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MBA II Sem - Human resource management
UNIT-5: Maintenance of Human Resources
Job Evaluation:-
Job evaluation is a systematic process used by organizations to determine the relative worth or value
of jobs within the organization. It involves analyzing and assessing various aspects of a job, such as its
responsibilities, skills required, qualifications, and working conditions, to establish an internal pay
structure and ensure internal equity.
The purpose of job evaluation is to create a fair and consistent framework for determining the relative
value of different jobs within an organization. It helps organizations establish a rational basis for
setting salaries, making decisions about promotions and transfers, and ensuring that compensation is
aligned with the responsibilities and requirements of each job.
The job evaluation process typically involves the following steps:
1. Job Analysis: This step involves collecting detailed information about each job, including its
tasks, duties, responsibilities, required qualifications, and reporting relationships.
2. Job Description: Based on the job analysis, a comprehensive job description is created,
outlining the key aspects of the job.
3. Job Evaluation Method: Organizations use various methods for job evaluation, such as the
Point Factor Method, Ranking Method, Classification Method, or Factor Comparison Method.
Each method uses specific criteria to evaluate jobs, such as skill levels, knowledge
requirements, complexity, responsibility, and working conditions.
4. Criteria Development: The criteria used to evaluate jobs are established, such as the level of
skill, responsibility, and effort required for each job.
5. Job Evaluation Committee: A committee or a group of individuals, often comprising HR
professionals and representatives from different departments, is formed to evaluate and assign
values to the jobs.
6. Evaluation Process: The committee evaluates each job based on the established criteria and
job descriptions. The evaluation may involve comparing jobs against each other, assigning
points or grades, or using other evaluation techniques specific to the chosen job evaluation
method.
7. Job Classification or Grading: After the evaluation process, jobs are classified or graded
based on their relative value or worth within the organization. This classification or grading is
used to determine the appropriate salary range for each job.
8. Implementation: The results of the job evaluation process are implemented by aligning the
salary structure and compensation levels with the evaluated job grades. This helps ensure fair
compensation and internal equity.
Incentive and Reward System:-
An incentive and reward system is a structured approach used by organizations to motivate, engage,
and recognize employees for their performance and achievements. It involves providing various types
of incentives and rewards to encourage desirable behaviors, enhance productivity, and promote a
positive work culture. Here are some key elements and strategies commonly used in incentive and
reward systems:
1. Goal Setting: Clear and specific goals are established for individuals, teams, or the
organization as a whole. These goals should be aligned with the organization's objectives and
should be challenging yet attainable.
