Why? The pay grades or ranges may be determined based on . These are grouped in categories such as skill, responsibilities, effort and working conditions, each with several subfactors. v. It does not explain anything about the absolute size of the wage differentials appropriated to the evaluated job structure. Moreover, some of the methods particularly Point Method and Factor Comparison Method are not easy to understand by the workers and moreover they fear that job evaluation will do away with collective bargaining. Thus, it will increase the rate of labour turnover. What are some of the advantages and disadvantages of the simple ranking, alternate ranking, and point method job evaluation techniques? Discuss the advantages and disadvantages of the point - Course Hero This method is simple to operate and understand, for it does not take much time or require technical help. What are the four methods of job evaluation? In many cases it may not be supportive. i. But those proprietary systems can be quite cryptic, needing the specialized knowledge of consultants to operate. The list of factors is not a standard one. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. (iv) This technique helps in removing grievances arising out of relative wages; (v) It improves labor-management relations and workers morale. The Disadvantages and Advantages of the Point System by Daria G - Prezi There are several limitations to this technique. The factors identified may not be exhaustive and accurate . Job evaluation is not well suited to determine the relative worth of managerial jobs. advantages:this method may be considered less biased by employees, disadvantage:the process of assessing and assigning points to compensable factors is a expensive method to implement, This site is using cookies under cookie policy . As per this method of job evaluation, all jobs in the enterprise are compared with each other. Most horse (1). 3. When applied to the whole industry, it facilitates comparison between wage rates in two different localities. Computer Science 7th: train users. Existing wage rates for key jobs are taken to find out the worth of each factor in each key job, BJMC The point method of job evaluation techniques disadvantages is based on financial needs (Song, B., & Kang, S. 2016). Each feather is then divided into levels or degrees which are then assigned points. This group will eventually become the job pay grade, ensuring that even dissimilar jobs can be compared equitably. When demand is identified, the HR department can easily match the job requirement with new employees. Heavy Cream is in Aisle A31 of the Dairy section in Walmart. The key jobs are ranked on a factor-by-factor basis and the organization ranks each of such key jobs from top to bottom, for each of the factors. Advantage: Identifies the Top Performers The main advantage of the ranking appraisal method -. Chapter 5 Review Questions Flashcards | Quizlet It can be applied to a variety of jobs. 4. A job manual is used which contains these factors and the degree of each factor to be valued. These cookies will be stored in your browser only with your consent. Replace the underlined word with the correct form, How do you play Roblox on a Chromebook without downloading it. There may be a possibility that jobs are classified wrongly. Job evaluation information helps in selection, placement of employees. The analyst divides each factor to be used into levels and defines and assigns points to each. The various important advantages claimed for job evaluation may be stated as follows: (i) Job evaluation is a logical and objective method of ranking jobs relative to one another that helps in eliminating the inequalities in existing wage structures and in developing and maintaining consistent wage differentials within an organization or industry. They fear that job evaluation will do away with collective bargaining for settlement of wages. What Are the Three Basic Methods of a Job Evaluation? Job Evaluation Flashcards | Quizlet Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. There are just too many details and specifications which you must be certain of when looking for one. 2. It helps to improve industrial relations by reducing employee grievances arising out of wages. The ranking method is one of the simplest methods of job evaluation. It can also be applied to new jobs created in the organisation. What is an advantage of using the point factor method in job evaluation This score determines the relative value of each job within an organization. It only involves ranking. 4. 3. These factors are (1) working condition, (2) physical requirements, (3) mental requirements, (4) skill requirements and (5) responsibilities involved. The disadvantages of factor comparison: someone has to make a decision on evaluating the relative worth of each factor, cost, its time consuming. It is subjective in nature because a committee rank the job hence it enhances the chance of human error. Once the total score is calculated, the jobs can be placed in rank order. The job grading method is slightly different from the ranking method because the grading method uses scale whereas in the rank method there is no involvement of the job. These jobs require analytical skills, decision-making, leadership skills etc., which cannot be measured in quantitative terms. (v) It facilitates wage/salary administration by bringing about uniformity in wage rates. 4. In this method, the first key jobs are decided and jobs are divided into the key job factors, these factors are assumed to be constant for each set of jobs present to some degree in all jobs in organization present in the organization. and this process is continue until all jobs have been assigned their relative positions or rank. 3. This job evaluation method works by ranking jobs according to their perceived value compared to other jobs. You have successfully saved this page as a bookmark. It tends to be inflexible as it does not give right weightage to wage rate prevalent is the industry or region as a whole. ii. With more immigrants coming in, it allows for a more diverse . 2. 