TRAINING

& DEVELOPMENT
TRAINING & DEVELOPMENT
Training is a planned programme designed to improve
performance and bring about measurable changes in knowledge,
skills, attitude and social behaviour of employees.

Development : is a long term educational process of utilizing a

systematic & organized procedure by which managerial personnel
learn conceptual and theoretical knowledge for general purpose.
OBJECTIVE OF TRAINING
1. Improves the quality of work
2. Increases productivity
3. Updated knowledge & Skills of Employees
4. Helps on improving organizational Culture
5. Supports in organizational Change
6. Leads to growth and development of personnel.
NEED/ PURPOSE / IMPORTANCE OF TRAINING FOR
ORGANIZATION
Tool to effective Management
Leads to systematic learning
Reduction in rate of accident
It facilitates Changes
Leads to trained personnel for the organization
Leads to better productivity
Leads to recruitment via promotions
bridges the gap what the employee has and what the job demands allows an
employee to gain acceptance from peer groups readily
Helps new recruits to perform assigned tasks effectively
Helps existing employees to prepare for higher level jobs
Enables existing employees to keep in touch with latest developments
Permits employees to cope with changes brought in by frequent transfers
Makes employees more versatile, mobile, flexible and useful to the
organisation - Increases employee mobility.
Opportunity for promotions increases
TYPES OF TRAINING
Skills training: here certain basic skills like reading, writing, computing, speaking,
listening, problem solving etc are taught
Refresher training: here the focus is on short term courses that would help employees learn
about latest developments in their respective fields
Cross functional training: this helps employees perform operations in areas other than their
assigned job.
Team training: this is concerned with how team members should communicate with each
other, how they should cooperate to get ahead, how they should handle conflictful situations,
how to find their way using collective wisdom etc.
Creativity training: this helps employees to think unconventionally, break the rules, take
risks, go out of the box and develop unexpected solutions.
Diversity training: it aims to create better cross cultural sensitivity with the aim of fostering
more harmonious and fruitful working relationships among a firm's employees
Literacy training: this is generally offered to those employees with weak reading, writing
or arithmetic skills.
PROCESS OF TRAINING
1. • Identify training need

2. • Establishment of training goals

3 • Designing Training Program

4 • Follows ups training program

5 • Evaluation training program

IDENTIFY TRAINING NEED = TRAINING NEEDS ASSESSMENT
a. Organizational analysis: This is a study of the entire organization in terms of its
objectives, utilization of resources to achieve objectives etc.
 Analysis of objectives
 Resource utilization analysis
 Environmental scanning
 Organizational climate analysis

b. Task or role analysis: this is a detailed examination of a job, its components, its
various operations and conditions under which it has to be performed.

c. Person analysis: here the focus is on the individual in a given job; whether training is needed,
whether the employee is capable of being trained, and the areas where the training is needed.
TYPES OF TRAINING

Types of training

On the Job Training off the Job Training

METHODS/TECHNIQUES OF TRAINING
ON-THE-JOB METHOD OFF-THE –JOB METHOD

Coaching Role playing

Understudy Sensitivity training
Multiple management Conference training
Committee assignment Programmed instructions
Apprenticeship training Simulation techniques
(Vestibule training) like:
Job Rotation
 Business games
Mentoring  In basket
 Case study
ON THE JOB TRAINING METHODS
Job instruction training (JIT): This is training directly received on the job. Here the trainee receives an overview of the job. The
trainer actually demonstrates the Job and the trainee is asked to copy the trainer’s way.

Apprenticeship training: Most craft workers such as plumbers, carpenters etc are trained through formal apprenticeship
programmes. In this method, the trainees are put under the guidance of a master worker typically for 2-5 years.

Committee assignments: In this method, trainees are asked to solve an actual organisational programme working along with
other trainees.

Coaching: Here the supervisor explains things and answers questions; throws light on why things are done the way they are;
offers a model for trainees to copy, conducts lot of decision making meetings, and allows trainees freedom to commit mistakes
and learn .

 Mentoring: The use of an experienced person to teach and train someone with less knowledge and experience in a given
area is known as mentoring. The mentor nurtures, supports and guides the efforts of young persons by giving
appropriate information, feedback and encouragement whenever required.

Job rotation: This kind of training involves the movement of trainee from one job to another.
OFF THE JOB TRAINING METHODS
Vestibule training: It occurs off the job on equipment or methods that are highly similar to
those used on the job.

