Job Evaluation
What Is Job Evaluation?
Process of systematically determining the relative
worth of jobs to create a job structure for the
organization.
Evaluation is based on a combination of job content,
skills required, value to the organization,
organizational culture and the external market.
(Note: focus is the job, not the person doing a job.)
How job structure may be formed?
Internal
alignment Job Job Job Job
analysis description evaluation structure
Work relationships
within organization
⚫ Job Evaluation Methods
◦ Factor comparison method
◦ Point method
◦ Ranking method
◦ Classification method
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Job Evaluation Methods
Comparison Analysis
Entire Job Job Factors
Job Against Scale Classification Point
Method
Factor
Job Against Job Ranking Comparison
Method Input Process Output
Factor Comparison A set of Rank benchmark jobs on each Non-benchmar
compensable factor; Allocate benchmark ked Job
Method
factors; wages wages across factors; Compare positioned in
for a group of the job
factor and wage allocation
benchmark jobs comparison
ranks; Construct the job scale
comparison scale; Apply the
scale
Point Method Compensation Establish factor scales and factor Job points
factors weights; Calculate the weighted
sum
Ranking Method Predetermined Order the jobs from highest to Job ranking
value or lowest according to the
contribution predetermined value or contribution
Classification Jobs Create a set of job categories; Sort Jobs sorted
jobs into categories into categories
Method
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Job Evaluation Methods (1 of 4)
⚫ Job Ranking
◦ Raters examine job description and arrange
jobs according to value to company
Or
◦ Ordering the job descriptions from highest to
lowest based on a predetermined definition of
value or contribution.
Example of Ranking Method
Jobs Rank
Number Title Most valued
1 Shear operator Master welder
2 Electrician Electrician
3 Punch press
operator
4 Master welder
5 Grinder
6 Receiving clerk Receiving clerk
Least valued
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Ranking of Academic Institution
Jobs
Ranking order Pay Scale
Professors / Registrar / Tk.16400 – Tk. 22,400
Librarian
Readers / Deputy Registrar / Tk. 12000 – 420 – 18,300
Deputy Librarian
Lecturer/Asst. Registrar Tk. 8000 – 275 – 13,500
/Asst. Librarian
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Ranking Method
Advantages Disadvantages
⚫ Simple ⚫ Comparisons can be
◦ “Alternation” method problematic depending
ranks “highest” then on number and
“lowest,” then next complexity of jobs
“highest,” then next ⚫ May appear illogical/
“lowest” illogical to employees
◦ “Paired comparisons” ⚫ Can be legally challenged
method picks highest ⚫ Unreliable
out of each pair
⚫ Fast
⚫ Most commonly used
Job Evaluation Methods (2 of 4)
⚫ Job Classification
◦ Classes or grades are defined to describe a
group of jobs.
◦ Create a set of job categories
◦ Sort jobs into job categories
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The following five steps are generally involved in the
process of job classification.
1. Prepare job description for basic information about the job
2. Prepare job grading description for identification of
different levels of jobs. Each grade level must be distinct
from the grade level adjacent to it. After establishing the
grade level, each job is assigned to an appropriate grade
level on the basis of the complexity of duties,
nonsupervisory responsibilities and supervisory
responsibilities
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3. Select grades and key jobs about 10 to 20 jobs, which
include all the major departments and functions and cover
all the grades
4. Grade the key jobs. Key jobs are assigned to an appropriate
grade level and their relationship to each other studied.
5. Classify all the jobs on the basis of grade definitions. All the
jobs in the same grade receive the same wage or range of
rate. For instance, managers may be put into one class;
clerks in another; junior officers in a higher class; and the
tope executives in the top class.
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Grades Job Classification
Head Those handling or capable of taking a major decision on the work
Clerk they do; complicated work requiring much independent thinking; able
to consider details outside the control.
Senior Technically varied work, occasionally independent thinking and action
Clerk due to difficult work which require exceptional clerical ability and
extensive knowledge of principles and fundamentals of the business
of is department.
Clerical Pure routine concentration, speed and accuracy, works under
Grade -III supervision; may be held responsible for supervision
Clerical No supervision by others, especially skilled for the job by having an
Grade -II exhaustive knowledge of the details.
Clerical Must have the characteristic of a second class clerk and assume
Grade- I more responsibilities
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Classification Method
Advantages Disadvantages
⚫ Uses job ⚫ Not useful when jobs
families/groups instead are very different
of individual jobs from each other
⚫ May produce same ⚫ May be confusing to
results as Point employees about
Method, but is less why jobs are included
costly in a class
Job Evaluation Methods (3 of 4)
⚫ Factor Comparison
◦ Raters make decisions on separate aspects of
the job; try and estimate dollar worth
⚫ Factor Comparison Method (steps)
1. Conduct job analysis
2. Select Benchmark ( key) jobs
3. Rank benchmark jobs on each factor
4. Allocate benchmark wages across factors
5. Compare factor and wage allocation ranks
6. Construct the job comparison scale
7. Apply the scale
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Example of Factor Comparison Method
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Example of Factor Comparison Method
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Example of Factor Comparison Method
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Factor Comparison Method
Advantages Disadvantages
⚫ Customized to the ⚫ Using dollar values may
organization bias evaluators by
⚫ Relatively easy to use assigning more money to
once it’s set up a factor than a job is
⚫ Results in ranking of jobs worth
and a specific dollar ⚫ Hard to set up
value for each job, based ⚫ Not easily explained to
on allocating part of the employees
job’s total wage to each ⚫ Every time wage rates
factor change, the schedule
becomes obsolete
Job Evaluation Methods (4 of 4)
⚫ Point-factor Method
◦ Numerical values are assigned to specific
job components; sum of values provides
quantitative assessment of job’s worth
⚫ Point Method (Steps)
1. Conduct job analysis
2. Choose compensation factors
3. Establish factor scales
4. Establish factor weights
5. Evaluate jobs (job points)
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Example of Point Method
Points = 0.4*2+0.3*3+0.2*5+0.1*2 = 2.9
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Another example of Point System
Method
Degree of
Factor
Job Factor Weigh 1 2 3 4 5
t
1. 50 10 20 30 40 50
Education % 0 0 0 0 0
2. s 30 7 15 22 30
ibilit -
Respon % 5 0 5 0
y
3. 12 2 4 7 9 12
effor
Physical % 4 8 2 6 0
t
4. 8 2 5 8
condition
Working % 5 1 0
s
Job Evaluation Form
Point Method
Advantages Disadvantages
⚫ Highly stable over time ⚫ Time, money, and effort
⚫ Perceived as valid by required to set up
users and employees ⚫ Relies heavily on key
⚫ Likely to be reliable (benchmark) jobs, so if
among committee that key jobs and correct pay
assesses the jobs rates don’t exist, the
⚫ Provides good data to point method may not
be valid
prepare a response to an
appeal
Comparison of Job Evaluation Methods
Advantage Disadvantage
Cumbersome as
number of jobs
Fast, simple, easy to
Ranking increases. Basis for
explain.
comparisons is not
called out.
Can group a wide range Descriptions may leave
Classificatio
n of work together in one too
much room for
system. manipulation.
Compensable factors call out Can become
basis for comparisons.
Point Compensable factors bureaucratic and
communicate what is valued. rule-bound.
Thanks a lot
for
attending this session
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