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Module IV
• Job Evaluation: concept, process
• Compensation: concept, components,
• Designing and Administering the Wage and
Salary Structure,
• Grievance Procedure and Handling,
• Discipline, Attrition and Retention

JOB EVALUATION

• Systematic way of determining the value or worth of
a job in relation to other jobs in an organization
...

• Job Evaluation involves determination of relative worth
of each job for the purpose of establishing wage and
salary differentials
...
Job Evaluation helps to determine
wages and salary grades for all jobs
...
Flippo
...
"

• According to Kimball and Kimball Jr
...
"
• In the words of Dale Yoder, "Job evaluation is
a practice which seeks to provide a degree of
objectivity in measuring the comparative
value of jobs within an organisation and
among similar organisations
...

• Job evaluation is the output provided by job analysis
...

• Job evaluation is not made by individuals rather it is
done by group of experts
...
Further the
value of each of the aspects such as skill and
responsibility levels are also related and studied in
connection with the job
...


IMPORTANCE OF JOB EVALUATION

• 1
...
It rates the job but the job holder
...

• 2
...
Internal and
external consistencies are analyzed in order to determine wage
levels
...
Job evaluation helps in bringing harmonious relation between
labor and management
• Job evaluation brings harmony and good labor relation through
eliminating wage inequalities within the organization
...
Job evaluation helps to differ job other than skills
• Job evaluation considers risks and other factors of job rather than
skills in order to determine the worth of jobs
...

• 6
...

• 7
...

Highly complex and critical job exposes training need
...
Job evaluation helps to minimize cost
• Through the productivity enhancement and increasing the rate of
production, the per unit cost of an output is minimized or reduced
...
must explain the uses to
employees and union)
• Step 2: Creating job evaluation committee
• Step 3: Finding job to be evaluates
• Step 4: Analyzing and preparing job
description
• Step 5: Selecting the method of evaluation
• Step 6: Clarifying job (acc’ to their importance)

METHODS OF JOB EVALUATION
•
•
•
•
•
•
•

1
...
Quantitative Methods:
(a) Point Rating
(b) Factor Comparison
The basic difference between these two methods
lies in the sense that, under non-quantitative
methods, a job is compared as a whole with
other jobs in the organisation, whereas in case of
quantitative methods, the key factors of a job are
selected and, then, measured
...


• Classification Method:
• In this method, a series of classes and grades
are defined
...
Each grade in a class will represent
different levels of difficulty and responsibility
...


• Points Rating: This is the most widely used
method of job evaluation
...
Thereafter, points are allocated to each of
these factors
...
This
system is usually used to evaluate white collar,
professional and managerial positions
...

• Compensation means the reward that is received
by an employee for the work performed in an
organization
...
Employees may receive
finan­cial and non-financial compensations for
the work performed by them
...


COMPONENTS
• Compensa­tion can be of two types—direct and indirect
...
(Basic pay, dearness allowance, cash
allowance , Incentive pay, bonus, commission, profit sharing, stock
option)
• Indirect Compensation: ( Legal requirement, Provident fund,
pension, insurance, travelling allowance, accidental benefits, leaves,
telephone bills, club membership)
It may also includes:
• Salary
• Wages
• Incentives
• Prequisites
• Freight benefits
• Noon monetary benefits (working condition )
• rewards

Designing and Administering the
Wage and Salary Structure
• (I) Process of designing pay structure:
Step 1: Job Analysis: Job analysis is the process of studying
jobs in an organization
...
Also included are the
knowledge, skills and abilities needed to perform the job
...
The
outcome of job evaluation is the development of an
internal structure or hierarchical ranking of jobs
...


• Step 3: Pay Policy Identification: Pay policy
identification is the process of determining whether
the organization wants to lead, lag or meet the market
in compensation
...
Pay
policies can vary across job families (i
...
, groups of
similar jobs) and job levels if the top management feels
that different strategies can be effective in different
areas of the organization
...
Gathering external pay data (e
...
, base pay,
bonuses, stock options and benefits) is essential to
keep the organization’s compensation externally
competitive within its industry
...


• Step 5: Pay Structure Creation: Pay structure
creation is the final step, in which the internal
structure (Step 2) is merged with the external
market pay rates (Step 4) in a simple
regression to develop a market pay line
...
To
complete the pay structure, pay grades and
pay ranges are developed
...

• Objective: to compensate them for loss in real
earnings caused to them by increase in the
cost of living from time to time
...
Often a grievance is a
complaint about something that breaks a rule
or a law, like a grievance filed against a person
who builds a fence in his front yard in a town
that does not allow that
...


GRIEVANCE PROCEDURE
• Step by step process are employee must
follow to et his or her complaint addressed
satisfactury
...
Grievance procedure are
typically included in union agreements
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Visible grievance (easy to tackle)
• 2
...
It
may have discontentment but show it)
CAUSES:
1
...
Lack of transperency
3
...
Phycological issues with your power and
position
5
...
Employee relationship

GRIEVANCE PROCEDURE HANDLING
•
•
•
•
•
•

Identify grievance
Define correctly
Collect data
Analyse and solve
Prompt attempt
Implement and follow up

DISCIPLINE
• It refers to the set of actions improves by org
...
rules
and standardize the policies
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Informal feedback (verbal warning)
2
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Letter of reminder
4
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Termination

ATTRITION
• A process whereby employees leave their job for
reason such as retirement, resignation, transfer
etc
• TYPES:
• 1
...
Bad attrition (high productive employee leave)
• 3
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Work load/stress driven
• 5
...
low productivity
• 2
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RETENTION STRATEGIES:
• hire right person in right place
• Empower the employees
• Make them realize that they are important
• Provide info
...
The former is when the employee quits
the company on his or her own accord
...
This form of employee separation where an
employee is asked to quit is called involuntary
separation
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