Human Resource

Management
Course Code: 21241101
 Unit 3-Job Analysis, Job Evaluation and Job Design
Job Analysis:
‘Job analysis’ refers to the process of collecting information about a job. It involves collection of
information that should include knowledge, skill and ability (KSA), the incumbent should possess to
discharge a job effectively.
 Knowledge may be understood as the extent to which the job holder is familiar with his or her job.
 Skill refers to the specific capability to operate a machine/system. This also includes information
about the use of tools, equipment and machinery.
 Abilities refer to the physical and mental capacities needed to perform tasks not requiring the use of
tools, equipment or machinery.
Process of Job Analysis
Process of Job Analysis (Contd…)
Job analysis results in two sets of data:
 (i) Job description; and
 (ii) Job specification
 Job related data (collected and processed) help prepare two statements: Job description and Job
specification. Job description and job specification are highly useful to select the right candidates.
 Job description indicates what all a job involves-tasks and responsibilities identified to perform a
job, job title, duties, machines, tools and equipment, working conditions and hazards form part of
job description.
 The capability that the job-holder should possess form part of job specification. Education,
experience, training, judgement, skills, communication skills and the like are a part of job
specification.
 What is important is that there should be fit between job demands (job description) and abilities
required to discharge the tasks (job specification).
 Any mismatch is likely to result in job dissatisfaction that carries dysfunctional consequences like
low productivity, absenteeism, and turnover.
 Methods of collecting Job Data
 Strategic choices involve decisions on employee employee involvement, level and details of data
analysis, frequency of data analysis and sources of job data. Information gathering addresses at
least three questions:
 What type of data to be collected?
 What methods to be used and who should collect data?

Interviews
Questionnaires
Observation

Electronic Devices
Quantitative Techniques
Job Data

Diary
Checklists

Technical Conference
Purposes of Job Analysis
 Job Design

• ‘Job design’ involves conscious efforts to organize tasks, duties and responsibilities into a unit of
work to achieve certain objectives.
• Job design follows job analysis.
• Job design involves three steps:
• The specification of individual tasks,
• The specification of the method(s) of performing each task, and
• The combination of tasks into specific jobs to be assigned to individuals.
• Step 1 and 3 determine the content of the job, while step 2 indicates precisely how the job shall be
performed.
• While designing a job, requirements of the organization and individual needs of the job holder
must be considered.
• The key to successful job design lies in balancing the requirements of the organization and the job
holder.
 Job Characteristics Model (JCM)
• The JCM model developed by Richard Hackman and Oldham seeks to bring the job close
to the person. This model suggests that five core job characteristics result in the employee
experiencing three favorable psychological states, which in turn lead to positive outcomes.
• The five job characteristics are:
Skill variety: The degree to which a job includes difficult activities and involves the use
of multiple skills and talents of the employee.
Task identity: The degree to which the job requires completion of a whole and identifiable
piece of work that is doing a job from beginning to end with a tangible outcome.
Task significance: The degree to which the job has a substantial impact on the likes or
work of other people.
Autonomy: The degree to which the job provides the employee with substantial freedom,
independence and discretion in scheduling the work and in determining the procedure to
be used in carrying it out.
Feedback: The degree to which the employee possesses information of the actual results
of his or her performance.
Job Characteristics Model (JCM) (Contd…)
• Job Characteristics Model:
Job Characteristics Model (JCM) (Contd…)
• Hackman and Oldham’s model seeks to integrate the five job characteristics to give an overall
Motivating Potential Score (MPS) for each job’s potential for motivating the incumbents.
• An individual’s MPS is determined thus:
• MPS= (Skill Variety) + (Task Identity) + (Task Significance) x (Autonomy) x (Feedback)
3
• The JCM contains a moderator- growth need strength. This moderator explains why jobs theoretically
high in MPS will not automatically generate a high level of motivation and satisfaction for all workers.
This means that employees with a low growth need are less likely to experience a positive outcome
even when their job is enriched.
 Job Design Case Study

