JOB EVALUATION

BY: NEELAM YADAV

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

Job Evaluation
The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend internal forces and external market forces is both a strength and a challenge to job evaluation.

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.

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 plants labor 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 organization. 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.

 Table: Array of Jobs according to the Ranking Method Rank Monthly salaries 1. Accountant Rs 3,000 2. Accounts clerk Rs 1,800 3. Purchase assistant Rs 1,700 4. Machine-operator Rs 1,400 5. Typist Rs 900 6. Office boy Rs 600

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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 prortising 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

Table: Point Values to Factors along a Scale Point values for Degrees Total Factor 1 2 3 4 Skill 10 20 30 40 150 Physical effort 8 16 24 32 120 Mental effort 5 10 15 20 75 Responsibility 7 14 21 28 105 Working conditions 6 12 18 24 90 Maximum total points of all factors depending on their importance to job = (Bank Officer)

5 50 40 25 35 30 540

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 Table: Conversion of Job Grade Points into Money Value Point range Daily wage rate (Rs) Job grades of key bank officials 500-600 300-400 1 Officer 600-700 400-500 2 Accountant 700-800 500-600 3 Manager I Scale 800-900 600-700 4 Manager II Scale 900-1,000 700-800 5 Manager III Scale

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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. >accountability, etc. Wages are assigned to the job in comparison to its ranking on each job factor.

Comparison of Job Evaluation Methods

Advantage Ranking Disadvantage Fast, simple, easy to Not very accurate , not explain, suitable for small useful for large org.,least org, not expensive. used method 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 factors communicate what is valued. Not useful for large org, time consuming, not involved detailed job analysis. Can become bureaucratic and rule-bound. rule-

Classification

Point

Comparison of Job Evaluation Methods

Advantage Factor comparison method Finds wages for a job, wages can be calculated speedily, greater consistency in the judgment, size of jobs can be measured. Disadvantage Expensive, time consuming,