Job Analysis

and
Job Evaluation
 JOB

Edwin B. Flippo describes job as a group of positions that are similar as

to kind and level of work. In some instances only one position may be
involved, simply because no other similar position exists. For example,
in the typical firm the position of human resource manager also
constitute a job since there is only one human resource manager in the
organizing.
 Job Analysis
Job Analysis in layman’s language means the procedure of gathering information
about a job. Job Analysis is a method of collecting and studying about the
information related to a particular job. It includes the operations and tasks of a
specific job.

This process involves two sets

of information:

Job Description
Job Specification
Steps of Job Analysis:
→ Recording and collecting the information related to a job.
→ To check the accuracy of the job information.
→ Note down the Job Description as per the data gathered.
→ Use the data to determine the skills and knowledge that is required
for a particular job.
→ Updating the gathered information from time to time.
 (a). Job Description:
It consists of both organizational as well as functional information. It
provides information as to the scope of activities, position of the job
and the responsibilities. It gives the employees a very clear picture of
what is required of him to meet the goals of his job.
A good Job Description must consist of the following:
(i). It should include the nature and scope of the job along with
accountability.
(ii). A good Job Description should be lucid about the position, and
duties.
(iii). The complexity of the job.
Contents of Job Description:
the Job Description consists of the following:
→ Job classification: This includes title of the job, alternate title if any,
job code, division or department etc. The title of the job designates the
job properly and division or department indicates which department
and location does the employee work.
→ Job Summary: It serves two purposes here; one is that when the Job
Title is not sufficient it gives additional information on the job. Secondly
it gives more descriptive information about the particular job.
→ Duties : This lists out the entire duties of a particular job.
→ Relation to other jobs: This gives the employees a fair amount of
picture as to the hierarchy of the position. Like to whom they are
reporting: senior, junior, etc.
 (b). Job Specification:

Job Specification can be defined as a set of physical and mental

qualities and skills and experience of an employee which are required
for the performance of assignments for satisfaction of organization.
Contents of Job Specification:

The following are the contents of Job Specification:

→ Physical Qualifications: These qualifications or specifications vary from job
to job. Physical Qualifications are nothing but the capabilities of employees.
These include height, weight, hearing, vision, capacity to handle machines etc.
→ Mental Qualifications: This includes the ability to interpret data,
calculations, planning, general knowledge, judgement, memory etc.
→ Social and Emotional specifications: This is vital for the role of Managers
and Supervisors. It includes emotional constancy and elasticity. It also includes
the way they dress, personality and relationship.
→ Behavioral Qualifications: This qualification is very important in selecting
employees for higher levels of management. This specification asks to depict
the acts of the managers rather than traits which cause those acts. This
includes creativity, research, maturity level, dominance etc.
 Methods of Job Analysis
The most general Job Analysis methods are discussed below:
1. Observation Method: In this method the job analyst observes the
employees work and records all the tasks that are performed and also those
that are not performed. This may seem to be an easy method of job analysis,
but it is the most difficult one. The main reason being that every person has a
different way of observing things, which might involve personal bias, likes
and dislikes which will not give the desired results.
2. Interview Method: In this method the manpower is interviewed. The
employee under this method comes up with different ideas towards their
working style, problems faced by them and uncertainties or insecurities faced
by them. It helps the organization in knowing exactly what the employees are
thinking about their jobs. This helps in minimizing errors as not only one
employee is interviewed, but everyone in the organization is interviewed.
3. Questionnaire Method: This is another common method of Job Analysis, which
uses a questionnaire to be filled by the employees. Care should be taken while
framing questions for this, because this method also suffers from bias by the
superiors. It is always better if the staff is communicated in a better way to make
them understand that the data collected is for their own good. Here different types
of questionnaires are prepared for different grades which is also time consuming.

