JOB EVALUATION

Dr.G.ARUN .KUMAR
MCOM MBA PHD
OUTLINE
: Basic approach to Job Evaluation.


The importance of Job

Evaluation effectiveness.

 Important methods of Job

Evaluation.

 Conclusion
What is job evaluation?
Job evaluation is the process of analyzing
and assessing the various jobs
systematically to ascertain their relative
worth in an organization. Job is evaluated
on the basis of their content and is placed
in the order of their importance.
THE FOLLOWING OBJECTIVES ARE DERIVED FROM
THE ANALYSIS
 To gather data and information relating to job description,
job specification and employee specifications for various jobs
in an organization
 To compare the duties, responsibilities and demands of a
job with that of other jobs
 To determine the hierarchy and place of various jobs in
an organization.
 To determine the ranks or grades of various jobs
 To ensure fair and equitable wages on the basis of
relative worth or value of jobs.
 To minimize wage discrimination based on sex, age, caste,
region, religion etc.
 THE ROLE OF JOB EVALUATION IN
ORGANIZATIONS
Job evaluation includes comparative processes due to the fact that
the relations and dependencies among the jobs have to be
explained. This consists of an essential determinant that allows the
management (through the analysis of the targets, achievements and
factors that influence the requirements of the jobs) to assign the
corresponding proportions of every job. For this reason job
evaluation usually includes an extensive analysis of the roles, the
objectives and the corresponding actions and achievements of the
jobs.
The outcome of this analysis is the establishment
of structures that aid the comparison among the
jobs and support the evaluators to make
consistent and reasonable judgments.
PRINCIPLES OF JOB EVALUATION
PROGRAM
 Rate the job but not the employee. Rate the elements on the basis
of the job demands.
 The elements selected for rating should be easily understood.
 The elements should be defined clearly and properly selected.
 Employees concerned and the supervisors should be
educated and convinced about the program
 Supervisors should be encouraged to participate in rating the
jobs.
 Secure employee cooperation by encouraging them to
participate in the rating program.
 Discuss with the supervisors and employees about rating but not
about assigning money values to the points.
 Do not establish too many occupational wages.
JOB EVALUATION
PROCESS
Objectives of Job Evaluation

Job Analysis

Job Description Job Specification

Job Evaluation Program

Wage Survey

Employee Classification
METHODS
 RANKING METHOD

This is the simplest, the most inexpensive and the most

expedient method of evaluation. Each job is considered as a whole
and is then given a ranking in relation to all other jobs. A ranking table
is then drawn up and the ranked jobs grouped into grades.

Job title Grade Salary (Taka)

Engineer 9 25000
Accountant 8 20000
Purchase assistant 7 18000
Machine Operator 6 15000
Office Boy 5 10000

The main disadvantage of this method is that it lacks

substantiating data for later use in justifying the relative position given
certain jobs. So this method is not suitable for large organization.
 CLASSIFICATION
METHOD
Classification systems define the value of jobs, people, or
teams with written standards for a hierarchy of classification level. It
involves only matching a specific job with a list of tasks in a
predetermined labor grade. Each grade has asset money rate.
PROCESS:
1.Develop descriptions for a category of
jobs—job classes/grade
2.Develop standards for each category by describing the key
characteristics of those jobs in the category.
3.Match jobs to the categories based on the
similarityof tasks.
RESULTS:
Job classes are classified like managerial , office clerical and then
jobs are assigned to these classifications.
 Classification Method (con’t)
ADVANTAGES
:

 Jobs, people, and teams can be quickly slotted into

the structure
 Classification levels have face validity for employees
 Standards to establish value are made explicit

Disadvantages

 Many jobs, people, or teams do not fit neatly

into a classification level
 Extensive judgment is required
 Differences between classification levels may not be
equal
 Creates status hierarchies within organizations
POINT METHOD

The system starts with the selection of job factors,

construction of degrees for each factor, and assignment of points
to each degree. Different factors are selected for different jobs,
with accompanying differences in degrees and points. The most
popular number of factors is between ten and fifteen .

Effort
Skill  Physical demand
 Education  Mental and / or visual
 Experience demand
 Initiative & ingenuity

Responsibility
 Responsibility for equipment or process Job Conditions
 Responsibility for materials or product  Working conditions
 Responsibility for safety of others  Hazards
POINT METHOD (CON’T)
PROCESS:
 A set of compensable factors are identified
 Assign points to a these compensable factors based on the
perceived importance to the job
 Once this is dine for all compensable factors, evaluate the
level to which each of these factors are present in the job
and assign points(weights) accordingly.
 The points for each factor are totaled to form a score for
the job.

RESULT:
 Jobs are then grouped by total score and assigned to salary
grades so that jobs with the highest points would have the
highest pay.
Factors 1st 2nd 3rd 4th 5th Degree
Degree Degree Degree Degree

SKILL
• Education 15 30 45 60 75
• Experience 20 40 60 80 100
• Initiative and Ingenuity 15 30 45 60 75

EFFORT
• Physical demand 10 20 30 40 50
• Mental or visual demand 5 10 15 20 25

RESPONSIBILITY
• Equipment or process 5 10 15 20 25

• Material or product 5 10 15 20 25
• Safety of others 5 10 15 20 25
• Work of other job conditions 5 10 15 20 25

JOB CONDITIONS
• Working conditions 10 20 30 40 50
• Unavoidable hazards 5 10 15 20 25
THE FACTOR COMPARISON
METHOD
This method is based on the assumption that all jobs contain
certain common factors to determine the worth of jobs. These factors
may differ in the degree to which they are present in different jobs.
Typically the number of compensable factors is small (4 or 5).
PROCESS:
1. Select the set of Benchmark Jobs
2. Rank the Benchmark jobs on the basis of each compensable
factor.
3. For each Benchmark job, allocate market pay across
the compensable factor
4. Determine the pay for each job by adding up the pay from
each compensable factor.
RESULTS: Pay Range= Pay from skill + Pay from effort + Pay from
responsibility + Pay from working conditions
 THE FACTOR COMPARISON METHOD
(CON’T)
Advantages:

 Analytical and objective

 Reliable and valid as each job is compared with other job

Disadvantages

 It is difficult to understand and explain

 Using the same criteria to access all job is not accurate as jobs
differ within organization as with point method.
 Time consuming and costly.
CONCLUSION
A job evaluation scheme should be chosen
cautiously. It should be devised and
administered on the basis of employment
market, demand for labor, bargaining power
of the parties & job conditions.