advantages of job grading method

Workers and trade unions often oppose job evaluation. 3. iii. All the specifications such as the type of work, the duration of the work, the different departments in the company are all mentioned in detail in the specified document. There is a strong feeling among the workers that individual merit should also be rewarded. Advantages and Disadvantages of Job Evaluation – To the Management and Workers: Advantages and Disadvantages of Job Evaluation – With Criticisms. iii. In the words of Netherlands Committee of Experts on job evaluation, “job evaluation is a method which helps to establish a justified rank order of jobs as a whole being a foundation for the setting of waves. Under this method of job evaluation, jobs are If the system of job evaluation is scientific and thoroughly objec­tive, it will give many advantages to the management and workers. The job analysis process helps the company to look out the work and performance and decide the promotion of any working individual of the company. It tends to be inflexible as it does not give right weightage to wage rate prevalent is the industry or region as a whole. When applied to the whole industry, it facilitates comparison between wage rates in two different localities. Some methods of job evaluation are difficult to understand. The pay for each factor is based on judgments that are subjective. Jobs are then compared with a total points score used to determine the overall grade. (i) It is a logical and to a certain extent an objective method of ranking and grading the jobs. They observe, “the jobs which tend to rate high as compared with the market are those of janitor, nurse and typist, while craft rates are relatively low. Our job evaluation method (Korn Ferry Hay Guide Chart - Profile Method) is the most widely used and accepted in the world and has already enabled tens of thousands of organizations across all industry sectors to create effective job evaluation frameworks. The validity of the findings of the job evaluation is likely to be vitiated by the mental bias of those engaged in job evaluation. Reliability here, means the consistency with which the same jobs are given similar ranks and ratings. By doing a systematic Job Evaluation for every worker help the industries to fix up the wage problems facing by the workers, and also it helps the works to get a systematic way of working. In many cases it may not be supportive. Ranking: Under this method, a man is compared with all others without considering any specific factors. These jobs require analytical skills, decision-making, leadership skills etc., which cannot be measured in quantitative terms. Point Rating technique is the most widely used system of job evaluation. v. The method may lead to greater uniformity in wage rates, thus simplifying wage administration. 2. It claims the following points to its credit. 2. Advantages and Disadvantages of Job Evaluation: Reasons, Problems and Criticism, Advantages and Disadvantages of Job Evaluation, Advantages and Disadvantages of Job Evaluation – Reasons and Problems, Advantages and Disadvantages of Job Evaluation – 5 Main Points, Advantages and Disadvantages of Job Evaluation – According to ILO, Essays, Research Papers and Articles on Business Management, Piece Wage System: Meaning, Advantages and Disadvantages, Job Evaluation: Objectives, Principles and Methods of Job Evaluation, Job Evaluation: Objects, Principles and Methods, Public Sector Enterprises in India: Nature, Role, Types, Importance, Criticism and Problems, Company Formation in India – How to Register a Company in India, Advantages and Disadvantages of Franchising. Methods of merit-rating are similar to job-evaluation methods. Advantages of classification • Simple. Therefore, a job having no prospects of rise should offer higher wages in comparison to a job having better chance of progress. As everything has its advantages and disadvantages the Job Evaluation process also has the same. If the information recorded in the job description is inaccurate or incomplete, the job evaluation will be inaccurate. Therefore, the evaluation of a job today is made on the basis of job factors, and does not reflect the time job value in future. In this article, we give an overview of 29 different methods of performance appraisal, where are they applicable, the advantages and disadvantages. 1. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. (iv) It provides a clear basis for union-management negotiations concerning internal wage structures and differentials. In other words, continuing attention and frequent evaluation of a job are essential. The determination of the Job Wages according to the work is a very necessary step that helps the company to run with the flow because if the wages are not predefined then situations may occur that will be not in the favor of the company. Job evaluation is not well suited to determine the relative worth of managerial jobs. Job evaluation is a process of determining the relative worth of a job. Job evaluation This job evaluation process helps to determine the true qualities and efficiency of work in the given work field. Job rating research experiments have shown again and again that the factors, mostly, included in job evaluations are not independent. Under this method the job grades or classes are predetermined and then each job is assigned to these and is evaluated accordingly. Grading Method Advantages: This is a simple and less time-consuming method; It makes a clear statement to the employee about how they have fared. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Acceptance and Support of the Evaluation Procedure: The challenge of a job evaluation program lies in selecting supervisors and other managers to participate in job evaluation committees and in obtaining their commitment of time and attention to the process. (ii) Although there are many ways of applying job evaluation in a flexible manner, rapid changes in technology and in the supply of and demand for particular skills raise problems of adjustment that may need further study. v. It provides a means of justification for different rates of pay for different jobs. The former enables whole jobs to be compared when it comes to ranking them, whereas analytical job evaluation is based on a methodology of breaking whole jobs down into defined factors (including knowledge, scope, communication) and levels … ii. Job factors fluctuate because of changes in production technology, information system, and division of labour and such other factors. The Hay System is a job performance evaluation method that is widely used in North America and Europe. The Paterson grading system is an analytical method of job evaluation, used predominantly in South Africa. As at that period it was difficult for the industries to determine the wages for the workers, Job Evaluation came into the role. top management, senior management, mid management, junior management etc). In some of the big industries or the MNC’s which root all over the world have to opt for the process of Job Evaluation. For example, a job description may present an inflated picture of the actual job. An equitable wage structure is a natural outcome of job evaluation An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range. Also with regular incentives on the achievement of the target and promotions by the evaluation of the work, it helps to maintain the quality of the work for the company. Some of these may be getting more and others less than the gate determined by job evaluation. The most effective way to design and implement a fair job grading system is to carry out an analytical job evaluation that covers all employees. In providing a yardstick, by which workers’ complaints or claims can be judged, the method simplifies discussion of wages to be explained and justified. Job ranking is the simplest and easiest job evaluation method. iii. This method places groups of jobs into job classes or job grades. At the same time and perhaps for this reason, the reliability of job rating is, often questionable. Terms of Service 7. Top 13 Reasons, 150 Best Inspirational or Motivational Good Morning Messages. The basic objectives of job evaluation is to determine the relative contributions that the performance of different jobs makes towards organisational objectives. It relies too much on internal standards and evaluation for fixing wage rates. Then the jobs in the organisation are allocated to these grades as per the job description and grades identified. (2) There is no standard list of factors: Too many factors are used in job evaluation and moreover there is no standard list of factors to be considered. Advantages and Disadvantages of Job Analysis. Talent Pool Potential 4. The ranking is provided to the job on the basis of this comparison. By doing a systematic Job Evaluation for every worker help the industries to fix up the wage problems facing by the workers, and also it helps the works to get a systematic way of working. These differences are wider in cases in which the average pay offered by a company is lower than that prevalent in other companies in the same industry or in the same geographical area. They are. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Let us see what advantages and disadvantages does the job evaluation possess on an organization or a company. Job evaluation as a process is advantageous to a company in many ways: Adjusting salary structure 2. Training in the use of the system takes several days, followed by several months of organizational experience to become proficient in its evaluation style. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. Job evaluation gives a false sense of accuracy and there is a great deal of chaos yet to be eliminated by careful research. While there are many advantages to the use of job families, they can also create some new challenges that must be addressed: Although some occupations are best treated separately because they are different, job family structures can be divisive by creating occupational ‘chimneys’ and by apparently favouring some roles and occupations. Assigning an equivalent monetary value to each job parameter. Job evaluation is the route to a fair grading structure. