Method of ranking - what is it?

Any business needs to constantly track the accuracy and efficiency of the adopted system of payment and correct the situation if necessary. If the situation requires the development of new schemes, it must meet the goals and objectives of the organization, its specific needs. Along with this we should not forget about the needs of staff, ensuring a fair distribution of rewards among employees.

Features selection

Until recently, it was assumed that the company is sufficient to use a single payment scheme. Developed a universal system that takes into account the capabilities and needs of the enterprise. For example, a company could choose a scheme with additional benefits. Currently, the leadership of most organizations came to the conclusion that it is necessary to use a system depending on the conditions in which the firm operates. This should take into account the specifics of the manufactured products, provided services or performed works. Equally important is the nature of the production. In particular, we are talking about the necessary skills, technologies, automation, the duration of the technological cycle and so on. Counts and characteristics of the workforce: age, stability of personnel, turnover, absenteeism, etc. in addition, the choice of the system of payment is influenced by other factors: the state of the labor market, the specificity of the relations in the team.

Justice charge

One of the key functions of an enterprise or industry is the determination of the ratio between performed work and received for it a reward. Most of the staff compare their salary with that you get others, particularly colleagues. For many workers a differentiated system is acceptable. However, the desire for equitable distribution of funds requires that the difference between the obtained amounts were regulated openly. For realization of this task was produced by a special expert methods of differentiation. Let's consider them in detail.

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Expert methods: General characteristics

There are different approaches to differentiation and the justification of differences of wages. All of them are divided into 4 major categories. The first consists of methods of assessment. They form a more systematic approach to the problem. Other options are developed individually for each specific case. They are referred to as specialized. These approaches are based on local acts. In the analysis in such cases are primarily investigated the amount of funds allocated for the performance of a particular professional activity. Then build a differentiated payment scheme. It can satisfy the employees or does not meet their needs. In practice often there is a second situation. She is accompanied by constant disputes and claims from employees to the management.

Evaluation objects by a method of ranking

It involves the formation of a model of differentiation operations. Payment for a particular action is installed after approval. This approach is closely linked to the content of the activity. When using it, evaluates the quality of completed transactions. If this is not taken into account neither the executor nor the external factors of the market. Quality assessment should be based on objective analysis of activities. The starting point of the research is associated with those activities, the payment of which is considered by all parties to the relationship is fair, which have certain similarities with other categories to allow comparison.

The easiest option

It is the method of direct ranking. Simple it is because the analysis effected by the allocation of types of activities, depending on the value they have for the enterprise. A method of ranking – is a way to map the contents of an operation process taken for the original. As a result of analysis activity is related to the appropriate position. Often the comparison of two objects is carried out according to job descriptions. While not being a deep analysis of the content of operations. A method of ranking – is a way which is appropriate to apply in small companies. In such enterprises, as a rule, runs a bit different operations. In large companies, this approach may be completely useless. In such firms are usually carried out different activities with different content. These companies use the method of qualitative ordering. The assignment of transactions to one category or another in such cases shall be in accordance with the approved scheme. This is especially true when installing a large number of individual levels and rates of payment are totally unacceptable.

Pros and cons of the approach

A Method of ranking – is one of the schemes that could be introduced very quickly in the practice of the enterprise. His undoubted advantage is economical to use. Along with this analysis can be made on the basis of incomplete data and without consideration of the number of standards. Often there is an inadequate level of skills and lack of knowledge among professionals who use a method of ranking. Thisturn, points to the superficial nature of the analysis and can lead to graduation not so many activities, how many of them are performers.

Alternative option

It is the classification method. This method is widely used in the determination of salaries of employees in institutions of differentiation of the skills of the manufacturing industry. In contrast to the above, this option involves establishing a structure of levels and the appropriate fee to perform a thorough research of those or other operations. The number of levels in this strictly defined set of functions. Accordingly, clear and payouts for each position. The classification method involves the preparation of descriptions of gradations so that they were reflected by significant differences in duties, skills, requirements for professional activities.

Forming a table

The Types of activities that are performed according to simple instructions with constant monitoring are at the lower position. Each stage reflects a higher level of responsibilities, skills, requirements and so on. Along with this reduced degree of control. All activities are not split into components. It is regarded as one. Grouping objects is as follows.

Advantages and disadvantages

The method Discussed above is also considered a relatively simple, easily applicable and inexpensive. However, despite the fact that the results obtained in the course of analysis, can completely satisfy the stakeholders, the amount of compensation for a particular activity can be depending on the existing rates. From shortcomings it should also be noted the greater complexity of descriptions of the steps. It can be a real problem for large enterprises. Difficulties often arise with the direct attribution of one or another operation at a particular position. Often this is extremely problematic, since several activities may be similar characteristics. The analysis is not always sufficiently detailed for proper classification.