Role playing: This is a development technique requiring the trainee to assume a role in a
given situation and act out behaviours associated with that role.

Lecture method: Here the instructor organises the study material on a specific topic and
offers it to a group of trainees in the form of a talk.

Conference or discussion method: In this method the trainer delivers a lecture and involves
the trainees in a discussion so that the doubts about the job to be undertaken get clarified.

Programmed instruction: This is an approach that puts material to be learned into highly
organised logical sequences that require the trainees to respond
MANAGEMENT DEVELOPMENT PROGRAMS
MANAGEMENT DEVELOPMENT
• It is an educational process utilizing a systematic and organized procedure by which
managerial personnel learn conceptual and theoretical knowledge for general
purpose.
• It is mainly designed to induce behavioral changes in individuals by cultivating their
mental and inherent qualities through the acquisition, understanding and use of
knowledge, insights and skills as they are needed for effective management.
• The Management Development Prog. consists of:
– Assessing the company’s strategic needs
– Appraising managers current performance
– Developing the managers( and future managers)
NATURE OF MANAGEMENT DEVELOPMENT
1. Organized process of learning
2. A long term process
3. On going exercise rather than ‘One-shot’ affair
4. Aims at preparing managers for better performance
5. It is nothing but guided self development
OBJECTIVES OF MANAGEMENT DEVELOPMENT
•To bring current performance of the managerial personnel up to the highest
attainable level
•To ensure availability of qualified managerial manpower
•To ensure managerial capabilities
•To aid in encouraging and achieving self development and self confidence
•To provide opportunities for managers to update their knowledge and skill
PURPOSE OF MANAGEMENT DEVLOPMENT
PURPOSE METHODS/TECHNIQUES

Job knowledge On the job experience

Coaching
Understudy
Organisational knowledge Job rotation
Multiple management

Decision making skills In basket

Business games
Case study
Interpersonal skills and teamwork Role playing
Sensitivity training

Specific individual needs Junior board

Committee assignment
Programmed instructions
TRAINING VS. DEVELOPMENT
Learning Dimension Training Development
Meant for Operatives Executives
Focus Current job Current and future jobs
Scope Individual employee Work group or organisation
Goal Fix current skill deficit Prepare for future work demands
Initiated by Management The Individual
Content Specific job related information General Knowledge
Time-frame Immediate Long term
CAREER PLANNING
THE CONCEPT OF CAREER

A career comprises of a series of work related activities,

that offer continuity, order and meaning to a person’s life.
The success of one’s career, therefore, depends on the
individual more than anything else.

According to Schermerborn, Hunt, and Osborn, ‘Career

planning is a process of systematically matching career
goals and individual capabilities with opportunities for
their fulfillment’.
CAREER PLANNING SEEKS TO MEET THE FOLLOWING
OBJECTIVES
Attract and retain talent
Use human resources properly and achieve greater productivity
Reduce employee turnover
Improve employee morale and motivation
Meet the current and future human resource needs of the organisation
CAREER STAGES
A career includes many positions, stages and transitions just as a person’s life
does.
High
Exploration Establish- Mid career Late career Decline
ment
Performance

From college First job Will performance The elder Preparing

to work and being increase or statesperson fo r
accepted begin to retirement
decline?

Low 25 35 50 60 70
Age
Exploration: the transition that occurs in mid-twenties as one looks at work
after college education, seeking answer to various questions about careers
from teachers, friends etc.

Establishment: this is the stage where one begins the search for work,picks up
the first job, commits mistakes and learns thereafter.

Mid-career: Between 35 and 50 one is typically confronted with a plateaued

career, where your maturity and experience are still valued but there is the
nagging feeling of having lost the initial fire in the belly

Late career: This is the stage where one relaxes a bit and plays an elderly
role, offering advice to younger ones as to how to avoid career mistakes and
grow continually.

