Job Evaluation
Job evaluation is a way of breaking down a job

into measurable parts, so each part of a job can be given a points value. To do this, job evaluation looks at all aspects of the job. Job evaluation is about the job and not the person doing the job.
Process of systematically determining the

relative worth of jobs to create a job structure for the organization. Depending upon the characteristics and requirements of a job. These relative values of jobs assist in deciding wage rate and salaries for different jobs.

Strategic objective

HR Plan

Job Analysis

Job evaluatio n

Reward structure

Work relationships within the organization Some Major Decisions in Job Evaluation

• determine overall strategy & objectives • to get right people with right skill in the right place at the right time. • getting information about job. • Obtain involvement of relevant stakeholders • Evaluate plan’s usefulness

Job Evaluation Methods
Job Ranking The different jobs, depending upon their requirements, responsibilities involved and their importance to the organization ere ranked, graded or placed from top to bottom. Job Classification Jobs are classified or graded in groups or levels of equal skill, difficulty, responsibility, importance and requirements. Classes or grades are defined to describe a group of jobs. Point Method Each job is divided into a number of factors which are further divided into grades or degrees. Each degree is awarded certan points, these points are totaled and then they indicate the importance of

Factor Comparison
This method depend upon five factors . Skill (the experience, training, ability, and education ) Mental or Physical effort (the measurement of the physical or mental exertion needed for performance) Responsibility (the extent to which an employer depends on the employee to perform the job as expected, with emphasis on the importance of job obligation) Working condition (hazards, dust, smoke,

Comparison of Job Evaluation Methods
Advantage Ranking Fast, simple, easy to explain, suitable for small org, not expensive. Can group a wide range of work together in one system, simple, more accurate than raking method. Disadvantage Not very accurate , not useful for large org.,least used method Not useful for large org, time consuming, not involved detailed job analysis.



Compensable factors call Can become out basis for bureaucratic and rulecomparisons. bound. Compensable factors communicate what is valued.

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,

The differences in the rates paid for different jobs

and skills affect the ability of managers to achieve their business objectives. Differences in pay matter. Differences in the rates paid for different jobs and skills also influences how fairly employees believe they are being treated. Unfair treatment is ultimately counterproductive. Job evaluation has evolved into many different forms and methods. Consequently, wide variations exist in its use and how it is perceived. No matter how job evaluation is designed, its ultimate use is to help design and manage workrelated, business-focused, and agreed-upon pay structure.

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