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Job Evaluation
MBA,1st Year
Facilitator: Subhra Pattnaik
A Unique Job
is a distinct role that may be performed by
one or more incumbents and
encompasses roles with similar work
profiles and responsibilities.
Cashier in Cashier in
is person independent and refers to the Mumbai New Delhi
Branch Branch
role/job being performed, not the
incumbent role holder or job title or
Same
designation Unique
Also referred to as Unique role or Unique Job
position.
2
Unique jobs with the same level of responsibilities and accountabilities
must fall within the same band for the purpose of internal equity
3
JE categorizes unique jobs into bands based on this logic.
4
In turn, these bands enable an objective approach for the development
and design of other key HRM systems.
1 2
5 6
Band B
(Jobs 5,6,7) Job 5 Job 6 Job 7
Band C
(Jobs 2,3,4) Job 2 Job 3 Job 4
Band D Job 1
(Job 1)
Band A
(Job 8)
Grade A
Job 8
Band B
Rupees
(Jobs 5,6,7) Grade B
Jobs 5,6,7
Grade C
Band C Jobs 2,3,4
(Jobs 2,3,4) Grade D
Job 1
Band D
(Job 1)
Job Value
Pay bands stretch across more than one job bands in order to
accommodate easy promotions, without having to necessarily change
the pay band.
Human Resource Management 8/24/17
7
Sources of data for Job evaluation
Articulating objective
1. HR executive
2. External experts/ analysts/ consultants
3. Job evaluation committee comprising mostly HoDs.
Job Evaluation
methods
Qualitative/ Quantitative/
Subjective Objective
Job Ranking
Factor Comparision
Job Classification/
Point method
Grading
Qualitative Quantitative
Jobs compared
Factor
against jobs Job Ranking
comparision
Jobs compared
Job Classification Point method
against a scale
Advantages
1. Easy to understand and apply
2. Effective with small number of jobs. (less than 40)
Limitations
3. No defined standards of judgement. Highly subjective.
4. Difficult to administer when number of jobs increase.
5. Every time a new job is added, it has to be compared with the older ones
to be ranked. That means, the ranking method has to be repeated every
time a new job comes in.
Advantages
1. Easy to understand and apply
2. Grade definition exists independent of the jobs. Hence, there is no
problem classifying new jobs into grades.
Limitations
3. Difficult to write objective definitions of each grade/ class
4. Over-simplifies the sharp differences between jobs by grouping too
many jobs into the same grade.
5. Evaluators use subjective judgement to group jobs into grades when
they do not find exact match between JDs and grade definitions. This
might affect a group of employees.
1. Jobs are ranked as per a series of factors rather than being ranked as
whole jobs.
2. Compensable factors : Skill, Mental requirement, physical
requirement, supervisory responsibilities, working conditions etc. are
commonly used.
3. The present wages for the job is divided amongst the factors as per the
weightage of that factor (importance of that factor) in doing the job.
4. Thereby, it gives us a wage rate for each factor for each benchmark job.
5. Additional jobs are then compared with the benchmark jobs to
establish pay rates for each factor. These rates are summed up to get
the total wage for the job.
Advantages
1. Objective and analytical
2. Detailed approach. Hence, more reliable as each job is compared with
every other job.
Limitations
3. Time-consuming and costly
4. Difficult to understand and explain to others.
5. It uses same criteria/ factors to review each job while jobs might differ
across the organization.
1. Jobs are rated on certain compensable factors and the score on each
factor is summed up to give the total job score.
2. Compensable factors are chosen and divided into sub-factors. Sub-
factors are further divided into degrees by choosing a scale for each
factor.
3. Jobs are then matched against the scale to receive score on individual
factors.
4. Factors might have equal weights or might have weightage assigned as
per their importance to the organizational success.
5. One of the most popular scales for point method is the Hay Job
evaluation scales.
Advantages
1. Objective and analytical
2. Avoids biases by pre-defining the scale for each factor
3. Can be applied to any number of jobs as well as new jobs
Limitations
4. Time-consuming, complex and costly.
5. The standard/ scales developed for the factors might have built-in biases
which might affect minority work groups.
6. Subjective judgement of evaluator still comes to play while rating jobs
against each factor on the factor scale.
1. Select the range so that most of the roles fall into their respective bands. For.
E.g. most Assistant Managers fall into the AM band and most managers also fall
into the manager band and so on.
2. However, do not stretch the range so much as to even include the outlier
positions/ roles. For e.g. in case all HoD roles have scored between 21-28, however
there is one HoD role that has scored 18, we should not sretch the HoD band score
range to become 18-28. It should remain at 21-28. We need to find out the outliers
and address the discrepancies by either job re-designing or organization re-
structuring.
3. Ranges are mostly discontinuous in nature.
4. The width of a band/ score range increases as we move up the hierarchy. This is
because as we go up the responsibilities get more and more diverse and varied
which isnt the case at lower levels.
5. The jump (Minimum score of higher band- maximum score of lower band )
should also increase as we move up because we assume that promotions get
tougher as we move up due to pyramidal structure of organizations. Hence, the
incremental difference in scores goes on increasing.
However, the role of AM-payroll in the finance and payroll team fell below
the AM score range with a job score of 13. When we looked at the
organization structure, we found this.
AM- Finance AM-Finance AM-payroll AM- Fin & AM-Fin & AM-Fin &
payroll payroll payroll Job re-design
However, the role of AM-Marketing fell above the AM score range with a job
score of 23. When we looked at the organization structure, we found this.
Structural changes: introduce new positions or
merge already existing ones
CM- Marketing CM- Marketing
& Sales & Sales
AM- AM-
AM- Sales AM-Exports AM- Sales AM-Exports
Marketing Marketing
However, the role of Mgr- Premises in the Admin and Premises department did not fall into any
job band. With a job score of 22, it fell between the AM and Mgr band. When we looked at the
organization structure, we found this.
Mgr-Admin &
Mgr-Admin Mgr-Premises
Premises