do you know WHAT JOB EVALUATION is?
Job evaluation is a technique to rate a job (but not a worker). Therefore, after the job is evaluated, it becomes the starting point to fix the base-wage for a worker so that the wage is fair and equitable. Job evaluation is the criterion for relative differentiation of base-wage rates by establishing the relative worth of various jobs in an organization. The bases for semi-skilled or unskilled worker’s job evaluation are factors related to job, such as: skill, effort, responsibility, job risk, hazard, job conditions, etc. For skilled jobs, factors related to qualification, experience, dynamics of responsibility and complexity in decision-making, leadership quality accountability, etc., are major factors in job evaluation.
Job evaluation is an attempt to determine and compare the demands which the normal performance of particular jobs makes on average workers, without taking into account the individual abilities or performance of the workers concerned.
Job evaluation is used to analyze and assess the job for ascertaining its relative worth by objective assessment and comparison for determining the basis for a rational wage structure.
*Ranking Method:
Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgments of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.
*Classification:
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.
The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.
*Factor Comparison:
A set of compensable factors are identified as determining the worth of jobs. Typically the number of compensable factors is small (4 or 5). Examples of compensable factors are:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics.
1. Equitable pay (not overpaid or underpaid)
2. Range of the factors (for each factor, some jobs would be at the low end of the factor while others would be at the high end of the factor).
The jobs are then priced and the total pay for each job is divided into pay for each factor.
*Point Method:
A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:
1.Skill
2.Responsibilities
3.Effort
4.Working Conditions
The point method is an extension of the factor comparison method.
Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.
Jobs are then grouped by total point scores and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
K- PINTAR SDN BHD
WEIGHT THE FACTORS ACCORDING TO IMPORTANCE
Weights are often determined through an advisory committee that allocates 100 percent of the value among the factors. In the illustration in the table below, a committee allocated 40% of the value to skill, 30% to effort, 20% to responsibility, and 10% to working conditions. In each factor have two sub factors, with 5 degrees each. As for the company that we have interviewed, the first table is for the Business Development Manager, the sub factor mental skill gets half the 40% given to skill and the sub factor experience gets the other half: 5 degree of mental skill times 20 equals 100 points (5 degree x 20 =100points), and 5 degree of experience times 20 equals another 100 points (5 degree x 20 =100 points).
Next is the sub factor physical gets half the 30% given to effort and the sub factor mental gets the other half: 4 degree of physical effort times 15 equals 60 points (4 degree x 15 = 60 points), and 4 degree of mental effort times 15 equals another 60 points (4 degree x 15 = 60 points).
Besides that, the sub factor effect of error gets half the 20% given to responsibility and the sub factor inventiveness or innovation gets the other half: 4 degree of effect of error times 10 equals 40 points (4 degree x 10 = 10 points), and (5 degree x 10 = 50 points).
Lastly is the sub factor environment gets half the 10% given to working conditions and the sub factor hazards gets the other half: ( 4 degree x 5 = 20 points) and ( 2 degree x 5 = 10 points).the total points that Business Development Manager gets is 440 points of 500 points which is greatly high.
This same goes for the other two levels that we have been survey, that is for the Human Resource Manager which has the total points of 455 and for Admin the total points of 375