• Job Design Theory is based in the idea that people are motivated by the tasks their job requires
rather than through external motivators, such as monetary compensation or benefits. 
• Job Characteristics Theory focuses on the idea that one's work must be interesting in order for
performance and motivation to be high.
• Job Characteristics Theory is the most influential, job-based approach to motivation in I/O
psychology.
• The five core job dimensions (skill variety, task identity, task significance, autonomy and job
feedback) are all necessary components to an individual's degree of motivation within the
workplace.
• The following case study examines “Lenora's” decision to leave her previous employer and weigh
two different employment opportunities as they relate to the job characteristics theory.
• In addition to the choice between opportunities, Lenora must make a decision to take a potential
pay cut in exchange for what looks to be more motivating and fulfilling work.
• “Lenora” has been working in a specialized and narrow field of Information Technology. for many
years. Though not formally trained, she has acquired most of her skills on the job and has risen to a
high level in a large organization.  Because she works in a narrow field, she doesn’t often get the
chance to branch out into her personal areas of interest, and the nature of her work can mean she has
as many as 5 “bosses” to answer to. Due to the nature of her work, she has been highly
compensated but has extremely low job motivation and high job dissatisfaction.
• Lenora decides to look for another job that will make her satisfied with her career. She is presented
with two opportunities. One is with a smaller company  (“Company 1”) offering her a salary at 75%
of what she was making before. The other is with a start-up company (“Company 2”) at 50% of her
previous salary. She analyzes which opportunity is the best for her based on several criteria.
• Company 1 offers her a position that would utilize similar skills to her current position that are
more business-oriented than technology-oriented.
• Company 2 offers her a position that would require skills she does not yet possess and would
encompass a large range of new responsibilities.
• Company 1’s position would be in “middle management” where she would be supervising the work
of others in the service of those above her organizationally.
• Company 2’s position is pitched as entrepreneurial, and ownership of tasks is highly valued and
encouraged.
• Company 1’s job requirements, if successful, would improve the processes in a specific
department and help it meet its goals. This would be a less stressful position than Company 2’s
requirements.
• For Company 2, Lenora’s job parlays directly into the company’s ability to earn new business and
pay its employees. Failure to adequately perform her job could mean the company cannot meet its
financial obligations and this would put a lot of pressure onto her role.
• Both Company 1 and Company 2 have designed the jobs to be flexible enough for Lenora to
choose what to prioritize and design the methods to accomplish the job’s goals. By designing the
methods to complete her work, she’s got more influence on her outcomes that she would at her old
company. 
• Company 1 would require her to be in an office daily on a structured schedule.
• Company 2 has the same expectations, but the corporate culture is more flexible to work hours
and location.
• Both Company 1 and Company 2 are much smaller than Lenora’s previous company and would
allow her access multiple levels of management. Lenora values regular performance reviews and
salary evaluations and feels that Company 1, which has been established for 20 years and has a
solid revenue stream, will be more organized in career planning and feedback.  Lenora knows
Company 2 does not have any procedures in place for formal feedback but she would be working
closely with the owners.
• After careful consideration of these different criteria, Lenora chooses to go with Company 2, even
though it poses greater risk to job stability. The entrepreneurial spirit of the organization is highly
appealing, as what Lenora wants the most is the ability to take responsibility for her tasks and to
make a direct impact on a company’s success.
• In her previous job she felt like a white collar factory worker and at Company 2 she would be key
