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We do job evaluation to determine the worth or purpose of a job in an organization/division. Through this process we could determine the job description and specifications and this help individual and heads in recruitment process and support in other role too.
There are various methods of evaluation are available but the most common one are;
Based on the size and operation of the organization the management opt the appropriate system.
Methods
Ranking
This method is one of the simplest to administer. Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.
Classification
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.
Factor Comparison
A set of compensable factors are identified as determining the worth of jobs. Typically the number of compensable factors is small (4 or5). Examples of compensable factors are:
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics.
Point Method
A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:
These factors can then be further defined.
1. Observation method.
2. Diary method.
3. Questionnaire method.
4. Interview method.
5. Technical conference method
There are2 types of PMS rating. One that is done on a monthly basis and the other that is done on an annual basis.
To avoid halo effect and to minimise supervisor bias it should be as objective as possible,
If a person does error free work and is productive compared to others heshould be remunerated at a higher rate. Accuracy in work or integrity in work should not be sacrificed by productivity.