Job Evaluation/Grade Structure: Unit I

UNIT I
Job Evaluation/Grade Structure
BY-PROF.RASHMI GUPTA
Job Analysis
• Job analysis is a systematic investigation of the tasks,
duties and responsibilities necessary to do a job.
• Job analysis is the process of collecting job related
information.
Job Analysis: A Basic Human Resource Management Tool
Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection
Job Training and

Development
Descriptions
Job Performance Appraisal
Analysis Job Compensation and
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities Legal Considerations
Job Analysis for Teams
BY-PROF.RASHMI GUPTA 3
Objectives/Purpose of Job Analysis
Process of Job analysis
Types of Job analysis Information
 Work Activities
 Machines, Tools, Equipments and Work

Aids used
 Personal requirements
 Job context
Outcomes of Job Analysis
• The information obtained from job analysis is classified
into three categories.
–Job description
–Job specification
–Job evaluation
Job Description
• A job description is a written statement of the duties,
responsibilities, required qualifications and reporting
relationships of a particular job.
• Job description acts as an important resource for

– Describing the job to potential candidates
– Guiding new hired employees in what they are specifically
expected to do
– Providing a point of comparison in appraising whether the
actual duties align with the stated duties.
Contents of job description
• Job title
• Job summary
• Job activities
• Working conditions
• Social environment
Example of Job Description
JOB TITLE:_____ OCCUPATIONAL CODE:
________
REPORTS TO:___ JOB NO. : ___________________
SUPERVISES:___ GRADE LEVEL: _______________
AS ON DATE :_________
FUNCTIONS:
____________________________________________________________
__________________________________________
DUTIES AND RESPONSIBILITIES:

____________________________________________________________
__________________________________________
JOB CHARACTERISTICS:
____________________________________________________________
__________________________________________
Job specification
• Job specifications specify the minimum acceptable

qualifications required by the individual to perform the task
efficiently. Based on the information obtained from the job
analysis procedures, job specification identifies the
qualifications, appropriate skills, knowledge, and abilities and
experienced required to perform the job.
• Job specification is an important tool in the selection process

as it keeps the attention of the selector on the necessary
qualifications required for that job.
Example of Job Specification
JOB TITLE: __________________________
EDUCATION:_________________________
PHYSICAL HEALTH:
____________________________________________________________
____________________________________________________________
APPEARANCE:
____________________________________________________________
MENTAL ABILITIES: _______________________________________________
SPECIAL ABILITIES: _______________________________________________
PREVIOUS WORK EXPERIENCE:
____________________________________________________________
____________________________________________________________
SPECIAL KNOWLEDGE & SKILLS:_____________________________________
OTHER : ________________________________________________________
Job Evaluation
• Job evaluation provides the relative value of each job
in the organization. It is an important tool to
determine compensation administration.
• If an organization is to have an equitable

compensation program, jobs that have similar
demands on terms of skills, education and other
characteristics should be placed in the common
compensation groups.
Objectives of Job Evaluation
•To determine equitable wage differential between
different jobs in an organization.
•To eliminate wage inequities.
•To develop a consistent wage policy.
•To minimize wage discrimination on the basis of age,
sex, caste, religion etc..
•To enable management to gauge and control the
payroll costs.
•To establish a basis for incentives and bonus scheme.
Advantages of Job Evaluation
 Harmonious relations between labour and management.
 Logical and objective technique of ranking jobs .
 Clear and objective basis for wage negotiation and collective

bargaining.
 Simplifies wage administration by making wage rates more uniform.
 Reduces the cost of recruitment and selection of workers.
 Helps in fitting new jobs at their appropriate places in the existing

wage structure.
 It is a detailed analysis of a job which is helpful in selection,

placement and training.
Principles of Job Evaluation
• Rate the job but not the employees
• Easy to understand
• Participation in rating
• Cooperation by employees
• Awareness about the programme.
Methods of Job Evaluation
• Non- quantitative methods- These make no use of
detailed job factors. The job is treated as a whole and job
descriptions rather than job specifications is used. Two
types;-
– Ranking of job or job comparison method
– Job classification or grading method.
• Quantitative methods – These use a detailed

approach. Different job factors are selected and
measured in terms of job specifications. These are of
following two types-
– Factor comparison method
– Point method
Ranking Method
• This is the oldest and the simplest method of job
evaluation. In it , a committee constituted of several
executives studies job descriptions and ranks them in
order of importance beginning with the most important
job to the least important job in the organization.
• Now the jobs are placed into different salary ranges

more or less on a predetermined basis in their rank
order.
Job classification or Grading
method
• It involves the establishment of job classes or grades. It was
evolved as an improvement over the ranking method.
• The committee of executives goes through each job

description and carefully weighs it in the light of certain
factors like skill, responsibilities, experience and type of
work etc. thus, each job is assigned a grade or class and for
each grade or class, there is a predetermined rate of
wages.
• The system is widely used in government offices and

departments.
Factor Comparison Method
• A more systematic and scientific method of job evaluation
is the factor comparison method. Though it is the most
complex method of all, it is consistent and appreciable.
• All the jobs are compared to each other for the purpose
of determining their relative importance by selecting four
or five major job elements or factors which are more or
less common to all jobs.The five factors which are
customarily used are-
– mental requirement
– skill
– physical requirement
– responsibilities
– Working conditions.
Point Method
• This method is widely used as a system of job
evaluation which involves a more detailed,
quantitative and analytical approach to the
measurement of job work.
• Jobs are expressed in terms of key factors. Points

are assigned to each factor after prioritizing each
factor in the order of importance. The points are
summed up to determine the wage rate for the
job. Jobs with similar point totals are placed in
similar pay grades
Comparison of Job Evaluation Methods
Advantage Disadvantage
Ranking Fast, simple, easy to Not very accurate , not
explain, suitable for small useful for large org.,least
org, not expensive. used method
Classification Can group a wide range of Not useful for large org,
work together in one time consuming, not
system, simple, more involved detailed job
accurate than raking analysis.
method.
Point Compensable factors call Can become bureaucratic

out basis for comparisons. and rule-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.
Methods of Collecting Job Analysis
Data
• Observation
• Performing the job.
• Critical incidents
• Interview- individual & group
• Panel of experts
• Diary method
• Questionnaire
– Structured
– Unstructured BY-PROF.RASHMI GUPTA
Methods of collection Job
description data
• Diary/log books
• Observation
• Interview
• Questionnaire:
– Structured
– Unstructured
Which method to use ?
• Factors to be considered before choosing the
method of collecting data are:
– No. of job/employees to be considered.

– Time limit
– Cost factors
– Education levels of incumbents
– Type of data required.
Thank You!!!!!

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UNIT I

Job Evaluation/Grade Structure

Job Training and

 Machines, Tools, Equipments and Work

• Job description acts as an important resource for

DUTIES AND RESPONSIBILITIES:

• Job specifications specify the minimum acceptable

• Job specification is an important tool in the selection process

• If an organization is to have an equitable

 Logical and objective technique of ranking jobs .

 Clear and objective basis for wage negotiation and collective

 Simplifies wage administration by making wage rates more uniform.

 Reduces the cost of recruitment and selection of workers.

 Helps in fitting new jobs at their appropriate places in the existing

 It is a detailed analysis of a job which is helpful in selection,

• Quantitative methods – These use a detailed

• Now the jobs are placed into different salary ranges

• The committee of executives goes through each job

• The system is widely used in government offices and

• Jobs are expressed in terms of key factors. Points

Point Compensable factors call Can become bureaucratic

– No. of job/employees to be considered.

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