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Job Evaluation
31.1. INTRODUCTION
Many a industrial disputes are caused due to wage intX)"aljljes and
inadequancy of wage and salary structure. Employees analyse their wages and
salaties beth i'tfObsoJute amount as weB as in relation to those of others
employed on similar jobs in the same or in different organisations.
Resentment among the employees result if some one on comparable jobs
receives a wage comparatively more tban tbey get. One of the objectives of a
sound wage administration, therefore, is to eliminate inegualities thereby
ensuring that comparable jobs receive the same wage and job differentials arc
reflected in wage differentials. -
Employers too desire that jobs which are similar in duties and are at tbe
same level of difficulty are paid approximately tbe same wages while those of
arepaid higher wages. But tbis is possible only if wage
structure bases its classification ofjobs in terms oftbcir worth (or difficulties).
Job evaluation is the technique used to correct inequalities in waics and
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986
Industrial Management - /[
install a systematic method of pricing of jobs. Job evaluation is tlie process to
determine, in a syslemmmic and analytical manner tlie worth of each job in
the organisation based on a set of careflllly selected faclOrs sllch as skill
needed, responsibilities involved, efforts required eiC. and translating this
ascertamed worth into monetary terms (i.e. pay I remuneration) thereby
ensuring fairness to all jobs holders in the organisation. These relative values
of the jobs are then used in deciding the wage rates and salaries of different
johs.
Job evaluation deals with only the jobs (it evaluates only the jobs) and not
the individuals who perform these jobs. To evaluate the individuals, another
method known as M,.er;iI Ra.ting
31.2. OBJECTIVES OF JOB EVALUATION
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(Vii)
Important objectives of a job evaluation program arc to
eliminate wage inequalities
decide relative value of different jobs in the organisation and thereby
establish wage differentials between them.
[annulate an appropriate and uniform wage structure.
clarify Ihe responsibility and authority associated with the jobs.
provide a basis for recruitmcnt, selection, promotion and transfer of
employees. - -
identify need for training of the employees so to prepare them for future
jobs. '"
eliminate causes of cmployees' dissatisfaction and reduce conflicts in
industrial relations (i.e. improve employer - employee relarions.)
31.3. STEPS IN THE JOB EVALUATION PROCEDURE
31.4. JOB ANALYSIS
Job analysis is the process of determining tbe facts relating to tbe jobs. II
I
(i)
(ii)
(iii)
(iv)
(v)
The basic steps in conducting ajob evaluation programme arc:
Detemune facts abont jobs Gobnn'!Jysis).
Describe the requirement of the jobs Gob description).
-
Specify the attributes that an employee must possess to perform tbe job
in a satisfaciory"inanner Gob specification).
Detennine the relative valu";; or worth of the jobs Gob clnssil1cntion).
Compare the jobs with pre-determined jobs and arrive at a suitable wage
structure (wnge determin'ationj. .....}
Job EI'ollltllion
--------41
987
concerns collection of data relating to tbe tasks, knowledge, abilities and
responsibilities required for successful performance. There 8 re Ibree methods
loobiain infomlation aboullhe jobs in a company (i) by observations (ii) by
inlclViews and (iii) by qucsltonnairc. The most commo;-melhOd combines
obServations of job wilh interviews of personnel who can provide reliable
infomlation. The data is usually rerorded on pre-prinled forms which arc
tailored made 10 suillhe requirements of a partk-ular company. For workclS'
jobs, tbe following data is generally collocled :
1. Work performed;
(a) Major duties
(b) Olhcrduties
2. Equipment used:
(i) Machines
(ii) Degree of aUlOmation
3. Skill involnd lodelcrminc the degree of difficult :
(i) Responsibility
(ii) Job knowledge
(iii) MClllalapplication
(iv) Dexterity and Accuracy.
4. Physical demands 10 determine the physical effort required.
(i) Physical activities
(ii) Surroundings.
(iii) Hazards.
A typical foml is shown in Fig. 31.1
31.5. JOB DESCRIPTION
Job description is the concise statement of the duties, responsibilities,
working conditions and other essential facls about a job. Salient
characteristics of the job descriptions 3re as under:
Job descriptions are tbe end products of tbe job 3nalysis (i.e. job
descriptions are prepared from JOb analysIs) .
Job descriptions identify, define and describe clearly the duties.
rcsponsibilitit;s and otheresselltial r a ~ 1 S aboul3 job. -
Job description comprises of three pans: Job identification, job s/lmmary
and 'work performed. Job identification (Fig. 31.2) contains Ibe job tille,
department, section, the date on which data was collected,jobcode no. names
oftbe supervisor and similar other details which help identifying the job.
Experieoce.
Iniliative (lngenuity) lind judgment.
Physical effort.
Mental and visual eITort.
Responsibility forequipmenl or process.
Responsibility for malerial or product.
Responsibility for the work of olbers.
Job Evaluation 997
Working conditions.
Hazard.
Rule to be followed during selection of Ihe factors are:
Factors must be capabl of being pecified in (eroIS of arying degree
(i.e. factor must be ratable. For example, education is a rateable factor a
it can be pecified in varying degrees uch a middl hool, high chool,
trade certificate, graduation, post graduation etc.)
