Job evaluation is a judgmental process and demands close cooperation among supervisors, HR specialists, and employees and union representatives. The main steps include identifying the need for the program getting cooperation and then choosing an evaluation committee. The committee then performs the actual evaluation.
Identifying the need for job evaluation should not be difficult. For example, dissatisfaction reflected in high turnover, work stoppages, or arguments may results from paying employees different rates for similar jobs. Managers may express uneasiness with an informal way of assigning pay rates, accurately sensing that a more systematic assignment would be more equitable.
Next (since employees may fear that a systematic evaluation of their jobs may actually reduce their pay rates) getting employees to cooperate in the evaluation is important. You can tell employees that as a result of the impending job evaluation program, pay rate decisions will no longer be made just by management whim; that job evaluation will provide a mechanism for considering the complaints they have been expressing and that no present employee’s rate will be adversely affected as a result of the job evaluation.
Next, choose a job evaluation committee. There are two reasons for doing so. First the committee should include several people who are familiar with the jobs in question, each of whom may have a different perspective regarding the nature of the jobs. Second, if the committee is composed at least partly of employees the committee approach can help ensure greater employees acceptance of the job evaluation results.
Sot he composition of the committee is important. The group usually consists of about five members, most of whom are employees. Management has the right to serve on such committees but employees may view this with suspicion. However, a human resource specialist can usually be justified on the grounds that he or she has a more impartial outlook than line managers and can provide experts assistance. Perhaps have this person serve in a nonvoting capacity. Union representation is possible. In most cases, though the union’s position is that it is accepting the results of the job evaluation only as an initial decision and is reserving the right to appeal actual job pricing decisions through grievance or bargaining channels. Once appointed each committee member should be received a manual explaining.
The evaluation committee performs three main functions. First, it usually identifies 10 or 15 key benchmark jobs. These will be the first jobs to be evaluated and will serve as the anchors or benchmarks against which the relative importance or value of all other jobs can be compared. Next, the committee may select compensable (although the human resources department will usually choose these as part of the process of determining to specific job evaluation technique the firm will use). Finally, the committee performs its most important function – actually evaluating the worth of each job. For this the committee will probably use one of the following methods: ranking job classification, point method, or factor comparison.
Job Evaluation Methods:
The simplest job evaluation method ranks each job relative to all the jobs, usually based on some overall factor like job difficulty. There several steps in the job ranking method.
Obtain job information
Job analysis is the first step: Job descriptions for each job are prepared, and the information they contain about the job’s duties is usually the basis for ranking jobs. Sometimes job specifications are also prepared. However, the ranking method usually ranks jobs according to the whole job, rather than a number of compensable factors. Therefore, job specifications –which list the job’s demands in terms of problem solving, decision making, and skills for instance – are not as necessary with this method as they are for other job evaluation methods).
Select and group jobs
It is often not practical to make a single ranking for all jobs in an organization. The usual procedure is to rank jobs by department or in clusters (such as factory workers or clerical workers). This eliminates
the need for direct comparison of say factory and clerical jobs.
Select compensable factors:
In the ranking method, it is common to use one factor (such as job difficulty) and to rank jobs based on the whole job. Regardless of he number of factors you choose, it’s advisable to explain the definition of the factor(s) to the evaluators carefully so that they evaluate the jobs consistently.
For example give each rater a set of index cards, each of which contains a brief description of a job. Then they rank these cards from the lower to highest. Some mangers use an alternation ranking method for making the procedure more accurate. Here you take the cards, first choosing the highest and the lowest then the next highest and next lowest, and so forth until you’ve ranked all the cards.
Table illustrates a job ranking
Job Ranking by Olympia Health care
1) Office manager Rs 43,000
2) Chief Nurse 42,500
3) Book keeper 34,000
4) Nurse 32,500
5) Cook 31,000
Jobs in this small health facility are ranked from orderly up to office manger. The corresponding pay scales are on the right. After ranking it is possible to slot additional jobs between those already ranked and to assign an appropriate wage rate.
Usually, several raters rank the jobs independently. Then the rating committee (or the employer) can simply average the raters’ ranking.
This is the simplest job evaluation method, as well as the easiest to explain. And it usually takes less time than other methods.