2. A job evaluation frequently favours groups different from those which are favoured by the market. Job evaluation is based on the assumption that wage rates can be related to the work of a given job. Only persons who are capable of evaluating the jobs should be appointed as committee members. Quantitive Technique and Operational Research Your session has expired. The HAY system operates by providing a number of job units the score- for the job, which is then matched against the grading structure to determine the grade. Advantages and disadvantages of point method of job evaluation Necessary cookies are absolutely essential for the website to function properly. Theres still an element of judgement required with point-factor job evaluation which impacts on true objectivity. 7) Helps in Wage and Salary Negotiations: A logical base is provided by job evaluation to negotiate the wage and salary with trade unions. Job evaluation enables the management to exercise effective control over the labour costs, because they can give appropriate pays for the each job. At what age can a kid have a credit card? The point rating method is the most sophisticated and widely used method in business organizations. What was going on in China in the late 1800s? Disadvantage It is subjective in nature because a committee rank the job hence it enhances the chance of human error. The points for each factor are summed to form a total point score for the job. If a job offers to all workers, but good future prospects, it will succeed in attracting more people. Understanding Various Job Evaluation Methods - hmhub (vi) It helps to redesign the jobs for minimising wide wage differentials. This method is through a selection of an appropriate number of factors and degrees. $(document).ready(function () { The main steps in developing a point method of job evaluation system are as follows: identify the compensable factors, scale the factors, weight the factors, and apply and test the system. 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. Discuss the advantages and disadvantages of the point method of job evaluation. Solved Case 1: Job Evaluation at Smith Upholstery Smith - Chegg Thus, job evaluation system, in spite of the limitations, can produce reliable results. Copyright 10. 3. Production and Operation Management The standards of job evaluation are relative, not absolute. Irrespective of the job evaluation method used, a number of potential problems can arise. Job Ranking: Pros and Cons for Career Development - LinkedIn The point method is an extension of the factor comparison method. Generally, these key factors include mental requirements, physical requirements, skill requirements, working conditions, job responsibilities, supervisory responsibilities, etc. Rural Marketing ANS: The advantages of this system include a high degree of precision measuring jobs, it's easy to apply with consistency, it provides an ordering of jobs and relative value of each, and it allows jobs to be clustered in pay classes more easily. All these factors make the installation of a job evaluation programme more costly. To combat the Where is heavy cream in Walmart? It only works effectively if those involved believe it to be fair. The information collected in the process of job description and analysis may also be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements. The job structure is divided into several classes or grades and each grade has its own wage rate. Essentially, the higher the job ranking, the higher the pay. 1. Business Law Non-key jobs are evaluated on the basis of monetary comparison scale. Supervisors and higher management, as well as other employees, will need to understand, accept, and support the job evaluation system if it is to work. It may also disrupt the existing social and psychological relationships. Discuss the advantages and disadvantages of the point method of job evaluation. Please log in as a SHRM member. It provides a basis for wage revision and negotiation with trade unions. Point method is suitable for Mid size organization and Large organization. This method is more systematic and objective. 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. Content Guidelines 2. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. It is time consuming and expensive process. External point evaluations for common jobs are widely available. For example, for the factor education the difference in value between some high school and some college might be much less than the difference in value between some college and an undergraduate degree, thus accounting for the point spread. Which of the following is not a standard mounting dimension for an electric motor? The disadvantages are they are complex and still rely on judgment for scoring the jobs themselves. Each job is rated using the job evaluation instrument. The chances for disputes and grievances regarding the individual rates of wages are very rare. 4. This method can be used for smaller organizations that do not have a large number of positions. (vi) Sufficient acceptance of a job evaluation plan and general agreement on its essential features may not be achieved. Job evaluation is not an exact science but it is a systematic way of avoiding several anomalies in wages. Jobs are not broken down into different criteria. 3. The important demerits of this system are as follows: The accuracy claimed by it is not in fact accurate. Moreover, if evaluator is biased to a particular job he will not allot more weightage to the job. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. You consent to our cookies if you continue to use our website. The Factor Comparison Method 5. It plays a key role in establishing fair and standard pay differentials among jobs. Juan is the person employees go to when knowledge of a topic was needed. Vscode No server install found in WSL, needs x64. What is an advantage of using the point-factor method in job evaluation? Since this system aims to reward employees suitability, it will help to build up employee morale and bring job satisfaction. } It is a time-consuming and costly system and hence it is not suitable to small concerns. Inspite of the various advantages claimed for job evaluation, it is not wise on the part of the management to place too much reliance on it. Disadvantages of Factor Comparison Method. Advantages of Job Evaluation: 1. Advantage. $("span.current-site").html("SHRM MENA "); 5) Opposition by Workers: It is supposed to be a suspicious tool by the trade unions of the organisations because it relies upon some set of principles and usually, it ignores the outcomes. viii. Disadvantages of job evaluation are as follows: 1) Non-Scientific Technique: It is not a scientific but a systematic method of rewarding the job. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { 8) Nature of Job: It is a presumption that jobs which hold equal value are equally pleasing it is not true. For example, if an office manager position requires four to six years of experience, it would be assigned a preliminary value of 50 points for this factor. Acceptance and Support of the Evaluation Procedure: The challenge of a job evaluation program lies in selecting supervisors and other managers to participate in job evaluation committees and in obtaining their commitment of time and attention to the process. 3) Unrealistic: There are considerable variations between the job factors and the factors being focused on in the market. Now a job comparison scale is constructed and other jobs are evaluated and compared with these key jobs. Expert Answer 100% (6 ratings) Question 6.6 Method Advantages Disadvantages Simple Ranking -Simples, Most economical and less time consuming -Lack of defined standard -Measuring the difference between t View the full answer Transcribed image text: Case 1: Job Evaluation at Smith Upholstery Smith Upholstery has been in business since 1970. The advantage of the point method of job evaluation is its impact on true objectivity. It provides a systematic study and assessment of the job and many complaints about disparity in existing wage structure are removed by this technique. You dont need to worry about the oversimplified results you get from non-analytical job evaluation - and you can use them as a defence in equal value claims as long as they are based on proper job analysis and a system without inherent gender-bias. How Certain Job Evaluation Systems Are Failing to Stand Up In Equal Pay Claims. iv. Where is the light switch on a Pepsi cooler? There are a number of points that must be remembered. Top 10 Benefits of Human Resource Planning - Five Cowries Creek, Human Resource Planning: Objective, Benefits, Importance, HRP Process, Best 23 Best Definition Of Management - Edu Learn Tip, What is Management? vi. What problems may occur by following Robert's approach? Job evaluation is considered an important function of HRM which help to determine the relative worth of jobs in an enterprise. Strategic Management It has nothing to say about the absolute wage level and little about the absolute size of the wage differentials appropriated to the evaluated job structure. Workers and trade unions often oppose job evaluation. But as the evaluators become more experienced at interpreting the factor plan and input of job descriptions, they start to gain greater clarity on the process and make more accurate judgements. This method is more systematic and objective. It does not store any personal data. 4. vi. 2. What are the features of point factor method? One of the disadvantages of using the point evaluation method of job evaluation is its lack of flexibility in selecting subfactors, degrees, and points. Since it is a systematic approach, employees prefer it. The Point-Factor Method 4. Installing and operating a job evaluation programme requires much time and money. Correlation and Causation What are correlation and causation and how are they different? This multiplicity of factors creates confusion and so precise results cannot be obtained. In providing a yardstick, by which workers complaints or claims can be judged, the method simplifies discussion of wages to be explained and justified. This method provides an accurate evaluation as points for factors/degrees are decided before job evaluation is made. The analyst continues until all factors are rated for the office manager job. This website uses cookies to improve your experience while you navigate through the website. If individual abilities are not taken into account, some workers will always try to adjust themselves elsewhere. Internet Based Benefits & Compensation Administration, Atchison, Thomas J., Belcher, David W., Thomsen, David J., Economic Research Institute. It is also highly necessary to adjust the job rating to changed situation and so it can be kept up-to-date at all times. Therefore, any wage policy based on a scientific job evaluation is bound to be systematic and sound. It is helpful in logical ranking of job and determining its worth. They observe, the jobs which tend to rate high as compared with the market are those of janitor, nurse and typist, while craft rates are relatively low. The first two are quantitative and the latter two are non-quantitative. 4. Job Evaluation Methods | HRM - Economics Discussion 2. This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". Discuss the advantages and disadvantages of the point method of job evaluation. The use of only five factors for job evaluation is questionable as job differ across and within organisation. 1. juan holds ________ power. The pay fixed for each job under factor comparison method is based on judgements that are not objective. It is understandable by employees. Rank the key job, factor by factor basis. 6-7. 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). Thus, all jobs are compared to each other on the basis of key job factors that are present in all jobs. According to the Office of the Chief Human Resources Officer, point rating is an analytical, quantitative method of determining the relative values of jobs. Thus, the importance of job evaluation lies in the accomplishment of the purpose. (v) It satisfies the principles of fair wage, wage equity, uniformity in wages etc. Sometimes the market bounces up eventually increasing the demand for the product or the services in the market.
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