JOB EVALUATION AND INCENTIVES
# Job evaluation :-
It is a technique of finding in a systematic and logical way to value of a job qualitative or quantitatively for establishing the salary standard. The difference between the job is measured on the basis of it's requirements. Various jobs differ in the method involved the physical and mental strain, the working condition etc
If the difference is express numerically it is called Job rating. Where as job evaluation is a measure of job difficulty
# Objective of job evaluation :-
1. Establishment of different salaries for different type of job
2. Elimination of inequality in salary distribution
3. Clear distribution of responsibility to every worker
4. Better job satisfaction
5. Effectiveness in selection, training promotion and transfer of employees
6. Improve employer-employee relation
7. Identifying and education new job
8. Sources of information for salary negotiation
# Need of job evaluation :-
Job evaluation is related to jobs and note people. It determines the relative position of a job in the organised structure
Job evaluation gives the comparitive Value of a job. It gives us absolute productivity and relative productivity of a particular job. It minimizes salary inequality with the help of job evaluation. There are less chance of decision based on pressure favourism etc. It's main aim is to work for solution of problem related to salaries and administration to concentration
# Job defination :-
It is defined as a group of position in an industry which are similar in the type and level of work. It is regular work even to an employee or a group employee including their duties etc
# Job analysis :-
It is series of activities undertaken to systematically obtain categories and write down all the important about a particular job
# Sources of data for job analysis :-
Data can be collected by various methods such as interview, questionaire, observations, participation dairy and other sources of imformation
# Method of job evaluation :-
Following method are used in job evaluation -
1. Ranking method :-
It is the simplest method according to the record of In ascending various jobs are arranged in according order, starting with minimum requirements and attending up at maximum requirement, the amount of work working condition, working difficulty. The responsibility given, experience and acknowledge required are the factor considered in ranking method
* Advantage :-
- the method is fast and simple
- Fast result is obtained
- The material is easily understood and is cheaper method
- It is suitable for small organization in which less number jobs are evaluated
2. Grade discription method :-
In this the job are classified in group skill difficulty, responsibily, importance etc. The job May be of production sales or an office job. Various types of classification are made for a company and various jobs are sorted out according to it's classification
* Advantage :-
- It is simple method
- It can be easily understood
- It is more accurate as compare to rankings method
* Disadvantage :-
- Useful for large companies
- It is time consuming and tiring
3. Point Method :-
There are Various type of point method used the most important are straight point method and weighted point method. In straight pt. Method the job studied to find the degree of factor required to the job. The total number of pts. Gives us the job rating for a particular job
* Advantage :-
- it is more accurate and reliable
- It is easy to understand
- It is widely used
* Disadvantage :-
- large amount of work and experience is required
- Point alloted to each factor based on imagination
4. Factor comparison method :-
This method studied the job on the basis of five factor which are skill, mental efforts, working condition and physical effort required. The job are ranked on each of these factor and each job is compared with other one by one. The weightage of each factor is done by applying Money value to the ranking
* Advantage :-
- it finds the salary for the job from existing standard
- Salaries are found direct comparison
- Fast calculation of salaries
* Disadvantage :-
- it is complicated method
- It is less popular
- Large number of error possible
- Accurate result cannot be obtained easily
@ Incentives :-
It is record which is given to a worker for his effeciency and hard work. The record May be monitary or non-monitary given to an individual or a group of worker. It encourages the workers to work hard and increase productivity
Is a worker has increased production by his contribution and hard work then their must be a increase in his salary in ratio with the increase in output when a company earns more profits then it gives bonus to it's worker this bones is known as insentive
# Relation between productivity and incentives :-
Incentives and productivity are closely related with each other productivity is the outcome of various Factor such that hard work more working hours, change in technology automotion etc. The effeciency of worker is the most important Factor in increasing productivity ,facilities like proper ventilation, proper lightning, safety measures and welfare services such as housing ,school, canteen etc increase the willing Mess of the employee and result in increased production wage insensitive scheme motivate employee by paying extra money and result in increased productivity
# Types of incentives :-
Classified as following
1. Direct :-
This is given to an individual worker for his contribution In improving productivity. This may be in the form of promotion increase in pay award certificate etc. By seeing an individual worker getting incentives the other worker will also trying to work hard
2. Indirect :-
These are given to a group of worker various welfare scheme are introduced as common facilities so that dispute among worker May be eliminated this May be in the form of technology facility housing facility, recreation facilities, hospital, school etc
# Second method of classification comprises:-
1. Financial :-
These incentive are given for imidiate work contribution the worker May receive financial benefit in form of bonus, profit sharing ,overtime payment etc. These insentive fulfill their additional requirement such as purchasing household items. Which improve their living standards
2. Non-functional :-
These are non-monitory benefits provided for their hard work in improving productivity and effeciency. Non-financial incentive includes-
- Promotion opportunity
- Job security
- Housing, medical and educational facility
- Sports and welfare activities
- Financial tour program
- Respect recognition in the company
Pre-Requisites :-
Following Points should be considered before introducing and incentives scheme
- It should be simple. So that every worker can calculate be fair to both employee and employer
- Incentive should be given every where time the company makes profits
- The scheme should be acceptable to all
- The plan should provide extra payment as well as non-financial benefit
- No limit should be put on the amount of incentive
- The plan should be implement once the plan is installed it should be followed regularly
# Character of a good incentive plan :-
- It should achieve the objective
- Payment should be in retio with the effort applied
- It should be simple to understand and calculate
- The scheme should be Simple by the employee
- It should result in reduction
