17. Job Evaluation - Concept This potential to blend internal forces and external market forces is both a strength and a opportunity to job evaluation system.
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21. Importance of job evolution 1 > To involve the people occupying the positions under evaluation. This is especially so if you think your organizations job descriptions are poorly written or out of date. The people in positions and their immediate supervisors have the best idea of what the job is really about. 2 >Job evaluation is most effective as a participative exercise and this in itself can improve employment relations. It is therefore recommended that job evaluation is introduced or revised jointly by allowing management and employee representatives to discuss relevant issues initially in a non-negotiating forum 3>T o ensure integration of internal fairness and external competitiveness .
22. Up to date, accurate job descriptions are absolutely essential and should be reviewed for accuracy with the current incumbent before evaluation. More complex job evaluation techniques require more information and often the primary source of this is job descriptions, so the more complex the job evaluation scheme, the more detailed the job description needs to be. . Keep accurate records of decisions taken, to ensure openness, and transparency. Build confidence in the process and outcomes by briefing people Many organizations choose to engage consultants to manage parts or the entire process. These consultants often have access to the expensive but comprehensive data bases containing detailed information about remuneration levels in different sectors. job evaluation methods are not to be confused with performance management or appraisal, where the primary concern is with how well a job is performed . Aspects of job evolution
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25. Job evaluation process The major objectivity of job evaluation process is to establish satisfactory wage and salary differentials, so job analysis should precede the actual programme of evaluation. Objective of job evaluation Job description Job analysis Job evaluation Job specification Wage survey Employee classification
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27. Job Evaluation Methods 1/5/2008 Advantage Disadvantage Ranking Fast, simple, easy to explain. Cumbersome as number of jobs increases. Basis for comparisons is not always acceptable. Classification Can group a wide range of work together in one system. Descriptions may leave too much room for manipulation. Point Compensable factors call out basis for comparisons. Compensable factors communicate what is valued. Can become bureaucratic and rule-bound.
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29. Hay’s Method – 3 Factors Jobs exist to achieve an end result Accountability Accountability Therefore, the job holder requires a level of knowledge and experience commensurate with the scale and complexity of the result Problem Solving To achieve this end result, job holders must address problems, create, analyse and apply judgement 1 3 2 Accountability Problem Solving Know-How
30. Hay’s Method - Process Depth & Range of Know-How Planning & Organising Communicating & Influencing Freedom to Act Nature of Impact Area of Impact (Magnitude) Thinking Environment Thinking Challenge KNOW- HOW PROBLEM SOLVING ACCOUNTABILITY + + = Job Size
56. Advantages and Disadvantages Incentives Advantages Disadvantages Financial 1.Focus on hitting target 2.Achievement a given value 1.Rewards are sometimes small 2.Can demoralize if not earned Non Financial 1.Can recognize employee priorities and lifestyle 2.Can encourage attachment to business 1.Can be taken for granted 2.May be inappropriate
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81. ELEMENTS OF TOTAL COMPENSATION Total Compensation Base Compensation Incentive Compensation / Variable compensation Supplementary compensation paid to large group of employees
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89. ASPECTS TO BE CONSIDERED FOR ACCOMPLISHING EFFECTIVENESS OF THE MONETARY REMUNARATION SYSTEM
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106. Profit Sharing Vs Co-partnership Basis Profit Sharing Co-Partnership Scope Allow labor only a share in the profit Has a wider scope and it includes profit sharing plus in the management also Features Brings about no handicap. No risk. No share in losses. Worker as a shareholder is tied down to the company. Reduces mobility. Cash Bonus We usually have cash bonus Indicates that a worker as a shareholder has a right to share in the profit as well as a voice in the bonus. Gets wage + dividend. Usually in kind. Promotion of Industrial Democracy One step short of co-partnership Gives wider diffusion of ownership Application of Scheme Applicable to any type of business Only to company enterprises Interest of worker Workers have no stake, hence no personal extent to that extent Labor enjoys a sense of ownership in the joint enterprise. Workers are personally interested in the success of the company.
107. Profit Sharing Vs Bonus Basis Profit Sharing Bonus Meaning Employer gives to the workers a portion of surplus profit of the business in addition to wages. A bonus to workman beyond their wages. Basis Profit showing is usually based on definite agreement between the employer and the worker. Payment of bonus depends on the sweet will of the employer or is provided of law. Legal provision No Act has been passed concerning profit sharing. Bonus Act has been passed in the year 1965. Statutory Obligation A voluntary payment although depends on agreement. Was originally , a voluntary payment has become a statutory obligation under the Payment of Bonus Act 1965.
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