player in the direction the company grows. Lenora also has personal goals and values the flexible
work atmosphere and autonomy at Company 2.
• So Lenora accepts the offer at Company 2 with a 50% salary reduction. Lenora is satisfied and
happy with her position. She is learning new things and is motivated to explore other areas of the
company. such as payroll and public relations.
• Company 2 has emerged as the best choice Lenora could have made between the options.
• 1.Skill variety- refers to the variety of activities and abilities that an employee can utilize to finish
a task (Lawrence, 2001). When finding herself with two choices, Lenora feels that Company 1 is
almost identical to her previous job, where she could not pursue her personal interests.
Consequently, she would not be able to use her talents in order to accomplish tasks. Company 2
that she chose gives her the ability to be a key player. She can take part in important decisions for
the future of the company.
• 2.Task identity- refers to the employees' sense of task completion, from beginning to end, rather
than performing a small part of the final piece of work (PSU WC, n.d.). It is the ability to start the
process and finish it with visible outcomes (Lawrence, 2001).  Lenora had a moderate to high level
of task identity in her previous job.
• Company 1 offered a job that was more specific in nature than Company 2. However, Lenora held
all her responsibilities with excellent skills and confidence, and she takes the offer from Company
2 despite some risks.
• In Company 2, which she chose after careful consideration, Lenora reaches a high level of task
identity by learning new skills and exploring new areas. Being a productive employee, she gets an
offer to gain knowledge of marketing and public relations skills. Furthermore, she handles payroll
issues and communication on behalf of the company executives.
• 3.Task significance- refers to an employee’s sense of the importance of their work to those around
them (PSU WC, n.d.). This dimension in particular is critical to Lenora; it speaks to how much
she can influence others. Lenora is an employee who needs a high degree of task significance. In
her previous job, she could not realize her personal ideas and interests, which lead her to a job
change.
• The first company offered her a managerial position with more stability and less risk. Company’s
2 entrepreneurial culture gives Lenora the ability to be responsible for her own tasks. Lenora
enjoys the freedom of analyzing various risks of corporate contracts, as well as additional
challenges that give her an opportunity to be a valuable part of the company and have an impact
on the company’s future success. 
• 4.Autonomy- is one of the most important job components for Lenora. Autonomy is the freedom
of actions that an individual has in their workplace and the ability to create and manipulate their
own schedules (Lawrence, 2001).  
• Company 1 has a higher degree of structure than Company 2; therefore, Lenora favors company 2
due to its flexible time and location schedule compared to Company 1's strict daily schedule. 
• 5.Feedback- refers to the degree to which an employee is receives clear information regarding
whether their performance is successful or not (Lawrence, 2001). Company 1 was able to provide
such feedback, as the company was well established and was well-known in organizing career
planning.
• Company 2 lacks job feedback but allows Lenora to feel important as she is going to work closely
with the owners of the company. For Lenora, job feedback was not an important factor. She
chooses Company 2.
• Lenora appreciates the flexible nature of scheduling in company 2. She also loves the fact that she
is highly appreciated, and as a consequence, she can work closely with the owners of the company.
She expands her responsibilities by getting an offer to acquire new skills. She sees herself as a
valuable employee; she can control payroll and communication for the CEO.
• Lenora's decision-making in this case was strongly influenced by the concepts in the Job
Characteristics Theory. Her desire for autonomy seemed to outweigh her need for feedback.
Lenora's ultimate choice to work for the second company exhibits her ambitious attitude.
• Lenora's decision embraced the main idea of Job Characteristics theory: one's work must be
interesting in order for performance and motivation to be high.
 Factors affecting Job Design

