CRM 200 Lecture Notes - Lecture 5: Job Evaluation, Step One, Subfactor
3 May 2018
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Chapter 5 - Job-Based Structures and Job Evaluation
Job Evaluation
• process of systematically determining the relative worth of jobs to create a job structure
for the organization (a hierarchy of all jobs to provide the basis for the pay structure)
• job evaluation is based on job content and internal job value
Establish the Purpose(s)
• Supports organizational strategy
• Supports workflow
• Is fair to employees
• Motivates behavior toward organization objectives
Advantages of Job Evaluation
•
Reduction in inequalities in salary structure –
o
people and their motivation is dependent upon how well they are
being paid.
o Therefore, the main objective of job evaluation is to have external and internal
consistency in salary structure so that inequalities in salaries are reduced.
•
Specialization
o
a large number of enterprises have got hundred jobs
and many employees to perform
them.
o Therefore, an attempt should be made to define a job and thereby fix salaries for it. This
is possible only through job evaluation.
•
Helps in selection of employees
o
The job evaluation information can be helpful at the time of selection of candidates.
o
The
factors that are determined for job evaluation can be taken into account while
selecting the employees
•
Harmonious relationship between employees and manager –
o all kinds of salaries controversies can be minimized.
•
Standardization
o
The process of determining the salary differentials for different jobs become standardized
through job
evaluation. This helps in bringing uniformity into salary structure.
• Relevance of new jobs
o Through job evaluation, one can understand the relative value of new jobs in a
concern
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Job Evaluation Methods
• Job Ranking
o Raters examine job description and arrange jobs according to their value to the
company
o Types: Simple, Alternation & Paired Comparison
▪ Look at job titles and rank it
• Job Classification
o Classes or grades are defined to describe a group of jobs
o A series of classes covers the range of jobs.
o Job descriptions are compared to class descriptions to determine class level.
o Greater specificity of the class definition improves the reliability of the
evaluation.
o Jobs within each class are considered equal and will be paid equally.
• Point Method
o Numerical values (points) are assigned to specific job components; sum of values
poides uatitatie assesset of the jo’s oth
o allows the assignment of a numeric score to each job in an organization, through
the identification of factors that are valued by the organization.
o This procedure results in a relative ordering of jobs based on the number of
poits that eah jo soes.
o Allow us to put a number to each and every job in the company
Types of job ranking
1. Simple ranking
2. Alternative ranking
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find more resources at oneclass.com
3. Paired Comparison Method
Comparison of job evaluation methods
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find more resources at oneclass.com
Document Summary
Chapter 5 - job-based structures and job evaluation. Establish the purpose(s: supports organizational strategy, supports workflow. Is fair to employees: motivates behavior toward organization objectives. This helps in bringing uniformity into salary structure: relevance of new jobs, through job evaluation, one can understand the relative value of new jobs in a concern. Job ranking: raters examine job description and arrange jobs according to their value to the company, types: simple, alternation & paired comparison, look at job titles and rank it. Types of job ranking: simple ranking, alternative ranking, paired comparison method. Step one: conduct job analysis: a representative sample of benchmark jobs, you don"t collect info on each and ever job in the company. Because its time consuming therefor you pick benchmark jobs: characteristics include: Its contents are well known and relatively stable: the job is common across employers, not unique to one employer.