Only important factors bould be selc ted. Factors wbicb are present to
tb arne degree in all jobs bould not be selected.
Factors hould not overlap in meaning (i .e. eacb factor must mea UJ"(' only
one aspect of the job.)
The number of factors sbould be as few a po sible. Large number of
factors increa pos ibiJity of overlap.
Factors selected mu t be acceptable to both workers and management.
(iii) Definition of factors :
Eacb factor must be d find for its meaning 0 that everyon ha the arne
interpretation. While defining tbe factors, the languag u ed houJd be imple.
The u e of difficult and unu ual words bould be avoid d. An example of tbe
definition f two factors nam I (i) education and (ii) experienc given bel w
Education:
Thi factor apprai the extent of acad mic or technical tra ining
neces ary to acquire m ntal d velopment ne d LO und rstand tbe work being
p'erformed and r pol ibiJiLi ntru t d. Such training may be acquired
Ihrough formal cbooling or its equival nt and provide ba is ackground
neee sary for th development of adequat job kill and know] dge. h do
not include the practical trade knowledge acquired bon-the -j b training and
lor experience.
Experience:
The factor apprai e th minimum length of time required by an a erage
individual with the specified education 10 Jearn the job duti involved and to
be able to perform ucb dUli in a satisfa lOry manner.
(iv) Defining degree for ea h factor :
Eacb facror ill the job evaluation plan i brok n imo degree. Th degree
provide a raring cal for each factor. Tb y belp 10 determine the e:\'1 nl I
wbicb a pa rti ular factor i pr ent in th job. For exampl ,Ih factor
'education" d fin d abo may contain the following degrc
998
IlIdustr;,,1 Managemem _ II
Degree Definition
1. Requires the ability 10 understand simple verbal instructions. No forlllill
education is necessary.
2. Requires lr3dc knowledge equivalent 10 use of band lools and lor
operation of any simple machine or a group of similar machines with I
without simple SCi ups. May have to do simple addilions and
subslractions and understand simple drawings and sketches. Requires
tbe ability 10 read and write Roman alphabeLS and numbers and requires
10 undcrsl<tnd simple english.
3. Requires trade knowledge 10 be able to operate the machine or a group
ofsame Iypeofmachines I processes on rcpclitivejobs with a few setups
or the knowledge of part of tbe trade. May require [0 read and write
simple english and do arithmetic calculations involving
decimals/fractions and understand simple drawings and/or circuit
diagrams. EqUiV3lellllo twO years of high school.
4,5,6 (Defincd forfunberskill).
The Ilrincipal rules 10 be followed while defining degrees for ea('b fattor
are :
Degrees should be ('hosen in way that job differentials are possible 10 be
identified clearly.
The number of degrees should be just surficient to differcntiate Ihe jobs.
(i.e. the number of degrees need nOI be sallle for aII factors.).
The degrees should be defined in simple and easy-to-understand
language.
Ambiguous tenus should be avoided.
Degrees should be wrinen ill objective lenus rather insubje('tive terms.
Examples may be given as far as possible to illustrate the definitions.
(v) Assigning weightages to Ihe job r..etors :
Job faclors are assigned weigbtagcs all a percelllage basis depending upon
tile proportionale conlribution of each factor 10 lhe tOlal wonh of lhe job.
Weighlages are arrived al by the joint consensus of a collullillee comprising of
people from hoth managCII1Clll and union. Evcn lbough no quantitati"C
method exists tu detemlinc the weighlages for lhe factors and lbe weightagC's
arc based on subjeelive judgemenl, yet tbe melhod is favored by worker's
union, management and consullants.
(vi) Assigning points to the degrees :
Once Ihc weightagcs (or relativc values) of the job factors have heen
decided, lhe next logical step is 10 assign points to Ihe degrees. The I l l o ~ l
Tabl 31.2 pro ide a mOT d tailed exampl of the proces f as igning
pint value to the degrees.
common meth d i to allo\ the perc ntag weigblage of the factor t
r pr enl the point value f tb> first degr ill each factor and let the poilu
alu of th r majning d gree to [0/10\ arithmetic progre ion, using
weightage of the factor it If a th differ nee bet'> een two consecuti
degre .
For example if the pcrcentag ight f education fa('tor i 15') and th
(actor i plit up into 5 degree then the point for th degr e consideri ng th
foregoing rul ould be a under:
999
15
30
45
o
75
Point value for the degr e
1
3
4
5
Degr e
Job Ewl!ufIl;on
Factory Factor
weightag
(%) 1 2 3 4 5 6
l. Educali n 25
.,-
50 75 100 125 150
2. Exp ri nc
_0
20 40 0 0 100
3. Initiative 15 15 30 45 60
and judg m nt
4. Physical effort 8 8 16 24
3_
S. Mental effort 7 7 14 21 2
6.
R pon ibility 7 7 14 21
?
35
forequipm nl
or proe
7.
R ponsibilit 4 4 12 16 20
for the afety
ofoth rs
Responsibility 4 4 L 16