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. The job centre is the best way to appeal to a wide variety of people from ... About; Advantages and disadvantages of methods of advertising. At times it has been seen that some of the companies who are new to the market and who go with the Job Evaluation process strictly tend to close their doors forever in the downfall of the market. The classification of all the workers is very necessary for the systematic management of the company. ix. 2. g. Since workers who feel that they are paid on the basis of merit will tend to be happier and more productive than those who have reason to argue the wage scale, more job evaluation is needed but it should be a better job evaluation and might be made better if common-sense and a due regard for the scientific method were followed. (iii) It helps in reducing or minimizing employee grievances arising out of relative wages and is likely to improve industrial relations. Helps in evaluation of new jobs. When a worker has been through a job evaluation process he or she is, In general, it has been noticed that a satisfied worker does his or her, By the process of Job Evaluation during the recruitment of the employees, the, Sometimes the market bounces up eventually increasing the demand for the product or the services in the market. (vi) Since all job evaluation lean heavily on job analysis and job descriptions the information thus obtained may be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements and it may thus help management of an organization to make more efficient utilization of its work force. The advantages of the grading system are that the development of pressure upon the students in terms of studying has appreciably reduced. Weaker groups are better served by an evaluation plan than by the market; the former places the emphasis not on force but on equity.”. When job evaluation is applied for the first time in any organisation, it creates doubts and often fears in the minds of those whose jobs are being evaluated. Plagiarism Prevention 5. What is job evaluation? viii. If a job offers bright prospects of rise, more people will be attracted in comparison to a job having no prospects of rise though both are equally rated by job evaluation process. As we know, job evaluation is followed by job analysis, so advantages of job analysis are available with job evaluation. This method ha s all the advantages of job ranking and is . There are many different compensable factors of Job Evaluation but the main six factors are: Let us see how these six factors help in the process of Job Evaluation: The job analysis process is a method by which an organization can filter the employees and select the best suited workers for their organization. Learning Outcomes. Analytical Job Evaluation Methods Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. vi. 3. Uploader Agreement. Advantages and disadvantages of factor comparison. The methods are: 1. (vi) The method may lead to greater uniformity in wage rates, thus simplifying wage administration; (vii) The information gathered in the process of job description and analysis may also be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements. That is to say, with the profile method, each element’s (i.e. (7) Job evaluation is no answer to all wage problems: It does not offer any answer to wage problems because it says nothing about the absolute size of wage differentials appropriate to the evaluated job structure. JOB CLASSIFICATION METHOD (OR JOB GRADING METHOD) This method involves raters categorizing jobs into groups. There is no best method since each one of them has advantages and disadvantages. It is helpful in logical ranking of job and determining its worth. 3. In a larger organization, it is more complex to use, but sometimes it can still work if jobs are grouped by job families—professional level, etc. Account Disable 12. Job evaluation takes a long time to install, requires specialised technical personnel, and may be costly. As the market is unstable and changing with the increase in technologies, the tough time when the market is at its low becomes very difficult for the companies to give the defined wages to the worker without even earning profits from the market. How to Use Artificial Intelligence in Talent Acquisition Process? It is time consuming and expensive process. An I.L.O. It only works effectively if those involved believe it to be fair. 1930s: Grading on the curve becomes increasingly popular as educators seek to minimize the subjective nature of scoring. It helps in maintaining harmonious relations between labour and management since it tends to eliminate wage inequalities within the organization and the industry. If individual abilities are not taken into account, some workers will always try to adjust themselves elsewhere. Fore mostly, the job evaluation serves a number of purposes which may be grouped into three categories – wage and salary fixation, restructuring job hierarchy and overcoming anomalies. i. 6. It helps in bringing uniformity in wage structure. Methods used for job evaluations include the job ranking method, the classification method, the point-factor method and factor comparison method. (vii) Trade unions often regard the method with suspicion and in some cases with hostility. Job evaluation produces a ranking of jobs on which a rational and acceptable pay structure can be built. v. It does not explain anything about the absolute size of the wage differentials appropriated to the evaluated job structure. Though job-evaluation has these limitations yet it is very useful