Book Code MB 0043(HRM)

Dr. Smita Choudhary

Faculty HR & OB

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 Introduction
Concept of job evaluation
Objectives of job evaluation
Job evaluation methods
Advantages and limitations of job evaluation
Job satisfaction
Promotion and transfers

Job evaluation is the process of

systematically determining a relative value
of jobs in an organisation. ...

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After studying this unit, you will be able
to
Understand the concept of job
evaluation
State the objectives of job evaluation

Evaluate the job evaluation methods

Understand the need to transfer or

promote the employees
Find out the importance of job
satisfaction

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 Some form of job evaluation is also a part of wage and salary programme.
Job evaluation is done to price the job and not the man.
Job evaluation assesses the value of the job in relation to another job.
This is necessary to build a sound wage structure.
Job evaluation is the process of analysis and assessment of jobs to
ascertain reliably their relative worth, using the assessment as a basis for
a balanced wage structure
---- British Institute of Management

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 Job evaluation depends on job analysis and job
description.
Job analysis specifies the duties of the worker
and the conditions in which these duties are to
be performed.
A job description is a written record of the
duties, responsibilities and conditions of the job.
It provides information on the basis of which
each job is evaluated.

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 Establish a strong wage structure.
Find and remove wage inequities.
Establish solid foundation for incentives and bonus.
Maintaining a reliable and constant wage policy.
Creating a method of job classification, so that management
and union officials may deal with wage issues during
negotiations and grievance meetings.
Collection of job facts help to----
Assignments of tasks
Accident prevention
Improving working conditions
Make work easy
Selection of employees
Promotion and transfer of employees
Training new workers

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 Determine the position of a job.
Clarify the responsibility and
authority with each job.
Manage internal and external
consistency in the compensation.
Maintains complete and accurate
data.
Ensures employee satisfaction.
Avoid discrimination.
Provide the basis for classification of
new or changed jobs.

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Classification of Evaluation Systems
Evaluation systems are classified into four
categories two non-quantitative and two
quantitative.
1. Non-quantitative evaluation measures
a) The ranking system
b) The job-classification system
2. Quantitative evaluation measures
a) The point system
b) The factor-comparison system

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Ranking Method
In this method of job evaluation, jobs are
compared with each other and are arranged in
order of importance or difficulty or value to the
organization.
It is a very biased method.
It depends on the experience of the people
providing ranking to people.

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 This method of job evaluation depends on the
fact there are differences in the levels of duties,
responsibilities and skills required for performing
different jobs.
These differences are expressed as grades or
levels.
These grades are then defined and jobs are
classified on the basis of grade.

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 There are some characteristics that are common
to all jobs.
These characteristics are known as factors and
fall under four headings, namely, skill, effort,
responsibility and conditions.
Each factor is assigned points which depends on
the degree of the factor involved.
Then all points assigned are summed up.
This helps in comparing a job with another job
and determine the pay scale for the jobs.

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 This method is related to E.J. Benge.
Here, each factor is given a money value.
Key jobs at different levels or grades are ranked on the basis of factors.
On the basis of this ranking, the pay/money value of the job is
determined.
The sum of values for each factor is the money value of the job.

This method was proposed by Professor Jacques.

Analysis of time spans for different jobs provides a fair scale of pay for
each job.

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 This method is related to Dr. E.N. Hay.
In this method, three factors, knowhow
(education /experience), problem-solving
and accountability (responsibility) are
each divided into eight degrees or levels.
Then points are awarded to each degree.
The sums for different jobs are then
compared.

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 It is an unbiased method of ranking
jobs relatively to each other. It helps
to remove inequities in the wage
structure.
It provides a more clear basis for
negotiation.
It provides greater uniformity in
wage rates and makes the process of
wage administration easy.
The information collected for job
description and analysis can be used
for improvement of selection,
training, transfer and promotion
processes.

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 Fast changes in technology and demand and
supply for particular skills leads to problems in
adjustment.
If job evaluation causes a large change in
existing wage structure, then the chances of
implementing this change in a very short period
are less due to financial constraints of the
organization.
When number of incentive workers is large, it
becomes difficult to maintain a practical
structure.
The process of job rating is inaccurate to some
extent, because some factors and degrees
cannot be accurately measured.
Job evaluation is a time consuming process,
requires specialized people and is expensive.

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 Job satisfaction is determined by personal and job factors.
Personal factors include workers age, length of service,
intelligence, skill and other personality factors.
R. Hoppock has mentioned six main factors that determine
job satisfaction. They are
The way an individual reacts to situations that he does not like.
A persons ability to adjust with other persons.
His status in the social and economic group.
The nature of work with respect to a persons abilities, interests
and training.
Security
Loyalty

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 Recognition as an individual
A meaningful task
Job security
Fair wages
Opportunity to advance
Avoidance of illogical actions
Good working conditions
Reputation of the concern
A role in matters affecting a person
Competent leadership
Friendly relationship

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 The following problems occur during selection
Selection from within or outside the company
Hiring new employees from outside the company
Promotion with in the company
Discharge of old employees

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Promotions are of two types
Vertical promotion
In vertical promotion employees are promoted to the next
higher rank in the same department or division.
This helps in good utilization of experience gained by an
employee.
It gives employee a chance to get promoted and also
increase his specialization in his area of work.
But the one disadvantage is that there may be very few
vacancies in a department.
This type of promotion may also limit a persons contact
with other departments.

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Horizontal promotion
In horizontal promotion, an employee may be
transferred from a position in one department to a
position of higher rank in other department or to a
same rank in different department.
For this, the person has to be very dynamic and
intelligent so that he can handle the new
assignment.

Promotion is closely related to

Post-training placement
Development and incentives

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 The advancement of an employee to a better
job better in terms of greater respect of pay
and salary. Better houses of work or better
location or better working conditions-also may
characterize the better job to which an
employee seeks promotions, but if the job does
not involve greater skill or responsibilities and
higher pay, it should not be considered a
promotion.
---- PIGORS & MYERS

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 Movement to a position in which responsibilities and
presumably the prestige are increased. Promotion involves an
increase in rank ordinarily; promotion is regarded as a change
that results in higher earnings, but increased earnings are
essential in a promotion.
---- DALE YODER

Promotion is a change within the organization to a higher

position with greater responsibilities and used for more
advanced skills than in previous position. It usually involves
higher status and increase in pay.
---- KOONTZ ODONELL

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 Promotion can be from within or outside the organization
depending on the needs of the organization.
Both types of promotions have some advantages and
disadvantages.
The organization should use a mix of the two.

Demotion
The opposite of promotion is demotion.

In some situations, demotion can be done as a measure to

reduce cost.

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 The movement of an employee from one job to
another on the same occupational level and at
about the same level of wages or salary. No
appreciable change in task or responsibility is
expected.
---- PIGORS & MEYERS

The movement of an employee from one job to

another. It may involve a promotion, demotion or
no change in job status other than moving from
one job to another.
---- SCOTT
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 Transfers are of many types:
Reward transfer
Punishment transfer
Transfers can be classified as
Production transfers
Replacement transfers
Versatility transfers
Shift transfers
Remedial transfers
Transfers can be temporary or permanent.
Transfer policy of an organization should be very clear.

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