Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. It also provides the framework within which decisions on salaries and grading can be made. Job evaluation is a method that is used to produce a hierarchy of jobs in an organization as the basis for determining relative pay levels. Selecting method of evaluation, according to the job factors and organisational demand… HRM (Human Resource Management) MCQ Questions and answers with easy and logical explanations. When rigor and a systematic approach are used for job evaluations, this ranking is completed with ease as well as certainty. Go to the Position and Salary Information webpage to obtain a current copy of the Job Description: Review the job description to ensure that it is an accurate representation of the job. A point rating plan defines a number of factors, which are common to the jobs being evaluated (job difficulty, accountability, job knowledge, supervision given, contacts and working conditions). The jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs … Besides, these elements should be very few in number. The broad features can be discussed with the employees but the basic secrets should not be disclosed to them. It focuses on the nature and requirements of the job itself, rather than on the skills or qualifications of a particular incumbent. Look especially for distinguishing features of jobs and relationship to other jobs. They are: 1. Start studying Chapter 5 Job-Based Structures and Job Evaluation. (ii) To eliminate wage inequities. It is particularly suited to jobs consisting of a variety of tasks. Job evaluations may be carried out in order to help businesses: Produce a fair pay framework Reduce inefficiencies in remuneration e.g. Kress, there are eight principles of job evaluation. Job evaluation is concerned with a process of establishing the value of different jobs. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. The GNWT complies with equal pay for work of equal value and ensures that jobs are assessed in a gender-neutral manner and based on skill, effort, responsibility and working conditions. Then the job elements are graded and the wage rates are established. The aim of job evaluation is to provide a hierarchy of jobs that is fair and non-discriminatory. two people on the same ‘level’ with different salaries A job description should be submitted when: Click here for more information on Job Evaluation Submissions and important details regarding Exclusions, Continuous/Non-Continuous and 'French-Required' positions. Job Evaluation | Meaning & Definition | Principles | Objectives, Indian Standard Institution (ISI) – Objectives, Procedure, Functions, Advantages & Disadvantages of Cooperative Societies, 10 Most Important functions of a Group Leader, Advantages of Technologies enabled business, Personality factors that influence Behaviour of an Employee, 6 Major Problems faced by Public Utilities, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. The designate is chosen by the appellant, and must be trained in the evaluation system. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got … The purpose of discussion with the foremen and employees is to secure their confidence and to achieve this, avoid discussions of money value. Job Evaluation – Meaning, Definition, Principles, Objectives. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Factors are clearly identifiable aspects of jobs that can be defined and measured. The process of job evaluation involves following steps: Securing acceptance from employees after explaining the purpose and use of job evaluation programme. Job evaluation has been defined as a process of analysis and assessment of … The job evaluation should assess and score each job in terms of the demands made on the employee under ‘job factors’. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. The plan then provides progressive degrees of definition with… Job evaluation is the assessment of the content of a job by reference to its core components, such as skill, effort and responsibility, for the purpose of placing jobs in order of hierarchy.. Job evaluation establishes a basis for management, employees and trade unions to agree on the relative value of jobs to form the basis of career structures and to establish a fair pay system. Too many occupational wages (or rate ranges for given labour grades) should not be established. Job evaluation is often seen as the foundation for a fair and efficient pay framework. Thus,  job evaluation is a method, which aims to provide the basis for ascertaining the relative worth of each job with reference to the amount of skill and effort required, the extent of training and experience necessary. Rate the Job and Not Man. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. It seeks to measure the relative value of jobs, not that of the job holders. They are: Job evaluation deals with the job and not with the employee holding the position. The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the … The employee makes an appeal in writing to the departmental Deputy Head, copying the immediate supervisor. Arthurs, in International Encyclopedia of the Social & Behavioral Sciences, 2001. Therefore, if the wage rate is established on the basis of job evaluation, there will be no ground for favoritism and personal prejudice. The co-operation from the employees is another condition precedent for the success of any job evaluation plan. Job evaluation needs to be differentiated from job analysis. Excluded Employees’ Handbook Learn vocabulary, terms, and more with flashcards, games, and other study tools. “The aim of the majority of systems of job evaluation is to establish, on an agreed logical basis, the relative value of different jobs in a plant/industry.” Objectives of Job Evaluation: (i) To determine equitable wage differentials between different jobs in the organisation. The appellant and supervisor of the position are excused from the hearing and the Review Board deliberates. Consult the Job Evaluation unit for advice regarding this. Job Evaluation The process of determining how valuable a position is to a company. Job evaluation must be conducted systematically, based on factual and accurate information. They are as under: The foremost, perhaps the only factor which creates dissatisfaction in a job is the inequality of wage rates for comparable works. The Review Board conducts a hearing. The appellant and supervisor of the position are dismissed, and the Committee deliberates. If the employee is still in disagreement with the evaluation of the job description, the next step would be for the employee to appeal the evaluation. Job evaluation is: “a method of determining on a systematic basis the relative importance of a number of different jobs” Job evaluation schemes are used as the basis for fair pay systems. The Job Evaluation Appeal Board consists of two representatives of the union, and two representatives of the employer, all trained in the evaluation system. It is the process of establishing the value of jobs in a job hierarchy. It would be unwise to adopt an occupational wage for each in terms of point values. Each job has certain definite and fixed elements. 