriented. But, these accomplishments can non be measured in quantitative footings.
7. Given the alterations in occupation contents and work conditions, frequent rating of occupations is indispensable. This is non ever so easy and simple.
8. Job rating leads to patronize and significant alterations in pay and salary constructions. This, in bend, creates fiscal load on organisation.
Question: –
Q1.What is internal equity? Explain its significance, characteristics and aims?
Q2. “ Job rating is non a Scientific but a Systematic process ” . Explain it?
Q3. What are the rules of occupation rating?
Q4. Explain the different methods of occupation rating along with their virtues and demerits?
Q5. The best method of occupation rating is “ Factor comparing method ” . Explain why?
Q6. List the advantages and disadvantages of occupation rating?