Decline: This is the stage where one is constantly reminded of retirement,

after a series of hits and misses.
CAREER ANCHORS
These are distinct patterns of self-perceived talents, attitudes, motives and values that
guide and stabilise a person’s career after several years of real world experiences.
Managerial competence
Technical competence
Security
Creativity
Autonomy
Dedication to a cause
Pure challenge
Life style
THE PROCESS OF CAREER PLANNING
Identify individual needs and
aspirations

Analyze career opportunities

Align employee needs with available

career opportunities

Develop action plans

Carry out periodic review

CAREER DEVELOPMENT
Career development consists of the personal actions one undertakes to achieve a
career plan.
The actions for career development may be initiated by the

Organization
Individual Methods
Methods
 INDIVIDUAL ORGANIZATION
METHODS METHODS
1. Self assessment tools - career planning workshop
Performance 2. Individual counselling
Exposure 3.Information services
 job posting system
Networking  skills inventory
Leveraging  career ladders and career paths
 career resource center
Loyalty
4. Employee assessment programmes
Mentors and sponsors  Assessment centers
 Psychological tests
Key subordinates  Promotability forecasts
Expanding capabilities  Succession planning
over time 5.Employee development programmes
6.Career programmes for special groups
INTERNAL MOBILITY
INTERNAL MOBILITY
Internal mobility refers to the lateral or vertical movement of an employee
within an organization.

Purposes of Internal Mobility

oImprove organizational effectiveness
oImprove employee effectiveness
oAdjust to changing business operations
oEnsure discipline
PROMOTIONS
A movement to a position in which responsibilities and presumably , prestige are
increased’ - Dale Yoder.

Purpose / Objective of Promotion:

To recognize an individual’s performance and reward him for his work.
To put the employee in a position where he will be of greater value to the company.
To promote job satisfaction among the employees and give them an opportunity for
unbroken continuous service.
Promotions have a positive impact on the employees.
To build up morale , loyalty and a sense of belonging on the part of the employees.
To demonstrate effective career development plans.
To attract suitable and competent employees for the organization.
PROMOTION POLICY
A promotion system involves clear cut definitions of line of future advancement,
detailed personnel records ,specific promotion plans ,definite allocation of
responsibility for identifying promotion able individuals and a certralised co-
ordination of promotion function”. It should contain :

•It should have consistency and be co-related to the career planning

•It should be fair and impartial.
•It should be a planned activity , so that there is no phenomena of ‘bunching’ or
no period of ‘ promotional drought’.
BASE OF PROMOTION
PROMOTION CRITERIA :- SENIORITY V/S MERIT.

Seniority refers to the length of service in the company or in its plants or in its
departments or in a particular position. Under this method of promotion , the
promotion goes to the senior-most person , provided he is fit for the job.

Promotion on Merit will be given to a qualified man in recognition of his

performance .This is not based on seniority. This method is an incentive for an
individual.
TYPES OF PROMOTION:
Open promotions: An organization or a company considers all individuals
within it as a potential candidate and announces it to various aspirants
internally.

Closed promotions: An organization or company in which the candidate for

higher position opening or vacancies is restricted and not open for all the
individuals ,within the organization and also does not announce the vacancies
internally.
Multiple Chain promotions: Which provides for a systematic linkage of
each position to several others. Such promotions identify multi-promotional
opportunities through clearly defined avenues of approach.

Dry promotions :Dry promotions are those that are given in lieu of increase
in compensation.

Horizontal promotion :Promotions have similar kind of work. Ex – lower

grade to higher grade without any change in work content.

Vertical promotion : Those which change the nature of the work. Ex –

Supervisor to Manager.
TRANSFER
A transfer is a change in job assignment. It may involve a promotion or
demotion Or no change at all in status and responsibility

Organizational Reasons : Personal Reasons :

