JOB EVALUATION

Job Evaluation

Job evaluaton is a systematic way of determining the value/worth of a job in an organisation.

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 however acquired, 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 is free to develop answers to problems,

ranging from the day-to-day decisions based on

simple memory to those which require creative

thinking or long-range strategies.

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

Process of Job evaluationSelecting the method of evaluation.

Classifying jobs.

Installing the programme.

Reviewing periodically.

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.

Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs.

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.

1- RANKING METHOD

2-CLASSIFICATION METHOD

3-POINT METHOD

4-FACTOR COMPARISON METHOD

RANKING METHOD

It is the simplest method of job evaluation.

In this method, jobs are arranged from highest to lowest, in order of their value or merit to the organisation.

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.

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- Semiskilled workers: file clerks, office boys, etc.

POINT METHODThis method is widely used currently.

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

Factor Comparison MethodIt 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 complete jobs, 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.

Comparison of Job Evaluation Methods

Advantage Disadvantage

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

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

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

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

PointPoint Compensable factors call Compensable factors call out basis for out basis for comparisons. comparisons. Compensable factors Compensable factors communicate what is communicate what is valued.valued.

Can become Can become bureaucratic and rule-bureaucratic and rule-bound.bound.

Comparison of Job Evaluation Methods

Advantage Disadvantage

Factor comparison Factor comparison methodmethod

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

Expensive, time Expensive, time consuming, consuming,