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What are the approaches to job evaluation in an organization?

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Question added by Farah Husni , Supply Chain Manager , Supply Chain Corp
Date Posted: 2014/09/07
Mike Adrian Obaña
by Mike Adrian Obaña , Staff Nurse , Medeor 24x7 Hospital Dubai

Ranking Method : simple, easy to analyze, looks at the general whole, where each department will rank the jobs according to their value to the organization, after gathering the job rankings per department, it will be integrated with the department ranking, thus forming your organizational chart. This is however only applicable in small companies, for large companies that houses thousands of employees and a lot of departments, sub-departments, another approach needs to be established.

 

Classification Method : Simple, New jobs are easier to classify since the category structure exists independent of the jobs. In this approach, jobs are classified according to their category or grades, usually class1 -5, or grades A-D, however, classification judgements are also subjective and when individual job descriptions do not match well with the categores/classes/grades set by the company, the evaluators will have the tendency to classify the job according to their subjective judgements.

 

Factor Comparison Method : Most scientific of all methods, systematic, consistent, and most complex. Each job will be ranked according to a series of factors like physical requirement, responsibilities involved, problem solving skills, important skills needed, metal effort, working condition. The pay will most likely be based by comparing the weights of the factors required for each job. There is usually a money value assigned to each factor and ranking the selected jobs under each factor. Only disadvantage that I see on this method is that the pay or the money value assigned for a specific factor is going to be based on a subjective judgement.

 

Point Method : Commonly used, can be applicable on a wider variety of jobs, systematic and a little less complex. This is an extension of the factor comparison method. Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job. Jobs are then grouped by total point score and assigned to salary grades so that similarly related jobs would be placed in the same salary grade / bracket.

 

Saiful Islam Hiron
by Saiful Islam Hiron , Site HR Manager , Handicap International

Factor comparision method.

naglaa Ali Swify swify
by naglaa Ali Swify swify , HR Section Head , IN&OUT Furniture

Methods of job evaluation:

First: - roads Quantity:

1-Ranking method:

This method relies on the job as a whole compared to other functions replace the assessment and determine arranged for her. This method is divided into two types:

1/1 ranking method simple:

Is determined by the relative importance of the function by comparing them as a single unit to other jobs covered by the evaluation process fueling jobs more importantly, in the top of the ladder while settling less those jobs importance in the slightest that list and the method relies heavily on personal judgment overall function, which leads to a different assessment from one person to another

1/2 respectively on the basis of marital comparison:

According to this method are given the opportunity for each job in order to be comparable with every other function and thus appear binaries of jobs (or pairs of them), which comparison is done inside, and be the result of the comparison in both bilateral (or pair) is to identify any jobs the most important, and to limit the number of times that were function which can identify duplicate and rearranged compared to other jobs.

Example

Suppose we have the following functions to be assessed:

)Computer technician, bookkeeper, secretary, Secretary of the warehouse, the author of machine(

And, for example, was the result of the order as follows:

)Secretary, bookkeeper, computer technician, Secretary of the warehouse, the author of machine(

Then the comparisons are follows:

1-      secretary with accounts clerk, secretary with computer technician, secretary with the Secretary of the secretary of the warehouse clerk with machine =4

2-      accounts clerk with a computer technician, a bookkeeper with the Secretary of the warehouse,accounts clerk with the clerk machine =3

3-      computer technician with the Secretary of the warehouse, a computer technician with the clerk machine =2

4-       Secretary warehouse clerk with machine =1

5-       Starter machine =0

Total:10 =

If we want to make sure we're all comparisons between jobs rely following law

Number of comparisons = p (p -1) /2 (p) the number of jobs

Number of comparisons =5 (5-1) /2 =10

10 the same number of comparisons if you do not overlook any comparison.

2- Classification method:

This method relies on the establishment of several degrees each functional group, and then be distributed various functions within each functional group to different degrees. And pass this method the following steps:

2-1 to identify functional groups such as a group of jobsAdministrative, and technical jobs and group productivity.. etc..

2-2 determines the number of grades within each functional group specific.