These are some of the most common methods of job analysis. However, there
are several other specialized methods including task inventory, job element method,
competency profiling, technical conference, threshold traits analysis system and a
combination of these methods. While choosing a method, HR managers need to
consider time, cost and human efforts included in conducting the process.
There are four basic methods of job evaluation
currently in use which are grouped into two
categories:

1. Non-quantitative Methods:
(a) Ranking or Job Comparison
(b) Grading or Job Classification

2. Quantitative Methods:
(a) Point Rating
(b) Factor Comparison
Ranking Method:

• The ranking method is the simplest form of job evaluation. In this

method, each job as a whole is compared with other and this
comparison of jobs goes on until all the jobs have been evaluated and
ranked. All jobs are ranked in the order of their importance from the
simplest to the hardest or from the highest to the lowest.
• The importance of order of job is judged in terms of duties,
responsibilities and demands on the job holder. The jobs are ranked
according to “the whole job” rather than a number of compensable
factors.
The ranking of jobs in a University, based on
Ranking Method, may be like this:
Merit Rating
 Meaning of Merit Rating

Merit rating is the systematic evaluation of the performance of an

employee on the job in terms of the requirements of the job. It may also
be ascertained by comparing the superiority of an employee over others.
Quantity and quality of work, attendance, obedience, skill, desire to
learn, loyalty, family background, personality, etc. are some of the
factors that are taken into consideration in assessing merit.

Merit rating grades employees on their jobs on the basis of an objective

and provides for the comparative review of their individual
performances.
Definitions of Merit Rating

According to dictionary, merit rating is defined as, “employee rating

achieved through a periodic employee evaluation system, often used as
the basis for pay increases and/or promotion”.
According to James Lundy- “The process of evaluating an employee’s
performance on the job.”
Kimball and Kimball- “The evaluation of any given worker as to his
fitness for a given job in terms of assigned factors by which he may be
intelligently appraised.”
Objectives of Merit Rating
1. For each individual worker, assessment of the standard of performance,
2. Providing a basis for rewarding for high merit without detailed work study
being applied,
3. Providing a basis for determining the remuneration of the indirect workers,
the performances of whom cannot be easily determined,
4. Choosing suitable worker for a job; job evaluation mentions the job
requirement of the worker, while merit-rating mentions what qualities the
worker should possesses. The selection will be perfect if these two fit in each
other,
5. Providing basis for increment, promotion etc.,
6. Finding out the abilities and defects of each worker, and
7. Improving labour relations and reducing labour turnover.
 Importance of Merit Rating
(i) It helps in ascertaining the suitability of the worker for a particular
job. The objective is achieved by linking merit rating with job
evaluation.
(ii) It helps in ascertaining an employee’s merit for grant of promotion,
increment etc.,
(iii) It helps in introducing a system for incentive, wage payment and
simplification of the wage structure,
(iv) It analyses the worker’s defects and brings out the strong points
and special abilities.
Methods of Merit Rating
Method # 1. Ranking:
This is the oldest and simplest method. This is also known as “Paired comparison
method.” In this method the employee is not treated separately from his job. One
person is compared with the other. This separates the efficient from the inefficient
but this is not practical as all persons have separate qualities. If a person is
efficient in one job, the other is efficient for the other; hence comparison is
difficult between the two. To solve the problem persons are evaluated in pairs.
This system is simple but it is defective.
Firstly, to compare one person with the other is a difficult task as every person has
his own personal qualities.
Secondly, one group of person are compared but they are not compared with
other groups, if this is possible then how efficiency and inefficiency can be known
and how measure of efficiency is possible.
Thirdly, there is no basis for serial assessment, hence there is partiality. Therefore, this is not
in much use.
Employees are rated by various companies in different ways. The simplest merit rating plan is
Straight Ranking Method. It involves ranking the men in a work group one against the other.
For example, in a work group of 20 men, the foreman is required to list in terms of numeric
rank the relative position of each man. It may also be done by ranking a person on his job
performance against other members of a competitive group by placing him as number so and
so in the total group.
Rank system does not, however, eliminate snap judgments, nor does it provide the rater with
a systematic procedure for determining the relative ranks of his subordinates. A number of
plans have been designed to remedy these weaknesses. The Graphic Rating Plan, as used by a
company, is given here as an illustration.
Method # 2. Descriptive or Essay Type Merit Rating:

In this plan, the supervisor writes an essay on his subordinates. The essay approach has advantages in
evaluating supervisory employees. It forces the rater to think about his men and avoids a mechanistic
approach to evaluation.
The “Review’ or ‘Appraisal’ should consider the following factors:
a. Relation with Fellow Supervisors and Personnel Assigned to him.
b. General Organisation and Planning Ability.
c. Understanding and Application of Company Policies and Procedures.
d. Job knowledge and Potential.
e. Production Quality and Cost Control.
f. Housekeeping and Safety.
g. Demonstrated Attitude and Personnel Characteristics.
h. Physical Condition.
After Reviews have been completed for all first level supervisors, they should be examined by other
reviewing supervisors in the same shop or group to obtain concurrence. The “Appraisal of
Performance” must clearly indicate how the supervisor is performing on his assigned job. Then
“Suggestions for Development”, if any, should be made in specific and helpful terms.
Method # 3. Forced-
Distribution:
This method is used to eliminate or minimize the rater’s bias. The Forced-
distribution plans require the rater to distribute his ratings to follow a
predetermined distribution. For example, students are sometimes graded
as A, B, C, D and E, according to their performance in the test. In a large
under-graduate class, 5 to 10 per cent of the students be given A’s; 20 to 30
per cent, B’s; 40 to 60 per cent. C’s and 10 to 20 per cent.

D grades, in the same manner, a normal group of workers doing the same
job would fall into some such grouping as superior, above average, average,
below average, and poor and the relative percentages would be
approximately 10-20-40-20-10. Although this method does tend to
eliminate or reduce bias, its use in wage administration leads to low morale
and low productivity.
Method # 4. Forced-Choice:
• The forced-choice method attempts to correct a rater’s tendency to
give consistently high or consistently low ratings to all employees. The
rater is asked to choose from several sets of phrases the one phrase
that best describes the man being rated, and the phrase that least
characterises him. The ratings are then scored by a key that has been
worked out in great detail.

• The rater does not know what kind of score he is giving a person. This
system has merit when properly worked out, but some raters do not
like to use a form unless they know the results of their efforts.
Method # 5. Critical-Incident System:
This system is designed primarily to contribute to the growth and development of
supervisors and their subordinates. The distinguishing feature of this type of plan is that it
attempts to measure workers’ performances in terms of episodes.

The heart of the plan involves training supervisors – (a) to recognise episodes of
exceptionally good or bad performance; (b) to speak with the worker at a time relevant to
dealing with the observed episode; (c) to keep a written record of the episodes so that
they can be easily recalled and used during the periodic appraisal and coaching interview;
and (d) to develop skill in handling the coaching and appraisal interview.

As a device for developing effective supervision, the plan has a number of advantages.
First, its administration requires the supervisors to develop habits and skills that are
essential to good supervision (i.e., they become aware of criteria for judging exceptional
performance; they develop skill in interviewing and in handling episodes of unusually
good or bad performance; they get to know their subordinates, and vice versa).
Second, it avoids having the supervisor make direct comparisons between
workers. The focus is on the concrete examples of performance. The third and
major advantage of this type of plan is that it brings employees and supervisors
together in a constructive environment. It directly attacks what appears to be a
basic problem in all large organisations – namely, the workers’ anxiety about
where they stand.

It enables the employee to discuss job performance with his supervisor through
daily interaction as well as a periodic appraisal interview. The worker receives
individual attention. He knows better where he stands and also where his
supervisor stands.

In order that any merit rating system should prove effective, it should rate the
employee in terms of his actual performance on the present job. A given
employee might be rated C or D on performance, yet under the promotability side
might be marked promotable to a higher job because of special qualifications for
the higher job when he is average or even below average on his present job.
Such a situation might easily arise in the case of a toolmaker by trade who is
currently working on a production machine because there is no vacancy in
tool making. A similar situation might arise in a department store or office or
even among supervisors. It could readily arise in the case of a college teacher
who was teaching statistics but who was primarily trained in accounting.

Again, employees tend not to be rated but to be paid on an automatic basis

of increments, or to be paid, in case of an incentive basis, solely on objective
data, such as- quantity of output, quality of output, attendance, and
tardiness, etc. The employee should be encouraged to participate in the
scheme.
Method # 6. Employees
Comparison:
This method is also called “man to man comparison” method. In this method
for merit rating, more variables are ascertained like leadership, qualifications
and faithfulness. After this for each variable, a master scale is prepared in
which for executive of each job strata are maintained according to qualities.
For that work most efficient and least efficient person are selected.

