JOB

EVALUATION
JOB EVALUATION

Job evaluation is a systematic way

of determining the value of a job in
relation to other jobs in an
organisation .It tries to make a
systematic comparison between
jobs to assess their relative worth
for the purpose of establishing a
rational pay structure. It needs to
be differentiated from job analysis.
 JOB ANALYSIS
Job analysis is a systematic way of gathering
information about a job.Job evaluation begins
with job analysis and ends at that point where
the worth of a job is ascertained for achieving
pay-equity between jobs.
FEATURES

1.Tries to assess jobs,not people

2.Carried out by groups,not by
individuals
3.Standards are relative,not absolute
4.Degree of subjectivity is always
present
5.Not fixation pay scales
PROCESS

1.GAINING ACCEPTANCE: Before

undertaking job evaluation,top mgt. must
explain the aims and uses of the
programme to the employees and unions.
2.CREATING JOB EVALUATION
COMMITTEE:Usually a job evaluation
committee consisting of experienced
employees,union representatives and HR
experts is created to set the ball rolling.
3. FINDING THE JOBS TO BE EVALUATED:Every job need not
to be evaluated.This may be too taxing and costly.Certain
key jobs in each department may be identified.
4. ANALYSING AND PREPARING JOB DESCRIPTION:This
requires the preparation of a job description and also an
analysis of job needs for successful performance.
5. SELECTING THE METHOD OF EVALUATION:The most
important method of evaluating the jobs must be
identified now,keeping the job factors as well as
organisational demands in mind.
6. CLASSIFYING JOBS:The relative worth of various jobs in
an organisation may be found out after arranging jobs in
order of importance using criteria such as skill
requirements,experience needed,under which conditions
job is performed.
7.INSTALLING THE PROGRAMME:Once the
evaluation process is over and a plan of
action is ready,mgt. must explain it to
employees and put it into operation.
8.REVIEWING PERIODICALLY:In the light
of changes in environmental
conditions(tec
hnology,products,services,etc.)jobs
need to be examined closely.
ESSENTIALS FOR THE SUCCESS
1. Operating managers should be convinced about the
techniques and programmes of job evaluation.They
should also be trained in fixing and revising the wages
based on job evaluation.
2. Compensable factors should represent all the major
aspects of job content.
3. All the employees should be provided with complete
information about job evaluation techniques and
programme.
4..All groups and grades of employees should be covered
by the job evaluation programme.
5. The programme of – and techniques selected for- job
evaluation should be easy to understand by all the
employees.
6. Trade unions acceptance and support to the
programme should be obtained.
Guidelines for conducting job
evaluation:
 Rate the job- not the person or employee on the
job.
 Strive to collect all the facts accurately.
 Look especially for distinguishing features of jobs
and for relationships to other jobs.
 Study jobs independently and objectively,and
then discuss views thoroughly and open-mindedly
before reaching final decisions.
 It must be conducted systematically,based on
factual and accurate information.
 Its results must be fair and rational and unbiased.
BENEFITS
1.It tries to link pay with the requirements
of the job.
2.It offers a systematic procedure for
determining the relative worth of jobs.
3.An equitable wage structure is a natural
outcome.
4.It helps in solving wage related
grievances quickly.
5.JE when conducted properly and with
care,helps in evaluation of new jobs.
METHODS
 RANKING METHOD
 CLASSIFICATION METHOD
 FACTOR COMPARISON METHOD
 POINT METHOD
RANKING METHOD

It is the simplest method of job

evaluation.In this method,jobs are
arranged from highest to
lowest.Jobs are examined as a
whole rather than on the basis of
important factors in the job;job at
the top of the list has the highest
value and at the bottom of the list
will have the lowest value.
CLASSIFICATION METHOD
 Class1:Executives:under this category may be
office manager,deputy office
manager,departmental supervisor,etc.
 Class2:Skilled workers:under this category may
come the purchasing assistant,cashier,receipts
clerk,etc.
 Class3:Semi skilled workers:under this category
may come stenotypists,machine-operators,switch
board operator,etc.
 Class4:Semi skilled workers:under this category
comprises daftaris,file clerks,office boys,etc.
MERITS
 Less subjective
 Easy to understand
 Acceptable to almost all employees
 Effectively used for a variety of jobs
 It takes into account all the factors
that a job comprises.
DEMERITS
 Difficult to write all-inclusive
description of a grade.
 The method over simplifies sharp
differences b/w different jobs and
grades.
 Depends on the status a job carries.
FACTOR COMPARISON

A more systematic and scientific

method of job evaluation.It is
consistent and appreciable.In this
method,instead of ranking complete
jobs,each job is ranked according to
a series of factors.Wages are
assigned to the job in comparison to
its ranking on each job factor.
STEPS:
 Select key jobs,representing salary levels across
the organisation.
 Find the factors in terms of which the jobs are
evaluated.
 Rank the selected jobs under each factor.
 Assign money value to each factor and determine
the wage rates for each key job.
 The wage rate for a job is apportioned along the
identified factors.
 All other jobs are compared with the list of key
jobs and wage rates are determined.
MERITS
 Analytical and objective.
 Relative and valid
 Flexible,as there is no upper
limitation on the rating of a factor.
 Money values are assigned in a fair
way based on an agreed rank.
DEMERITS
 Difficult to understand,explain and
operate.
 Its use of the same criteria to
assess all jobs is questionable as
jobs differ across and within
organisations.
 Time consuming and costly.
POINT METHOD

This method is widely used

currently.Jobs are expressed in
terms of key factors.Points are
assigned to each factor after
prioritising each factor in order of
importance.Jobs with similar point
totals are placed in similar pay
grades.
PROCEDURE
1.Select key jobs.Identify the factors
common to all the identified jobs such as
skill,effort,responsibility,etc.
2.Divide each major factor into a number of
sub factors.
3.Find the maximum number of points
assigned to each job.
4.Once the worth of a job in terms of total
points is expressed,the points are
converted into money values keeping in
view the daily wage rates.
LIMITATION OF JOB EVALUATION
 It is not exactly scientific.
 The factors taken by the programme are not
exhaustive
 “The modes operandi” of most of the techniques
is difficult to understand,even for the supervisors.
 There may be wide fluctuations in compensible
factors in view of changes in technology,values
and aspiration of employees.
 Employees,trade union leaders, mgt. and the
programme operators may design different
weightage to different factors.
 DIFFERENCE
POINT JOB EVALUATION PERFORMANCE
APPRAISAL
DEFINE Find the relative worth Find the worth of a
of a job job holder

AIM Determine wage rates Determine

for different jobs incentives and
rewards for
superior
performance
SHOWS How much a job is How well an
worth individual is doing
an assigned work