Settlement factors

The First task in applying this method lies in the clear description of the characteristics that will be used in the analysis. Usually they are the education requirements, training, physical including conditions of work, and responsibility, the presence of certain skills. Depending on the specifics of the company list may shrink or expand. For analysis are selected certain types of transactions, which will act as a key. They are made regarding job descriptions. Respectively, and are assigned rates for each activity. The peculiarity of this method is to use existing tariffs on key operations to determine a few fixed points on the scale for the indicators, which are identified in the analysis process. The selected activities should have significant differences. They need to describe in detail. A number of key activities must be sufficient to commit the required number of reference points for mapping all operations, from the simplest to the most complex. Further work is allocated according to their importance in accordance with the selected factors. Likewise, set payment for certain traits in key operations. Quantitative indicators used is prorated factors. For example, the activities of toolmaker conventionally characterized by 20 units. Accordingly, they can be grouped into the following quantitative indicators:

1. The ability and skills – 9.
2. For the required level of knowledge – 5.
3. Physical requirements – 2.
4. For working conditions – 1.
5. Responsible – 3.

Nextcompares the results of the distribution activities for the payment and factors. Emerging inconsistencies can be corrected by adjustment of rates or content operations. If it do not possible, then the selected type of work cannot be considered to be the key. At the last stage of all types of activities can be arranged on a scale according to their ratio with the basic operations on the content. Each factor will be explored separately, not yet formed new levels of remuneration for all work in the enterprise. The essence of this method lies in the fact that the tariffs on key types of operations are considered as final and correct. Other activities are distributed according to each characteristic and adjusted according to the main scale.

The Positive and negative aspects

The primary advantage of the above-mentioned methods, it should be noted the fact that taken into account the factors that determine the relative value of different types of operations. This method allows to build the underlying scale, which is expressed in monetary units. It can be assessed and non-key work. This approach is considered more flexible and precise than the previous two. However, for the implementation and subsequent application of this method requires more time. In addition, it is problematic to explain to employees. Using this method, over time, there may be some unfairness in payments. It is caused by the inadequacy of the existing rates or approaches, under which considers the importance of varying activities for the company. It is also worth noting that, despite the clear scientific method, the proportional ranking of payment according to different factors is still arbitrary. In this regard, at present this method is not as popular as others.

Point distribution

The Method of determining the rating is based on the assumption that there are characteristics common to all types of operations. This method can contain a different number of factors – from 3 to 40. In one of the most common schemes used today the following rating:

1. Effort.
2. Skills.
3. Conditions.
4. Responsibility.

They, in turn, can be divided into 10-15 pdfaction. Requirements that apply to them subsequently, can differentiate into several levels. The number of points assigned to each factor may be different. This is due to the use of a weighted scoring of the distribution. The method of direct ranking, implies the same assignment of values to each factor.

Analysis

To determine the rank of the object, you must:

1. Select the factors that will be considered common to all types of operations.
2. To Determine the number of levels for each attribute in the type mapping activities.
3. Calculate the specific weight for each factor.
4. Determine the value of each attribute, or level, in points.

After this, the development of job descriptions for each activity. As a rule, they are made in accordance with the results of systematic analyses of operations. Different works are evaluated according to the instructions, as well as aggregate factors of each of them or all activities under the first criterion, then the second and so on. Typically, you use the second option because it facilitates the analysis of the relative values of the operations.

The Pros and cons of point distribution

The Main advantage of this method is that with it only counted the points, but not the amount of payment. In this context, its use does not significantly affect the current rates, unlike the previous three approaches. Point ranking method is considered more objective because it is based on the information about each type of operation obtained from the analysis. This allows you to give better clarification on issues about the reliability of the data. Along with this, in this embodiment, contains a large amount of subjective and arbitrary components. In particular, they appear when:

1. The types and the number of levels and factors to be used in the evaluation.
2. The Distribution specific weights or points on the grounds.

In practice, very difficult to make decisions on these items. In these situations almost always manifested a subjective assessment, because objective signs are absent. Accordingly, as a result, the significance of some of the operations may be exaggerated. To use this method, you need to have technical skills. This approach is not as flexible as the previous one. When using it difficult to take into account changes in General economic conditions and other factors. Point ranking method referring to specialists when indicated that the analysis of the activities, in fact, serves as a statistical operation, and must be adapted to the dynamic situation. Meanwhile, the performance evaluation can be used to collect information about changes in the substance of the transaction and translate them into values.

Conclusion

Needless to say, all methods, regardless of complexity and scientific validity, basedfirst of all, on arbitrary decisions and subjective criteria. They all largely depend on the current balance of different types of professional activities. In many situations the only way to prevent problems and conflicts associated with the injustice of payments, is an evaluation of the work. However, the results of this analysis cannot be considered as indisputable and absolutely correct. It may be advisable in practice to periodically assess, regularly review the factors and levels to make the new scale, to determine the importance of a particular activity, if it will help to reduce tension.