These persons are the two ends of the scale. After that as a medium point,
an average person is selected. Later on the two points are marked below and
above the average. In this way five points are ascertained. Comparing these
points, other person’s qualities are known. The main difficulty in the
preparation of this plan is of ascertainment of five points.
Method # 7. Descriptive
Evaluation:
Under this method, the evaluator prepares a written report in relation
to execution of the employee in which his personality merits and
quantity of job and job strata units are described. The clarity and
extensiveness of the description makes evaluation best and
satisfactory.
Method # 8. Point System:
In this method, for every unit of every work some points are specified.
A mutual or a scale is used in which all units, description and points for
evaluation and evaluation procedure is given. Generally, some units are
determined as cleverness, responsibility, effort (mental or bodily) and
job conditions. Each person’s each merit is given the points from the
maximum determined points. Afterwards, all the points are totalled
and it is the evaluation of that person.
Method # 9. Field Review:
Under this method, evaluator asks the supervisor, questions about the workers
working under him and gets his opinion and records it. These are signed by the
supervisor and keep it for future reference as a context.
his type of merit-rating is useful for large organisations, and appears to overcome a
number of the weaknesses found in many of the other systems. It consists of having a
trained employee from the personnel department interview line supervisors about
their respective subordinates. The supervisor is asked to give his opinion about the
progress of his subordinates, the level of performance of each subordinate, and
possible-plans of action in cases requiring further consideration.
The representative of the personnel department takes detailed notes of the
interview. These notes are approved by the supervisor and placed in the employee’s
personnel folder. The success of this system depends on the competency of the
interview. If this man knows his business, he can contribute significantly to
reasonably accurate appraisals. Moreover, he can help the supervisor think through
his evaluations, so that bias and prejudice can be more readily minimised.
Comparison between Job Evaluation and Merit Rating:
Advantages of Merit Rating

The advantages of merit rating are as follows:

1) This Helps in the Development of Personnels:
Development policies like construction of promotion lines, transfer, training and their
development are most important instruments by which these programmes are prepared
logically and systematically.
(2) Utility for Management:
The main advantage of the merit rating goes to management. They know the abilities of
the person and on that basis the management sets right the programme for their
promotion, transfer, forced leave and discharge. It serves in determining a sound and
suitable wage structure; appraisals can be used to evaluate the training programme
also.
(3) High Moral:
A properly planned merit programme gives chances to a person to know about himself
and motivates them for development. This increases their mental strength and gets self-
satisfaction.
(4) This Helps in the Rise of the Standard of Living:
Merit rating helps the personnel in knowing their abilities and they try to make
improvement in that. If they feel that there is some defect in it, they try to improve and
thereby earn more money.

(5) Mutual Comparison:

This is a scientific basis of merit rating for all persons. Therefore, on this basis a scientific and
comparative study can be made of personnel with regard to their abilities.

(6) Advantage to Supervisors:

By this, the supervisor knows the efficiency and weaknesses of the personnel working under
him and then he suggests the management various measures to improve the weaknesses of
the workers.

(7) Helpful in Proper Placement:

Merit rating is helpful in the placement of the personnel. This means that the personnel
should be placed on the right job. Besides the workers kept on probation should be placed
according to his abilities so that he may be kept at the proper place.
Disadvantages of Merit Rating
The disadvantages of merit-rating are:
1. Labour unrest may arise due to wrong rating.
2. There may not be any relevancy of the factors considered for merit rating.
3. Previous records of the employees may influence the rating and thereby
justice may be lost.
4. Employees may oppose the rating or may not recognize the same.
5. Workers may not be satisfied with the incentives allowed on the basis of
merit rating.
For merit rating purpose, the following factors may be usually in the
employee – Attendance, discipline, co-operation, knowledge, skill,
experience, aptitude, sense of responsibility and judgement, quantity and
quality of output etc.
INCENTIVE PLANS
Financial Incentives-Individual
Several Individual financial incentive plans have been used in companies,
businesses, and other organization to increase labor productivity. Some of the more
well known plans are:

1. Piecework Plan
2. Standard Hour Plan
3. Measure Day work Plan
4. Emerson Plan
5. Halsey Plan
6. 100 Percent Plan
7. Bedeaux Plan
Piecework Plan
• Out of above mentioned plans piecework plan, the standard hour plan, the
measured day work plan are used more often.
• Pay is directly proportional to the number of units produced. Minimum daily rate
is guaranteed.
• The earnings generated in the PWP is given by:

Ni=Number of pieces of type i produced.

