Every penny spent in the organization is reflected on its profitability. A wrong move by the organization can lap up a significant portion of its revenue. So the need and significance of each and every action that occurs in the organization must be assessed to have a positive turnout on its profitability. Work measurement and job evaluation are, therefore, inevitable for any operation.

Work Measurement

Work measurement is the assessment of the time estimates required for the performance of a job by a person under normal circumstances (i.e. to make a work product of quality). The main objective of work measurement is to find the time taken for completing a job. For time estimation, the job is broken down into smaller tasks or elements, followed by an analysis that takes into account minimum manpower, and available technology. A motion study to determine the best way of performing a task from among the various alternatives is to be conducted. Time estimate must be made on the “average” manpower skills, adding provision for “idle time” spent for personal requirements. The estimated time on various elements are added up to get the actual time for a job.

Work measurement is a useful tool in manpower planning. It also lays the foundation for employee incentive scheme where the efficiency is determined by the number of hours put in. It also provides the necessary data for budgeting the manpower requirements and labour cost. A time frame for an activity increases productivity as the motivation to complete the task in the limited timeframe is more. Overtime and idle time, and reasons for the same are drawn into the attention of the management when time frames are calculated.

Job Evaluation

Job evaluation provides a systematic technique for determining the worth of a job. Job evaluation is generally followed by job analysis which makes a study of the nature of task, the qualification of the manpower, the training to enhance the skills etc. On the basis of the job analysis, the grading of the job on the basis of money value is done on the basis of job evaluation. The company strategy can be drafted on the basis of each task contribution towards overall objective.

Working down from the overall objectives of an organization, it is customary that the business units derive its objectives, from which the teams and individuals derive theirs. Measurement criteria are then derived for each objective. The measurement criteria should be objective and measurable. An individual is thus measured for each objective against by a set of measurement criteria. Job evaluation is a process during which the work done by an individual is rated as per the objectives defined. Normally, a three step rating viz. Above Plan, On Plan and Improvement Required, is common in the industry. Thus a well defined objective is the first step to a successful job evaluation.

It is also a well established practice, where each individual justifies how the work done by her helps in achieving her individual objectives. The supervisor then comments and rates the individual on her objectives. This is the basic premise of an appraisal review. The appraisal review details are then discussed with the individual. Such a job evaluation mechanism captures, the employee’s point of view, the supervisor’s comment and the organizational objectives at large. It also helps in identifying critical improvement areas for an individual. A well implemented job evaluation mechanism thus contributes to develop a successful organization.