2.What is job evaluation? Explain the differences between the major job evaluation systems, noting the advantages and disadvantages of each.Job evaluation is the systematic process of determining the relative worth of jobs. This process would help the manager in taking decisions related to - which jobs should be paid more than others within the organization. Therefore, such process would help in establishing internal equity among various jobs within the organization.2
Major job evaluation systems:1)Job Ranking Method. It is the simplest and oldest method of job evaluation by which jobs are arrayed on the basis of their relative worth. Job ranking can be done by a single individual knowledgeable about all jobs or by a committee composed of management & employee representatives. Consists of several approaches:a.Raters arrange cards listing the duties & responsibilities of job in order of the importance of the jobs. b.Paired-comparison methods: Raters compare each job with all other jobs by means of a paired-comparison ranking table that lists the jobs in both rows and columns.3
Advantages:1.Its simplicity makes it ideal for use by smaller employers.2.The method is economical as compared to other methods.Disadvantages: 1. Do not provide a very precise measure of each job’s worth. 2. The final ranking of jobs indicates the relative importance of the job, not the differences in the degree of importance that may exist between jobs. 3. Can only be used with a small number of jobs, probably no more than 15.2.Job Classification Method. It is a method of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.Advantages: 1.Widely used by municipal & state governments.2.It is economical and requires less time to calculate.3.Simple to understand.Disadvantages:1. Less precise than the point method because the job is evaluated as a whole.2. Can be used only for small scale concerns.3. Preparation of grade descriptions is difficult. 4
3.Point Method. A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.Advantages: 1. Once established, they are relatively simple and easy to understand & use.2. Provides a more refined basis for making judgments than either the ranking orclassification methods and thereby can produce results that are more valid & less easy to manipulate (principle advantage). 3. Widely accepted and used method.Disadvantages: 1.Complicated to establish.2.Time consuming as well as expensive.4. Factors Comparision Method. It is also a quantitative job evaluation procedure which involves determining the key jobs in an organization, attaching weight to them, using them as bases for determining the relative importance of other jobs.