shortage of employees A change has taken place in the
interests and capacities of an individual
Incompatibilities between the worker
Relief from the monotony of a job
Correction of a wrong initial placement
Employee Health issues
Family issues
TYPES OF TRANSFERS
Production transfers – as mentioned earlier, a shortage or surplus of the labour force is common in
different departments in a plant or several plants in an organization.
Replacement transfers – replacement transfers are too intended to avoid imminent lay-offs,
especially of senior employees. A junior employee may be replaced by a senior employee to avoid
laying off the senior one.
Versatility transfers – versatility transfers are done to make employees versatile and competent in
more than one skill.
Shift transfers –Transfers between shifts are common, such transfers being made mostly on a rotation
basis. From one shift to other.
Remedial transfers – remedial transfers are effected at the request of employees and are therefore
called personal transfers.
Remedial transfers take place in instances like
 the initial placement of an employee may have been faulty
 the worker may not get along with his or her supervisor or with other workers in the department
 he or she may be getting too old to continue in his or her regular job or
 Personal Health issues
DEMOTION
Demotion means transfer to a post resulting in lower status, reduced responsibility and lower
pay. Demotion is completely opposite to promotion. In an organization, Demotion refers to
movement of employee from a higher order to immediate lower order whereby a decrease in
pay or responsibility is seen. Demotion becomes a necessity when an employees is unable to
perform his duties satisfactorily.
Causes of Demotion
Promoted wrongly.
Employee is not performing well
Employee has lost his capacity to perform
Employee is unable to adjust to any change
Consequence of disciplinary action.
Due to job elimination in organization
EMPLOYEE SEPARATION
The termination of the contract of the service is termed as employee separation. An
employee may be separated as consequence of resignation, removal, death,
permanent incapacity, discharge or retirement. The employee may also be
separated due to the expiration of an employment contract or as part of downsizing
of the workforce.
According to Yoder, separation is a negative recruitment. It may be In the form of
resignation, dismissal or discharge, suspension, retrenchment or lay-off.
REASONS FOR SEPARATION
Voluntary Separation: Involuntary Separation
•Professional reasons - Growth , •health problems- illness
Salary increment, Job Change
•permanent disabilities
•Personal reasons health crisis of
family, maternity and child-rearing, •Death
child care •Behavioural problems- disciplinary
issues
•Organizational problem - of cost
control measure, poor financial
performance of an organization
TYPES OF SEPARATION
Resignation :- When an employee tenders a resignation or simply quits her job, it's usually
called a resignation. It is simply implies a willful desire to abdicate your duties and terminate
the working relationship with whatever agency employs you.
Retirement :- is the point where a person stops employment completely. In either the period
of the term of employment is completed or the person has attain the age when the term of
employment terminated.
Discharge :- Discharge is end of service contract with mutual understanding under displinary
action
Dismissal :- is termination of service as a disciplinary action taken by management against
a delinquent (permanent in nature )
Voluntary Retirement Scheme (VRS)/ Golden Handshak :- is a scheme whereby the
employee is offered to voluntarily retire from his services before his retirement date. It is the
golden route to cut the excess flab.
Layoff :- Termination in the case of a layoff means the employment relationship ended due
to business closure or a lack of available work. Slim possibility of returning
Retrenchment :- is an act of cutting down or reduction, particularly of public expenditure
Forced lay-off of employee by a firm, usually to cut down its payroll. Here the employees
are force fully being separated from the organization. It is a business strategy.
 BASIS FOR COMPARISON LAYOFF RETRENCHMENT
Meaning Lay-off refers to the Retrenchment means
provisional termination of the involuntary separation of an
employee, at the instance of employee due to the
the employer. replacement of labor by
machines or the close of the
department.
What is it? Action step Business strategy
Defined in Section 2 (kkk) of Industrial Section 2 (oo) of Industrial
Dispute Act, 1947 Dispute Act, 1947

Nature Temporary Permanent

Operation of company Stops after the declaration. Continues even after the
declaration.
Re-appointment As soon as the lay-off period Employee's connection with the
ends. organization are severed
immediately.
PERFORMANCE APPRAISAL/
POTENTIAL APPRAISAL
 15-2

Performance Management System

It is the process of planning and appraising

performance, giving feedback and counseling to an
employee to improve his performance

Performance Appraisal
Performance appraisal is a systematic and objective way of evaluating
both work related behaviour and potential of employees. It is an
systematic , periodic an impartial rating of an employees excellence in
matter pertaining to his present job to his potentialities for better job.
15-4

Objectives / Purpose of performance

Appraisal
 Compensation decisions
 Promotion decisions
 Identifying Training and development programmes
 Feedback to the employee
 Personal growth and development
 Plan for promotions and transfer
 Career planning
 Reviews of meeting organization goal
 Overcoming weakness and improving strength
15-6

What is to be appraised?
 Behaviours, including observable physical actions,
movements
 Objectives which measure job related results
 Traits which are measured in terms of personal
characteristics

Who will appraise?

 Supervisors
 Peers
 Subordinates
 Users of services
 consultants
 Self appraisal
PERFORMANCE APPRAISAL
PROCESS
Establish performance standards

Communicate the standards

Measure actual performance

Compare actual performance with

standards and discuss the
appraisal

Take corrective action, if

necessary
15-8

The Performance Appraisal Process

1. Establish performance standards

1. These are benchmarks against which performance is measured
( KRA= KEY RESULT AREA ).
2. They should relate to the desired results of each job
3. They must be clear to both the appraiser and the appraisee.

