UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

• Working conditions, which reflect the environmental influences of noise,
illumination, ventilation, hazards, annoyances and working hours.
Point method is an approach to job evaluation in which numerical values are assigned to
specific job components and the sum of these values provides a quantitative assessment of
a job’s relative worth. The Point method of job evaluation consists of first developing
compensable factors on which each job must be evaluated. The collection of these key
factors is called manual or yardsticks. Each of these key compensable factors has a scale
value which defines the degree of presence of that factor. Each job is rated on these key
factors and a value is assigned accordingly.
Jobs are divided into a specified number of grades so that when rates are
established they are not applied to individual jobs but rather to groups of jobs that are
rated about the same number of points. In choosing point factors, the organizations decide
on the particular job components that they should value. The advantages of this method
are that a large number of specific factors are included. Off-the-shelf, ready-made plans
are also easily available for a price from HR services and consultancy firms. If an
organization prefers to save costs by developing a complete plan internally, it would be a
time consuming process and more difficult to understand. There is also greater opportunity
for people involved to disagree on many grounds.
4.9.2. Causes of Resistance to Job Evaluation
Employees might find it difficult to understand the intricacies of Job evaluations. Hence
the pay-scales fixed through job evaluations might susceptible to suspicion from who
might view them as tools of clever manipulation and over-exploitation. Supervisors should
have complete knowledge of the evaluation system and be able to explain and convince
the employees about the job evaluation plan. The most talented and competent employee
tend to resent the wages fixed through job evaluation, as they expect their contribution
must get extra reward. In a world of fast changing technology and rapid mobility of capital
and labor, job evaluation carried out at great investment of time and cost might soon loose
their relevance and might need complete revision. Practices like poaching talents from
another organization and relaxed working conditions for some employees, might make a
mockery out of job evaluations.
Obtaining a precise value of an employee’s contribution to the organization might
be difficult, as work output occurs due to the interplay of large number of factors. Job
evaluation helps to reach a reasonable degree of accuracy in achieving this valuation. Job
evaluation would have greater chances to succeed when it does not disturb the existing
promotion paths or the traditional pattern. It is not likely to succeed when the organization