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Wage Inequities

 Dissatisfaction exists among workmen


due
to inequities in payments that are
created
for a variety of reasons

 Jobs at the same level of worth or


difficulty
should be paid approximately the
same
wage.

 Jobs with greater worth should be


paid
higher wages commensurate with
JOB EVALUATION – what it is

• A systematic way to determine what each


job
in an organisation is really worth
( Job differential /relative worth)

• JE is concerned solely with assessing the


job
rather than the man. It is concerned with
tasks,
individuals are required to do.
Performance of
individuals are not assessed
JOB EVALUATION - Phases
 Ascertaining the qualitative requirements
needed
for the satisfactory performance of the job

 Determining the value of each job in relation


to their job

 Pricing of these jobs by establishing


minimum
and maximum wage for each group of jobs
based on their relative value

 Job Evaluation exercise should precede wage


Job and Position
 JOB
 Group of homogeneous tasks related

by similarity of functions

 Consists of duties, responsibilities and


tasks that are specific, defined and can
be measured and rated

 Position
 Is in which one is employed
 There could be one or more positions
in a job
Job Characteristics

Major Job Characteristics

• Skill that must be possessed


• Effort that must be exerted
• Responsibilities that must be
assumed
• Hazards and Working conditions
that
must be endured
Job Evaluation Methods
 Comparison method
 Ranking Method comparison of entire
job
 Grading Method – Job against a job
 Factor Comparison Method – job
against a scale

 Analysis method
 Point Evaluation Method – Job factors
Job Analysis
 Collection of job details
- Duties, responsibilities, working
conditions - Ascertaining the qualitative
requirements needed for the
satisfactory performance of the job
( specifications)
 Identification of jobs with distinct duties,
responsibilities
 Preparation of job descriptions and
conforming the correctness and
completeness of its content ( Important
that JD is agreed by both management and
Methodology 0f Job Evaluation
 Job Analysis
 Job Identification
 Preparation of Job Description and
Job Specification
 Evaluation and categorisation
 Preparation of Job evaluation plan
 Evaluation of jobs
 Categorisation of jobs
 Reviewing of evaluation
Getting Acceptance
 Preparation of report
 Discussion
Preparation of Evaluation plan

 Select 5 to 10 distinct job factors


 Divide the range of each factor in
to distinguishable levels( 4 to 6
numbers) in ascending order
( called Degrees)
 Define each degree
 Assign weight for each factor and
for each degree under a factor( using
arithmetic progression)
Job Factor
Skill Effort Responsibility Job
condition
Education Physical Work of others Out door
work
Trade knowledge Mental Policy formulation Hazards
Experience Visual Material
Surroundings
Initiative Confidentiality
Ingenuity Safety of others
Analytical ability Equipments, tools
Creative ability Funds
Manual dexterity Public relations
Social skill Accuracy
Judgment
Evaluation of jobs

 Match the requirement of each factor for


satisfactory performance against a
corresponding degree definition in the plan
 Assign corresponding point values of the
degrees to which they fit
 Total the points assigned for each job
under all the factors ( Job worth or job
points)
Categorisation of jobs
( Grading)
• Arrange jobs either in ascending or
descending order of the total points

• Group the jobs of similar worth having


a point range in to a category (Normally
into 4 to 6 groups). Look for natural
large breaks in the range
Vertical and Horizontal integration of
Jobs

• Review the categorisation to


detect any obvious wrong
categorisation

• Compare the grades as well as


the degrees assigned ( with jobs
which require similar quantum) and
correct the degree assigned
Job Evaluation Plan – Staff
Jobs
Job factor Degree number
1 2 3 4
16 32 48 *
Education

Experience 22 44 66 88

Problem solving 18 36 54 *

Responsibility for accuracy of 10 20 30 *


work
Responsibility for contacts 16 32 48 *

Responsibility of work of others 8 16 24 *

Mental and visual Effort 10 20 30 *


4.2.2
Job Evaluation plan- Factory Jobs
Job Factor Degree Number
1 2 3 4 5
Education and Trade knowledge 14 28 42 * *

Experience 20 30 40 50 60

Initiative and Judgment 16 32 48 * *

Physical effort 10 20 30 * *

Mental and Visual effort 5 10 15 * *

Responsibility for material 10 20 30 * *

Responsibility for equipment 10 20 30 * *

Responsibility of work of others 5 10 15 * *

Working Conditions 4 8 12 * *

Unavoidable Hazards 6 12 18 * *
Point Range – Staff Jobs
Job Position Points

Senior Accounts Executive 304


Sales cum Logistic Executive 288
Assistant Manager- Production 280
Maintenance Engineer 272
Assistant Manager- Purchase 262
Accounts Executive 230 PR Representative 166

Logistics Executive 230 Accountant 164

Stores in charge 228 Accountant 164

Production Supervisor 220 Commercial Coordinator 164


Lab Chemist 218 Receptionist 138
Executive Secretary 214 Stores Assistant 132
Panning Assistant 212 Lab Assistant 126
MIS officer 208 Office Assistant 100
H R Assistant 208
Accountant –Marketing 204
Sales Analyst 192
Logistic Assistant 190
Point range – Factory Jobs

Job Position Points

Maintenance Technician 295


Maintenance Helper 164
Maintenance Fitter 254
Machine operator - Secondary
Electrician 239 machines 160
Operator- Bulk cosmetics Machine operator- Talcum powder
processing 228 packing 154
Machine operator - Liquids Driver – LCV and Car 153
packing 216
Packer 149
Heavy Vehicle Driver 203
Operator- Bulk Hair oil processing 148
Operator- Powder packing 191
Operator- Bulk liquid food
Machine operator - Sachet processing 144
Packing 190
Stores Helper 144
Forklift operator 190
Operator- Bulk powder food
Machine operator- Semi processing 137
automatic filling 185
Cleaner 124
Machine operator - Tooth paste
General Helper 110
filling 180

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