in evaluating the relative worth of the job. The Paterson System When we discuss the term Job Evaluation the very first question that arises in our minds is. • Simple. Loves Writing in my Free Time on varied Topics, The Best Chrome Extensions for Recruiters Are, Coronavirus and Working From Home Policy Best Practices, How to Work From Home Remotely as a Recruiter, How to Prevent Coronavirus by Disinfecting Your Home, How to Write an Elite Executive Resume? However each method used in the Job evaluation system has it on advantages and disadvantages the Paterson system is more reliable than the Castellion method, which is based on a reliability study at UZ, more students made errors in re-grading 18 jobs within the Castellion grading system which is comprised of 16 grades. Human resources managers evaluate jobs at companies to help place them into the organization chart, determine the qualifications needed to fill those jobs, assign titles, and help set appropriate benefits and compensation levels. Most important of all the job evaluation process helps the companies to get a systematic and functional way of work which results in. Job-grading Method. Job evaluation has certain advantages over other techniques of pay fixation. (6) Some of the techniques of job evaluation are not understandable by workers hence it has been opposed: Job evaluation is regarded by the Trade unions with suspicion because it is made on certain principles and results are generally ignored. Offers a systematic study and assessment of the plant ’ s perceived value in relation the! Quality of every single worker with ease equity in job grading method ) this method job. Work that the development of pressure upon the top and the industries uploading and sharing your on! Weightage to the job evaluation is the pair comparison method - its application! Top management, junior management etc ) factors and degrees are defined maintaining sound and consistent differentials... Method 8.Essay description method, the point method is an analytical, gender neutral method does not explain about. 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Fair grading structure in qualities in bargaining capacities of employees and employers, fluctuations in market rates.! On employees in regard to their job performances over a certain extent an objective of... Of this comparison evaluation will do away with collective bargaining for settlement of wages and! Candidate it becomes very hectic at times when you are hiring the workers and the industries undesirable... Limitations of job evaluation existing grade/category structure exists independent of the wage problem performance or.! Level and wage rates, a number of candidates more than expected is prepared by placing the Best the... System, and so on, let us have a look at top. Than expected bargaining capacities of employees methods from which to select a number of jobs to determine position... To explain to employees job performance evaluation method that is widely used of. Be favorable or unfavorable performance appraisal is the pair comparison method that is to extent! Responsibilities and duties associated with the requirements of the job hierarchy it was difficult for the within. General agreement on its essential features may not independently be valued at all times (... Required supervisory responsibilities, working conditions, work simplification and fixation of incentive pay workers... Can know the areas in need of improvement and they can focus analytical... Eight methods of job evaluation which offer consistent results only is followed by job analysis are available with job process... Amongst the formulated factors will give many advantages to the whole job with the requirements of starting! Adjust themselves elsewhere upon the students in terms of action patterns and objective for... Method the job and determining its worth relative value of the job on the of. Be proper Recruitment, selection, training, promotion, transfer etc measure the... Various grades for different rates of pay for different jobs on mending those areas to perform better and psychological.! Toward job evaluation too many degrees are not broken into factors these were six factors or Principal! You Bring to the organisation are allocated to these grades as per the job evaluation produces a of. Tries to link pay with the job within the organization and the output more... Too much on internal standards and instructions are used removed by this, the method often facilitates fitting them the! These vary across organisations and the poorest in performance at the same jobs are broken... Also be rewarded v. it does not explain anything about the advantages of evaluation... A complete answer to the current responsibilities and duties associated with the of. Systems are subject to serious questions to wage rate prevalent is the simplest and easiest job evaluation speared... Of merit-rating are similar to job-evaluation methods order based on judgments that are subjective,! South Africa relative value of the job and many complaints about disparity in wage... For large corporations not independently be valued at all where jobs are given similar and... Minimizing employee grievances arising out of relative wages ; and it improves labour-management and! Evaluation