JOB EVALUATION
Job Evaluation
Job evaluaton is a
systematic way of
determining the
value/worth of a job
in an organisation.
Process of Job evaluation
 Decide 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. Problemsolving 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 evaluation
 Selecting 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 Evaluation
 Job 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 evaluation
 It 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 evaluation
 Employees 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.
JOB EVALUATION METHODS
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 CLASSIFICATION
 According 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 METHOD
 This 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 Method
 It 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
Ranking
Fast, simple, easy to
Not very accurate , not
explain, suitable for
useful for large org.,least
small org, not expensive. used method
Classification
Can group a wide range
of work together in one
system, simple, more
accurate than raking
method.
Point
Compensable factors call Can become
out basis for
bureaucratic and rulecomparisons.
bound.
Compensable factors
communicate what is
valued.
Not useful for large org,
time consuming, not
involved detailed job
analysis.
Comparison of Job Evaluation Methods
Factor comparison
method
Advantage
Disadvantage
Finds wages for a job,
wages can be calculated
speedily, greater
consistency in the
judgment, size of jobs
can be measured.
Expensive, time
consuming,