Job Evaluation

Table of Contents Acknowledgement Executive Summary Outline the merits and limitations of Crop Banks proposed reward system for the managers and staff. Develop an alternative reward system for bank employees and explain why it is superior to the proposed reward system Conclusions Crop Bank has become a most strategic Bank in the field. It has faced a strong competition from both Government sector and local private and foreign banks. To face these challenges Crop Bank always has to introduce new technology, new financial products and new reward system to their employees and to their customers.The reward system is mainly concern thing within the Corp. Bank. Reward system for the Manager mainly based on the Customer satisfaction and leadership qualities. For the staff the reward system is based on customer satisfaction. These categories evaluated within three criteria. Within the Board meeting Bank CEO accept this rewarding system. Within this case study we have to find; 1. Outlining of Merits and Limitation of Crop Banks propose rewarding system for the manager and staff 2. Develop an alternative reward system for Crop Banks employees and explain why it is superior to the proposed reward system 1 .Outline the merits and limitations of Crop Banks proposed reward system for the managers and staff. Job Evaluation Methods: The essence of compensation administration is Job evaluation and the establishment of the pay structure. By Job evaluation we mean using the information in Job analysis to systematically determine the value of each Job in relation to all Jobs with in the organization. In short, Job evaluation seeks to rank all the Jobs in the organization and place them in a hierarchy that will reflect the relative worth of each. We must first understand what are the Merits and Limitations within the Crop Banks' current Nanking method.Merits 1 . It is a simple method; current ranking method is a simple one. It only based on â€Å"How much was the customer is satis fied†. So as we can see it is the easiest way of ranking. And the ranking method limits to only three categories they are â€Å"1 . Not meeting customer expectation, 2. Meeting Customer expectation, 3. Far Exceeding Customer expectation†. This is a simplest method on ranking. 2. This current ranking method is a low cost method; as we can see this is a simple ranking system, because of that this cost a low budget. 3. The current rating system can be used in service based organization.In the banking sector such as Corp. Bank they provide a service as for this current ranking method is based on customer service it can be a lot of help to a serviced based organization such as Banks. 4. Ranking method that is currently using by Corp. Bank can be use daily basis because it mainly concern about the Customer satisfaction. Limitations As we can see the Merits within the current reward system there are also Limitation within this. 1. Can't clearly measure the categories; the rewa rding system clearly based on the Customer Satisfaction. And it is only rated by â€Å"1 . Not meeting customer expectation, 2. Meeting Customer expectation, 3.Far Exceeding Customer expectation†. There is no guideline how to evaluate. This is a limitation occurred in current reward system in Corp. Bank. 2. As the above mention rewarding system is clearly based on customer satisfaction. From this we are facing a problem â€Å"Only Customer Satisfaction is enough? † As a developing Bank it is a limitation that Corp. Bank is only concern about the Customer satisfaction when there are more facts that should taken for ranking 3. When concentrating about the Customer Satisfaction factor we are clearly facing a halogen, how can we identify the customer satisfaction because Human is dynamic creature.Some Customers can be satisfied and some customers can never be satisfied because there needs and wants are clearly different. As Abraham Moscow has described there are different needs and want and there are different motivators. As we can see Human can not be easily satisfied. 4. Managers can not always control their subordinates. This is another limitation in the current ranking method in Crop Bank. Managers will not be able to control their subordinates; subordinates will always use their personal feelings within the aerospace. Managers can't always control this.Reward system only concerns about the customer satisfaction this because of the subordinates work Managers may have to pay the price. 5. The current reward system of the Crop Bank will not effect to the entire bank. Customer satisfaction will be only effect to the front office where the customers usually go. But when it comes to the back office customer satisfaction is not enough. For an example Accountants Job can't be evaluated from Customer satisfaction. So as we can see current rewarding system is not enough to evaluate the entire banking industries. 6.In the case study it is clearly mention f rom this reward system only the salary of the employees will go up. But not all people will get motivate from financial benefits. According to Herbage's theory everyone is not motivated by Money. 2. Develop an alternative reward system for bank employees and explain why it is superior to the proposed reward system There are four main Job Ranking Methods. We must first identify what is the most suitable ranking method for the Crop Bank. A. Ranking method: Raters examine the description of each Job being evaluated and arrange the Jobs in order according to their value to the company.This method requires a committee, typically composed of both management and employee representative to arrange Job in a simple rank order from highest to lowest. No attempts are made to break down the Jobs by specific weighted criteria. The committee members merely compare two jobs and Judge which one is more important, or more difficult to perform. Then they compare the other Job with the first two, and s o on until all the Jobs have been evaluated and ranked. The most obvious limitation to the ranking method is its sheer inability to be managed when there are a large number of Jobs.Other drawbacks to be considered are the subjectivity of the method- there are no definite or consistent standards by which to Justify the rankings- and the