JOB ANALYSIS AND JOB EVALUATION

HANDBOOK

A Strategic Human Resource Management Process

NATCCO Network HR Consultants

Writer: Mary Rose de Leon Gob

Co-writers: Christopher Bernabe Baes

Raschelyn Salonga
TABLE OF CONTENTS

Page Content

3 Introduction The advantages of Job Evaluation on an Organization

5 Difference between Job Analysis and Job Evaluation

7 Processes of Job Analysis and Job Evaluation

9 Steps to Conducting Job Analysis

Steps to Conducting Job Evaluation

- Methods in Job Evaluation

- Reviewing Organizational Structure and Job Descriptions

- Creating Job Evaluation Committees

- Writing Job descriptions and Job Specifications

2
INTRODUCTION

Advantages of Job Evaluation to an Organization

Its not only the management that benefits from an effective job evaluation. An effective

job evaluation helps the employees as well. It is therefore right to say that the advantages of

an effective job evaluation applies to the entire organization. Basically, it is a strategy used

to improved organizational efficiency. If done properly, managers will understand better

what to expect from his or her team members, as well as monitor and evaluate their

performances.

Many gets confused between job evaluation and performance evaluation. Theres a big

difference between the two. Job evaluation focuses on determining the value or worth of a

job compared to other job functions within the organization. Where as in Performance

Evaluation or Appraisal, the focus is on evaluating how an employee is able to meet the

standards set for a specific job functions; more focus on the performance of the person

assigned to the job. The job evaluation on the other hand does not take into accounts the

abilities of the person on the job, but it determines what are the competencies required to

perform the job.

Performance evaluation also determines the employees who needed training, who are

ready for promotion and who are qualified to receive merit-based salary increases. On the

other hand, job evaluation identifies the criteria to measure employees efficiency, what jobs

are highly technical and determines what salary is equated to the complexity of the job

requirements.

3
 A properly done job evaluation helps in aligning compensation packages to the market

value of the job and provides accurate job specifications that are constantly used as reference

for recruitment. It would be easier to determine the right fit for specific job description. Job

evaluation is also the process used to be able to prepare job descriptions, job specifications,

job levels and wage determinant or salary structure for the organization.

This handbook will serve as a pocket reference for human resource practitioners. Also, it

aims to assist in the development of policies for job evaluations in the cooperative sector.

This handbook contains information on the job evaluation process, and how to apply it. It

will serve as guide for cooperatives in determining the right type of job evaluation based on

the size of the organization. Also, it will try to provide an easy-to-understand instructions in

the uses of job analysis and job evaluation tool, provided in this handbook.

-M.L. Gob

4
DIFFERENCES BETWEEN JOB ANALYSIS & JOB EVALUATION

The difference between Job Evaluation and Performance Evaluation was mentioned

earlier. Now, the next terminology that we encounter in the conduct of Job evaluation is the

Job Analysis. Just like with performance evaluation, many still get confused with the

difference between Job Evaluation and Job Analysis. But let us look at the similarities of

these two (2) approaches.

Job evaluation is a process that determines different factors to weight the importance

of a job to the business. The same case, Job analysis is also a process in gathering

information or data pertaining to the dimensions of a specific job. Both activities are

important functions of HR department to determine the characteristics of a job.

The difference between job analysis and job evaluation are its scope or coverage, as

well as the expected output from these activities. Job analysis is more specific, that it gathers

information about a job to identify the job requirements like educational level needed for

specific job or the complexity of the functions of a certain job. Job analysis is also part of the

activities of job evaluation.

Job evaluation is broader because to be able to determine the value or worth of a job,

you have to look at the job requirements; the difficulty level of the job, the accountabilities or

responsibilities attached with the job, as well as the competencies or skills level needed for

the job. Also, in conducting job evaluation, you need to compare a specific job against other

positions or jobs within the organization.

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 Job analysis is used for designing job description, whereas job evaluation is used to

design a compensation package, as well as serves as reference in developing criteria for

performance appraisal.

Job analysis determines if the activities of a specific position conflict with the

activities of other job, as well as ensures that internal control is not sacrificed. Job evaluation

on the other hand ensures that the person occupying a job receives fair wage for the job he or

she is doing, as well as see if the job levels for the position is competitive if compared to

outside market, particularly for highly technical positions or jobs where demand is high (i.e.

accounting or IT).

To provide a better illustration of the differences between Job Analysis and Job

Evaluation, see the comparative table below:

Basis for Comparison Job Analysis Job Evaluation

Definition A thorough study or The endeavor of reviewing

inventory of every aspect or the value of a specific job in
factors of a specific job. an organization or the
cooperative.
Nature of Process Comprehensive / thorough Benchmarking / relative

Objective To design job specifications To develop fair wage

and descriptions structure.
Methodology Questionnaire, Checklist, Ranking, classification or
Interview, Surveys, factor analysis
observation...
(For the purpose of this
handbook, we will use
questionnaire)

Advantage Use for Recruitment & Use for job leveling, salary
Selection, Performance structuring, performance
Appraisal, Compensation etc. appraisal, etc.

Ref.: http://keydifferences.com/difference-between-job-analysis-and-job-evaluation.html