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MEANING AND DEFINITIONMEANING AND DEFINITION
y Job evaluation is an orderly and
systematic technique which aims at
determining the worth of the job. It is the
formal system of determining the base
compensation of jobs. The basic objective
of job evaluation is to ascertain the
relative worth of each job. Job evaluationrates the job and not the man.
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y According to I.L.O, ³ Job evaluation may be
defined simply as an attempt to determine and
compare the demands which the normal
performance of particular jobs makes on
normal workers without taking into account of
the individual abilities or performance of the
workers concerned.´
y The British Institute of Management has defined
job evaluation as, ³ T he process of analysis and
assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis
for a balanced wage structure.´
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JOB EVALUATION METHODS JOB EVALUATION METHODS
y NON-QUANTITATIVE METHODS
a) Ranking or Job Comparison method
b) Grading or Job Classification method.
� QUANTITATIVE METHODS
a) P
oint rating method b) Factor comparison method
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NONNON--QUANTITATIVE METHODQUANTITATIVE METHOD
y Utilizes non-quantitative methods for
listing the job in the order of difficulty.
The comparison and evaluation is on the
basis by ranking or classifying the jobsfrom the lowest to highest. Non-
quantitative method is of 2 types
y Ranking methody Grading method
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1. RANKING METHOD1. RANKING METHOD
y Simplest method. According to this method,
jobs are arranged from highest to lowest, in
order of their value or merit to the organization.
Jobs also can be arranged according to therelative difficulty in performing them. The jobs
are examined as a whole rather than on the basis
of important factors in the job.
� The purpose of ranking is to determine whether a job involves same level of duties,
responsibilities while comparing with others.
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Eg: Rank Monthly salaries
y 1. Accountant Rs 5,000
y
2. Accounts clerk Rs 3,800y 3. Purchase assistant Rs 2,500
y 4. Machine-operator Rs 2,000
y
5. Typist Rs 1,000y 6. Office boy Rs 750
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ME RITS:� Simple, quick and inexpensive
� Suitable for small organization
� Easy to explain to the employees andtrade union.
D EME RITS:
�
It simply make a job order., but does notindicate how much one job is differ from
other.
� Not suitable for large organization.
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2. JOB GRADING METHOD2. JOB GRADING METHODy Improved method over ranking method.
Under this system, a number of pre-
determined grades or classifications are
first established and the various jobs areassigned within each grade or class. For
each class a general specification is
prepared indicating the nature of work and
responsibilities that are included. One
strong point in favor of the method is that
it takes into account all the factors that a
job comprises.
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y Eg. Class I - Executives: Further classificationunder this category may be Office manager,
Deputy office manager, Office superintendent,
Departmental supervisor, etc.
y Class II - Skilled workers: U nder this categorymay come the P urchasing assistant, Cashier,
Receipts clerk, etc
y Class III - Semiskilled workers: U nder this
category may come Steno typists, M achine-
operators, Switchboard operators, etc.
y Class IV - Semiskilled workers: This category
comprises File clerks, Office boys, etc.
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ME RITS:
�
Easy to understand and suitable for smallorganizations.
� Pay determination is easier to handle.
� This system can be effectively used for a
variety of jobs.
D EME RITS:
� Unsuitable for large organization.
�
Even when the requirements of different jobsdiffer, they may be combined into a single
category, depending on the status a job carries.
� It is difficult to write all-inclusive descriptions
of a grade.
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QUANTITIVE METHODQUANTITIVE METHOD
y In this method, various factors of jobs are
considered and points are assigned to
them according to their relative worth.
This is based on some calculations.Quantitative methods are of two types:
y Point Rating method
y Factor comparison method
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1. POINT RATING METHOD1. POINT RATING METHOD
y This method is widely used currently.
Here, jobs are expressed in terms of key
factors. Points are assigned to each factor
after prioritizing each factor in the order of importance. The points are summed up
to determine the wage rate for the job.
Jobs with similar point totals are placed in
similar pay grades. This method was
originally designed and developed by
Western Electric Company.
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y EgPoint values for Degrees
Factor J 1 J 2 J 3 J 4 J 5
y
Skill 10 20 30 40 50y Physical effort 8 16 24 32 40
y Mental effort 5 10 15 20 25
y Responsibility 7 14 21 28 35
y Working conditions 6 12 18 24 30
Total 36 72 108 144 180
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2. FACTOR COMPARISON2. FACTOR COMPARISON
METHODMETHODy Thomas E Hilton was the first to originate
Factor comparison method. This method is often
used to evaluate the white collar, professional
and managerial positions although it is equallysuitable for grading other jobs as well. It is
essentially a combination of both ranking and
point method. Like ranking method it rates the
jobs by comparing one job with the other andlike point system it is more analytical of
subdividing jobs into compensable factors.
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Continued«Continued«
y Under this method, instead of ranking
complete jobs, each job is ranked
according to a series of factors. These
factors include mental effort, physicaleffort, skill needed, supervisory
responsibility, working conditions and
other relevant factors. Pay will beassigned in this method by comparing the
weights of the factors required for each
job.
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LABOUR WELFARELABOUR WELFARE
y According to ILO Labour Welfare is
such services, facilities and amenities as
adequate canteens, rest and recreation
facilities, arrangements for travel to andfrom work and for the accommodation of
workers employed at a distance from their
houses and such other services, amenitiesand facilities as contribute to improve the
conditions under which workers are
employed.
