JOB EVALUATION

Job Evaluation
Job evaluation is a way of breaking down a job into
measurable parts, so each part of a job can be given a
points value. To do this, job evaluation looks at all aspects
of the job. Job evaluation is about the job and not the
person doing the job.

Process of systematically determining the relative worth

of jobs to create a job structure for the organization.
Depending upon the characteristics and requirements of
a job. These relative values of jobs assist in deciding wage
rate and salaries for different jobs.
 Strategic
Job Analysis Job evaluation Reward
HR Plan
objective structure

Work relationships within the

organization
Some Major Decisions in Job Evaluation
• determine
determine overall
overall strategy
strategy && objectives
objectives
• to
to get
get right people with right skill in the right place
at
at the
the right
right time.
time.
• getting information about job.
• Obtain
Obtain involvement of relevant
relevant stakeholders
stakeholders
• Evaluate
Evaluate plan’s
plan’s usefulness
usefulness
Job Evaluation Methods
Job Ranking
The different jobs, depending upon their requirements,
responsibilities involved and their importance to the
organization ere ranked, graded or placed from top to
bottom.
Job Classification
Jobs are classified or graded in groups or levels of equal skill,
difficulty, responsibility, importance and requirements.
Classes or grades are defined to describe a group of jobs.
Point Method
Each job is divided into a number of factors which are
further divided into grades or degrees. Each degree is
awarded certan points, these points are totaled and then
they indicate the importance of job.
Factor Comparison
This method depend upon five factors .
Skill (the experience, training, ability, and education )
Mental or Physical effort (the measurement of the
physical or mental exertion needed for performance)
Responsibility (the extent to which an employer depends
on the employee to perform the job as expected, with
emphasis on the importance of job obligation)
Working condition (hazards, dust, smoke, noise,
temperature etc)
Comparison of Job Evaluation Methods
Advantage Disadvantage
Ranking Fast, simple, easy to Not very accurate , not
explain, suitable for useful for large org.,least
small org, not expensive. used method

Classification Can group a wide range Not useful for large org,
of work together in one time consuming, not
system, simple, more involved detailed job
accurate than raking analysis.
method.
Point Compensable factors call Can become
out basis for bureaucratic and rule-
comparisons. bound.
Compensable factors
communicate what is
valued.
Comparison of Job Evaluation Methods
Advantage Disadvantage
Factor comparison Finds wages for a job, Expensive, time
method wages can be calculated consuming,
speedily, greater
consistency in the
judgment, size of jobs
can be measured.
 Summary
The differences in the rates paid for different jobs and skills
affect the ability of managers to achieve their business
objectives.
Differences in pay matter. Differences in the rates paid for
different jobs and skills also influences how fairly employees
believe they are being treated. Unfair treatment is ultimately
counterproductive.
Job evaluation has evolved into many different forms and
methods. Consequently, wide variations exist in its use and
how it is perceived.
No matter how job evaluation is designed, its ultimate use is to
help design and manage work-related, business-focused, and
agreed-upon pay structure.