# Job evaluation :-
It is a technique of finding in a systematic and logical way to value of a job qualitative or quantitatively for establishing the salary standard. The difference between the job is measured on the basis of it's requirements. Various jobs differ in the method involved the physical and mental strain, the working condition etc
If the difference is express numerically it is called Job rating. Where as job evaluation is a measure of job difficulty
# Objective of job evaluation :-
1. Establishment of different salaries for different type of job
2. Elimination of inequality in salary distribution
3. Clear distribution of responsibility to every worker
4. Better job satisfaction
5. Effectiveness in selection, training promotion and transfer of employees
6. Improve employer-employee relation
7. Identifying and education new job
8. Sources of information for salary negotiation
# Need of job evaluation :-
Job evaluation is related to jobs and note people. It determines the relative position of a job in the organised structure
Job evaluation gives the comparitive Value of a job. It gives us absolute productivity and relative productivity of a particular job. It minimizes salary inequality with the help of job evaluation. There are less chance of decision based on pressure favourism etc. It's main aim is to work for solution of problem related to salaries and administration to concentration
# Job defination :-
It is defined as a group of position in an industry which are similar in the type and level of work. It is regular work even to an employee or a group employee including their duties etc
# Job analysis :-
It is series of activities undertaken to systematically obtain categories and write down all the important about a particular job
# Sources of data for job analysis :-
Data can be collected by various methods such as interview, questionaire, observations, participation dairy and other sources of imformation
# Method of job evaluation :-
Following method are used in job evaluation -
1. Ranking method :-
It is the simplest method according to the record of In ascending various jobs are arranged in according order, starting with minimum requirements and attending up at maximum requirement, the amount of work working condition, working difficulty. The responsibility given, experience and acknowledge required are the factor considered in ranking method
* Advantage :-
- the method is fast and simple
- Fast result is obtained
- The material is easily understood and is cheaper method
- It is suitable for small organization in which less number jobs are evaluated
2. Grade discription method :-
In this the job are classified in group skill difficulty, responsibily, importance etc. The job May be of production sales or an office job. Various types of classification are made for a company and various jobs are sorted out according to it's classification
* Advantage :-
- It is simple method
- It can be easily understood
- It is more accurate as compare to rankings method
* Disadvantage :-
- Useful for large companies
- It is time consuming and tiring
3. Point Method :-
There are Various type of point method used the most important are straight point method and weighted point method. In straight pt. Method the job studied to find the degree of factor required to the job. The total number of pts. Gives us the job rating for a particular job
* Advantage :-
- it is more accurate and reliable
- It is easy to understand
- It is widely used
* Disadvantage :-
- large amount of work and experience is required
- Point alloted to each factor based on imagination
4. Factor comparison method :-
This method studied the job on the basis of five factor which are skill, mental efforts, working condition and physical effort required. The job are ranked on each of these factor and each job is compared with other one by one. The weightage of each factor is done by applying Money value to the ranking
* Advantage :-
- it finds the salary for the job from existing standard
- Salaries are found direct comparison
- Fast calculation of salaries
* Disadvantage :-
- it is complicated method
- It is less popular
- Large number of error possible
- Accurate result cannot be obtained easily
@ Incentives :-
It is record which is given to a worker for his effeciency and hard work. The record May be monitary or non-monitary given to an individual or a group of worker. It encourages the workers to work hard and increase productivity
Is a worker has increased production by his contribution and hard work then their must be a increase in his salary in ratio with the increase in output when a company earns more profits then it gives bonus to it's worker this bones is known as insentive
# Relation between productivity and incentives :-
Incentives and productivity are closely related with each other productivity is the outcome of various Factor such that hard work more working hours, change in technology automotion etc. The effeciency of worker is the most important Factor in increasing productivity ,facilities like proper ventilation, proper lightning, safety measures and welfare services such as housing ,school, canteen etc increase the willing Mess of the employee and result in increased production wage insensitive scheme motivate employee by paying extra money and result in increased productivity
# Types of incentives :-
Classified as following
1. Direct :-
This is given to an individual worker for his contribution In improving productivity. This may be in the form of promotion increase in pay award certificate etc. By seeing an individual worker getting incentives the other worker will also trying to work hard
2. Indirect :-
These are given to a group of worker various welfare scheme are introduced as common facilities so that dispute among worker May be eliminated this May be in the form of technology facility housing facility, recreation facilities, hospital, school etc
# Second method of classification comprises:-
1. Financial :-
These incentive are given for imidiate work contribution the worker May receive financial benefit in form of bonus, profit sharing ,overtime payment etc. These insentive fulfill their additional requirement such as purchasing household items. Which improve their living standards
2. Non-functional :-
These are non-monitory benefits provided for their hard work in improving productivity and effeciency. Non-financial incentive includes-
- Promotion opportunity
- Job security
- Housing, medical and educational facility
- Sports and welfare activities
- Financial tour program
- Respect recognition in the company
Pre-Requisites :-
Following Points should be considered before introducing and incentives scheme
- It should be simple. So that every worker can calculate be fair to both employee and employer
- Incentive should be given every where time the company makes profits
- The scheme should be acceptable to all
- The plan should provide extra payment as well as non-financial benefit
- No limit should be put on the amount of incentive
- The plan should be implement once the plan is installed it should be followed regularly
# Character of a good incentive plan :-
- It should achieve the objective
- Payment should be in retio with the effort applied
- It should be simple to understand and calculate
- The scheme should be Simple by the employee
- It should result in reduction
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