Job evaluation

& merit rating

By - Gauri patil
Job Evaluation
● Systematic way of determining the value or worth of a job in relation to other

jobs in an organization.

● It tries to make a systematic comparison between jobs to asses their relative

worth for the purpose of establishing a rational pay structure.

 ● Ranking Method
Methods of Job ● Classification Method

Evaluation ● Factor Comparison Method

● Point Method
Merit Rating
● Merit Rating is a systematic and orderly approach to assess the relative worth

of an employee.

● Merit rating determines the extent to which an employee meets job

requirements.
Objectives of Merit Rating
● provides a record of the worth of employees.

● unfolds the limitations of an employee and thus helps in employee

improvement.
Methods of Merit Rating
● Rating Scale Method

● Check-list Method

● Employee Comparison Method

Advantages & Disadvantages of Merit
Rating Advantages

1.Meritorious employees are encouraged

2.Employee-employer relations improve

Disadvantages

1.A rater may not like to degrade his subordinates who maybe excellent otherwise
but not good at work.

2.Merit rating does not reward employees immediately

 Incentive
schemes

By- muhammd parkar

MEANING...
● Plan or programmes to motivate

individual for good performance.

● Organizations use incentive system to motivate

their employees.
PREREQUISITES...
● Motivation

● Specific and measurable objective

● Rewards for good production

● Minimization of labor turnover

TYPES OF Individual plan

INCENTIVE Taylor’s Differential Piece Rate Plan:

PLAN... Halsey Premium Plan:

Rowan Premium Plan:

Gantt Task and Bonus Plan

Group incentives

Scanlon Plan:

Profit-sharing:
ADVANTAGES & LIMITATIONS
Advantages Limitations

Increases productivity Leads to increased expense

Improves safety Standards are based on past performance

Increases morale Leads to higher labor cost

Objective achievement

Reduces absenteeism
 Wage
Administration
By
Harshvardhan Patil
 What do you Administration of employee
mean by compensation is called wage

Wage and salary administration

Administration?
Objectives of Wage Administration
● To establish a fair and equitable compensation offering similar pay for similar work.
● To attract competent and qualified personnel.
● To retain the present employees by keeping wage levels in line with competitive units.
● To keep labour and administrative costs in line with the ability of the organisation to
pay.
● To improve motivation and morale of employees and to improve union management
relations.
● To project a good image of the company and to comply with legal needs relating to
wages and salaries.
● To establish job sequences and lines of promotion wherever applicable.
● To minimise chances of favouritism while assigning the wage rates.
Factors Affecting Wage Adinistration
External Factors: Internal Factors:
● Demand and Supply ● Ability to Pay
● Cost of Living ● Job Requirements
● Trade Union’s Bargaining Power ● Management Strategy
● Government Legislation ● Employee
● Psychological and Social Factors
● Economy
● Technological Development
● Prevailing Market Rates
Wage Determination Process
 1. Job Analysis

2. Salary Survey

Wage
3. Group Similar Jobs into Pay

Determination
Grades

Process
4. Price Each Pay Grade

5. Fine-Tune Pay Rates

6. Wage Administration Rules

Methods of Wage Payments
1. Time Wage System
The wages are paid according to the time
spent by workers irrespective of their
output of work done. The wage rates are
fixed for an hour, a day, a week or a
month.
3. Balance or Debt Method
Balance or debt method is a combination
of time and piece wage systems. The
worker is guaranteed a time rate with an
alternative piece rate. If the wages
calculated at piece rate exceed time rate
the worker gets credit. On the other hand,
if time wages exceed piece wages, the
worker is paid time wage and the deficit is
carried forward as debt to be recon-served
in future.
2. Piece Wage System
In this system wages are based on output
and not on time. A fixed rate is paid for
each unit produced, job completed or an
operation performed.
1. Straight Piece Rate:
In this method one piece rate is fixed and whole
production is paid on this basis.
2. Increasing Piece Rate:
In this method different rates are fixed for
different levels of production. Higher rates are
given when production increases beyond a
certain level.
3. Decreasing Piece Rate:
In this method the rate per unit decreases with
increase in output.
 Business
process
reengineering

By - Jaydip
What is BPR? ● fundamental ‘rethinking and redesign’ of
business processes
● to achieve dramatic improvements in cost,
quality, service and speed.
Reasons to reengineer

technology
1

Profit
2
/ market share
Change
3

competition
4

5 Customer
Key characteristics

01
01 Radical Improvement

02 Integrated Change

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03
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Process-Centred ●
adipiscing

04 Customers oriented

05 Dramatic
 Step 5 Step 1
Prototyping & Developing process
implementation vision and objectives

Methodology
Implementing a
BPR strategy Step 2
Defining the
Step 4
process
Understanding IT
Leverage

Step 3
Understanding and measuring
existing process
Common Problems with BPR

Desire to Change Not

01
01
Strong Enough

The Costs of the Change

02 Seem Too Large
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Reliance on existing
03
03 amet at nec at
process too strong
●
adipiscing
Process under review
04 too big or too small

05 Allocation of Resources
 Advantages
● Reduction in cost of quality

● Improvement in organization

● Improvement in design and operations

● Improvement in product in service

● Confidence in competition
Summary
Thank you !