Job Evaluation

Defined as a practical technique, designed to enable trained and experienced

staff to judge the size/worth of one job relative to others

It does not directly determine pay levels, but will establish the basis for an
internal ranking of jobs

It is essentially a comparative process

Evaluation is done by assessing the job pressure

Factors that contribute to this job pressure, e.g. physical strength required,
knowledge required, are assessed and the result is a numerical estimate of the
total job pressure
 Job Evaluation- Principles
Job evaluation is concerned with jobs, not people. It is not the person that is
being
evaluated

All jobs in an organisation will be evaluated using an agreed job evaluation

scheme

Job evaluators will need to gain a thorough understanding of the job

The job is assessed as if it were being carried out in a fully competent and
acceptable manner
 Job Evaluation- Principles Cont..

Job evaluation is based on judgement and is not scientific

The real test of the evaluation results is their acceptability to all participants

Job evaluation can aid organisational problem solving as it highlights duplication

of tasks and gaps between jobs and functions
Job Evaluation-Process

Establish Job Evaluation Objectives

Conduct Job Analysis Results in Job Description & Job Specification

Job evaluation Programme

Wage Survey

Employee Classsification
 Job Analysis

Defined as the process of studying and collection information

relating to the operations and responsibilities of a specific job

The main focus of Job analysis is on the Job, not on the

individual holding the job

Products Job Description & Job Specifications

 Job Description

Defined as a statement that explains the job

Include:
Job Title
Location
Job Summary
Machines, Tools & Equipment to be used
Materials to be used
Supervision needed
Working conditions
Hazards
 Job Specification

Defined as a statement that indicates human qualifications necessary to do the job

Include:
Educational Qualification
Experience
Training
Physical Effort
Physical Skills
Communication Skills
Emotional Characteristics
Sensory demands such as sight, smell, hearing
Job Evaluation- Methods

Analytical Methods
Point Ranking Method
Factor Comparison Method

Non-Analytical Methods
Ranking Method
Job-grading Method
Job Evaluation- Methods
Analytical Methods
Point Ranking Method

In this method the number of grades is first decided

Select key jobs. Identify the factors common to all the identified jobs such as
skill, effort, responsibility, working conditions etc

Fix a relative value for each key factor

Divide each major factor into a number of sub factors. Each sub factor is
defined and expressed clearly in the order of importance, preferably along a
scale

Construct degrees for each subfactors

Assign points to each degree

A given job is placed in a particular grade depending on the number of points it

scores
Job Evaluation- Methods

Sub factors

Skill :Education, Training required, Breadth/Depth of experience required,

Social skills required, Problem-solving skills, Degree of discretion/use of
judgment, Creative thinking

Responsibility/Accountability: Breadth of responsibility, Specialised

responsibility, Complexity of the work, Degree of freedom to act, Number and
nature of subordinate staff, Extent of accountability for equipment/plant,
Extent of accountability for product/materials

Effort: Mental demands of a job, Physical demands of a job, Degree of

potential stress
 Job Evaluation- Methods

Degrees of Subfactor - Educational Requirement expressed in the order of

importance

Degree Define
1. Able to carry out simple calculations; High School educated
2. Does all the clerical operations; computer literate; Graduate
3. Handles mail, develops contacts, takes initiative and does work
independently; Post Graduate
Job Evaluation- Methods

Example

Assign point values to degrees after fixing a relative value for each key factor
Point values for Degrees Total
Factor 1 2 3
Skill (Education) 10 20 30 60
Physical effort 8 16 24 48
Mental effort 5 10 15 30
Responsibility 7 14 21 42
Working conditions 6 12 18 36

Maximum total points of all factors depending on their importance to job = 216
 Job Evaluation- Methods

Factor Comparison Method

Begins with the selection of factors which include mental requirements, skill
requirements, physical exertion, responsibility and job condition

The factors are assumed constant for all the jobs

Assign money value/ weightage to each factor depending upon the nature of
the job

Each factor is ranked individually for each jobs

The worth of the job is obtained by adding together all the points
 Job Evaluation- Methods

Non-Analytical Methods
Ranking Method

In this method the evaluation committee assesses the worth of each job
on the basis of its title or on its contents

Each job is compared with others and its place is determined

Normally Jobs are arranged according to the difficulty in performing them

Job Evaluation- Methods

Job-grading Method / Classification Method

In this method the number of grades is first decided upon, and the factors
corresponding to these grades are then determined

Facts about jobs are collected and are matched with the grades and jobs are
assigned to each grades

The essential requirement of job grading method is to frame grade

descriptions to cover differences in degree of skill, responsibility, and other
job characteristics
Job Evaluation- Methods
Job-grading Method / Classification Method
Brief description of job classification in an office
1.Class I - Executives: Further classification under this category may be Office
manager, Deputy office manager, Office Superintendent, Departmental
supervisor, etc

2.Class II - Skilled workers: Under this category may come the Purchase
assistant, Cashier, Receipts clerk, etc

3.Class III - Semiskilled workers: Under this category may come Stenotypists,
Machine-operators, Switchboard operators, etc

4.Class IV - Semiskilled workers: This category comprises File clers, office

boys etc
 Merit Rating

Defined as a payment system in which the personal qualities of an employee are

rated according to organisational requirements, and a pay increase or bonus is made
against the results of this rating

Merit rating has been in use since the 1950s

Unlike new performance-related pay systems, which focus rewards on the output of
an employee, merit rating examines an employee's input to the organisation
For example, their attendance, adaptability, or aptitude as well as the quality or
quantity of work produced

In merit rating programs, these factors may be weighted to reflect their relative
importance and the resultant points score determines whether the employee earns a
bonus or pay increase