Name of the student – VARNIKA KHANNA

Enrollment no. - 04480301714

Course – BBA, Semester IV {Evening Shift}

Batch : 2014-2017

Subject Code – 202

Subject – HUMAN RESOURCE MANAGEMENT

RESEARCH ASSIGNMENT
I offer my gratitude and sincere regards to” RUKMINI DEVI INSTITUTE OF
ADVANCED STUDIES”, GGSIP University, New Delhi for giving us very
important training in B.B.A.

I pay my sincere thanks and humble regards to” Mrs. Seema Wadhawan” my
instructor who give me the best of her knowledge. I am thankful to her as she has
been a source of advice, motivation and inspiration. I am also thankful to her for
her suggestions and motivation throughout the project work.

I would like to express my humble request to our library staff for providing me
opportunity to utilize their resources for the project.

I am also thankful to my family members and companions for constantly

motivating me to complete my project and providing me an environment which
enhanced my knowledge.

VARNIKA KHANNA

04480301714
QUESTION

Examine the role of Job evaluation in designing a compensation package. Illustrate

with suitable examples the steps that you may recommend which will ensure that
the compensation structure will not only help to retain and motivate employees, but
will also enhance productivity.

.
SOLUTION:

HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is a function in organizations designed to
maximize employee performance in service of an employer's strategic objectives. HR is
primarily concerned with the management of people within organizations, focusing
on policies and on systems. HR departments and units in organizations typically undertake a
number of activities, including employee benefits design employee recruitment, "training and
development", performance appraisal, and rewarding (e.g., managing pay and benefit
systems). HR also concerns itself with industrial relations, that is, the balancing of organizational
practices with requirements arising from collective bargaining and from governmental laws.

HR is a product of the human relations movement of the early 20th century, when researchers
began documenting ways of creating business value through the strategic management of the
workforce. The function was initially dominated by transactional work, such
as payroll and benefits administration, but due to globalization, company consolidation, technological
advances, and further research, HR as of 2015 focuses on strategic initiatives like mergers and
acquisitions, talent management, succession planning, industrial and diversity and inclusion.
JOB EVALUATION

A job evaluation is a systematic way of determining the value/worth of a job in

relation to other jobs in an organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the purpose of establishing a rational
pay structure.
Job evaluation needs to be differentiated from job analysis. Job analysis is a
systematic way of gathering information about a job. Every job evaluation method
requires at least some basic job analysis in order to provide factual information
about the jobs concerned. Thus, job evaluation begins with job analysis and ends at
that point where the worth of a job is ascertained for achieving pay equity between
jobs.

STEPS OF JOB EVALUATION

1. JOB ANALYSIS- It is a process through which required information
about various aspects of jobs can be obtained. Job analysis involves two
dimensions:

 Job description-Under job description, a profile of job information is

prepared indicating the duties, responsibilities and working condition of
work. It explains about what the job entails.

 Job specification-Job specification indicates preparation of a specification

statement which explains the necessary skills, knowledge and abilities
required to perform the job.

2. Job Rating-Job rating includes the process of using same methods to

study job descriptions and specifications in order to assign a relative worth
for each job. Some of job rating methods are: ranking, point rating factor
comparison, and so on.

3. Money Allocation-After rating the worthiness of each job, a pay

structure is determined and the money for each job is allocated. It means, it
is the arrangement of paying rewards/compensation for each job according
to its worth or value.

4. JOB CLASSIFICATION-Job classification is the last step of job

evaluation which is concerned with the categorization of jobs according to
their pay scale. For example, high paying jobs are represented at the top of
the hierarchy.