2. These elements should be rated on the basis of what job itself requires. Point rating job evaluation is one method of determining the relative value of jobs. Success in job rating is absolutely dependent on uniformity of understanding with regard to the definition of the elements and consistency in the selection of the degrees of those elements. If a unanimous decision is not reached, the appeal is referred to the 2nd level,which is the Job Evaluation Review Board (Review Board), on behalf of the appellant. Concept of Job Evaluation. The result must be fair, rational and unbiased to the individuals being affected. Analysing and preparing job description. After the presentations, the Committee will have the opportunity to ask questions and seek clarification until they are confident that they understand the job in question. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. Some of the important definitions are given below: Job evaluation represents an effort to determine the relative value of every job in a plan and to determine what the fair wage for such a job should be. When wage rates for various jobs are established on a scientific basis, they will constitute a valuable guide for the management to evaluate the performance of the employees in terms of the job. The objective of this process is to determine the correct rate of pay. Job evaluation (or job rating) is a systematic procedure for measuring the relative value and importance of occupations on the basis of their common factors (skill, training, effort) for the purpose of determining wage differentials. Employees are encouraged to discuss any concerns regarding the content of their job description (or evaluation of their position) with their supervisor prior to filing an appeal. It helps a company decide the extent to which a job produces revenue, improves efficiency or adds value in some other way. Each job has certain definite and fixed elements. According to A.R. Creating job evaluation committee consisting of experienced employees, union representatives and HR experts. According to A.R. The jobs are evaluated on the basis of its content and the complexity involved in its operations and thus, positioned according to its importance. Besides, necessary information needed for community wage surveys can be obtained. So, Job evaluation is the process of determining and quantifying the value of jobs. Job evaluation has certain broad objectives. HRM (Human Resource Management) MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management Page-4 section-2 Job evaluation as a personnel term has both a specific and generic meaning. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice b… This involves the assignment of currency value to each job. The expression Job Evaluation has been precisely defined by various authors on management science. The Committee conducts a hearing; at which time the appellant (incumbent) and supervisor of the position are each invited to make a presentation. Job Evaluation, Main Collective Agreement with UNWArticle 24: Pay, COVID-19 Leave Requirements for Travel Outside the NWT and Nunavut, Returning to the Worksite: The GNWT Approach, Tracking and Recovering COVID-19 Related Costs, Employee & Family Assistance Program (EFAP), Indigenous Management Development and Training Program, https://www.fin.gov.nt.ca/en/services/position-and-salary-information, Job Evaluation Guide to filling out the Request Form, Performance Development Managers Guide ›, The responsibilities of a position have changed. It is used by more than 7000 organizations in over forty countries, in both the private and public sectors. Each factor is divided into two elements (i.e. By reducing inequalities, job evaluation techniques provide a relatively objective basis for resolving wage controversies involving comparative rates. This will avoid any overlapping. Job evaluation enables the business enterprise to maintain a high degree of standardization in wage levels in all its plants. The job classification is evaluated each time a significant change occurs in a job. Job analysis is a systematic way of gathering information about a job. Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. In job evaluation, only the job is rated and not the employees. It is the systematic scoring and comparison of jobs along organizationally determined dimensions of job worth, such as, in the effort, responsibility, complexity, importance, skills and the working conditions of a job. After the presentations, the Appeal Board will have the opportunity to ask questions and seek clarification until they are confident that they understand the job in question. Every business enterprise should establish a wage policy, which could adequately compensate the workman in relation to the nature of the job handled by him. All these factors simplify the wage structure. The job description has been updated into a fresh template, and/or had any other edits (i.e., KSA’s and/or TAB statements). Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. The Deputy Head will refer the appeal to the Manager, Job Evaluation & Organizational Design, who in turn refers it to a job evaluation review board known as the Special Review Committee. Beth is a human resource specialist for a toy manufacturing company. The appeal process is as follows: The appeal process for Excluded positions is as follows: Read more about Job Descriptions in the Online Managers' Toolkit. The foremen should participate in the rating of the job in their own departments. This step is the heart of the job evaluation process. The appellant and supervisor are each invited to speak about the position, and the Review Board will ask questions and seek clarification until they are confident that they understand the job. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal … Conducting Job Evaluation: Guidelines Rate the job-not the person or employee on the job. In job classification, a job analysis and evaluation occurs when a new position is created. From these definitions, it is clear that job evaluation is a scientific approach to ascertain the labour worth of each job. The majority decision of the Committee is final and binding. Click here for more information on the Job Evaluation Process (Non-SRM), Click here for more information on the Job Evaluation Process (SRM), Questions? The Committee consists of an Independent Chair, a representative of the employer and an employee designate. The GNWT uses the Hay Method of Job Evaluation and it is a gender-neutral evaluation system that assesses jobs on skill, effort, responsibility and working conditions. These elements should be fixed, definite and easily explainable. Discussion on money values will lead to juggling. “Hay in a Hurry” is a 1-hour burst of on-line learning that builds awareness and understanding of Hay job evaluation. the jobs are assigned factors using a numerical scale). Talk only point values and degree of each element. A unanimous decision by the Appeal Board is final and binding. (ii) Job evaluation involves analytical as well as judgmental processes. This helps in promotion and transfer of employees. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. STEP 6: Establish a job hierarchy STEP 7: Apply job hierarchy to developing new HR programs It is possible even if the plants are situated in different areas. Provision is also made for the periodical review of the wage structure. That is wages are to be based on the relative role of each job. All these factors help to manage the wage department properly. Job evaluation deals with the job and not with the employee holding the position. These elements should be rated on the basis of what job itself requires. Strive to collect all the facts accurately. Job Evaluation Defined. Clear-cut explanations and illustrations of the plan shall avoid misunderstanding and frustration. Job evaluation, as a scientific approach, is based upon certain sound principles. The relative role of each job should be assessed on a scientific basis. The Deputy Head will refer the appeal to the Manager, Job Evaluation & Organizational Design, who in turn refers it to the Job Evaluation Appeal Board. 2. A job evaluation does not judge the person in a position, but the position itself. Each job, as stated already, should be divided into small elements. For an overview of the methodology, an online resource developed by Korn Ferry Hay Group is available through the online Learning and Development Calendar. Job requirements, job specifications, and employee specifications are not considered in the evaluation. Each job specific is rated using the job evaluation instrument and the points for each factor are summed to form a total point score for the particular job. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. An appeal is based on the perceived incorrect evaluation of a job, as it is written, at the time of the appeal. The Appeal Board conducts a hearing; at which time the appellant (incumbent) and supervisor of the position are each invited to make a presentation. The appeal process differs depending on whether the position in question is unionized or excluded: UNW employees may appeal the evaluation of their position at any time while they occupy the position. Job evaluation is the basis for fair compensation. Basis of Job Evaluation is Job analysis. In the points system various aspects or parts of t… Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. There are changes to the job’s working conditions, tools, technology, etc. Job evaluation is defined by the British Institute of Management as, “the process of analysis and assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis for a balanced wage structure.” Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. The usual process followed in this method is as under: 1. Only the incumbent of a position may appeal its evaluation. Deciding the job to be evaluated, which may represent the type of work performed in the organisation. The total points scored decide a job’s place in the ranking order. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. A.J. Definition: The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. The majority decision is final and binding. Job evaluation is a generic term covering the systematic methods of determining the relative worth of a job. Every job evaluation … Combining the scores for each factor gives a single score for the job. The job evaluation techniques divide each job into various elements. Elements of Job should be Definite What is Job Evaluation Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs. The job description, which provide the basis for job evaluation, provide the necessary data for comparison of wages and salaries for the same categories of jobs in other enterprises. The appellant and supervisor of the position are excused from the hearing and the Appeal Board deliberates. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Specifically it means job rating or the grading of occupations in terms of duties; generally, means the entire field of wage and salary administration along modern lines. Email Job Evaluation and Organizational Design at job_evaluation@gov.nt.ca. A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals. Job evaluation is the basis for fair compensation. Favoritism in respect of certain employees in wage rate setting creates personal prejudices and dissatisfaction in the minds of the employees. The job classification re-evaluation is generally requested by an employee through his or her supervisor. As such, job evaluation is aimed at providing a defen sible and equitable basis for determining and managing internal pay relativity between jobs. Adopted by the GNWT and the UNW in 1999, the Hay Method of Evaluation is the most widely used process for evaluating management, professional and technical jobs. If it is determined that the job description is an accurate representation of the job, discuss the evaluation results with the employee. Any job evaluation plan if implemented should be clearly explained to the foremen and employees. The ranking is provided to the job on the basis of this comparison. The Review Board consists of an Independent Chair, a representative of the union, and a representative of the employer, all trained in the evaluation system. Job evaluation system came into common use during the World War II. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. 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