It is difficult to understand for an average worker. the system cannot be easily manipulated. The method, however, suffers from the following drawbacks: 1. It is economical and, therefore, suitable for small organisations. 2. The four methods of job evaluation are now discussed one by one. Once the grades are established, each job is then placed into its appropriate grade or class depending on how well its characteristics fit in a grade. Moreover, Job Evaluation methods play a vital role in the success of an organization by providing management power and systematic functioning of the hired employees. The usual process followed in this method is as under: 1. This method is a combination of both ranking and point methods in the sense that it rates jobs by comparing them and makes analysis by breaking jobs into compensable factors. Ranking method. TOS 7. Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Now, all the four methods are summarised as follows: Before publishing your articles on this site, please read the following pages: 1. After com­parison, it is found that its skill is similar to electrician (5), mental requirements to welder (10) Physical requirements to again electrician (12), working conditions to mecha­nist (24) and responsibility also to mechanist (3). Prejudice and human judgment are minimised, i.e. The next step is to determine a fair and equitable base rate (usually expressed on an hourly basis) and, then, allocate this base rate among the five common factors as mentioned earlier. Determine degrees of each factor and assign point value to each degree. Content Guidelines 2. The use of limited number of factors (usually five) ensures less chances of overlapping and over-weighting of factors. The common factors to all jobs are usually five, viz., mental requirements, physical requirements, skill requirements, working conditions and responsibility. It is difficult to understand and operate. Here, the employees are asked to judge their own performance. Workology Inc. All Rights Reserved. The ranking method is the simplest form of job evaluation. 4 Different Types of Job Evaluation Methods HR Leaders Need to Know, ← Ep 247: Secrets Of HR Technology Implementation, Ep 248: How to Help Remote Teams Be Productive →. Self-Evaluation Method: In most of the cases, employees are not aware of the areas which need personal improvement. Jobs can likewise be organized by relative trouble in performing them. 4. The factors common to all jobs are identified, selected and defined precisely. The ranking is allotted as per departmental level, means as per the importance of the job. Methods of job evaluation Job Ranking: As indicated by this technique, jobs are arranged from highest to lowest, in place of their worth or legitimacy to the organization. Under this method, job grades or classes are established by an authorised body or committee appointed for this purpose. The mechanism for evaluating jobs under this method involves the following steps: 1. There are non-analytical and analytical job evaluation methods that are employed by the organizations to realize the worth of a set of jobs. May work well for smaller companies. Methods used for job evaluations include the job ranking method, the classification method, the point-factor method and factor comparison method… Does not consider market compensation rates. The most prevalent one, the Point Factor Plan, uses a quantitative approach that will be explained in this guide. Copyright 10. Job evaluation has been defined as a process of analysis and assessment of jobs to ascertain reliably the relative worth. 3. Although the outcome of job evaluation should be the same for any method the process might have to be adapted slightly for different methods at later stages. The method is flexible as there is no upper limit on the rating of a factor. We’ll look at the four major methods used in job evaluation and the advantages/disadvantages of each Job Ranking Method Job Classification Method Point Method Factor Comparison Method Points or weightage are assigned to each factor depending on the degree of its importance in a particular job. 4. In this method, a point system is made based on the overall monetary value of a position within the company. The method suffers from personal bias of the committee members. Finally, money values are assigned to points. job evaluation method also serves as the basis for many other important human capital applications, such as clarifying organization structures, defining job interdependencies and accountabilities; identifying capability requirements needed for talent development, and setting competitive pay practices. 2. This method is easy to understand and simple to operate. . The jobs may be the most and least important jobs, a job midway between the two extremes, and others at the higher or lower intermediate points. 1. 4. 4. 1. In this guide we use the Hay or Point method, this is the most common method for job evaluation. Points so allocated to various factors of a job are then summed. For this purpose, points are added to give the total value of a job. Each job is treated as a whole in … In the literature we know several methods to job evaluation. The total points for a job indicate its relative worth or value. Non-Analytical Methods: Non-analytical or non-quantitative job evaluation schemes, includes comparison of jobs with each other without attempting to break down and analyse jobs under their various demands or components. 4. All the jobs within a particular group or classification receive the same wage or range of rates. What is the classification method of job evaluation? 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. 3. This system is usually used to evaluate white collar, professional and managerial positions. Grading method is also known as ‘classification method’. The simplest and most basic form of job evaluation is job ranking. All jobs are ranked in the order of their importance from the simplest to the hardest or from the highest to the lowest. 1. 1. This method is useful for Government jobs. In this method, each job as a whole is compared with other and this comparison of jobs goes on until all the jobs have been evaluated and ranked. Ranking Method Perhaps the simplest method of job evaluation is the ranking method. Jobs can be easily placed in distinct categories. The difference between the two is: In quantitative methods, the key factors of a job are selected and then measured. 2. It is not suitable for managerial jobs wherein the work content is not measurable in quantita­tive terms. Prohibited Content 3. 2. 4. The ranking method is one of the simplest methods of job evaluation. Finally, divide all the ranked jobs into appropriate groups or classifications by considering the common features of jobs such as similar duties, skills or training requirements. Points evaluation is the most commonly used method of job evaluation. It is fairly easy method to explain to employees. The objective of job evaluation is to determine which jobs should get more pay than others. The job classification method ranks job based on a pre-determined grade comparison. The difference between the two is: In quantitative methods, the key factors of a job are selected and then measured. Job grades are determined on the basis of information derived from job analysis. Ranking method being simple one can be used in the initial stages of job evaluation in an organisation. 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