fact that because Jobs are only ranked in terms of order, we have no knowledge of the distance between the ranks. B. Classification method: A Job evaluation method by which a number of classes or grades are defined to describe a group of Jobs is known as Classification method. The classifications are created by identifying some common denominator skills, knowledge, responsibilities tit the desired goal being the criterion of a number of distinct classes or grades of jobs.Once the classifications are established, they are ranked in an overall order of importance according to the criteria chosen, and each Job is placed in its appropriate classification. This later action is generally done by comparing each position's Job description against the classification description and benchmark Jobs. The classification method shares most of the disadvantages of the ranking approach, plus the difficulty of writing classification descriptions, Judging which Jobs go where, and leaning with Jobs that appear to fall into more than one classification. . Factor comparison method: Raters need not keep the entire Job in mind as they evaluate; instead, they make decisions on separate aspects, or factors, of the Job. A basic underlying assumption is that there are five universal Job factors: (1) Mental Requirements, (2) Skills, (3) Physical Requirements, (4) Responsibilities, and (5) Working Conditions. The committee first rank each of the selected benchmark Jobs on the relative degree of difficulty for each of the five factors.Then, the committee allocates the total pay rates or each Job to each factor based on the importance of the respective factor to the job. A Job comparison scale, reflecting rankings and money allocations, is developed next. The raters compare each Job, factor by factor, with those appearing on the Job comparison scale. Then, they place the Jobs on the chart in an appropriate position. D. Point method: Raters assign numerical values to specific Job components, and the sum of these values provides a quantitative assessment of a Job's relative worth.The point method requires selection of Job factors according to the nature of the specific group of Jobs Ewing evaluated. After determining the group of Jobs to be studied, analysts conduct job analysis and write Job descriptions. Next, the analysts select and define the factors to be used in measuring Job value and which become the standards used for the evaluation of Jobs. Education, experience, Job knowledge, mental effort, physical effort, responsibility, and working conditions are examples of factors typically used.The committee establishes factor weights ac cording to their relative importance in the Jobs being evaluated, and then determines the total number of points to be used in the plan. A distribution of the point values to Job factor degrees is made, with the next step being the preparation of a Job evaluation manual. Point Rating method will be the most effective way for the Corp. Bank. It can be identify step by step. Determine the cluster of Jobs to be evaluated First we have to identify what are the Job categories in the bank.We can identify there are two categories in the bank as Front Office and the Back Office. Corp. Bank Front Office -Manager (Chief Manager) -Personal Banking Officer -Customer Service Manager -Executive Officer -Tellers Collect the Job Information Back Office -Operation Managers -Banking Assistant -Clerk Identify a clear knowledge about Job. We can prepare Job Analysis to identify about the Job. Now we can briefly identify Duties and Responsibilities about above mention job categories. Front Office:- Cust omer Handling. Opening Accounts, Updating and Issuing Pass books. Collecting cheeses and Drafts.Cash and Queue withdrawal. NRC Accounts handling Back Office:- Issuing Loans Issuing Credit Cards Loan Recoveries Other clerical works As we can see these two Job categories plays different roles within the same bank. Be equity towards both parties we have to identify Compensable factors that can evaluate both parties equally and fairly. Selecting Main Compensable factors and Sub Compensable factors To identify the value of the Job, we must select some main compensable factors that are common for every Job within the Crop Bank such as Skills, Effort, and Responsibilities.After identifying these main factors, we must identifying sub compensable factors that elaborate use of the main factors. Showing below is a model for the Crop Bank reward system Skills Education Training Experience Effort Mental Physical Complexity of Duties and Responsibility Job Condition bib Diseases, Stress) bib Dise ases are the ones occurred from the current Job for an example employee who daily working with the computers gradually have a bad eyesight. ) Dividing Grades After we have identified main and sub Compensable factors.We have to identify the Grades. From Job to Job above mention factors may defer, for an example: – Under Skills there is a factor called Education. Education can be divided several grades according to the Jobs within the bank Grade 1 Passed Advance Level Grade 2:- Diploma Holder Grade 3:- Degree from a recognized University or equal qualification Grade 4:- Post Graduate Degree holder As we can see to establish an effective Job evaluation system several grades must be issued.In the Crop Bank we can categories to 4 grades according to Jobs within the bank Grade 1 Tellers Clerk Banking Assistant Grade 2:- Personal Banking Officers Executive Officers Grade 3:- Grade 4:- Customer Service Manager Manager (Chief Manager) Valuing According to Grades Factor Degree and Poin ts 2nd 3rd 4th Education Skills 20 35 50 2 3 15 45 4 Mental Effort 10 30 5 Physical Effort Duties/Responsibilities 7 Job Condition Total 200 300 Preparing a Guide book to Evaluate Points There should be a Guide Book to instruct the evaluator.The guide book should contain details about Compensable factors and guidelines about how to evaluate the employees properly. This should help the evaluator to do his duty properly. Evaluation Finally the Job should be evaluated properly and the points should be afforded according to the Guide book. Below is the model example sheet Evaluation Sheet Name of the Job -? Date: / Details Marks Total(Total Value of the Job)