8/7/2019 Job Eva Salary Wages
1/22
8/7/2019 Job Eva Salary Wages
2/22
TOPICS TO BE COVERED
IntroductionJob Evaluation, its role in salary
administration
Wage CurveSalary Structure & fixation
Conclusion
8/7/2019 Job Eva Salary Wages
3/22
INTRODUCTION
Job evaluation is the output provided by job analysis.
As known,job analysis describes the duties of a job,
authority relationships, skills required, conditions of
work and additional relevant information.Job
evaluation, on the other hand uses the information in jobanalysis to evaluate each job- valuing its components
and ascertaining relative job worth. It involves, in other
words, a formal and systematic comparison of jobs in
order to determine the worth of a ones job relative to
another, so that a wage or salary hierarchy results. So,
it is a process by which jobs in an organization are
appraised.
8/7/2019 Job Eva Salary Wages
4/22
JOB EVALUATION
Definition: As the word itself saysjob evaluation, i.e.evaluation of job. When the jobs are evaluated, the
relative worth of a given collection of duties and
responsibilities to the organization is assessed. This
process is adopted to help a management to maintain high
levels of employee productivity and employee satisfaction.Some important definitions are as follows:
an attempt to determine and compare demands which
the normal performance of a particular job makes on
normal workers without taking into account the
individual abilities or performance of the workers
concerned
- International Labour Organization
8/7/2019 Job Eva Salary Wages
5/22
Some more definitions.
an effort to determine the relative value of every
job in a plant to determine what the fair basic wage
for such a job should be.
- Kimball & Kimball
job evaluation is the process of determining the
relative worth of the various jobs within the
organization so that differential wages may be paid to
jobs of different worth.
- Wendell French
8/7/2019 Job Eva Salary Wages
6/22
Objectives of Job Evaluation: The principle uponwhich all job evaluation schemes are based is that of
describing and assessing the values of job in firms in
terms of number of factors, the relative importance of
which varies from job to job.
Secure and maintain complete, accurate and
impersonal descriptions of each distinct job.
Provide standard procedure for determining the
relative worth of each job.
Determine the rate of pay for each job.
Ensure that like wages are paid to all qualified
employees for like work.
8/7/2019 Job Eva Salary Wages
7/22
Promote a fair and accurate consideration of all
employees for advancement and transfers.
Provide factual basis for consideration of wage rates
for similar jobs in communities and in an industry
Provide information for work organization.
the primary purpose of job evaluation is to set wagesand salary on the basis of relative work or jobs in the
organization. It does this by providing a ground for the
following matters:
a) Equity and objectivity of salary administration.
b) Effective wage and salary control.
c) Union- Management negotiations on wages.
d) Comparison of wage and salary rates with those of
other employees.
8/7/2019 Job Eva Salary Wages
8/22
Principles of Job Evaluation Programme: Rate the job and not the man.
Precise and self explanatory without any
overlapping.
Elements should be clearly defined and properlyselected.
All job rating plan must be so that it can be sold to
foremen and employees.
Participation and discussions from employees mustbe welcomed.
Too many occupational wages should not be
established.
8/7/2019 Job Eva Salary Wages
9/22
BASIC PROCEDURE FOR JOB
EVALUATION
Analyze & prepare job description
Select & Prepare a job evaluation programme
Classify jobs
Install the programme
Maintain the programme
8/7/2019 Job Eva Salary Wages
10/22
WAGE & SALARY ADMINISTRATION refers to theestablishment and implementation of sound policies
and practices of employee compensation. It includes
such areas as job evaluation, surveys of wage and
salaries, analysis or relevant organizational problems,
development and maintenance of wage structure,establishing rules for administering wages, wage
payments, incentives, profit sharing, wage changes
and adjustments, supplementary payments, control
of compensation costs and other related items.
8/7/2019 Job Eva Salary Wages
11/22
WAGE DETERMINATION PROCESS
JobAnalysis Waislation
Job D scription &
Sp cification Job Evaluation Wa Surv ys &Analysis of
R l vant
Or anizational
Probl ms
Wa
Structur
Rul s of
Administration
Wa
Paym nts
Diff r ntial
Employ
Appraisal
P rformanc
Standards
8/7/2019 Job Eva Salary Wages
12/22
Job Evaluation & Pay Structurei) Establishing a pay structure
Wage & Salary Surveys
Wage Curves
Wage Structure
ii) Establishing a Pay Rate
Price of each pay grade can be ascertained through
Job Evaluation
8/7/2019 Job Eva Salary Wages
13/22
8/7/2019 Job Eva Salary Wages
14/22
WAGE CURVE: This curve shows the relationshipbetween:
the value of the job; and
the average wage rates of these grades (or jobs).
Steps involved in drawing a wage curve:
Finding out the average pay rate for each pay grade.
Plotting the wage rate for each pay grade..
Drawing Wage Lines through the points plotted.
These lines may be straight or curve.
Pricing jobs. Wages along the Wage Lines are
target wages or salary rates for the jobs in each pay
grade.
8/7/2019 Job Eva Salary Wages
15/22
8/7/2019 Job Eva Salary Wages
16/22
8/7/2019 Job Eva Salary Wages
17/22
Wage StructureWhile determining the pay ranges the following
considerations should be attended to:
Keep in mind that there is an adequate difference
between superiors and subordinates. Equal attention must be given to the pay level of
each group.
Considerable attention must be given to handling
upward changes in wage structure. The existing pay structure should be regularly
reviewed and revised.
Regional differences in wages must be invariably be
maintained.
8/7/2019 Job Eva Salary Wages
18/22
8/7/2019 Job Eva Salary Wages
19/22
8/7/2019 Job Eva Salary Wages
20/22
8/7/2019 Job Eva Salary Wages
21/22
Factors influencing Wage and Salary Structure andAdministration
The organizations ability to pay.
Supply and demand of labour.
The prevailing market rate.
The Cost of living,
Living wage.
Productivity
Trade Unions Bargaining power.
Job Requirements.
Managerial attitudes; and
Psychological and Sociological factors.
8/7/2019 Job Eva Salary Wages
22/22
CONCLUSION
Wage and Salary Administration is the most important aspectof human resource management. It establishes and maintain
an equitable wage and salary structure. It also establishes and
maintain equitable labour cost structure. It therefore leads to
talent retention in an organization plus it also leads toenhancing corporate image of the organization that practices
Systematic and scientific wage & salary administration
System.