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y Labour Welfare is the physical,
psychological and well-being of the
working population. Or in simple terms
Labour welfare implies providing goodworking conditions for the employees.
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EMPLOYEE MORALEEMPLOYEE MORALEy Morale is a mental condition or attitude
of individual and groups which
determines their willingness to cooperate.
y Morale may be defined as an attitude or satisfaction with the desire to continue in
a willingness to strive for the goals of a
particular group or organization.
y Employee morale is the combination of
attitude towards the company, job and the
immediate supervisor
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EFFECTS OF LOW MORALEEFFECTS OF LOW MORALE
y High rate of absenteeism
y High Labour turnover
y Strike
y Lack of pride in work
y Wastage and spoilage
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MEASURES TO BUILD UP HIGHMEASURES TO BUILD UP HIGH
EMPLOYEE MORALEEMPLOYEE MORALEy Unity of interest
y Leadership confidence
y Sound wage structure
y Favourable work environment
y Employee counselling
y Grievance redressal procedure
y Good promotion policy
y Good induction and Training programmes
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JOB SATISFACTION JOB SATISFACTION
y Job satisfaction is the amount of overall
positive effect or feelings that individuals
have towards their jobs.
y It is the employee¶s general attitude
towards his job.
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DETERMINANTS OF JOBDETERMINANTS OF JOB
SATISFACTIONSATISFACTIONy ENV IRO NMEN TAL FACTORS
Job content
Occupational level
Pay and promotion Work group
Supervision
� PE
RSO N
AL CHARACT E
RISTICS Age
Gender
Educational level
Experience
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WORKERS PARTICIPATION INWORKERS PARTICIPATION IN
MANAGEMENTMANAGEMENTy Workers participation in management
means giving scope for workers to
influence the managerial decision making
process at different levels by variousforms in the organization. The principal
forms through which workers
participation are information sharing, jointconsultation and suggestion schemes.
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METHODS OF PARTICIPATIONMETHODS OF PARTICIPATIONy Participation at board level.
y Participation through ownership
y Participation through joint councils and
committees.y Participation through control
y Participation through collective
bargainingy Participation through suggestion schemes
y Participation through quality circles
y Empowered teams
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NEED AND IMPORTANCENEED AND IMPORTANCE
y Reduced industrial unrest
y Reduced misunderstanding
y Increased organization balance
y Improved communication
y Higher productivity
y Increased commitment
y Development of individuals
y Less resistance to change
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QUALITY CIRCLESQUALITY CIRCLESy A Quality Circle is a small group of
employees doing similar or related work
who meets regularly to identify, analyse
and solve product-quality problems and to
improve general operations.
y The ideal size of a group is 6-8 members.
y The workers who have a shared area of
responsibility meet periodically to discuss,
analyse, and propose solutions to ongoing
problems.
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Features of QCFeatures of QC
y QC is a voluntary group
y Represents a collective effort
y Intends to improve the quality of output
y It facilitates frequent meetings and
discussions of members for improving
quality.
y No discrimination on the basis of age,
position etc«..
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Advantages of QCAdvantages of QC
y Generation of creative ideas
y Improvement in productivity
y Better team work
y Higher motivation
y Development of problem solving skills
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Conditions for making QC EffectiveConditions for making QC Effective
y Top management support
y Education and training of management
and workers
y Timely implementation of ideasgenerated by QC
y Sharing gains in productivity with
workersy Facilities for meeting and discussion
y Regular monitoring of working of quality
circles
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TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT
y TQM may be defined as creating anorganizational culture committed to the
continuous improvement of skills,
teamwork, process, product and service
quality and customer satisfaction.
y Everyone in the organization from the
CEO to the lower level employees are
involved in the TQM process.
y It is a process and means of maintaining
the leadership position through continuous
change, adaptation and improvement .
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Components of TQMComponents of TQM
y Customer Orientation
y Continuous improvement
y Employee¶s Involvement
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Steps in TQM processSteps in TQM processy Lay down policies and objectives of TQMy Chalk out the methods to achieve TQM
objectives
y Educate and train workers and managers to
understand and meet the requirements of TQM
y Implementation of change
y Observe the results
y Analyse resultsy Prevent undesired effects in Quality
improvement
y Measures for improvement
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Innovative techniques in TQMInnovative techniques in TQM
y
Re-engineering : is the fundamental rethinkingand radical redesign of business processes to
achieve improvements in performance such as
cost, quality and service
y Benchmarking: It is the process of comparingwork and service methods against the best
practices for the purpose of identifying changes
that will result in higher quality output.
y Empowerment: occurs when employees areadequately trained, provided with all relevant
information and the best possible tools fully
involved in key decisions and fairly rewarded
for results.
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QUALITY OF WORK LIFEQUALITY OF WORK LIFEy QWL is a process of work organization which
enables its members at all levels to participate
actively and efficiently in shaping the
organization¶s environment, methods and
outcomes. It is a value based process which is
aimed towards meeting the twin goals of
enhanced effectiveness of the organization and
improved quality of life at work for the
employees.
y QWL is the degree to which members of a work
organisation are able to satisfy their personal
needs through their experience in the
organization.