job eva salary wages

8/7/2019 Job Eva Salary Wages

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TOPICS TO BE COVERED

IntroductionJob Evaluation, its role in salary

administration

Wage CurveSalary Structure & fixation

Conclusion


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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.


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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


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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


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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.


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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.


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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.


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BASIC PROCEDURE FOR JOB

EVALUATION

Analyze & prepare job description

Select & Prepare a job evaluation programme

Classify jobs

Install the programme

Maintain the programme


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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.


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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


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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


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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.


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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.


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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.


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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.

job eva salary wages

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