Page 153 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes Merits:
(a) This method is simple to operate and understand, for it does not take much time or
require technical help.

(b) The use of fully described job classes meets the need for employing systematic
criteria in ordering jobs to their importance. Since many workers think of jobs in, or
related to, clusters or groups, this method makes it easier for them to understand
rankings.
(c) The grouping of jobs into classification makes pay determination problems
administratively easier to handle. Pay grades are determined for, and assigned to,
all the job classification.

(d) It is used in important government services and operates efficiently, but it is rarely
used in an industry.
(e) The advantages of that method are that it is simple & inexpensive.

(f) The organizations where number of jobs is small, this method yields satisfactory
results.
Demerits:

(a) Job-grade are vague and not quantified.
(b) Difficulty in convincing employees about the inclusion of a job in a particular grade
more job classification need to prepared because same scheduled cannot be used for
all types of jobs.
(c) The system is rather rigid and unsuitable for a large organization or for very varied
work.
(d) It is difficult to know how much of a job's rank is influenced by the man on the job.
(e) It is relatively difficult to write a grade description. The system becomes difficult to
operate as the number of jobs increase.
(f) Since no detailed analysis of a job is done, the judgment in respect of a whole range
of jobs may produce an incorrect classification.

9.5.2 Analytical Method

Point Ranking Method

The system starts with the collection of job factors, construction of degree for each factor and
assignment of points to each degree. Different factors are selected for different jobs, with
accompanying difference in degrees and points.

Mechanism: This system requires a detailed examination of the jobs. The following steps are
followed:
Step 1: Select job factors or characteristics.

Step 2: Construct a scale or yardstick of values for each job factor.
Step 3: Evaluate all jobs in terms of the yardsticks.
Step 4: Design the wage structure.
Step 5: Adjust and operate the wage structure.

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