‘Job design’ is affected by organizational, environmental, and behavioral factors.

 If a job fails on this count, the fault lies with the job designers, who based on the feedback, must
redesign the job.
Factors affecting Job Design

1. Organizational factors: This include characteristics of task, work flow, ergonomics, and work
practices. 
 Characteristics of task- Job design requires the assembly of a number of tasks into a job or a
group of jobs. An individual may carry out one main task which consists of a number of
interrelated elements or functions. On the other hand, task functions may be split between a team
working closely together or strung along an assembly line.
 Complexity in a job may be a reflection of the number and variety of tasks to be carried out, or the
range and scope of the decisions that have to be made, or the difficulty of predicting the outcome
of decisions. The internal structure of each task consists of three elements:
 Planning
 Executing
 Controlling
 A completely integrated job will include all these elements for each of the tasks involved.
Factors affecting Job Design (Contd…)
 Work flow- The flow of work in affirm is strongly influenced by the nature of product or service.
The product or service usually suggests the sequence and balance between jobs if the work is to be
done efficiently.
 Ergonomics- It is concerned with designing and shaping jobs to fit physical abilities and
characteristics of individuals so that they can perform their jobs effectively. Ergonomics helps
employers to design jobs in such a way that worker’s physical abilities and job demands are
balanced.
 Ergonomics does not alter the nature of job tasks but the location of tools, switches and other
facilities, keeping in view that the handling of job is the primary consideration.
 The human characteristics include physical aspects as stamina, strength, and bodily dimensions.
They also include psychological attributes like perception, learning and reaction. These features
are significant in a wide range of jobs.
 The working environment wields significant effects on worker performance. Typical
environmental factors include temperature, humidity, lighting, noise, vibration, ventilation etc.
Factors affecting Job Design (Contd…)
 Work practices-These represent the set ways of performing work. Failure to consider work
practices can have undesirable outcomes.
 Work practices were, till now, determined by time and motion study which determined the
standard time needed to complete a given job.
 The accuracy of the readings depended on the competence of the concerned authority. A new
technique has now emerged, i.e., Maynard Operating Sequence Technique (MOST), which uses a
standard formula to list the motion sequences ascribed in index values.
Factors affecting Job Design (Contd…)

2. Environmental factors: Environmental elements affect all activities of HRM, and job design is
no exception. These include-
 Employee Abilities and Availability
 Social and Cultural expectations
3. Behavioral factors- Now a day, higher-level needs are more significant.
 Individuals inspired by higher-level needs find jobs challenging and satisfying which are high on
the following dimensions:
 Feedback
 Autonomy
 Use of abilities
 Variety
 Approaches to job design

Job Rotation
Job Engineering
Job Enlargement
Job Enrichment
 Job Rotation

• ‘Job rotation’ is a strategy where employees rotate between jobs at the same business.  Employees
take on new tasks at a different job for a period of time before rotating back to their original
position.
• With a job rotation system, employees gain experience and skills by taking on new
responsibilities. Job rotations are meant to promote flexibility, employee engagement, and
retention.
• Employees with a wider range of skills give the management more flexibility in scheduling work,
adapting to changes and filling vacancies.
 Job Engineering

• ‘Job engineering’ focuses on the tasks to be performed, methods to be used, workflows among
employees, layout of the workers, performance standards, and interdependence among people and
machines.
• Experts often examine these job design factors by means of time-and-motion studies, determining
the time required to do each task and the movements needed to perform it efficiently.
• Specialization of labor is the hallmark of job engineering.
• High level of specialization is intended to:
 (a) allow employees to team a task rapidly;
 ( b) permit short work cycles so that performance can be almost automatic and involve little or no
mental effort;
 (c) make hiring easier because low-skilled people can be easily trained and paid relatively low
wages; and
 (d) reduce the need for supervision, using simplified jobs and standardization.
Job Engineering (Contd…)
• Although job engineering can also create boring jobs, it remains an important job design approach
because the resulting cost savings can be measured immediately and easily.
• This approach continues to be successfully used, particularly when it is combined with a concern
for the social context in which the jobs are performed. Job engineering may be used with success,
subject to the following golden rules of work design being ensured:
• The end product/output of the work is clearly defined and fully understood by the employees.
• The steps/tasks to be performed to achieve the required end product/output are clearly defined in
the appropriate sequence.
• The employees know and understand where their responsibility starts and finishes in the work
process.
• The tools, facilities and information needed to perform the work are readily available and fully
understood by the employees.
• There is a process whereby the employees can suggest possible improvements in the work design
and exercise initiative in implementing them.
• The employees are involved in the work design process.
 Job Enlargement