2. Communicate the standards

The Appraiser should prepare job descriptions clearly
Help the appraisee set own goals and targets
Analyze results objectively
Offer coaching and guidance
The Appraisee should be clear about what he is doing and why he is doing
 15-10

3. Measure actual performance

Use reliable and dependable performance measures

These must be easy to use and report on critical behaviours that determine performance
These would generally include: personal observation, statistical reports, oral reports and
written reports
These may be objective or subjective
Objective measures are generally quantitative, and include quality of production, degree
of training needed, accidents in a given period, absenteeism, length of service etc. Such
measures are used for evaluating lower level jobs
Subjective measures are based on opinions of those doing evaluation and are not
verifiable by others; generally used for evaluating middle level positions.
15-11

4. Compare actual performance with standards and

discuss the appraisal

1. Not an easy job

2. Emotional factors to be taken into account
3. Affects the self esteem of the appraisee
4. Criteria likely to be questioned, if the appraisal turns out to
be negative

5. Take corrective action, if necessary

Put out the fires
Set things in order
Arrive at new goals for achieving superior performance.
 Methods of Performance Appraisal
Traditional Methods Modern Methods
1. Paired comparison
1. Assessment Center
2. Graphic Rating scales
2. Appraisal by Results or
3. Forced choice Description
method Management by
4. Forced Distribution Method Objectives
5. Checks lists 3. Behaviorally Anchored
6. Free essay method Rating scales
7. Critical Incidents 4. 360 Degree Appraisal
8. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
 Ranking employees by paired comparison Method

For the Trait “Quality of For the Trait “Creativity”

work”

Person rated Person rated

As compared to A B As compared to A B
C C
A - +
A + - + + - +
+ - +
+

- + - -
B - + B + + - -
- +
+ - + + - -
C + -
+ C + +
 Graphic or Linear Rating Scales
Attitude
0 5 10 15 20

No interest Careless: Interested in Enthusiasti Enthusiastic

In work: In-different work: c about job opinions &
consistent Instructions Accepts & advice
complainer opinions & fellow- sought by
advice of workers others
others
Decisiveness
0 5 10 15 20

Slow to Take Takes Take Take

take decisions decisions decisions in decisions
decisions after careful promptly consultation without
consideration with others consultation
whose views
he values
 Forced choice method

Criteria Rating

1.Regularity on the job Most Least

•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
 Forced distribution method

No.
of 40% 20%
employees 10% 20% 10%
poor Below average good Excellent
average

Force distribution curve

 Specimen of Staff Assessment Form [Descriptive Essay
Type]
Staff Appraisal
Name . . . . . . . Job Title . . . . . . .
Department . . . . . . . . . . . . Date of Review . . . . . . .
Age . . . . . .. . Years in present job
Section I Appraisal Of Performance
Note to Appraiser
1. Appraisal must cover the period of the preceding 12 months
2. Consideration to every function & responsibility of the job
3. An objective factual assessment of an employee’s improvement or
deterioration

Section II Promotability & Potential

Promotability
1. Promotion now
2. Within 2 years
3. Within 5 years
4. Unlikely to qualify for promotion
Section III Career Development
Section IV Notes on Interview with employee

Section V Comments on & Endorsement by Reviewing Authority

 Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers Reaction scale

A Informed the supervisor immediately 5

B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
 Field review method
Performance subordinate peers superior customer
Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^
Group appraisal method
 Assessment Center
This technique was first developed in USA and UK in 1943. An Assessment center is
a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work
samples. Assessees are requested to participate in in-basket exercises, work groups,
computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job.

The characteristics assessed in assessment center can be assertiveness, persuasive

ability, communicating ability, planning and organizational ability, self confidence,
resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc.
 MBO Process
It means management by objectives and the performance
is rated against the achievement of objectives stated by
the management. MBO process goes as under.

Process of MBO:
Set organizational goals
Defining performance target
Performance review
feedback
Behaviorally Anchored Rating Scales:

It statements of effective and ineffective behaviors

determine the points. They are said to be behaviorally
anchored. The rater is supposed to say, which behavior
describes the employee performance. Advantages – helps
overcome rating errors. Disadvantages – Suffers from
distortions inherent in most rating techniques.
 Behavioral Anchored Rating Scales
Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable suggestions for
increased sales and to have positive relationships with
customers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughout
the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the
supervisor.
Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks & roam around
purposelessly.
 360-Degree Appraisal

360-degree Appraisal is an assessment process

used to improve managerial effectiveness by
providing the manager with a more complete
assessment of their effectiveness, and their
performance and development needs.
 What the process involves
Obtaining feedback from the manager's key contacts.
These would normally include:

1. The manager him/herself

2. Subordinates (employees who work for
the manager)
3. Peers (fellow managers)
4. Managers (senior management)
5. Customers
6. Suppliers
(SELF APPRAISAL)
How to Implement 360 Degree?

