A company can either choose a quantitative or qualitative technique. The various related methods are explained in detail below:
This method of job evaluation relies upon the facts and figures acquired through research and data collection of a particular job position. Let us find out its two basic types:
The non-quantitative method is based on the qualitative aspect. It analyzes a job with the help of observations and illustrations. It includes the following two techniques:
Principles of Job Evaluation
A.R. Kress brought forward eight principles that when applied by the companies can make job evaluation successful. These scientific principles are as follows:
Initiate Employee Cooperation: Job evaluation needs mutual efforts of the employees on whom it is to be applied. Thus, the overall plan should be discussed with the staff, however, the confidential details shouldn’t be revealed.
Rate the Job and Not the Person: Another thing to be kept in mind is that it evaluates a job position rather than an employee placed in that particular position. Therefore, the various job elements are taken into consideration in this method.
Uniformity in Understanding: Each job element should be given equal importance and also every aspect of job evaluation should be clearly inferred. Then only all these elements can be fairly rated.
Avoid Excessive Occupational Wages: Multiple rates of occupational wages or rate ranges is a bad idea since it creates discrimination and confusion. Try to keep the labour grades uncomplicated.
Clarity of Job Elements: The job elements to be included in job evaluation should be unique, specific and coherent. This is essential to avoid unnecessary repetition and workload.
Detailed Explanation of Plan: Indeed, it’s evident to disclose even the smallest of the details regarding the job evaluation plan in front of the workers and the supervisors. This will help in better understanding and prevents confusion.
Discuss Point Values Instead of Money Values: To boost the employee morale and confidence, its important to explain the point values i.e., the degree of significance of different job elements. However, discussing its monetary values is baseless.
Foremen Participation: For the success of job evaluation, the supervisors of different departments must make genuine efforts to rate the jobs within their scope.
Disadvantages of Job Evaluation
When applied to stable market conditions job evaluation can be highly effective, else it can backfire. Following are some of its known drawbacks:
- Inaccurate at Times: Job evaluation may not be suitable to resolve all the wage-related problems among the employees and the management.
- Fails to Include all Factors: The factors of job evaluation cannot be standardized, it sometimes miss out on the essential elements or else involves many unnecessary aspects.
- Difficulty in Method Selection: Determining a suitable technique for job evaluation can be a crucial task since it requires logical thinking and data examination.
- Expensive and Time-Consuming Process: It is a tedious task, that requires a lot of efforts and time for the committee and money of the company.
- Problems in Committee Formation: In job evaluation, forming an efficient team is a difficult task where the skills, expertise and knowledge of the committee members have to be kept in mind.
- Inefficient for Managerial Jobs: The personnel hired for managerial jobs are paid according to their personal expertise, experience and management skills which is difficult to be analyzed or standardized.
- Unsuitable for Small Entities: In small business firms where there is no human resource department and limited staff, conducting job evaluation is pointless.
- Prone to Human Errors: Since job evaluation is a team effort based on critical interpretation of the facts and figures, it isn’t free from mistakes and errors.
Job evaluation on one hand establishes the wage standards of the companies and on the other hand, it determines the job description for the employees.
Even after multiple drawbacks, it is widely applied by organizations to affirm their wage structure and estimate the worth of any job position. It has also been an essential part of human resource planning.