• Job enlargement refers to the expansion of the number of different tasks performed by an employee
in a single job. For example, and auto mechanic undergoes job enlargement when he switches from
only changing oil to changing oil, greasing and changing transmission fluid. Job enlargement
attempts to add somewhat similar tasks to the existing job so that it has more variety and be more
interesting.
• The job enlargement approach to job design has been criticized as well as appreciated.
Job Enlargement (Contd…)

• An enlarged job can motivate an individual for five reasons:

 (a) Task Variety: Highly fragmented jobs requiring a limited number of unchanging responses
tend to be extremely monotonous. Increasing the number of tasks to be performed can reduce the
level of boredom.
 (b) Meaningful Work Modules: Frequently, jobs are enlarged so that one worker completes a
whole unit of work, or at least a major portion of it. This tends to increase satisfaction by allowing
workers to appreciate their contribution to the entire project or product.
 (c) Ability Utilization: Workers derive greater satisfaction from jobs that utilize their physical and
mental skills and abilities better. Enlarged jobs tend to fulfill this condition. However, management
must be careful not to enlarge jobs too much, because jobs that require more skills and ability than
the worker possesses lead to frustration and present obstacles to task accomplishment.
• Enlarged jobs with optimal levels of complexity, on the other hand, create tasks that are
challenging but attainable.
Job Enlargement (Contd…)
 (d) Worker-paced Control: Job enlargement schemes often move a worker from a machine-paced
production line to a job in which the worker paces himself/herself. Workers feel less fatigued and
are likely to enjoy their work more if they can vary the rhythm and work at their own pace.
 (e) Performance Feedback: Workers performing narrow jobs with short performance cycles repeat
the same set of motions endlessly, without a meaningful end point. As a result, it is difficult to count
the number of completed performance cycles. Even if they are counted the feedback tends to be
meaningless.
 Enlarged jobs allow for more meaningful feedback and can be particularly motivating if they are
linked to evaluation and organizational rewards.
 Job Enrichment

• First coined by Herzberg in his famous research with motivators and maintenance factors, job
enrichment has become a popular concept. It simply means adding a few more motivators to a job
to make it more rewarding.
• To be specific, a job is enriched when the nature of the job is exciting, challenging and creative, or
gives the job holder more decision-making, planning and controlling power
Job Enrichment (Contd…)
• According to Herzberg, an enriched job has eight characteristics:
 (a) Direct Feedback: Employees should be able to get immediate knowledge of the results they
are achieving. The evaluation of performance can be built into the job or provided by a supervisor.
 (b) Client Relationship: An employee who serves a client or customer directly has an enriched
job. The client can be outside the firm (such as a mechanic dealing with a car owner) or inside
(such as a computer operator executing a job for another department).
 (c) New Learning: An enriched job allows its incumbent to feel that he is growing intellectually.
An assistant who clips relevant newspaper articles for his or her boss is, therefore, doing an
enriched job.
 (d) Scheduling own Work: Freedom to schedule one’s own work contributes to enrichment.
Deciding when to tackle which assignment is an example of self-scheduling. Employees who
perform creative work have more opportunity to schedule their assignments than those who
perform routine jobs.
Job Enrichment (Contd…)

 (e) Unique Experience: An enriched job has some unique qualities or features, such as a quality
controller visiting a supplier.
 (f) Control Over Resources: One approach to job enrichment is for each employee to have
control over his or her resources and expenses.
 (g) Direct Communication Authority: An enriched job allows the worker to communicate
directly with people who use his or her output, such as a quality assurance manager handling a
customer’s complaints about quality.
 (h) Personal Accountability: An enriched job holds the incumbent responsible for the results. He
or she receives praise for good work and blame for poor work.
Job enrichment seeks to improve both task efficiency and human satisfaction by building into
people’s jobs, quite specifically, greater scope for personal achievement and recognition, more
challenging and responsible work, and more opportunity for individual advancement and growth.
An enriched job will have more responsibility and autonomy (vertical enrichment), more variety
of tasks (horizontal enrichment), and more growth opportunities. The employee does more
planning and controlling with less supervision but more self-evaluation. In other words, what the
supervisor has been doing till now (planning, instructing, controlling and supervising) will now be
done by the worker.
 JOB EVALUATION METHODS

