Suggestion Schemes: Job

Evaluation
Prepared by: Bhakti Joshi
Date: February 20, 2013

Job Evaluation
is a process of determining the relative
worth of a job.
Aims at
Reduction in inequalities in salary structure
Specialisation
Selection in employees
Harmony between employees and manager
Standardisation
Creating relevance for new jobs

Job Evaluation: Prerequisites

Job content job description and
specification
Top management support
Cooperation of union and individual
workers
Comparison of Jobs
Involvement of expert in jobevaluation techniques

Job Evaluation Methods

Non-Analytical
Methods

Ranking
Method

Classification
Method

Methods designed on
the basis of the jobs
as a whole

Analytical
Methods

Factor
Comparison

Point Method

Methods designed on
the basis of the
requirements and
elements of the jobs

Example: Ranking Method

Ran
k
1.
2.
3.
4.
5.
6.

Job
Accountant
Accounts Clerk
Purchase
Assistant
MachineOperator
Typist
Office Boy

Monthly
Salaries
Rs 60,000
Rs 30,000
Rs 25,000
Rs 20,000
Rs 17,000
Rs. 15,000

 Worth of a job based on:

Ranking Method

Judgement of skill; Effort (physical and mental); Responsibility (supervisory and fiscal); Working conditions; Ranked in descending order from best to worst

Processes:
Make a list of benchmark jobs or list of each position in a business (benchmark jobs as in producers, maintainers, administrators, cashiers, etc) [NOT
employees]
Write short description or primary duties of each position
Determine the characteristics that is considered most important for the company
Jobs are perceived to be the ones with the highest and lowest value; selecting a job mid-way and finally choosing others at lower or higher intermediate
points.
Divide the ranked jobs into grades and an initial estimate (based on common features among groups to bring about distinction between groups)

Ranking Method (Contd)

Presentations and continuous iterations

Simple, quick and inexpensive only if agreement

of the jobs and ranks are reached easily
Used in small organisations
LIMITATIONS:
Highly subjective.
Not diagnostic to point the specific areas of
weakness and strength of a worker.
Existing jobs must be re-ranked to accommodate
new position
Requires detailed knowledge of every job for
evaluation and ranking and difficult when a large
number of jobs are under consideration
Difficult to justify slotting new jobs

Example: Classification
Method
CLASS
I
CLASS
II

Executives:
Executives:
Office
Officemanager,
manager,Deputy
Deputyoffice
office
manager,
manager,Office
Officesuperintendent,
superintendent,
Departmental
Departmentalsupervisor,
supervisor,etc.
etc.
Skilled
Workers:
Skilled Workers:
Purchasing
Purchasingassistant,
assistant,Cashier,
Cashier,Receipts
Receipts
Clerk,
Clerk,etc
etc

CLASS
III

Semi-Skilled
Semi-SkilledWorkers:
Workers:
Stenotypists,
Stenotypists,Machine-operators,
Machine-operators,
Switchboard
Switchboardoperators,
operators,etc.
etc.

CLASS
IV

Semi-Skilled
Semi-SkilledWorkers:
Workers:
Daftaris
Daftaris(book-binders),
(book-binders),File
Fileclerks,
clerks,
Office
Officeboys,
boys,etc.
etc.

Classification Method
One whole job
Slots jobs into grades
Hierarchy of grade definitions

Skill
Competence
Experience
Initiative
Responsibility

Grades are limited to 4 to 8 levels and more than

8 grades become unmanageable
Simplicity and easily understood

Classification Method
(Contd)
Limitations
Cannot cope with complex jobs
Grade definitions tend to be generalised
When individual job descriptions and grade
descriptions do not match well, evaluators
have a tendency to classify job using
subjective judgements
Requirements of different jobs differ but are
combined in the single category

Factor Comparison Method

Analytical extension of Classification Method
1.Select a number of key jobs (generally 15
to 20) [NOT whole but separate]
2.Analyse them on certain critical factors. For
example, 5 critical factors are identified
i.
ii.
iii.
iv.
v.

