Page 152 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 9: Job Evaluation

(d) Minimum experience requirement. Notes
(e) Minimum education required.
Merits:
(a) The system is simple and easily understood and easy to explain to employees (or
trade union). Therefore, it is suitable for small organizations with clearly defined
jobs.

(b) It is far less expensive to put into effect than other systems and requires little effort
for maintenance.
(c) It requires less time, less effort, unless it is carried to a detailed point used by
company.
Demerits:
(a) As there is no standard for an analysis of the whole job position, different bases of
comparison between rates occur. The process is initially based on judgment and
therefore, tends to be influenced by a variety of personal biases.
(b) Specific job requirements (such as skill, effort and responsibility) are not normally
analysed separately. Often a rater's judgment is strongly influenced by present
wage rates.
(c) The system merely produces a job order and does not indicate to what extent it is
more important than the one below it. It only gives us its rank or tells us that it is
higher or more difficult than another; but it does not indicate how much higher or
more difficult.
(d) The job evaluation may be subjective as the jobs are not broken into factors. It is
hard to measure whole jobs.

2. Job Classification or Job-grading Method: It is based on job as a whole. 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. Each succeeding grade reflects higher level of skill and responsibility, with less
and less supervision.

Mechanism: The following five steps are generally involved:
(a) The preparation of job description, which gives us basic job information, usually
derived from a job analysis.

(b) The preparation of grade description, so that different levels or grades of the job
may be identified. Each grade level must be distinct from the grade level adjacent to
it, at the same time; it should represent a typical step in a continuous way and not a
big jump or gap. After establishing the grade level, each job is assigned to an
appropriate grade level on the basis of the complexity of duties, non-supervisory
responsibilities and supervisory responsibilities.
(c) Selection of grade and key jobs: About 10 to 20 jobs are selected, which include all the
major departments and functions and cover all the grades.

(d) Grading the key jobs: Key job are assigned to an appropriate grade level and their
relationship to each other studied.
(e) Classification of all jobs: Jobs are classified by grade definitions. All the jobs in the same
grade receive the same wage or range of rates. For example, menials may be put
into one class ; clerks in another; junior officers in a higher class and the top executive
in the top class.

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