Job Evaluation

-by Moumita Pal-Sharma

Definition
 Job evaluation - the systematic
determination of the relative worth of jobs
within the organization.
 It flows from job analysis process and relies
on job description and Job specifications.
 In Job evaluation , every job in an
organization is examined and priced
according to the following features –
a. Relative importance of the job
b. K,S,A needed to perform the job.
c. Difficulty of the job.
 Breaking down a job into measurable parts, so
each part of a job can be given a points value.
 Looks at all aspects of the job.
 Job evaluation is about the job and not the
person doing the job.
 systematic determination of the relative worth of
jobs helps creating a job structure for the
organization based on the characteristics and
requirements of a job.
 These relative values of jobs assist in deciding
wage rate and salaries for different jobs.
 Benchmarks jobs – jobs that are found in
many organizations and performed by
several individuals who have similar duties
and require similar KSAs.
 Used with job evaluation methods as they
provide anchors against which unique jobs
can be evaluated.
 Egs- Accounts officer, receptionist etc.
 Job
Evaluation
Methods

Classification Factor-
Point Ranking
Method Comparison
Method Method
Method
Job Evaluation methods
 Ranking Method -
The different jobs, depending upon their
responsibilities and KSA involved and their
importance to the organization are ranked or
placed from top to bottom.
Jobs are placed , ranging form highest to lowest in
value to the organization.
 Disadvantages
1. Subjective hence managers have the difficult task
of explaining the ranking as it affects their Pay.
2. Only suitable for small organizations.
 Accountant 9000
 Accounts clerk 7000
 Typist 4500
 Office boy 3000
 Job Classification – Descriptions of each classes
of jobs are written , and then each job in the
organization is put into a grade.
 Based on equal skill, difficulty, responsibility,
importance and requirements.
 Disadvantages –
1)Subjective judgements are needed to develop
class descriptions, hence many jobs may fall into
two or more different grades.
2)Its reliance on job titles and duties, which
assumes that they are similar from one
organization to another
 Class 1- executives (office manager,
deputy Manager, supervisor, OS etc.)
 Class 2- Skilled workers (cashier,
purchasing assistant etc.)
 Class 3- Semi-skilled workers ( typist,
machine operator ,switchboard operator
etc.)
 Class 4- Semi-skilled worker (file clerks,
office boys etc.)
 Point Method
Each job is divided into a number of
compensable factors which is awarded certain
points, these points are totaled and then they
indicate the importance of job.
Compensable factors- skills, efforts, responsibility,
working conditions etc.
Factors are derived from job analysis.
Advantages-
1.Simple to use
2.Considers components of job rather than the
total job.
 Disadvantages
1. Requires a lot of time to develop
2. Reinforces traditional organizational
structures and job rigidity.
Factor comparison method
 Complex combination of ranking and
point methods
Determining specific jobs in an
organization, selecting compensable
factors and ranking all benchmark jobs
factor by factor.
Factor Comparison
 This method depend upon five factors .
 Skill (the experience, training, ability, and education )
 Mental and Physical effort (the measurement of the
physical or mental exertion needed for performance)
 Responsibility (the extent to which an employer
depends on the employee to perform the job as
expected, with emphasis on the importance of job
obligation)
 Working condition (hazards, dust, smoke, noise,
temperature etc)
Factor -> Daily Physical Mental Skills Responsi Working
------------ wage effort effort bility conditio
Job ns
Electrician 60 11(3) 14 (1) 15 (1) 12(1) 8(2)

Fitter 50 14(1) 10(2) 9(2) 8(2) 9(1)

Welder 40 12(2) 7(3) 8(3) 7(3) 6(3)

Cleaner 30 9(4) 6(4) 4(5) 6(4) 5(4)

Labourer 25 8(5) 4(5) 6(4) 3(5) 4(5)

 Advantages
Tailored specifically for one organization

 Disadvantages
Difficult and complex
Time consuming to establish and develop.