This is to certify that (Name) PREETAM KOTHARI

student of S.Y BMS (Roll No) from College has done his 4th
semester project in PRODUCTIVITY & QUALITY MANAGEMENT.

The project work entitled JOB EVALUATION.

Embodies the original work done by PREETAM KOTHARI during the 4 th
semester project period.

Teacher-in-charge Head of Department

 ACKNOWLEDGEMENT

It’s great opportunity to acknowledge the Prof. .

He is the one who provided me continues source of information under
his great guidelines and support. I had tried to make the project
possible and desirable as he needed.

I am thankful to all of them for guiding me in correct way

to make my project comparitable.

INTRODUCTION
 Job evaluation is a formal process for determining
the relative value of jobs based on job content, with emphasis on such
factors as skill, effort, responsibility and working conditions. Job
evaluation may contrast with or complement market pricing, which
uses the labor market to set the worth of jobs. A key benefit of market
pricing is its emphasis on external competitiveness; however, a big
drawback is insufficient and/or unreliable market data for all the jobs in
the organization. Accordingly, job evaluation in some formeven a
simple one, such as slottingis needed to supplement a market pricing
approach to the valuation of work. A key benefit of job content
evaluation is internal consistency. Another is utilityall jobs can be
evaluated based on content. Organizations use job evaluation to:

 Ensure compliance with legal requirements, including federal laws

and regulations on equal pay and state/provincial or local ordinances
on comparable worth.
 Establish a rational, consistent job structure based on value to the
organization in terms of each job's complexity, importance and/or
other factors (with or without reference to market valuation).
 Help provide a basis for pay-for-performance.
 Assist in establishing pay rates and structures that are
competitive.
Contrary to popular belief, some job evaluation systems are intrinsically
linked to or validated by the market. However, market sensitivity is
sometimes a problem with job evaluation. Solutions include pay setting
flexibility for new hires and special pay programs, often called "market
rates" or "special rates."

The market and content approaches to the valuation of work both

require work analysis. Work analysis for the market pricing approach is
relatively quick and elementary. Work analysis in the content
evaluation approach takes longer and is more involved in most cases. In
the job content evaluation approach to valuing work, the evaluator
determines the relative value of job content by applying a job
evaluation system. The process for evaluating each job may be very
complex and time-consuming (for example, rating the job on 187 items
of the Position Analysis Questionnaire, PAQ), moderately complex
(assessing job elements against evaluation factors using the Factor
Evaluation System, FES, or one of its many clones) or very simple
(ranking one whole job against another). Likewise, the job evaluation
system itself may be technically complex and hard to explain (factor
analysis used to empirically derive the job dimensions and standard
equation no. 2 of the PAQ), moderately complex (regression analysis
used to weight factors in the FES or other point-factor systems) or very
simple (using the paired comparison technique to rank-order the
benchmarks against which all other jobs in the organization are
slotted).
Definition
Job evaluation is the process of systematically determining a relative
internal value of a job in an organization. In all cases the idea is to
evaluate the job, not the person doing it. Job evaluation is the process
of determining the worth of one job in relation to that of the other jobs
in a company so that a fair and equitable wage and salary system can
be established.

Aim and objectives

Job evaluation is used to assess perfectly the importance of each job
1. Decide the weightages of the job.
2. Decide the relative pay scale on the basis of point of weightages.
3. Decide the placement and the department to work.

Human resource department conducts job evaluation in order to

establish the levels or grade . Employees should submit a job
description so that human resources can assign the appropriate
level or grade . The job evaluation process should be conducted
for either a position that is newly created or for one that
currently exists . once a new or revised job description is
submitted to human resources , wages can be decided . In
addition to determining a level or grade at the time of evaluation
the position tittle job code and exempt/non exempt status are
determined .
Steps in job evaluation
The standard steps in job evaluation include:

 Introduce the concept of job evaluation.

 Obtain management approval for the evaluation.
 Train the job evaluation selection team.
 Review and select the job evaluation method.
 Gather information on all internal jobs.
 Use information to fully expand job descriptions.
 Use the selected job evaluation method to rank jobs
hierarchically or in groups.
 Link the ranked jobs with your compensation system or develop
a new system.
 Implement the job evaluation and compensation systems.
 Periodically review your job evaluation system and the resulting
compensation decisions.
Principles of Job evaluation
Job evaluation is not scientific – it cannot be since there
is no way of scientifically measuring jobs. It is therefore a process of
judgment. The ‘correctness’ of the results it provides can only be
assessed in terms of their acceptability to the vast majority of people to
whom they apply.
The key to such success lies in guiding the judgment
made about jobs within a process which is systematic and minimizes
the subjectivity of the results, ensuring they are as objectives and
justifiable as possible. To do this there are certain requirements which
must be met :

o An understanding of the job must be achieved.

Judgments must be made about the size of each job.
o Common criteria are needed to assess the job content.
o A common scale of measurement is required against which to
make judgments.
o Cross-checks are needed to ensure that the judgments are sound.
Job Evaluation policy
Job evaluation is the process of creating a hierarchy that establishes the
worth of each job to the organization and typically is based on the job's
content (such as the skills needed, job duties, and working conditions)
or its external market value and not on the abilities of the individual
performing the job. Thus, a job evaluation is not the same as setting pay
rates or measuring an employee's performance. 

Job classification
Job classification can be at the whole job or factor level. Each
factor (or the whole job) is a single question that has very
clearly defined levels. Compared to an equivalent PFA scheme
classification, it has fewer but more complex questions
requiring more job analysis from whoever is answering the
questionnaire.
The modern trend appears to be away from complex PFA
schemes towards factor classification methods. This puts more
responsibility in the hands of whoever is doing the evaluation.

Implement job evaluation

The concept of job evaluation often can be intimidating to employees in
an established organization. Employees might worry about losing their
jobs, and pay might be decreased after job comparisons and
evaluations are completed. To help employees accept and understand
your job evaluation system, approach job evaluation from an
organizational development perspective.

Create a team:-
To promote widespread support, understanding, and acceptance across
your organization, create a cross-functional team to work on job
evaluation. The team should represent various levels and jobs within
your organization

Select the job evaluation method:-

The team can work together to evaluate and select a job evaluation
method. Train team members in the requirements of the Fair Labor
Standards Act and any other best practices for selecting a job
evaluation method for your organization.

Communicate with employees:-

During the implementation of job evaluation, regularly communicate
with employees throughout the process. This helps employees feel a
sense of ownership from the results of the job evaluation results.