• After job analysis preparations of job descriptions comes the essential stage of job evaluation,
namely, the systematic comparison of jobs in order to establish a job hierarchy.
• The techniques which have been commonly used tend to fall into one of the two main categories: 
 Non-Analytical Methods
• Ranking Method
• Job-grading Method
 Analytical Methods
• Point Ranking Method
• Factor Comparison Method
 Non-Analytical Job Evaluation Methods

1. Ranking Method: Under this system, all jobs are arranged or ranked in the order of their
importance from the simplest to the hardest, or in the reverse order, each successive job being
higher or lower than the previous one in the sequence.
• It is not necessary to have job descriptions, although they may be useful. Sometimes, a series of
grades or zones are established, and all the jobs in the organization are arranged into these.
• A more common practice is to arrange all the jobs according to their requirements by rating them
and then to establish the group or classification.
• The usually adopted technique is to rank jobs according to “the whole job” rather than a number of
compensable factors.
• After ranking, additional jobs between those already ranked may be assigned an appropriate
place/wage rate.
Non-Analytical Evaluation Methods (Contd…)

 Merits of Ranking Method :

 The system is simple, easily understood, and easy to explain to employees (or a union). Therefore,
it is suitable for small organizations with clearly defined jobs.
 It is far less expensive to put into effect than other systems, and requires little effort for
maintenance.
 It requires less time, fewer forms and less work, unless it is carried to a detailed point used by
company.
 Demerits of Ranking Method :
 As there is no standard for an analysis of the whole job position, different bases of comparison
between rates occur. The process is initially based on judgement and, therefore, tends to be
influenced by a variety of personal biases.
 Specific job requirements (such as skill, effort and responsibility) are not normally analyzed
separately. Often, a rater’s judgement is strongly influenced by present wage rates.
 The system merely produces a job order and does not indicate to what extent it is more important
than the one below it. It only gives us its rank or tells us that it is higher or more difficult than
another; but it does not indicate how much higher or more difficult.
Non-Analytical Evaluation Methods (Contd…)

2. Job Classification or Job Grading Method: As in the ranking method, the job-grading method (or
job-classification method) does not call for a detailed or quantitative analysis of job factors. It is based
on the job as a whole.
• The difference between the two is that in the ranking method, there is no yardstick for evaluation,
while in the classification method, there is such a yardstick in the form of job classes or grades.
• Under this system, a number of predetermined grades or classifications are first established by a
committee and then the various jobs are assigned within each grade or class. For example, menials
may be put into one class; clerks in another; junior officers in a higher class; and the top executive in
the top class.
• Grade descriptions are the result of the basic job information which is usually derived from a job
analysis.
• After formulating and studying job descriptions and job specifications, jobs are grouped into classes or
grades which represent different pay levels ranging from low to high.
• Common tasks, responsibilities, knowledge and experience can be identified by the process of job
analysis.
• Certain jobs may then be grouped together into a common grade or classification.
• General grade descriptions are written for each job classification, and finally these are used as a
standard for assigning all the other jobs to a particular pay scale.
Non-Analytical Evaluation Methods (Contd…)

 Merits of Job Classification or Job Grading Method :

 This method is simple to operate and understand, for it does not take much time or require
technical help.
 The use of fully described job classes meets the need for employing systematic criteria in ordering
jobs to their importance. Since many workers think of jobs in, or related to, clusters or groups, this
method makes it easier for them to understand rankings.
 If an organization consists of 500 people holding different jobs, the jobs might be broken up into
perhaps 5 classes, arranged in order of importance from high to low, and described class by class.
This class description broadly reflects level of education, mental skill, profit impact or some
combination of these.
 The grouping of jobs into classifications makes pay determination problems administratively
easier to handle. Pay grades are determined for, and assigned to, all the job classification.
 It is used in important government services and operates efficiently; but it is rarely used in an
industry.
Non-Analytical Evaluation Methods (Contd…)

