JOB EVALUATION

Job Evaluation

Job evaluation is a systematic way of determining the value/worth of a job in an organization.

Process of Job evaluationDecide which jobs are to be evaluated

Job Analysis and preparing job

description.

systematically rate each job based on the

job evaluation factors selected. The points

assigned for each of the factors are

totalled for each job.

A Job is evaluated in the following three

categories

1. Know-how

Know-how is the sum total of every kind of knowledge and skill

required to do the job, e.g. experience, education, etc. needed for

accept-able job performance. Know-how includes three

elements:

A. Specialized, technical or practical know-how: the basic job

knowledge needed.

B. Managerial know-how: The degree with which the job deals with

planning and organizing the employee’s activities and coordinating

with others.

C. Human relations skills: The persuasion and communication skills

for motivating, training, and developing others.

2. Problem Solving

Problem solving is the amount of original self-

starting thinking required by the job for analyzing,

evaluating, creating, reasoning, arriving at and

coming to conclusions. Problem-solving has two

elements:

A. Thinking environment – defines the degree to

which the incumbent faces problems.

B. Thinking challenge – defines the complexity and

uniqueness of problems and may range from

repetitive to highly creative.

Accountability is the answerability for action

and for the consequences of that action.

Accountability has three elements:

a) Freedom to act is the degree to which the

position can take action without consulting a

higher authority.

b) Impact on end results- advisory or

decision

c) Magnitude is the size of the area in which

the job functions, i.e, whole organization,

single department, etc.

Compare and see how much value does

this job have in the industry .

Decide the amount of compensation to

be given

Features of Job Evaluation

It tries to assess jobs, not people.

The standards of job evaluation are relative, not absolute.

The basic information on which job evaluations are made is obtained from job analysis.

Features of Job EvaluationJob evaluations are carried out by groups, not

by individuals.

Some degree of subjectivity is always present in job evaluation.

Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

Benefits of job evaluationIt tries to link pay with the requirements of

the job.

It offers a systematic procedure for determining the relative worth of jobs.

An equitable wage structure is a natural outcome of job evaluation

An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range.

Benefits of job evaluationEmployees as well as unions participate as

members of job evaluation committee.

It points out possibilities of more appropriate use of the plant’s labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

Process of Job evaluationSelecting the method of evaluation.

Classifying jobs.

Installing the programme.

Reviewing periodically.

RANKING METHOD

It is the simplest method of job evaluation.

Jobs can also be arranged according to the relative difficulty in performing them.

Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking.

JOB CLASSIFICATIONAccording to this method, a predetermined

number of job groups or job classes are established and jobs are assigned to these classifications.

This method places groups of jobs into job classes or job grades.

Separate classes may include office, clerical, managerial, personnel, etc.

JOB CLASSIFICATION Following is a brief description of classification in an

office: Class 1- Executives: Office manager, deputy office

manager, department supervisor, etc.

Class 2- Skilled workers: Purchasing assistant, cashier, receipts clerk, etc.

Class 3- Semiskilled workers: Stenotypists, machine operators, switchboard operator, etc.

Class 4- unskilled workers: file clerks, office boys, etc.

POINT METHOD

In this method jobs are expressed in terms of key factors.

Points are assigned to each factor after priortising each factor in order of importance.

The points are summed up to determine the wage rate for the job.

Jobs with similar point totals are placed in similar pay grades