PANIPAT INSTITUTE OF ENGINEERING AND

TECHNOLOGY

JOB EVALUATION

Submitted to:
Ms. Sonu Kumari Submitted By:
Assistant Professor Sneha Jindal 230223(C)
Department of Management Studies Anshika 230224(C)
Khushboo 230227(C)
JOB EVALUATION
Job Evaluation refers to a formal and systematic comparison of
jobs to determine the worth of one job relative to another within an
organisation.
It not only helps in establishing a fair and equitable pay structure
but also the organisation is able to create a market competitive
pay plan.
DIFFERENT FROM PERFORMACE APPRAISAL
JOB EVALUATION PERFORMANCE APPRAISAL

1. It finds the relative worth of a 1. It finds the worth of Job

Job. holder.

2. It's aim is to determine the 2. It's aim is to determine

wage rate of different jobs. the incentives and rewards for
superior performance.

3. A job is rated before the 3. Evaluation takes place after the

appointment of employee. appointment of the employee.
 OBJECTIVES OF JOB EVALUATION
1. To ensure FAIRNESS.
2. To make an EQUITABLE environment.
3. To ATTRACT and RETAIN talent.
4. To MOTIVATE and ENGAGE the employees.
5. To compliance with LABOUR LAWS.
COMPONENTS OF JOB EVALUATION
1. JOB ANALYSIS
2. EVALUATION CRITERIA
3. EVALUATION METHOD
1. JOB ANALYSIS
The procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for it.

• It includes TWO parts:-

A. JOB DESCRIPTION: It is a list which includes
the job’s duties, responsibilities,
reporting relationships etc.
B. JOB SPECIFICATIONS: It is a list which includes
human requirements, their education, skills,
personality etc.
Job Analysis Importance in process of Job
Evaluation
1. Give detailed understanding of Job’s position.
2. Easily comparable with other’s job which helps in deciding their
relative worth.
3. Reduces the influence of Personal Biasness.
4. Helps in giving Fair Compensation.
5. It acts as a evidence of compensation plan so the organisation
doesn’t face any legal challenges.
2. JOB Evaluation Criteria
1. Skill requirements.
2. Complexity of tasks.
3. Decision-Making Authority.
4. Accountability.
5. Mental and Physical Efforts.
6. Working Conditions.
Job criteria Importance in Job Evaluation
Process
1. Set the Standard clearly.
2. It promotes the Fairness in the organisation.
3. It encourages Transparency within the organisation.
4. It helps in Decision –Making.
5. It provides Documentation to support legal compliances.
3. JOB EVALUATION METHODS
• It Categorized into Two categories:-

• A. ANALYTICAL METHODS
• 1. POINT-RANKING METHOD
• 2. FACTOR COMPARISON METHOD
• B. NON- ANALYTICAL METHODS
• 1. RANKING METHOD
• 2. JOB- GRADING METHOD
A. ANALYTICAL METHODS
• It involves breaking down of jobs into factors and assign scores to
each factor and determine the relative worth of the job.
• It is more structured and quantitative in nature.

1. POINT FACTOR METHOD:

The point ranking method assigns numerical values or points to
various factors such as skill, effort, responsibility, and working
conditions associated with a job. Each job is evaluated based on
these factors , and the total points determine job’s relative worth.
Advantages

• It provides a systematic and structured approach to evaluating

jobs.
• It allows for the comparison of jobs across different departments or
organisations by using standardised criteria.
• It helps establishing clear differentials in pay based on the related
importance of job factors.

Disadvantages

• It is a time consuming as it requires extensive planning and

coordination to develop and maintain the point system.
• Subjectivity can influence the weighting of factors and assignment
of points.
2. FACTOR COMPARISON METHOD:

In this method, key job factors such as skill ,effort ,responsibility,

and working conditions are identified and ranked in terms of
importance .A monitory value is assigned to each factor, and
these factors are compared across different jobs to determine
their relative worth.
Advantages

• It provides a more detailed evaluation by directly comparing jobs based

on key factors.
• It allows for greater flexibility in considering various job aspects and
assigning weights to them.
• It can accommodate a wide range of job types and organisational
structures.

