Job evaluation is the process of assessing the relative worth of jobs in an organisation, using an objective and reliable rating system. As a result, job evaluation systems are becoming more intuitive. Job evaluation process human resources case western. Peromnes is also the job evaluation tool most frequently used by tertiary institutions in south africa, with more than half of all local institutions using this system. The hay system the hay system is a well tried and tested job evaluation. Job evaluation is a means of determining the relative value of jobs within an organization utilizing job evaluation methodology and tools. 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.
Building a system of job evaluation in the organization 7. Principles that are fundamental in the development of the job evaluation system include confirmation of job content, and consistent evaluation of job content, roles and responsibilities. The most common are job ranking, factor comparison, point evaluation and job. The four methods of job evaluation are now discussed one by one. Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation so as to develop an equitable wage and salary structure. In other words, job evaluation measures the worth of each job in terms of money. A computerassisted job evaluation plan, measuring 17 dimensions of nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative worth of staff positions. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. The results of job evaluation are used in human resources management, particularly in creating remuneration systems, i. Objectives, principles and methods of job evaluation.
In some cases minor changes to the wording are used to define. A job evaluation is a systematic way of determining the valueworth of a job in relation to other jobs in an organization. Methods of job evaluation human resource management. As part of our bouquet of services, we are able to offer job evaluation expertise, via a consulting approach or alternatively, assistance via use of our highly rated industry evaluation. Job evaluation methods pdf employment evaluation scribd. How to conduct a job evaluation eri economic research. The job evaluation system comprises the following factors. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation meaning and its benefits to the organization. In order to measure the job worth, point system backed by the factor comparison system is an effective tool. Pdf a study on job evaluation point factor analysis in. Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation so.
The use and purpose of a job evaluation form is to evaluate the performance of an employee. The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs. Fred owen, an expert in job evaluation, has been the states job evaluation consultant from the initial implementation in the 1980s. The appeal of this job evaluation system also lies in the oneonone correlations of t. Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy andor salary system is in place. The job evaluation factors the job evaluation system comprises the following factors.
The simplicity of the system is also its greatest weakness. Thus, the assumption is that job value scores match with pay grade structures, and allow adequate predictions of basic job. Job evaluation is a process of determining the relative worth of a job. According to kimball and kimball 2004, job evaluation. Decision band method dbm of job evaluation involves. This includes educational qualification, experience, training, appropriate skills, knowledge, and abilities required to perform the job. Use this learning aid as a resource for employees to effectively develop, introduce or update job. 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. This is the simplest, the most inexpensive and the most expensive method of evaluation.
This job evaluation system is widely used in south africa in the grading of nonexecutive jobs, across all industries. The objective of job evaluation is to determine which jobs should get more pay than others. Little preparation as well as little investment is required. The basic difference between these two methods lies in the sense that, under nonquantitative methods, a job is compared as a whole with other jobs in the organisation, whereas in case of quantitative methods, the key factors of a job are selected and, then, measured.
Job specification it provides particulars about capabilities that an individual should posses to perform the job efficiently. Job evaluation developed out of civil service classification practices and some early employer job and pay classification systems. The point system can be utilised in the following five steps viz a select job. There are several ways to determine the value of a job through job evaluation. Each job is treated as a whole in determining its relative ranking. In some cases minor changes to the wording are used to define factors and levels made in order to better align the. The job evaluation form is now available both in the word format and pdf. In less time and with significantly less cost, encv generates results that prove in more than 15 ways the accuracy, consistency and objectivity of each job evaluation result for every job in your organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Defining the decision band the bands are organized in a hierarchical structure, based on scope of impact of the decisions, as follows.
The job evaluation system is a point rating system that, through formal and systematic analysis, provides equity in the value of each job in the employee group. It is the function of job evaluation to reveal these anomalies, rather than create them. Job evaluation measures the size of a job relative to others. Jobs are compared to each other based on the overall worth of the job. Deloitte, for example, offers different job evaluation systems, thus allowing a bestfit solution for the specific client situation and context. Hay guide chart profile method of job evaluation hay system. The job evaluation is the process of assessing the relative worth of the jobs in an organization. Job evaluation needs to be differentiated from job analysis. When job evaluation is used in the design of a wage structure, it helps in rationalising or simplifying the system. The simplest and least formal of all job evaluation systems is known as the ranking. As mentioned when we discussed internal and external factors, the value of the job is a major factor when determining pay.
For every association it is compulsory to fill the job evaluation form by the employee, or by the hr, or by the supervisor. The willis job evaluation system is designed to permit the objective evaluation. Job analysis and job evaluation management study guide. When job evaluation is used in the design of a wage structure, it helps in rationalising or simplifying the system by reducing number of separate and different rates. Job evaluation according to kovac 2006is a process of determining the relative worth of a job. Whether formal job evaluation began with the united states civil. Job evaluation system tfn have chosen to use the korn ferry hay job evaluation methodology to provide a transparent and fair approach to the evaluation of our jobs utilising a job family framework. Ranking and job classification methods come under this category because they make no use of detailed job factors.
Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Job evaluation methods there are 4 basic and traditional systems of job evaluation. Job evaluation is a process of finding out the relative worth of a job as compared to. There are many different types of job evaluation systems to choose from. The ranking systems of job evaluation are generally used in small organisations where all jobs are wellknown to job raters. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. Job evaluation or job classification systems provide an objective system for placing jobs not individual employees on a pay scale. The jobs are evaluated on the basis of its content and the complexity. A job evaluation is a systematic process typically performed by human resources to assess and evaluate tasks, responsibilities and the value of each job within an organization. The simplicity of this system is its greatest asset.
Job evaluation is defined as the process of determining the relative worth of jobs to determine pay structure. Job evaluation is a generic term covering the systematic methods of determining the relative worth of a job. Other system currently being used in zimbabwe include the hay system 8. Top 4 methods of job evaluation explained with diagram. Hay guide chart profile method of job evaluation hay system human resource management services adopted the hay system effective july 1, 2012 based on a legislative study of employee classification and compensation practices. A fully defensible pay system having a fullydefensible pay system starts with using those standard processes for gathering and documenting job. Job evaluation is a technique to provide a systematic, rational, and consistent approach to defining the relative worth of jobs within an organisation. The ranking system, job classification or grading system, the factor comparison system, and the point system.
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