Thursday, May 28, 2009

HR Practices: Job Evaluation

Job analysis and evaluation (JAE) is the process of creating a structure that establishes the worth of each job to the organization and typically is based on the jobs content (such as the skills needed, job duties, and working conditions) or its external market value and not on the abilities of the individual performing the job. The Job evaluation process was started with the intention of providing Role Clarity to all the employees. Job titles can often be misleading - either unclear or unspecific - and in large organizations it's impossible for those in HR to know each job in detail. This is where JAE helps to understand the each role.
It is essential to have clear, detailed and up-to-date job descriptions on which to base the job evaluation. The JAE data can be meaningfully used for the following processes:
* Recruitment and Induction
* Determining pay and grading structures
* Ensuring a fair and equal pay system
* Deciding on benefits provision - for example, bonuses and cars
* Comparing rates against the external market
* Undergoing organizational development in times of change
* Undertaking career management and succession planning
* Reviewing all jobs post-large-scale change, especially if roles have also changed.

Jobs are basically measured against 3 major factors:
Know How (KH) - Inputs
Problem Solving (PS) - Processing
Accountability (A) – Outputs
I have tried to compile the characteristics that are measured in JAE, by no means it represent exhaustive list:
Knowledge and skills
* work experience
* qualifications
* external qualifications
* specialist training

People management
* human relations skills
* ability to deal with work pressure
* supervisory responsibility

Communication and networking
* social skills
* presentation skills
* diplomacy

Freedom to act
* depth of control
* supervision received

* judgment
* initiative
* analytical ability

Working environment
* knowledge of special working practices
* breadth of management skill required

Impact and influence
* efficiency
* impact on customers
* responsibility
* results of errors

Financial responsibility
* budgeting

There are some principles of Job evaluation are:
a. Job evaluation is an ongoing process.
b. Job evaluation is an evaluation of the role, not the person doing it.
c. A job evaluation scheme should be a fair system, understood by and communicated to employees.
d. It should be transparent, and reviewed regularly to ensure business needs continue to be met. The type of scheme chosen will depend on the organisation needs. But any staff making decisions on job roles will need training in the chosen system.
e. Evaluation is based on Job content which means job that has to be achieved.

Evaluation requirements are met by:
a. Job Understanding by means of job description
b. Judgments: JAE is concerned with making judgments in order to maximize the objectivity
c. Criteria for assessing job content: Number of criteria are required. The two most common criteria of job evaluation are: whole job ranking, where jobs are taken as a whole and ranked against each other; and awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded - the higher the educational requirements of the job the higher the points scored.
d. A common scale of measurement is required against which to make judgments.
e. Cross-checks are required to ensure that the judgments are sound.

Involving employees in the job evaluation process can increase their commitment and further engagement with the organisation, but they must remain impartial at all times in the process.

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