2. HRM Job Evaluation.ppt

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    MC

    PGDM, UWSB-A, BATCH 2013-15, SEM-II

    Course: Human Resource Management

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    Job: group of positions that are identical with respect to their major or

    significant tasks and sufficiently alike to justify their being covered by a

    single analysis.

    Task: discrete unit of activity and represents a composite of methods,

    procedures, and techniques.

    Job Description: written narrative describing the activities performed

    on a job. Usually includes info on equip used and working conditions.

    Job Specification: outlines specific skills, knowledge, abilities, and

    other physical n personal characteristics necessary to perform the job.

    Job Analysis: process of identification and determination of particular

    job duties, requirements and responsibilities.

    Duty: contains several distinct tasks that are performed by an individual

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    Job evaluation is a process of determining the relative

    worth of various jobs within the organization, so that

    differential wages my be paid to jobs of different

    worth.

    - Wendell French

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    Ranking Method

    Job Classification

    Point Method

    Factor Comparison Method

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    Ranking is based on value to the organization.

    Jobs are compared with one another and rank determined

    Job not broken down into elements or factors

    When number of jobs large, paired comparison may be used Method simple to use, requires little time and minimal effort

    Criteria for ranking not made explicit; possibility of bias;

    ranking by different evaluators not comparable;distance between ranks not necessarily equal;

    may invite perception of inequity

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    Also known as Job Grading

    Agreed number of grades are determined (usually 4 to 8) based ontasks performed, skills, competencies, experience, initiative and

    responsibility.

    Clear distinction made between grades; detailed grade definitions

    produced.

    Benchmark jobs evaluated to validate definitions.

    Other jobs are then slotted on the basis of grade definitions.

    Merits: Quick slotting; standards are explicit.

    Demerits: Many jobs dont fit neatly into grade definitions; definitions

    not quantified, may be vague; difference between classification

    levels not equal; same schedule cant be used for all types of jobs

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    Select job factors common to all jobs

    Usually five factors are used:mental requirement, skill requirement, physical requirement,

    responsibility and working conditions.

    Jobs are considered one by one to understand

    how much of current wage is paid for each factor.Key jobs arranged in order of their value for each factor.

    Total of factor values for each job represents its rate

    This method express value in monetary terms; can be applied

    to a wide range of jobs and those newly created.However factor apportionment is subjective;

    using monetary value may induce bias;

    evaluation has to change when wage rates change.

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    Factors I

    egree

    II

    egree

    III

    egree

    IV

    egree

    V

    egree

    Skill

    1. Education 14 28 42 56 70

    2. Experience 22 44 66 88 110

    3. Initiative and ingenuity 14 28 42 56 70

    Effort

    4. Physical demand 10 20 30 40 50

    5. Mental and/or visual 5 10 15 20 25

    Responsibility

    6. Equipment or process 5 10 15 20 25

    7. Materials or product 5 10 15 20 258. Safety of others 5 10 15 20 25

    9. Resp for work of others 5 10 15 20 25

    Job conditions

    10. Working conditions 10 20 30 40 50

    11. Hazards 5 10 15 20 25

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    (Proprietary instrument of the Hay Group)

    Hay Job Evaluation Factors

    Accountability

    Every job exists to add value by delivering some set of results.

    Accountability measures types and level of value job can add.

    Know How

    To achieve accountability, job requires know how. It is sum total of

    every capability or skill required for fully competent job performance

    Problem Solving

    We think with what we know . Value of know how is in application to

    achieve results. Problem solving refers to use of know how to

    identify, delineate and resolve problems

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    Accountability

    Freedom to Act: degree of empowerment and guidance provided

    Impact : jobs influence on business (end) result

    Scope: business measures the job is designed to impact (magnitude)

    Magnitude indicated by dollar size

    Know HowTechnical/Specialized Skills : dept and breadth of K needed

    Managerial Skills: functions such as planning, organizing etc

    Human Relations Skills: for successful interaction inside and outside

    Problem Solving

    Thinking environment: degree to which problems/solutions are defined

    Thinking Challenge: difficulty in identifying solutions that add value

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    Evaluate jobs, not job holders.

    Keep job elements easy to understand because jobevaluation is not truly a scientific process

    Define clearly the elements to be evaluated. Use common

    criteria to assess job content. Create buy-in by educating employees including managers.

    Encourage employees and managers to participate in rating

    of jobs.

    Discus with managers and employees the ratings, not the

    money values assigned to the points.

    Avoid creating too many levels.

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    It is highly subjective, based on judgmental estimates.

    Does not take into account cyclical effect of market value

    of occupations.

    Does not factor in statutory requirements such as that

    of minimum wages.