Job Evaluation

 A job evaluation analyzes jobs and groups

them into categories of equal worth.

Job Evaluation
 The process of analyzing and assessing the

various jobs systematically to ascertain their worth in the organization.  Jobs are evaluated on the basis of their content and are placed in order of their importance.

Job Evaluation
 Job evaluation is a series of techniques

designed to permit the grading of jobs in a systematic and fair manner based on the duties and responsibilities required of each job

Job Evaluation
 Objectives of Job evaluation.

- To ascertain the relative worth of each job and to determine the hierarchy. - To determine the compensation and incentive for each job. - Maintenance of consistent wage policy. -Reduce grievances and labor turnover and thereby increase employee morale.

Job Evaluation
- Serve as a basis for negotiation with the union.

Job Evaluation
 Methods of job evaluation

1) Ranking method 2) classification method 3) point ranking method.

Job Evaluation
 Ranking Method

- Perhaps the simplest method of job evaluation is the ranking method. -According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization.

Job Evaluation
 The jobs are examined as a whole rather than

on the basis of important factors in the job.  Only the job is evaluated and not the job holder.

Job Evaluation
 Job ranking at Olympia Health Care  Rank order Annual salaries

1. Office Manager 2. Chief Nurse 3. Book keeper 4. Nurse 5. Cook 6. Nurse’s Aide 7.Maid

$ 33,000 32,500 24,000 22,500 21,000 18,000 15,000

Job Evaluation
 The variation in payment of salaries depends

on the variation of the nature of the job performed by the employees.  Job ranking can be done by a committee composed of management and employee representatives.

Job Evaluation
 The ranking method is simple to understand

and practice and it is best suited for a small organization
 Its simplicity, however, works to its

disadvantage in big organizations because rankings are difficult to develop in a large, complex organization.

Job Evaluation
 Moreover, this kind of ranking is highly

subjective in nature and may offend many employees.  Therefore, a more scientific and fruitful way of job evaluation is called for.

Job Evaluation
 Classification Method or Grading method  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 Evaluation
 The job evaluation committee goes through

each job description and care fully weighs it in the light of certain factors like skill,experience,responsibilty,efforts etc.  Then it assigns each job to a particular grade or class.  For each grade there is a different rate of wages.

 Example of Grade level definition in the

Federal Government  GS 1 – includes those classes of positions the duties of which are to perform under immediate supervision, with little or no latitude for the exercise of individual judgment A) The simplest routine work in office,business,or fiscal operations or B) Elementary work of a subordinate.

 This method is best suitable for large

organizations.  Unmanageable number of jobs can be grouped into a few groups.  Avoids the multiple pay scales.

Po t m e o d n i th - In o e a mo re d ta d q a t i a ve a d a n l t i a a p a h to th m e su e n o j b wo . v l s v e i , u n t ti n a c l p ro c e l y e a r me t f o rth

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