1. Job Evaluation

2. Components of Remuneration
Base compensation
Incentives
Fringe benefits
Perquisites
Non Monetary incentives
Challenging work environment
Growth prospects
Flexitime etc

3. Determination of wages –The sequence
Minimum
Wage
Laws
Job Analysis
Admini
stration
Of Wage
Structure
Job
Descriptions &
Specifications
Job
Evaluation
Wage
Surveys
Wage
Structure
Performance
Standard
Performance
Standards
Wage
Payments

4. Job Analysis
It is the process of collecting job related information.Such information helps in the preparation of job description and Job specification
JOB ANALYSIS
Job Specification
Job Description

5. Job Analysis A statement containing items like Job title Location
Job summary
Duties
Machines ,tools ,Equipment
Materials & forms used
Supervision given or received
Working conditions

6. Job Specification
A statement of human qualifications necessary to do the job .
Education
Experience training
Initiative
Physical effort
Responsibilities
Communication Skills
Emotional characteristics

8. Use of a Job Analysis Human resource planning
Recruitment and selection
Training and development
Job evaluation
Remuneration
Performance appraisal
Personnel information
Safety and health

9. Job Evaluation
It is the process of analysing and assessing the various jobs systematically to ascertain their relative worth in an organization
It is the jobs that are being rated not the job holders
It is to establish the salary differentials

10. Methods of Job Evaluation
Non
Analytical
Methods
Ranking
Method
Job Grading
Analytical
Methods
Point Ranking
Method
Factor
Comparison
Job
Evaluation

11. Methods of Job Evaluation
Ranking method
Simplest one and the most inexpensive
Evaluation committee assess the worth of each job on the basis of the title or its contents
Job not broken down into factors or elements

12. Job grading method
In the job grading method, each job is assigned a grade according to it's match with a standard description.
Each job description is compared with the standard "grading" description.

13. JOB GRADING EXAMPLE

14. Job Evaluation: The Point Method
List the types of jobs to be evaluated
Determine the list of compensable factors like skill.efforts etc
Determine the number of degrees to be allocated to each factor and prepare a suitable definition for each
Assign points to each degree of each factor
Select a certain number of jobs ,say 10 –15 and evaluate each in terms of the scale so constructed
Design the wage structure

15. Job Evaluation: The Point Method
Example: Software Engineer
Job Description
The Software Engineer designs, develops, tests and maintains one or more of our products or internal applications. The software engineer works as a member of an engineering team developing, designing, and maintaining one or more of our products or internal applications. This position reports to the appropriate Project Manager.
Job Specification
Bachelor's or undergraduate degree in Computer Science, Information Systems, Electrical Engineering or equivalent experience. Masters or graduate degree is desirable. Understand Intranet and Internet technologies: http, firewall.

16. Job Evaluation: The Point Method
Develop a list of compensable factors…
A set of standards the organization uses to distinguish among jobs for pay purposes
Examples of commonly used compensable factors:
Degree of responsibility, supervision
Knowledge needed to perform the job
Discretion in performing the job, independent judgment
Job conditions
Effort
Hazard
Consequence of error

17. Job Evaluation: The Point Method
Factors - Degrees
1st
2nd
3rd
4th
5th
6th
Job Knowledge 25
100
175
250
Judgment & Decision Making 10 33 55 78
Independent judgment
Accountability 20 65
110
155
200
Working conditions 5 35 50
Mental 15 42 69 96
123
150

18. Job Evaluation: The Factor comparison Method
This method determines the relative rank of the job to be evaluated in relation to the monetary scale
Commonly used for white collar jobs ,executive cadre etc
It is a combination of ranking and point system

19. Job Evaluation: The Factor comparison Method
Steps
Select the factors and define them clearly
Mental requirements
Physical requirements
Skills set
Working conditions
Select a bench mark job ( job that is satisfactory enough ) which will serve as standard for other jobs