2-3 characterization of different grades, where the focus is on the duties and responsibilities, education, skill and experience.

2-4 on the distribution of posts and grades on the basis of congruence

)Or similarity) between Job Description class.

Example

  Distribution functions on the stairs to a private company:

Class / Description for each degree

Seventh grade / includes senior positions responsible for setting the company's policies, and leadership qualifications require a high degree of great responsibility, and also the supervision of the scale.

Class VI / functions include managers of major departments: marketing, finance, procurement, human resources, which also require high qualifications of leadership, and a great responsibility and supervision within the scope of his administration.

Fifth degree / functions include implementation as heads of departments and branches sales managers and require advanced technical expertise, and responsibility in the scope of work and supervision within the scope of his administration.

Fourth degree / professional positions include: engineers, specialists, and require technical qualifications, and responsibility fit the job, and work experience.

Class III / includes administrative functions.

Class II / includes jobs that require skill, in addition to clerical jobs, and focus on these functions on the skill and experience in the field of work.

First Class / include jobs that do not require skill, laborers and cleaning services.

Second: - quantitative methods:

1-Comparison factors:

Determine the value of a function according to this method by comparing the functions together on the basis of assessment of certain factors. And pass this method the following steps:

1-      Select evaluation factors that will be compared on the basis of jobs.

2-      Select the basic functions, which will be evaluated.

3-      Select the appropriate remuneration for key positions.

4-      Deal each function on the evaluation factors based on the relative importance of these factors.

5-      Put jobs in the map compared to the factors.

6-      Evaluate rest of the functions of the organization.

.Example

Let our job function: a, b, c, d

Suppose that the evaluation was in accordance with the following table:

   

Evaluation factor

 

Mental ability

Skills

Physical ability

 

Responsibility

 

Working conditions

 

Rating

A

 

 

A

 

1000

 

 

 

 

D

900

B

C

D

B

C

800

 

D

C

 

B

700

C

A

B

 

A

600

D

B

A

 

 

500

 

 

 

 

 

400

 

 

 

 

 

300

 

 

 

C

 

200

 

 

 

D

 

100

 

The calculated values ​​of the functions of the group function through the table by dividing the total units obtained on the number of job function evaluation and titrated as follows:

The value of a function a: (1000 +600 +500 +1000 +500) ÷5 =720 units

Value of a function b:3400 ÷5 =680 units

Value of a function c:3100 ÷5 =620 units

Value of a function d:3000 ÷5 =600 units

Thus, the rest of  functions in the Organization

2 –Points factor:

This method relies on the use of dots as a means of assessing the Cubs instead of categories in addition to being more accurate, and is considered one of the most liquid and Functional Assessment common among organizations, and passes this method the following steps:

1-      Select evaluation factors (such as responsibility, experience, education and training, and skill, etc. .. )

2-      Department of evaluation factors to sub-elements for example worker responsibility can be divided into responsibility for the quality, safety and responsibility for subordinates.. and so on.

3-      Gave the value of the points to the evaluation factors, for example, (1000 points)

Example

Responsibility               310

Work conditions          160

Effort                            250

Skills                               280

                                  _____

Total                            1000

Or

Responsibility                   310

Skills                                     80

Experience                         100

Working conditions            160

Education and training       100

 Effort                                    250

                                   ---------

Total                                    1000

 

4-      dots gave the value of the sub-components of the factors noted that value is determined according to their importance, for example:

Responsibility310 points:

Responsible for the safety of subordinates      100

Responsibility for equipment, materials          80

Responsible for training                                      50

Responsibility for quality                                    80

Total                                                                      310

5-      Points distributed sub-elements on all elements of the assessment.

6-      Designed a complete guide to points.

 

7-      Use the evidence in job evaluation. 

Junaid Asrar
by Junaid Asrar , Head of HR Digital Transformation , Fatima Fertilizer

Most of the organizations are unaccustomed to the irrefutable significance of job analysis and job evaluation practices. Whereas, some of the HR Professionals misconstrue the disparity between job analysis and job evaluation. The disparity is not very complex to understand; a simple story will elucidate the fact and establish learning for my fellow professionals. 