Disadvantages

• Relies Heavily on the judgement and expertise of evaluators which can

introduce bias.
• It is a time consuming and resource intensive to implement, especially
for large organisations with numerous job roles.
B. NON-ANALYTICAL METHODS
Non -analytical methods use a more qualitative and holistic
approach to group and rank jobs based on their overall similarity or
difference such as job titles ,descriptions, or classifications.

1.RANKING METHOD :
The ranking method involves simply ranking jobs based on their overall
worth or value to the organisation. Jobs are typically ranked from
highest to lowest or vice versa ,based on factors such as skills,
requirements, responsibilities ,and complexity.
Advantages

• It is a straightforward and intuitive method that is easy

to understand and implement.
• It can be quickly applied in smaller organisations or where job rules are
relatively few and distinct.
• It provides a clear hierarchy of jobs within the organisation, making it
easier to communicate to employees.

Disadvantages

• Ranking jobs does not provide detailed information about specific job
factors or components.
• It may be challenging to rank job accurately in large organisations with
numerous job roles.
2. JOB- GRADING METHOD:

The job grading method involves categorising

jobs into predetermined levels based on predetermined
criteria such as skill, responsibility and experience required. Each
grade or level typically corresponds to a specific salary range or
pay scale.
Advantages

• It provides a structured framework for grouping jobs with similar

characters and assigning them to appropriate pay grades.
• It helps in maintaining internal equity in compensation.
• Often used in public sector organisation or civil services.

Disadvantages

• Job grading system may be inflexible and may not account for
variations in job duties and responsibilities within the same grade.
• Employees may feel demotivated if they perceive their grade does not
accurately reflect their contribution and responsibilities.
PROCESS OF JOB EVALUATION
1. GAINING ACCEPTANCE.
2. CREATING JOB EVALUATION COMMITTEE.
3. FINDING THE JOBS TO BE EVALUATED.
4. JOB ANALYSIS.
5. SELECTING THE METHOS OF EVALUATION.
6. CLASSIFYING JOBS.
7. COMMUNICATION AND INSTALLING THE
PROGRAMME.
9. REVIEWING PERIODICALLY.
SIGNIFICANCE OF JOB EVALUATION
1.Ensure fair pay by comparing and valuing different jobs.
2.Helps comply with legal requirements.
3.Boosts employee morale and retention.
4.Helps in attracting the top talent.
5.Clarfies organizational structure and roles.
6.It serves as a basis of performance management.
7.It supports in taking strategic decision making.
LIMITATIONS OF JOB EVALUATION
1.Evaluation can be influenced by personal opinion which cause
biasness.
2.Job evaluation can be complicated and time consuming.
3.Employees and Union may reject if they feel undervalued.
4.Setting up and maintaining system can be costly.
5.Focus on the job titles may overlook the contribution of
individual.
6.Some skills are hard to evaluate, like creativity.
7.It must be comply with legal standards, which can be
challenging.
 CASE STUDY

(SHOULD JOB EVALUATION PLAN BE GENERAL

OR SPECIFIC?)
Mr. Pratap Singh, Personnel Manager of the Indian Oxygen Ltd., prepared
a job evaluation plan after a thorough study of all the jobs in the
company, in similar organizations and job evaluation plans in various
other companies.
Mr. Singh and his colleagues in the Personnel Department concluded
that a general job evaluation plan will meet the requirements of the
company and satisfy the needs of the employees.
Mr. Singh has submitted the plan to the Geneal Manager of the company.
The plan was sent to the recognized trade unions and to all the line
managers of the company. The trade union leaders readily accepted the
plan, while all the line managers reject the plan.
Questions
Question:1- Why did the trade unions accept the plan?
Question:2- Why the line manager reject the plan?
Question:3- What changes do you suggest that would make the
plan acceptable to the line managers also?