Page 157 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes  The job ranking method arranges jobs in numerical order on the basis of the importance
of the job's duties and responsibilities to the organisation.

 The job classification system slots jobs into preestablished grades. Higher-rated grades
demand more responsibilities, tougher working conditions and varied job duties.
 The point system of job evaluation uses a point scheme based upon the compensable job
factors of skill, effort, responsibility and working conditions. The more compensable
factors a job possesses, the more points are assigned to it. Jobs with higher accumulated
points are considered more valuable to the organisation.
 The factor comparison system evaluates jobs on a factor-by-factor basis against important
jobs within an organisation.

9.8 Keywords

Classification Method: A method of job evaluation that concentrates on creating certain common
job grades based on skills, knowledge and abilities.

Factor Comparison Method: A method of job evaluation where job factors are compared to
determine the worth of a job.
Job Analysis: The systematic collection, evaluation and organisation of information about jobs.

Job Evaluation: A systematic way of assessing the relative worth of a job.
Job Grading Method: Under this method, number of grades is first decided upon, and the factors
corresponding to these grades are then determined. Job grades are arranged in the order of their
importance in the form of schedule.
Performance Appraisal: A formal process in an organisation whereby each employee is evaluated
to find how he is performing.

Point Method: A method of job evaluation where jobs are classified on identification criteria
and the degree to which these criteria exist on the job.
Ranking Method: A method of job evaluation which ranks employees from highest to lowest.

9.9 Review Questions

1. What is job evaluation? Explain the objectives of job evaluation. How do you prepare the
ground for evaluating jobs?
2. What are the conventional and non-conventional techniques of job evaluation? What type
of technique would you adopt to evaluate the jobs of Engineer (Maintenance), Engineer
(Marketing) and Chief Engineer in a large machine tools industry?
3. What are the quantitative and non-quantitative techniques of job evaluation? Which type
of technique do you adopt to evaluate the job of Officer (Agriculture), Officer (Large
Industry), Officer (Small Scale Industry), Economic Officer and General Officer, in a large
commercial bank?
4. "Job evaluation does not usually price jobs." Discuss.

5. Explain the advantages and limitations of job evaluation as a basis for fixing and revising
wages and salaries.
6. Explain different techniques of job evaluation. What are the advantages and disadvantages
of each technique?

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