Planning

Piloting
360 Degree
Review
Feedback

Feedback Implementation
 How is Feedback obtained?

By using a questionnaire which asks

participants to rate the individual
according to observed behaviors -
usually managerial or business-specific
competencies.
 Essentials of effective Appraisals

1.Determination of purpose
2.Training of Appraiser
3.establishment of standard of
performance
4.Frequency of appraisal
5.Preparation of forms
Pitfall / Rating Error in performance
Appraisal

1. Use of Abstract words

2. Halo effect
3. Central tendency
4. Leniency
5. Strictness
6. Personnel Biasness
7. Proximity
8. Regency.
15-11

JOB EVALUATION
 JOB EVALUATION
Job evaluation is a process of determining the relative worth of a job. It is a process which is
helpful even for framing compensation plans by the personnel manager. t tries to make a
systematic comparison between jobs to assess their relative worth for the purpose of
establishing a rational pay structure.

Purpose/ Objectives of job evaluation

1. Job evaluation is to find the relative worth of a job
2. Determine what a fair wage
3. Worth of a job is ascertained for achieving pay equity between jobs
4. To eliminate wage inequities.
5. To establish a rational basis for incentive and bonus schemes.
6. To minimize wage discrimination on the basis of age, sex, caste, region etc.
FEATURES OF JOB EVALUATION

It tries to assess jobs

The standards of job evaluation are relative, not absolute
It gets the basic information through job analysis
It is generally carried out by groups, not individuals
Some amount of subjectivity is always present in job evaluation
It does not fix pay scales but offers a sound basis for determining a rational
wage structure
PROCESS OF JOB EVALUATION
Gaining acceptance from employees and trade unions

Creating a job evaluation committee

Finding the jobs to be evaluated
Analyzing and preparing job descriptions
Selecting the method of job evaluation
Classifying jobs
Installing the programme
Reviewing the process periodically
BENEFITS OF JOB EVALUATION
Sound Wage Policy
Settlement of Wage Disputes
Reduction in inequalities in salary structure
 Better Control over Labour Costs
Building up of Employee Morale
Proper Placement of Personnel
Elimination of Personal Bias
Reliable in All : measuring various jobs.
JOB EVALUATION METHODS
A. Ranking method: The job ranking method arranges jobs in numerical
order on the basis of the importance of the job's duties and responsibilities
to the organization. This method, though easy to understand, is highly
subjective in nature.

B. Classification method/ Grade Method: The job classification method

slots jobs into pre established grades. Higher-rated grades demand more
responsibilities, tougher working conditions and varied job duties. This
method is easy to understand and takes care of all relevant factors affecting
the performance of a job. However, it is not easy to write all inclusive
descriptions of a grade. Further, the method oversimplifies sharp differences
between different jobs and different grades.
 C. Factor comparison method: In this method, jobs are ranked according to a
series of factors such as mental effort, physical effort, skill needed,
responsibility, supervisory responsibility, working conditions, etc. pay will be
assigned in this method by comparing the weights of the factors required for each
job.

Suppose the job of a painter is found to be similar to electrician in skill (15), fitter in mental effort (10), welder in
physical effort (12), cleaner in responsibility (6) and labourer in working conditions (4) then the wage for the job
would be 47
D. Point method: The point system of job evaluation uses a point scheme based
on the compensable job factors of skill, effort, responsibility and working
conditions. The more compensable factors a job possesses, the more points are
assigned to it. Jobs with higher accumulated points are considered more
valuable to the organization.
Process:
 Select key jobs
 Identify the factors to all identified jobs such as skill, effort, responsibility etc.
 Divide each major factor into a number of sub factors. Each sub factor is
defined and expressed in order of importance.
 Find the maximum number of points assigned to each job
 Once the worth of a job in terms of total points is known, the points are
converted into money values, keeping the wage rates in mind.
A COMPARATIVE PICTURE OF MAJOR JOB
EVALUATION METHODS