 

 

 

 

First Part of the Story

 

 

 

Three friends, Mr. Specific, Mr. Measurable and Mr. Attainable lived in a village surrounded by a beautiful trail of mountains. They decided to start a business of lumber trading. They segregated the overall work in three different areas.

 

Mr. Specific was responsible for purchasing the wood from the wood cutters; Mr. Measurable was responsible for the transportation of woods and Mr. Attainable was responsible for selling the woods to the city nearby. The three of them put their best to make profits but every time they ended up in earning heavy losses. They decided that the need of the business was not defined properly and they should concentrate on redesigning the business strategy.

 

They changed the Strategy!!!!!!!

 

They decided to cut woods directly from the jungle, own a truck for transportation and establish their own sales points in the city. For this, they invested all of their savings. Do you know what happened?????

 

They again end up in heavy loss. They lost even last Penney of their savings.

 

At the end, all of three blamed each other for not contributing their efforts equally in to the business. 

 

 

 

Second Part of the Story

 

 

 

Mr. Realistic and Mr. Time Bound joined three of them as business partners. First of all they decided to list down all the responsibilities according to the requirement of the lumber business accompanied with the required skill set. Then they divided those responsibilities and required skill set in to different jobs with clearly defined objectives.

 

 

But still after investing equally there was an ambiguity of profit sharing. They defined some work standards for example working conditions, mental exertion, and impact on overall business and evaluate each job based on the defined factors and divide the share accordingly. The business start gaining profits and everyone was satisfied. 

 

 

 

 

Morale of the Story

 

First part of the story tells us that most of the time, we squander our energies at changing business strategies while leaving some basic organizational job design issues. The second part of the story describes the complete process of job analysis i.e defining the job responsibilities and required skills. Required skills are always based on the nature of the job responsibilities. Whereas evaluating jobs depends on different factors that can affect the job performance and overall business.

 

Unawareness about the job analysis and job evaluation or amorphous job analysis and job evaluation may result in:

 

    1. Unjustified selection of a candidate. without analyzing the job aptly, right candidate can never be selected for the right job.

Unjustified work load, employees can be overburdened while some would be enjoying leisure time. Unnecessary workforce and salary as a major portion of the total cost. An employee comparing himself with other employee in terms of salary and job title without having solid basis. Even management cannot provide solid justification without evaluation the job depending on different factors. Without job evaluation the management would never be able to effectively design the grading system and can never be linked with compensation & Benefit system.

 

How to initiate Job Analysis & Job Evaluation in your Organization

 

    1. Understand the mission (What we do?) and vision (Where to go?) of the organization.
Develop complete understanding about organization operations. Develop a comprehensive change management plan. Arrange meetings with all internal stakeholders and convince them, especially the top management. Without the commitment of the top management the exercise can result in “no results” or a “useless exercise”.  Form and train the Team that will conduct interviews. Conduct in-depth business and operational analysis of the different functional areas. Conduct in-depth interviews and Identify and list down operations of all functional areas. Divide all operations into different responsibilities, starting from bottom to the top. Identify skills required to perform the identified responsibilities. Develop positions with different titles and assign responsibilities to the respective positions. Make presentations to key stakeholders and convince them for conducting Job Evaluation. Device or select a suitable and rational job evaluation methodology for the organization. Explain the methodology to the top management for getting them involved in the process and get their commitment. Develop a complete communication plan along with a comprehensive change management plan. Select unique positions. Analyze job profile and evaluate all the benchmark positions.  Allocate scores based on the defined Job Evaluation Parameters. From a Structure and place the positions in to the Structure base on the overall scores of the positions. Align the compensation & Benefit Structure (derived from the organization comp & Ben philosophy).  Points to Ponder

 

    1. Convince the top management about the significance of the Job Analysis & Job Evaluation exercise.
Analyze and evaluate jobs not the people working at different jobs.  Train the team for conducting interviews and data collection and explain each and everything so that the team members should be on the same page.  Explain the results to the stakeholders. The job evaluation methodology should be aligned with the nature of the business of the organization.

 

 

 

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