What are some of the advantages and disadvantages of the simple ranking, alternate ranking, and point method job evaluation techniques? The principal merits of this method may be listed thus: i. (6) Some of the techniques of job evaluation are not understandable by workers hence it has been opposed: Job evaluation is regarded by the Trade unions with suspicion because it is made on certain principles and results are generally ignored. It is a very costly method for job evaluation. Define electric potential and electric potential energy. What are the features of issue factor method? This method provides an accurate evaluation as points for factors/degrees are decided before job evaluation is made. } Job evaluation is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job. There is more dependency on internal standards and assessment of wage rate fixation. Besides, this system facilitates to form a logical basis for designing training programmes for the worker. 7th: train users. 2 discuss the advantages and disadvantages of the - Course Hero (vi) It helps to redesign the jobs for minimising wide wage differentials. 1. However, if experience is among the most important factors, it might be weighted at 1.5, and thus the final value of the experience factor for the office manager job would be 75 (50 points x 1.5 weighting factor = 75). Now retired from a Fortune 500 company, she consults and writes on related topics. Each factor is defined and assigned a range of points based on the factors relative importance to the organization. This is particularly so if the factors are of highly technical in nature. Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. The method helps in removing grievances arising out of relative wages; and it improves labour-management relations and workers morale. Each feather is then divided into levels or degrees which are then assigned points. External point evaluations for common jobs are widely available. iii. Due to the high significance and utility of job evaluation, it becomes very challenging for HR managers to select the best method so that they can correctly and efficiently measure the relative worth of the jobs in the organization. Weaker groups are better served by an evaluation plan than by the market; the former places the emphasis not on force but on equity.. 360-Degree Appraisal: Advantages and Disadvantages; Employee Appraisal: Types, Costs . Being the systematic method, workers of the organization favor this method. 6) Subjective: Several factors are used in evaluating jobs but there is no standard list of factors to be considered. If a job offers bright prospects of rise, more people will be attracted in comparison to a job having no prospects of rise though both are equally rated by job evaluation process. This cookie is set by GDPR Cookie Consent plugin. Thus, it will increase the rate of labour turnover. SHRM's HR Knowledge Advisors offer guidance and resources to assist members with their HR inquiries. Job evaluation is not only limited to deciding the salary or wages of the employee but today it also helps in improving performance, to avoid discrepancies and efficiency in work. What are the advantages of Factor comparison method? All rights reserved. It is easy to understand and clear on the process and makes more accurate judgments. It provides a systematic study and assessment of the job and many complaints about disparity in existing wage structure are removed by this technique. Job Evaluation: Objectives, Procedure, Advantages and Drawbacks Factor comparison is a process that human resources professionals use to evaluate and compare different job candidates. USE an outline format for your notes: An As someone with fine hair that refuses to grow past my shoulders, Ill try anything that claims to give me longer, fuller, thicker hairincluding using castor oil for hair growth. 2. The point method of job evaluation is based on job ranking the requirement responsibilities and other aspects of a job. These should never be more than five or ten. b. Though job-evaluation has these limitations yet it is very useful in evaluating the relative worth of the job. Job Evaluation (JE) - Concept, Steps, Objectives, Features, Advantages For example, the skill category might be divided into experience, education and ability. Discuss the advantages and disadvantages of the point method of job evaluation. However, job values must be constantly watched. 7) Limitations of Evaluator: In case, if the methods and principles of job evaluation are not well-known to the evaluator, job evaluation is supposed to produce inconsistent outcomes. It provides a clear and objective basis for wage negotiation and collective bargaining. vii. Discuss the advantages and disadvantages of the point method of job (vi) Since all job evaluation lean heavily on job analysis and job descriptions the information thus obtained may be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements and it may thus help management of an organization to make more efficient utilization of its work force. (2) There is no standard list of factors: Too many factors are used in job evaluation and moreover there is no standard list of factors to be considered. The points for each factor are summed to form a total point score for the job. Learn about the various job evaluation methods, including ranking, classification, point, factor comparison, and analytical methods. Who owns the factors of production in a command economy? 4. (iii) It helps in reducing or minimizing employee grievances arising out of relative wages and is likely to improve industrial relations. Job Evaluation: Meaning, Methods, Process - iEduNote Most horse (1). The cinema hall is to far from my house.Ans: The cinema hall is too far from my house.(3). 00:00 00:00 Brought to you by Techwalla 5. When job evaluation results in substantial changes in the existing wage structure, the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate. If a job offers to all workers, but good future prospects, it will succeed in attracting more people. Each job is rated using the job evaluation instrument. Job evaluation is the basis for determination of wages and salary for employees. We also use third-party cookies that help us analyze and understand how you use this website. 1. It helps in standardization of job that is same kind of job will require same kind of people in terms of qualification, skill and abilities, so that they fit in same wage and salary structure. In this method first job key factor is identified then the job is broken down into various job-related factors and placed weights or points on them. It helps in maintaining harmonious relations between labour and management since it tends to eliminate wage inequalities within the organization and the industry.