HRM replacement Assignment

in lieu of test component

Topic- Job Evaluation

Submitted To- Submitted By-

Dr. Jyoti Vyas Bajpai Ma’am Taniya Pandey
 Introduction to Job Evaluation
 Job evaluation is the systematic process of
determining the relative value of different jobs in
an organization. The goal of job evaluation is to
compare jobs with each other in order to create a
pay structure that is fair, equitable, and consistent
for everyone.
 Features of job evaluation

• Job evaluation helps to rate the job

• Job evaluation helps to determine pay structure
• Job evaluation helps in bringing harmonious relation between
labor and management
• Job evaluation helps to minimize the cost of recruitment and
selection
• Job evaluation helps to differ job other than skills
• Job evaluation helps to determine the cost and rate of
production
• Job evaluation helps to determine the requirement for training
and development
 The Process Of Job Evaluation
 The process of job evaluation involves the following steps

 Gaining acceptance from employees and trade unions

 Creating a job evaluation committee
 Finding the jobs to be evaluated
 Analyzing and preparing job descriptions
 Selecting the method of job evaluation
 Classifying jobs
 Installing the programmes
 Reviewing the process periodically
 Essentials For The Success of A Job
Evaluation Programme
 Rate the job and not the person on the job
 Collect all the relevant facts accurately
 List the distinguishing features of a job and its
relationship with other jobs
 Study the jobs independently and objectively and then
discuss views openly and thoroughly
 Cover all groups and grades of employees
 Make it easy to understand
 Gain acceptance and support from employees, unions etc
 Job Evaluation Methods
 A. Ranking method: The job ranking method arranges jobs in numerical order on
the basis of the importance of the job's duties and responsibilities to the organization.
This method, though easy to understand, is highly subjective in nature.

 B. Classification method: The job classification method slots jobs into reestablished
grades. Higher-rated grades demand more responsibilities, tougher working
conditions and varied job duties. This method is easy to understand and takes care of
all relevant factors affecting the performance of a job. However, it is not easy to
write all inclusive descriptions of a grade. Further, the method oversimplifies sharp
differences between different jobs and different grades.

 C. Factor comparison method: In this method, jobs are ranked according to a series
of factors such as mental effort, physical effort, skill needed, responsibility,
supervisory responsibility, working conditions, etc. pay will be assigned in this
method by comparing the weights of the factors required for each job.
An example of factor comparison method

F a c to rs D a ily P h y s ic a l F a c to rs S k ill R e s p o n s ib ility W o rk in g

K ey W age e ffo rt m e n tal c o n d itio n s
Job R a te e ffo rt

E le c tr ic ia n 60 11 (3 ) 1 4 (1 ) 1 5 (1 ) 1 2 (1 ) 8 (2 )

F itt e r 50 1 4 (1 ) 1 0 (2 ) 9 (2 ) 8 (2 ) 9 (1 )

W e ld e r 40 1 2 (2 ) 7 (3 ) 8 (3 ) 7 (3 ) 6 (3 )

C le a n e r 30 9 (4 ) 6 (4 ) 4 (5 ) 6 (4 ) 5 (4 )

L a b o u re r 25 8 (5 ) 4 (5 ) 6 (4 ) 3 (5 ) 4 (5 )

Suppose the job of a painter is found to be similar to electrician in

skill (15), fitter in mental effort (10), welder in physical effort (12),
cleaner in responsibility (6) and laborer in working conditions (4)
then the wage for the job would be 47.
D. Point method: The point system of job evaluation uses a point
scheme based on the compensable job factors of skill, effort,
responsibility and working conditions. The more compensable factors
a job possesses, the more points are assigned to it. Jobs with higher
accumulated points are considered more valuable to the organization.
 Select key jobs
 Identify the factors to all identified jobs such as skill, effort,
responsibility etc.
 Divide each major factor into a number of sub factors. Each sub
factor is defined and expressed in order of importance.
 Find the maximum number of points assigned to each job
 Once the worth of a job in terms of total points is known, the
points are converted into money values, keeping the wage rates in
mind.
Point values to factors along a scale

P o in t v a lu e s f o r D e g r e e s T o ta l
F a c to r 1 2 3 4 5
S k ill 10 20 30 40 50 150
P h y s ic a l e f f o r t 8 16 24 32 40 120
M e n ta l e ff o r t 5 10 15 20 25 75
R e s p o n s ib ilit y 7 14 21 28 35 105
W o r k i n g c o n d it io n s 6 12 18 24 30 90
M a x im u m t o t a l p o in t s o f a ll f a c t o r s d e p e n d in g o n t h e i r im p o r ta n c e t o jo b = 540
( B a n k O f f ic e r )
Conversion of job grade points into money value

P o in t r a n g e D a i l y W a g e ra te (R s ) J o b g ra d e s o f k e y b a n k o ffic i a ls

5 0 0 -6 0 0 3 0 0 -4 0 0 1 O ffic e r

6 0 0 -7 0 0 4 0 0 -5 0 0 2 A c c o u n ta n t

7 0 0 -8 0 0 5 0 0 -6 0 0 3 M a n a g e r I S c a le

8 0 0 -9 0 0 6 0 0 -7 0 0 4 M a n a g e r II S c a le

9 0 0 -1 0 0 0 7 0 0 -8 0 0 5 M a n a g e r III S c a l e
A Comparative Picture of Major Job Evaluation
Methods
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jo b s o n s c a l e s o f in a c c u r a te o v e r tim e
c o m p e n s a b le f a c t o r s
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THANK YOU.