unit2 job evaluation

8/3/2019 Unit2 Job Evaluation

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Job evaluation

1.0 Def:

Job evaluation is a systematic process of evaluating different jobs of an

organization for determining the relative worth and attaching a value to it.

It deals with the jobs only irrespective of persons carrying it out.

It is used for fixing the wage rates & salaries.

1.1 Objectives:

1. Decides relative values of different jobs2. Helps formulating uniform wage structure

3. Clarifies responsibility & authority with each job

4. Provides basis for recruitment and training

5. Improves employer – employee relationship6. Adds to job satisfaction

7. minimizes labour turn over 8. Describes and evaluates new jobs

1.2 Types:

1. Ranking method 3. Factor comparison method

2. Classification method 4. Point method

Ranking method:

Graded according to the Requirements, Responsibility & Importance

Advantages: Disadvantages:

• Simple and fast Not accurate

• Easy following Lack of basis

• Less expensive Not useful for big organizations

Classification method:

Classified into levels of equal skill, Difficulty, Responsibility, importance etc.

Grades A to F


• Simple and easy Cumbersome

• More accurate Not suitable for big industries

• Clear distinction Difficult correlation between present salary

& grading



Factor comparison:

Factors:

1. Skill2. Mental effort

3. Physical effort

4. responsibility5. physical condition

Key jobs are identified and record their wages.

Allocate the salary among the 5 factors for each job


Wages are fixed by direct comparison Complicated

Calculated speedily Error in finding fair wagesSubjective judgement

Point method:

Divides the jobs into No. of factors and subdivides into grades or degrees.Grades

G1 G2 G3 G41. Skill

Qualifications

Experience

Judgment & initiative2. Effort

Physical

Mental3. Responsibility

Towards materials

Towards equipmentTowards men

4. Working conditions

Exposure to hazardsDust, smoke, fumes, Noise

Temperature

Glare, radiation


•

Accurate and precise Needs more work and expensive• Reduces subjective discretion Points allocated are arbitrary

• Widely used plan



Performance appraisal

2.0 Def:

It is a systematic approach to assess the relative worth of an employee working in

an organization in terms of job performance, integrity, leadership, intelligence,knowledge, behavior etc.

2.1 Objectives:

1. Provides a record of the worth of employee and helps in correct placement.2. Unfolds the limitations of an employee and helps in correction and

improvement.

3. Basis for

1. Wage increase 4. Training2. Promotion 5. Transfer

3. Special assignment 6. discharge

2.2 Methods:

1. Rating scale2. Check list

3. Employee comparison

Rating Scale:

Excellent Very good Good Fair Poor 1. Standard of output

2. Quality of output

3. Intelligence4. Job knowledge

5. Leadership

6. Integrity7. Dependability

8. Qualification & Experience

9. Efforts & Initiative10. Adaptability

11. Cooperation

12. Judgment

13. Character 14. Loyalty

15. Health 7 personality

Check list:

A list of questions and statements relating to the employees’ performance are to

be answered. The answers carry marks. The total marks obtained by anemployee are considered for rating the employee.

Comparison method:

1. Compares the workmen against each other and ranked accordingly.



Wages, Incentives, Wage payments

3.0 Wages:

Wage is defined as payment made by the employer for the efforts or services put

in by the employee.

Non-monetary payments are called Fringe benefits.3.1 Types of wages:

1. Nominal wages2. Real wages

3. Living wages

4. Fair wages

5. Minimum wages

3.2 Wage payment plans:

1. Time and day rate system.

2. Straight piece work rate system

3. Combination of time rate & Piece rate system4. Incentives

5. Profit sharing system6. High wage plan

3.3 Incentives:

Incentive is an inducement or reward which is given to a worker for his efficiency

and hard work.

3.3.1 Types;

1. Direct2. Indirect or group

3. Financial

1. Bonus2. Profit sharing

4. Non- financial

1. Amenities2. General working conditions

3. Social benefits

5. Semi financial

1. Subsidies2. PF

3. LTC

4. Medical

3.4 Bonus:

As a financial incentive, the employees are paid an additional amount as a certain %

of annual income at the end of the financial year called bonus.

As per bonus act- 1965,

Minimum bonus : 8.33 %

Maximum bonus : 20 %



Max. salary limit for eligibility : Rs. 2500 per month

3.5 Wage incentive plans:

1. Straight piece rate

Wage earned= No. of pieces x Rate per piece

Rate is fixed by determining the standard time for one piece.

2. Straight piece rate with guaranteed minimum wage

Minimum wage = Standard output x Piece rate.Wage earned = No. of pieces x rate per piece

3. Taylor’s differential piece rate system:

1. Workers who exceed standard output are paid higher piece rate.

2. Workers who produce less than std. output are paid lower piece rate.

Fresh or inferior workers earn very little amount.

Merrik modified this plan. This plan assures a minimum wage.Separate differential piece rates are suggested for workers, who reach up to 70%,

100%, 120% of the std. output.

4. Halsey Plan:

1. A min. base wage is guaranteed.

2. Bonus in terms of certain % of the time saved over the std. time is given to theworker. ( 33.33% for Halsey plan; 50% for Weir’s plan )

3. Output standards are based on previous production records.

W= R.T + (p/100).(S-T).R

W= wage earnedT= Actual time taken in Hrs.

R= Hourly wage rate

p= % of bonus

S= Standard time in Hrs.If p=50%

W=R.T+R.(S-T)/2

5. Rowan plan:

1. Minimum base wage2. Bonus given is (S-T)/S times the actual Time taken.

3. Output standard is based on the previous production records.

W = R.T + R.T(S-T)/S



6. Gantt plan:

1. Minimum guaranteed wage2. Workers reaching output standard get a wage rate increase

3. Workers exceeding O.S. are paid at higher wage rate

4. 20 to 50 % of the time taken will be given as bonus if he completes the job inStd. time or less.

7. Bedaux Plan:

1. Minimum wage is guaranteed

2. ‘B’ represents unit of work.

1B stands for 1 standard work minute. ( Includes rest time)3. Bonus is paid for the worker, who earns more than 60B’s /Hr.

4. Bonus is 75% of the No. of B’s above 60 in one hour.

W = R.T + R.(75/100)( Ns- Nt)/60.

Ns= No. of B’s earned Nt= Std. B’s

= 60 X Std. time

8. Emerson’s Efficiency plan:

1. Base wage is guaranteed

2. Worker having efficiency from 66.67% to 100% earn an incentive from 0-20 %

3. For efficiency more than 100 % , for 1% increase in output, the worker gets 1%increase in incentive.

3.5.1 Group incentive plan:

Used where

1. Output of each worker can not be determined2. The output of one is related with others

3. All workers in a group are equally skilled

unit2 job evaluation

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