Page 128 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes (a) Non-analytical or non-quantitative system, and

(b) Analytical or quantitative system.
Non-analytical or Non-quantitative System
This system utilises non-quantitative methods of listing jobs in order of difficulty. The
comparison and evaluation made on non-quantitative basis is made by ranking or classifying
the jobs from the lowest to the highest. Non-analytical system is usually of two types. They
are:
Job Compensation
(i) Ranking System

(ii) Job Classification or Grading System
(i) Ranking System: This is a very simple method of job evaluation. Under this system
the job raters simply rank one job against another without assigning point values. The
ranking method consists of ranking the jobs in the organization from the lowest to
the highest.
Merits of Ranking System

The ranking method is simple, quick and inexpensive.
It is particularly suitable for small organizations which cannot afford to employ outside
consultants.

As the system is simple and easy to understand, it becomes easy for the organization to
explain to the employees or trade union.
Demerits of Ranking System

• The ranking method is somewhat crude as specific job requirements are not normally
analyzed separately. Therefore, in the absence of any yardstick, each rater has his own
set of criteria. The ranking process is initially based on judgement and therefore tends
to be influenced by the personal bias of the rater.
• The system merely produces a job order but it does not indicate how much one job
differs from another.
As the size and complexity of an organization increases, it becomes difficult to find raters
acquainted with all jobs to be ranked.
(ii) Job Classification or Grading System: Under this system, a number of predetermined
grades or classifications are first established and then the various jobs are assigned
within each grade or class. Job classification system begins with an overall comparison
of all jobs, on the basis of common sense and experience. For each class, a general
specification is prepared indicating the nature of work and responsibility that are
included. Each class is assigned a salary range with maximum and minimum limits.
After that, actual jobs are fitted into these predetermined classes.
Merits of Job Classification or Grading System
• This method is best suited for small organizations as it is easy to understand and
inexpensive to administer.
• Since employees think of jobs in clusters or groups, this method makes it easier for
them to understand ranking.
• Job grading is considered to be an improvement over ranking because a predetermined
yardstick consisting of job classes is provided.
• Job grading makes pay determination problems administratively easier to handle.

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