Grids enhance computation speed and data storage. Scheduling algorithms at the operating system level do not consider the fairness factor. We propose that a fairness algorithm should be used for scheduling and we also propose an algorithm for effective scheduling of jobs by the local scheduler. It is ideal to use algorithms like weighted round robin, weighted fair queuing or virtual time round robin to achieve proportional fairness. The algorithm that we have developed is based on the service time error. We maintain a good rate of accuracy and low overhead. © 2007 IEEE.