Wage Inequities 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 their relative importance, difficulties

• 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

• JE is based on FACTS on examination of what employees actualy do and not what it is thought they do or should do

JOB EVALUATION – what it isJOB EVALUATION – what it is

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 agreement to remove anomalies and inequities in wage structure

JOB EVALUATION - PhasesJOB EVALUATION - Phases

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 and PositionJob and Position

Job CharacteristicsJob 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 MethodsJob 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 AnalysisJob 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 employees)

Methodology 0f Job Evaluation 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 planPreparation 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 FactorJob Factor

Skill Effort Responsibility Job

condition Education Physical Work of others Out door work

Trade knowledge Mental Policy formulation Hazards

Experience Visual MaterialSurroundings

Initiative Confidentiality

Ingenuity Safety of others

Analytical ability Equipments, tools

Creative ability Funds

Manual dexterity Public relations

Social skill Accuracy

Judgment

Versatility

Evaluation of jobsEvaluation 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)

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

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 Evaluation Plan – Staff Jobs

Job factor Degree number

1 2 3 4

Education

16 32 48 *

Experience 22 44 66 88

Problem solving 18 36 54 *

Responsibility for accuracy of work

10 20 30 *

Responsibility for contacts 16 32 48 *

Responsibility of work of others 8 16 24 *

Mental and visual Effort 10 20 30 *

Job Evaluation plan- Factory JobsJob Evaluation plan- Factory Jobs4.2.2

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 JobsPoint 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

Logistics Executive 230

Stores in charge 228

Production Supervisor 220

Lab Chemist 218

Executive Secretary 214

Panning Assistant 212

MIS officer 208

H R Assistant 208

Accountant –Marketing 204

Sales Analyst 192

Logistic Assistant 190

PR Representative 166

Accountant 164

Accountant 164

Commercial Coordinator 164

Receptionist 138

Stores Assistant 132

Lab Assistant 126

Office Assistant 100

Point range – Factory JobsPoint range – Factory Jobs

Maintenance Technician 295

Maintenance Fitter 254

Electrician 239

Operator- Bulk cosmetics processing 228

Machine operator - Liquids packing 216

Heavy Vehicle Driver 203

Operator- Powder packing 191

Machine operator - Sachet Packing 190

Forklift operator 190

Machine operator- Semi automatic filling 185

Machine operator - Tooth paste filling 180

Job Position Points

Maintenance Helper 164

Machine operator - Secondary machines 160

Machine operator- Talcum powder packing 154

Driver – LCV and Car 153

Packer 149

Operator- Bulk Hair oil processing 148

Operator- Bulk liquid food processing 144

Stores Helper 144

Operator- Bulk powder food processing 137

Cleaner 124

General Helper 110