JOB EVALUTING Job evaluation involves the comparisons of the related importance worth of different jobs within an organization

which could be termed as internal alignment. It is essentially a process of measurement. Job evaluation for that matter is a periodic activity. This is done by using arbitrarily designed to evaluate factors considered of important in job, and then this sum is converted into a rupee value. Thus, each job has a logical relation to other jobs, since all have been measured by the same yardsticks. Here we can discuss couples of definitions to enlarge our understanding of job evaluation. International labour organization says job evaluation is an attempt to determine and compares the demand with the normal performance of particular labour makes and normal workers without taking into account all the individual abilities and performance of the workers concerned. British institute of management define job evaluation as the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as a basis for a balance wage structure. The objective of job evaluation is specific primarily job evaluation leads to a balanced wages structure. Secondly it measures reliably the relative worth of each job. Thus by determine the relative worth of each job wage structure is adjusted and balanced accordingly. Another objective of job evaluation is to gain the confidence of both the management and employees. That is approval of job evaluation plans must be in the bands of some top line executives, at the same time full cooperation of trade unions and the using department must be secured. Thus more and more, job evaluation has become subject to collective bargaining. The selection of the job to be evaluated must be pursued with lot of care. The evaluation plan should be developed with a view to including all jobs ultimately through at the out set only particular groups jobs are to be evaluated. The basic material for job evaluation is provided by job analysis. That is why job evaluation is provided by job analysis. That is why job evaluation must follow job analysis. Various methods have been designed to make measurement of jobs. Such method could be broadly divided into two categories i.e. non quantitative method which includes ranking method and grading method, the other method is quantitative method which involves the point rating system and factor comparison system. The non quantitative method are specially based on human judgment where as the incidence of human judgment is greatly reduced in the latter method. RANKING METHOD Under this method the ranking is to be of the jobs. Jobs may either be ranked on different factors or else jobs may be ranked as a whole. However the latter method is a better approach. Under this plan of evaluation jobs are arranged in order of increase value in accordance with the judgment of the arrangers. That is different members rank these jobs separately. A member ranks the jobs atleast three times on three different occasions. Then the ranking of the different members of the committee are reconciled. This is normally done by mutual discussion. This method is simple inexpensive and useful for a small organization. It can not be successfully applied to large organization. However this method is totally dependent on human judgment. It is difficult to explain the reason why the job has been ranked as they are? Therefore job ranking method should be used when time and resource to employ a better method are not available. GRADING OR JOB CLASSIFICATION METHOD Under this method jobs are divided into different grades or classifications. The idea of grading is to reduce the number of jobs by putting them into specific classes or grades by means of frequency distribution. Thus jobs could be grouped into unskilled, semi-skilled, skilled and highly skilled jobs. Jobs description of various grades or classes is prepared i.e. the grade descriptions. This gives us the related worth of various jobs in an organization. Under this method although the element of human judgment gets

reduce because jobs description is matched with grade description, some element of value biases are still present because personnel evaluations of the evaluators established the major classes and determine into which class each job shall be placed. The method nevertheless is simple to operate and understand and inexpensive. This method also can not be applied in an organization where the number of jobs is very high. POINT-RATING METHOD:The point system of job evaluation is the most widely used and according to its yield, accurate result without undue expense or effort. Under this system the relative worth of a job is determine on the basis of certain numerical points or values. For that matter a manual is used which is either prepared by the organization for its own use or a standard manual is already available. This manual gives points in numbers which could be assigned to various factors sub-factors and sub-sub-factors. Such method was used in Western Electric Co. for the first time. Thus suppose the requirement of the job is divided into four factors i.e. skill, effort, responsibility and working conditions. After the factors are identified they could be again divided into sub-factors such as skill is divided into education, experience, initiative, effort into manual mental, visual, responsibility into handling of material equipment, human being and working condition which is divided into good and bad working condition. Further these sub-factors could be divided into subsub-factors. Highest paid jobs in the organization are identified and the maximum point that could be assigned to those jobs is determined. Suppose, in this case the point s assigned to the maximum paid job is 500. This maximum point is then divided into various factors depending on their relative importance. Suppose skill received 250 points responsibility 100 effort and working condition 75 points each. Now the point given to the factor is again divided between various sub-factors. For example 250 points for skill is divided among education experience initiative ingenuity and enterprise which constitute skill. It can be shown by a seal.

Major factors Skill

minors factors education Experience Initiative physical Mental Visual for equip For material For safety For work good bad

no.of points 75 100 75 250 45 15 15 75 25 25 25 25 100 25 50 75

no of points of jobs ‘X’ 60 50 50 160 20 15 15 50 15 15 15 15 60 5 15 20



working condition




The illustration makes it clear that job ‘X’ get 160 points out of 250 points assigned to skill, 50 points out of 75 assigned to effort, 60 points out of 100 assigned to responsibility and 20 points out of 75 assigned to working conditions. Thus job ‘X’ get total 290 points out of 500 points assigned to maximum paid job in the organization. Suppose the highest paid job is to be 5000/- per month, i.e. one point will be equivalent to rupees 10/-. Thus, as job “X’ has 290 points it salary per month will be 290 x 10 i.e. Rs 2900/- points rating method, therefore, is an objective method, where element of judgment is very little. However it is very complicated method. It is particularly suitable to large organization. FACTORS-COMPARISION METHOD This method was for the first time used by E.J.Benge in 1926. The factors used in this method are the same as in the point-rating method i.e. skill, effort, responsibility and working condition. This method is based on assumption that the job evolution is done in respect of a concern which is a going concern. The first step involves the selection of key jobs i.e. representing all the jobs in the organization and most include most lowest and highest paid jobs. The remunerations in respect of key jobs is considered to be fair. The various method of job evolution committee rank the job according to the various of actors according their relative importance as they think fit. Then such ranking is to be arranged or recognized. The next job is apportionment of the remuneration among the various factors. The following illustration shows the evaluation of the job ‘X’ by the factor comparision method one member of the job evaluation committee, however such evaluation is arrived at a after reconciling the evolution of the several member of the committee. Key Jobs A B C D E prevalent remuneration Per day 150 140 110 85 70 money apportionment (in rs) skill response effort 85A 55B 45C 25D 10E 50B 45A 30C 12.50D 7.50E 30E evaluation of Job ‘X’ support for job X Skill=B=55 Response=C=30 Effort=E=30 WC=A=10 Total= 125.00 remuneration per day

wc 25D

22.50D 22.50D 20B 15C 10A 20C 15B 10A

Factor comparison method is an objective method where element of judgment is very little. However it is a very complicated method and particularly suitable to large organizations. However for the purpose of evaluating jobs at Orient Express Co PVT.LTD.

Sign up to vote on this title
UsefulNot useful