Mental Requirement
Physical requirements
Skill requirements
Working conditions
Responsibility

Factor Comparison Method

(Contd)
3. Rank each key-job within each factor
which will be different for different jobs
4. Assign wages to each factor. Wages
should be in proportion to the
estimated total price of a job
5. Calculate total wage for a job by
adding wage rate for each factor. This
provides a job comparison scale and
insert key jobs in it

Factor Comparison Method

(Contd)
6. Evaluate the job under consideration
based on the job comparison scale
identified above. Then evaluate and
compare each job with other jobs in
terms of each factor
7. Design, adjust and operate the
wage structure

Example: Factor Comparison

Method Tools Workshop
Job

Skill Mental
Physical Responsibil Working
Requirem requirem ities
conditio
ent
ent
ns

Tool maker

Craft
worker

Process
Operator

Maintenan
ce
assistant

Ranking Jobs by
Factors

Example: Factor Comparison

Method Tools Workshop
Job

Skill Mental
Physical Responsibil Working
Requirem requirem ities
conditio
ent
ent
ns

Tool maker

35

30

20

10

Craft
worker

30

25

15

15

15

Process
Operator

30

30

15

10

15

Maintenan
ce
assistant

20

15

25

15

25

Relative Importance of
Jobs

Example: Factor Comparison

Method
Job

Skill Mental
Physical Responsibil Working
Requirem requirem ities
conditio
ent
ent
ns

Tool maker

91

78

13

52

26

Craft
worker

66

55

33

33

33

Process
Operator

54

54

27

18

27

Maintenan
ce
assistant

32

24

40

24

40

Allocation of Money
Values
(in Rs)

Example: Factor Comparison

Method Tools Workshop
Benchmark
Jobs (Rs)

Job
Tool maker

91

Craft worker

66

Process
Operator

54

Assembler

42

Maintenance
Assistant

32

NonBenchmark
jobs (Rs)

Slotting NonBenchmark jobs

Jobs evaluation
based on:
Education
Financial
Responsibility
Job-related
experience
Supervision
Teamwork
Creativity

Factor Comparison Method:

Advantages
Job comparison on factor-to-factor basis
Rankings made by defining factors thus
avoiding imprecise definitions
Not need to convert points to money
value leads directly to a price for a job
Useful for medium to large
organisations

Factor Comparison Method:

Disadvantages
Complete dependence on the
benchmark jobsHow do you believe
that the benchmark jobs lead to
equal incomes?
Could be held to be discriminatory
Though analytical still requires
subjective judgement

Example 2: Factor
Comparison Method
Job

Hourl
y
Rate

Skill

Physical Responsibi
requirem
lities
ent

Workin
g
conditi
ons

Secretary

Rs. 90

Rs 45

Rs 20

Rs 20

Rs 5

Admin
Assistant

Rs 110 Rs 55

Rs 25

Rs 25

Rs 5

Supervisor

Rs 150 Rs 60

Rs 35

Rs 40

Rs 15

Manager

Rs 210 Rs 90

Rs 35

Rs 70

Rs 15

Point-Method
1. Select job cluster and the jobs to be evaluated
2. Jobs should be analysed and job
descriptions/specifications should be prepared
3. Select compensable factors
4. Define each factors specifications
i. Working conditions: noise levels, temperature
ii. Education: SSC, HSC, Undergraduate,
Graduate,Post-graduate
iii.Experience: Entry-level, 0 2 years, 3-5 years, etc

Point Method (Contd)

5. Define factor degrees:
i. Degree 1 for entry-level, Degree 2 for 0-2 years of
experience, Degree 3 for 3 5years of experience,
etc.

6. Determine total points in plan

i. Degree 1 for entry-level = 30 points
ii. Degree 2 for 0-2 years of experience = 75 points
iii. Degree 3 for 3 5 years of experience = 120 points
iv. Degree 4 for 6-10 years of experience = 165 points
v. Degree 5 for 11 to 25 years = 255 points, Degree 6
for 26 to 40 years = 300 points

Point Method (Contd)

7. Evaluate jobs
i. Key jobs are known
ii. Then other jobs are evaluated based
on the factors identified

Email: bhaktij@gmail.com
Website:
www.headscratchingnotes.ne
t