Job evaluaton is a systematic way of determining the value/worth

of a job in an organisation. Job evaluation is an assessment of the

relative worth of various jobs on the basis of a consistent set of job

and personal factors, such as qualifications and skills required.

The objective of job evaluation is to determine which jobs should

get more pay than others. Several methods such as job ranking, job

grading, and factor comparison are employed in job evaluation.

Research indicates, however, that each method is nearly as

accurate and reliable as the other in ranking and pricing different

jobs. Job evaluation forms the basis for wage and salary

negotiations.

In the words of Edwin B. Flippo. "Job evaluation is a systematic and orderly

process of determining the worth of a job in relation to other jobs."

In the words of Dale Yoder, "Job evaluation is a practice which seeks to

provide a degree of objectivity in measuring the comparative value of jobs

within an organisation and among similar organisations."

Jobs are evaluated on the basis of content and placed in order of importance.

This establishes Job Hierarchies, which becomes the basis for satisfactory

wage differentials among various jobs. Jobs are ranked (not jobholders).

To supply bases for wage negotiation founded on facts rather than on vague

intermediate ideas.

It attempts to assess jobs, not people. Job evaluation is the output provided by job

analysis.

Job evaluation does not design wage structure, it helps in rationalising the system by

reducing number of separate and different rates.

Job evaluation is not made by individuals rather it is done by group of experts.

Job evaluation determines the value of job. Further the value of each of the aspects

such as skill and responsibility levels are also related and studied in connection with

job.

To establish an orderly, rational, systematic structure of jobs

based on their worth to the organization.

To justify an existing pay rate structure or to develop one that

provides for internal equity.

To assist in setting pay rates that are comparable to those of in

similar jobs in other organizations to compete in market place

for best talent.

To provide a rational basis for negotiating pay rates when

bargaining collectively with a recognized union.

OBJECTIVES CONTINUED..

• To ensure the fair and equitable compensation of

employees in relation to their duties.

• To ensure equity in pay for jobs of similar skill, effort,

responsibility and working conditions by using a system

that consistently and accurately assesses differences in

relative value among jobs .

• To establish a framework of procedures to determine the

grade levels and the consequent salary range for new jobs

or jobs which have evolved and changed.

Employees as well as unions participate as members of job

evaluation committee.

J o b evaluation, when conducted properly and with care, helps

in the evaluation of new jobs.

I t 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.

1 RANKING METHOD

2 CLASSIFICATION METHOD

3 POINT METHOD

4 FACTOR COMPARISON METHOD

I t is the simplest method of job evaluation.

I n this method, jobs are arranged from highest to lowest, in order of their value or merit to theorganisation.

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 organisational ranking.

According to this method, a predetermined numberof 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.

Following is a brief description of classification inan

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- Semiskilled workers: file clerks, office boys,

etc.

This method is widely used currently.

I n this method jobs are expressed in terms of key factors.

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

T h e points are summed up to determine the wage rate for the job.

Jobs with similar point totals are placed in similar pay grades

I t is more systematic and scientific method of job

evaluation.

Though it is the most complex method of all, it is

consistent and appreciable.

Under this method, instead of ranking completejobs, each

job is ranked according to a series of factors.

These factors include:

>Mental effort.

>Physical effort.

>Skills needed.

>Responsibility.

>Working conditions.

>Know-how.

>Problem solving abilities.

>Accountibility, etc.

Wages are assigned to the job in comparison to its

ranking on each job factor.

Advantage Disadvantage

Ranking Fast, simple, easy to explain, suitable for small org, not expensive.

Not very accurate , not useful for large org.,least used method

Classification Not useful for large org, time consuming, not involved detailed job analysis.

Point

Can group a wide range of work together in one system, simple, more accurate than raking method.

Compensable factors call out basis for comparisons.Compensable factorscommunicate what isvalued.

Can become bureaucratic and rule-bound.

Advantage Disadvantage

Factor comparison method

Finds wages for a job, wages can be calculated speedily, greater consistency in the judgment, size of jobs can be measured.

Expensive, time consuming,