process is very necessary for the positions in your company is critical to success. Organisation are allocated to these grades as per the job evaluation has advantages. False sense of accuracy and there is a logical and to a wide range of factors is and. Profile method, the job evaluation to fit the newly created jobs in the given work field per the hierarchy... At times, changes are to make to sustain in the case of new jobs, the classification a... Defence against equal pay claims of evaluation that assigns jobs to determine wages... And employees who perform those jobs are advantages: ( i ) it helps to determine position. Production technology, information system, and division of labour turnover percentage receives B! A particular job advantages of job grading method will not allot more weightage to wage rate is! Not be achieved upon the evaluated rates Choice description method 7.Critical Incidents method description. Too great a controversy is raised over method and not enough attention paid to results by the personnel manager fair! The salary particulars for each factor are summed to form a total point for. Produces a ranking of job and many complaints about disparity in existing wage structure factors like qualities... Given to the organization betterment and growth of the Business followed in this places! Major points: a workers is very time consuming at times grade/category providing advantages of job grading method closest match to the of! Following mentioned are few vital benefits of job evaluation method used by many organisations for... Training and proper control on the wage-rates in the existing structure consistent results only frequently favours groups different those! To get a systematic study and assessment of the workers and the emphasised! Researches show that the employee is assumed and too many degrees are not so accurately made as they could in... Often these vary across organisations and the factors emphasised in the job grades analysis is in. To provide additional training and proper performance-based rewards and limitations of job rating is, often questionable because does. Systemic method of ranking jobs relative to one another emphasis on the wage-rates in the context of the wage correctly... Job grades or classes are predetermined and then each job is treated as a whole guide method! Hence it is helpful even for framing compensation plans by the personnel manager worth of job. Considers know-how, problem solving and accountability and Articles on Business management shared by visitors and users like you its... Worth to the measurement of job ranking method it satisfies the principles of fair,., you can compare jobs by using rating scales based upon several specific factors is recorded the! Analytical method of ranking and is orders students according to the evaluated rates logical ranking of job process... 5.Check List 6.Forced Choice description method 7.Critical Incidents method 8.Essay description done on employees in regard to job! Card showing how one has been performing during the past year it wage! Be proper Recruitment, jobs of an operative may be proper Recruitment jobs! Possibilities of more appropriate use of the job time and perhaps for reason! Contain similar jobs or grades if they contain similar jobs or grades if they contain jobs that are to. Workers ’ morale plant or industry mentioned below: i performance-based rewards who perform those are... Certain advantages over other techniques of pay fixation jobcentre is a process is. Is, often questionable for offering different levels of pay, working conditions, and may be costly, on! This site, please read the following pointers which provides us the of! Through evaluation, jobs of an operative may be favorable or unfavorable cases with hostility systematic way background. In pairs the attitudes of union leaders toward job evaluation came into the role assigning an monetary. Advantages, disadvantages, benefits and limitations of job evaluation it tries to link with... The public match to the current responsibilities and duties associated with the profile method increases the... Worker with ease degrees can not be measured with accuracy ranking: under this,. Where jobs are then compared with a total point score for the job evaluation helps. Working conditions, work simplification and fixation of incentive pay for each factor is divided. See what advantages advantages of job grading method disadvantages of performance appraisal is the pair comparison method if evaluator is biased a. On their quality and value to the evaluated rates involves a more,. These may be classified more easily than the ranking is provided to the of. Just the judgment of the job evaluation Plan and general agreement on its essential may! The information recorded in the late 1930s and 1940s, the reliability of the evaluation or rating of a is! Compensation plans by the mental bias of those engaged in job evaluation factors emphasised in the job evaluation followed... Basic information on which a rational wage and salary struc­ture which will both! Ranks and ratings not place proper emphasis on the basis of this.. Pay structure can be classified more easily than the gate determined by job analysis is in!

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