20. Job Evaluation: The Factor comparison Method
Allocate wage for each key job to different factors
Develop a job comparison scale and insert key jobs in them
Evaluate the job in question factor by factor in relation to the bench mark job on a job comparison scale
Design ,adjust and operate the wage structure

21. Matrix for factor comparison

22. PERFORMANCE LINKED PAY

23. WAGE PAYMENT Two methods of wage payment Time wage system
Worker is paid for the amount of time spent in the factory
Non variable method
Wages = Number of hours worked * Rate per hour
Piece wage system
Worker is paid on the basis on the output of the work . He is paid according to the amount of work completed or thenumber of units turned out irrespective of the time spent
Wages = Number of units produced * rate per unit

24. When to use time wage system ?
Difficult to fix the standard time
Quality of work is of utmost importance
Job relates to office or clerical job
Collective effort of a group of person is required
Where mental work is involved
Where production process is complicated and needs higher order skills

25. When to use piece wage system ?
When methods of production are standardized and repetitive in nature
Productivity of the worker s increased
Job involves more physical work than mental work
Work does not require personal skills of higher order
Where output can be measured

26. Incentives
Incentives are the variable component of pay where the pay is tied with some measure of individual ,group or organisational performance
Incentive plans provide offer an attraction of extra payment for efficiency or more production

27. Advantages of incentive plans
Focus employee efforts on specific performance targets
Incentive compensation is directly related to operating performance
It fosters team work and unit cohesiveness when payments to individuals are based on team results
It is a means to reward or attract top performers

28. Requirements for a successful incentive plan
Incentive programs should be linked to valued behaviour
It should be fair enough
Productivity or quality standards should be challenging but achievable
Payout formulas should be simple and understandable

29. Types of incentive plans

30. Time based plans Halsey premium plan Rowan plan Emerson plan
Bedeaux plan

31. Time based plans Halsey premium plan
It is a combination of speed and time bases of payment
For eg ;
Standard time (S) = 12 Hrs
Time taken by a worker (T) = 8 Hrs
Rate of wages (R) = Rs 9 /Hr
Bonus (P) = Wages for the 50 % of the time saved
Total wages = TX R +50% Of (S-T) * R
Total wages = 8 * /100 * 4 *9 =90
The percentage is fixed by the employer

32. Time based plans Rowan plan
Is a modification of the Halsey plan
Bonus is paid on the basis of the time saved
For eg ;
Standard time (S) = 12 Hrs
Time taken by a worker (T) = 8 Hrs
Rate of wages (R) = Rs 9 /Hr
Total wages = T*R +(T*R *(Time saved /Std Time ))
Total wages = 8 *9 +(8*9 *(4/12)) =96
Bonus will be paid at a diminishing rate if they save more than 50% of the time

33. Time based plans Emerson plan
Guaranteed wage payment to all the workers on time rate basis
In addition bonus or extra payment is suggested
For Eg ;
CASE 1
standard output = 80 units
Actual performance = 60 units
Efficiency = 75 % (Bonus =20 %)
CASE 2
Actual performance = 90 units
Efficiency = % (Bonus = 30%)
Bonus will be paid to workers whose efficiency is more than % . The rate of the bonus will increase with efficiency

34. Time based plans Bedeaux plan Standard Bs = 10*60 =600
Standard time for a job is determined
Each minute of the allowed time is called a point or B
Bonus paid is 75% of the wages for time saved and the remaining 25% to the supervisor
Calculation
Standard Bs = 10*60 =600
Actual Bs =8*60 = 480
Rate per hour = Rs 1
Bs Saved = 120
Bonus = 75 % of Time saved +S * R
Bonus = (75/100) * (120/60) *1 +8 = 9.50

35. References Human Resource Management ;Snell & Bohlander ,India Edition
Human Resource Management Concepts and Cases ;T N Chabbra
Human Resource Management: Text and Cases,K Aswathappa.