 Demerits of Job Classification or Job Grading Method :

 Although it represents an advance in accuracy over the ranking method, it still leaves much to be
desired because personal evaluations by executives (unskilled in such work) establish the major
classes, and determine into which classes each job should be placed.
 Since no detailed analysis of a job is done, the judgement in respect of a whole range of jobs may
produce an incorrect classification.
 It is relatively difficult to write a grade description. The system becomes difficult to operate as the
number of jobs increases.
 It is difficult to know how much of a job’s rank is influenced by the man on the job.
 The system is rather rigid and unsuitable for a large organization or for very varied work.
 Analytical Methods Job Evaluation Methods

Point Ranking Method

Factor Comparison Method
• 1. Point Ranking Method: The system starts with the selection of job factors, construction of
degrees for each factor, and assignment of points to each degree.
• This method is the most widely used type of job evaluation plan. It requires identifying a number
of compensable factors (i.e., various characteristics of jobs) and then determining degree to which
each of these factors is present in the job.
• A different number of points is usually assigned for each degree of each factors.
• Once the degree to each factor is determined, the corresponding numbers of points of each factor
are added and an overall point value is obtained.
• The point system is based on the assumption that it is possible to assign points to respective factors
which are essential for evaluating an individual’s job.
• The sum of these points gives us an index of the relative significance of the jobs that are rated.
Analytical Methods Job Evaluation Methods (Contd…)
 Merits of Point Ranking Method :
 It gives us a numerical basis for wage differentials; by analysis a job by factors it is usually
possible to obtain a high measure of agreements on job value.
 Once the scales are developed, they can be used for a long time.
 Jobs can be easily placed in distinct categories.
 Definitions are written in terms applicable to the type of jobs being evaluated, and these can be
understood by all.
 Factors are rated by points which make it possible for one to be consistent in assigning money
values to the total job points.
 The workers’ acceptance of the system is favorable because it is more systematic and objective
than other job evaluation methods.
 Prejudice and human judgement are minimized, i.e., the system cannot be easily manipulated.
 It has the ability of handling a large number of jobs and enjoys stability as long as the factors
remain relevant.
Analytical Methods Job Evaluation Methods (Contd…)
 Demerits of Point Ranking Method :
 The development and installing of the system calls of heavy expenditure.
 The task of defining job factors and factor degrees is a time-consuming and difficult task.
 If many rates are used, considerable clerical work is entailed in recording and summarizing the
rating scales.
 It is difficult to determine the factor levels within factors and assign values to them. It is difficult
to explain to supervisors and employees. Workers find it difficult to fully comprehend the meaning
of concepts and terms, such as factors, degrees and points.
• In spite of these drawbacks, this system is used by most organizations because its greater accuracy
possibly justifies the large expenditure of time and money.
Analytical Methods Job Evaluation Methods (Contd…)
2. Factor Comparison Method: Under this system, jobs are evaluated by means of standard
yardstick of value. It entails deciding which jobs have more of certain compensable factors than
others.
• Here, the analyst or the Evaluation Committee selects some ‘key’ or ‘benchmark’ jobs for which
there are clearly understood job descriptions and counterparts in other organizations, and for
which the pay rates are such as are agreed upon and are acceptable to both management and labor.
• Under this method, each job is ranked several times - once for each compensable factor selected.
• For example, jobs may be ranked first in terms of the factor ‘skill’. Then, they are ranked
according to their mental requirements.
• Next, they are ranked according to their ‘responsibility’, and so forth. Then these ratings are
combined for each job in an overall numerical rating for the job.
Analytical Methods Job Evaluation Methods (Contd…)
Mechanism of Factor Comparison Method:
 Step 1- Clear-Cut Job Descriptions are written and Job Specifications are then Developed:
• Usually, five factors are used- (i) mental requirements, (ii) physical requirements; (iii) skill
requirements; (iv) responsibility and (v) working conditions. These factors are universally
considered to be components of all the jobs.
 Step 2- Selecting of Key Jobs: These ‘key’ jobs serve as standards against which all other jobs
are measured. They are selected in such a way that they cover the range from the ‘low’ to the
‘high’ paid jobs.
 Step 3- Ranking of ‘Key’ Jobs: Ranking is made individually and then a meeting is held to
develop a consensus (among raters) on each job.
 Step 4- Valuing the Factors: The basic pay for each ‘key’ job is allocated to each factor. Pay for
such jobs should range from about the lowest to, at or near the highest, and there must be complete
agreement on job selected. Usually, 15 to 20 jobs are chosen against which to evaluate all the other
jobs.
Analytical Methods Job Evaluation Methods (Contd…)
 Step 5- Comparing All Jobs with Key Jobs: All the other jobs are then compared with the key
jobs, factor by factor, to determine their relative importance and position in the scale of jobs, to
determine also their money value.
 Step 6- Establishing the Monetary Unit Value for All Jobs:
 Monetary values are assigned to each factor of every key job. This should reflect a range from the
lowest to the highest.
 Using Competencies Model