PWRi= Piecework rate for type i item (dollars per piece)
Let SPRi=Standard production rate for type i item.(Pieces per hour)
WRi = Wage rate for type i item (dollars per hour)
Piecework Plan

Example:
Suppose a worker is on the piecework incentive plan. He or she produces 500 pieces
of an item A in a week at a wage rate of $6/hour. The industrial engineer have set a
standard of 60 pieces/hour. What should this worker’s earning be for the week.
Answer:
In this example, i=1 since only one item is produced by the worker, and
N=500
WR=6
SPR=60
Piecework Plan
Therefore,

=
= $ 0.10 per piece

= (500)(0.10)
= $ 50
Piecework Plan
Advantages:
• It is easily understood by workers.
• It can be easily administrated.

Disadvantages:
• Piecework rate has to be changed everytime the wage rates are changed.
• Time standard should be set carefully,least loose standards results in very high
piecework earnings.
• Quality may be affected negatively unless the pieces counted towards production
are “okayed”.
Standard Hour Plan (SHP)
The standard hour plan overcomes the problems with the piecework plan by using
standard hours per piece instead of dollars per piece.

Where SHEi = Standard hours earned for item type i

The advantage of the SHP are:

• Standards are never changed even if the base wage rates are changed.
• The earnings are easy to compute.
The only disadvantage is that the individual incentive is not as high as in the PWP.
Standard Hour Plan (SHP)
Example: Consider the problem explained before. We use the SHP instead of the
PWP.
= = hours

= x6
= $ 50 as before
Note that we have eliminated the need for updating the piecework rate.Let
HW=Hours worked
CT=Clock time (i.e. the hours spent on work for which standards do not exists or
are not applied)
Standard Hour Plan (SHP)
Then,the efficiency of “standard work” is given by
std
Also, the average efficiency is given by avg where
avg=

Measured Day work (MDW) Plan

• The MDW plan was introduced in the US during the early 1930s when organized
labor tried getting away from time studies and piecework rates.
• Let t=any time period and Bri=base rate in period t. Then in the MDW plan,
t+1 = (t)(std,t)
std,t =
Measured Day work (MDW) Plan
• The MDW plan was introduced in the US during the early 1930s when organized
labor tried getting away from time studies and piecework rates.
• Let t=any time period and Bri=base rate in period t. Then in the MDW plan,
t+1 = (t)(std,t)
std,t =
Financial Incentives-Group
This is the second type of financial incentive system i.e. group incentive plan.Well
known group plan include the following:

1. Scanlon Plan
2. Rucker Plan
3. Kaiser Plan
4. Tonnage Plan
5. Dollar sales Plan
6. Profit Sharing
7. Improshare
Scanlon Plan
This plan works as follows:
1. Set up target ratio (or norm)
SVOP=Sales value of production
= Value of receipts for goods sold + value of goods in stock
2. Each month compute the sales value of production (SVOP) at selling price.
3. Compute allowable labor cost=(TR)(SVOP)
4. Compile actual labor cost.
5. Compute savings in labor cost:Allowable labor cost-actual labor cost
6. Share the labor cost savings in an agreed proportion
7.At the end of a year, if the reserve balance is positive,pay it to the employees.
Scanlon Plan
To administer the Scanlon plan,
1. A plantwide screening committee, generally comprising 7 members chosen
from a production committee and 7 from management is established.
2. Production committee are formed for each department, with one salaried person
and two who are paid by the hour.
3. Ideas suggested for productivity improvement by the group members are
discussed. A meeting is held at least once a month.

Main disadvantages are if workers suggest automation then management has to

adjust target ratio. Another problem is that the target ratio is not necessarily fixed
over time.
Rucker Plan
The plan established a relationship between the total earning of hourly rated
employees and the net production values created in the plant.The plan works thus:
1. Compute the standard (target) percentage of labor cost from historical records.
The target ratio is given by .
2. Compute the actual percentage of labor cost given by .
3. Pay the bonus on the savings.

Advantages
1.It takes into account not only the labor cost saving but also the savings in
material and supplies.
2.No time standards are needed.
Rucker Plan
Disadvantages are
1. The success of plan depends upon the willingness of the employee to believe
management’s figure.
2. The plan is not widely accepted by unions because it is not as generous as the
Scanlon plan.
3. It still does not protect against gains unaccounted due to mechanization and
automation.
Thanks