• Many people still think of a “job” as a set of specific duties someone carries out for pay,
but the concept of job is changing.
• Companies today are flattening their hierarchies, squeezing out members, and leaving the
remaining workers with more jobs to do.
• Many employers are therefore using a newer job analysis approach.
• Instead of listing the job’s duties, they are listing, in competency models, the knowledge,
skills, and experience someone needs to do the job.
• Such models or profiles list the competencies employees must be able to exhibit to get
their jobs done.
• In creating a competency model for HR managers, the Society for Human Resource
Management describes a competency as a “cluster of highly interrelated attributes’ (such
as research design knowledge, critical thinking skills, and deductive reasoning abilities)
that give rise to the behaviors (such as critical evaluation) someone would need to
perform a given job effectively.
• The competency model or profile then becomes the guidepost for recruiting, selecting,
training, evaluating, and developing employees for ach job.
 British Petroleum (BP) Example:
 

• BP’s exploration division executive’s division executives wanted to shift employees from a job
duties-oriented “that’s-not-my-job” attitude to one that motivated employees to obtain the skills
required to accomplish broader responsibilities.
• Their solution was a skills matrix. They had skills matrices for ach job or job family (such as
drilling managers).
• Each matrix listed:
• The types of skills required to do that job such as technical expertise,
• The minimum skill required for proficiency at each level.
• BP’s skills matrix approach also supported its talent management efforts.
• Talent management efforts in this unit could now focus on recruiting, hiring, training, appraising,
and rewarding employees based on the set of skills employees need to perform the job in question.
Skills Matrix
 Daimler Alabama Example
• In planning its Alabama Mercedes-Benz factory, Germany-based Daimler’s strategy was to design a
high-tech factory.
• The plant emphasizes just-in-time inventory methods, so inventories stay negligible due to the arrival
“just in time” of parts. It also organizes employees into work teams, and emphasizes that all employees
must dedicate themselves to continuous improvement.
• Such a production strategy requires certain employee competencies (skills and behavior). For example,
it requires multi-skilled and flexible employees who are eager to work cooperatively in teams.
• Competencies-based job analysis played an important role in this factory.
• Guidelines regarding whom to hire and how to train them are based more on the competencies someone
needs to do the job (such as “ability to work cooperatively on a team”) than on lists of job duties.
• Because they don’t have to follow detailed job descriptions showing what “my job” is, it’s easier for
employees to move from job to job within their teams.
• Not being pigeonholed also encourages workers to look beyond their own jobs to find ways to improve
things.
• Building its modern “continuous improvement” plant meant Daimler needed employees who
thought for themselves. Organizing its jobs around worker competencies and using competency-job
analysis helped Daimler achieve its strategic aims.
Thank you