Job Evaluation

Job Evaluation : Systematic process of

establishing the relative worth of jobs in a job
hierarchy.
It is important to mention that Jobs are ranked
not jobholders.
 Features of Job Evaluation
Formal and Systematic Process
Uses the information provided by Job
analysis
Helps up to fix the price of jobs
It is not evaluating the merit of job
holder
 Importance Of Job Evaluation
Determination of wage structure
Determination of Equitable wages and
establishing job hierarchies
Forms the basis for fixing incentives and bonus
plans
Provides information for employee’s selection,
placement, training etc.
Creates a benchmark for planning the career
path of employees
 Pitfalls of Job evaluation
Costly and lengthy process
Lacks scientific precision
May result in frequent and substantial
changes in salary structure
 Job Evaluation Process
1. Determination of the purpose of job
evaluation
2. Planning the program of job evaluation
3. Identification of benchmark jobs to be
evaluated
4. Selection of comparable factors
5. External Evaluation of jobs
6. Choosing the method of job evaluation
Methods of Job evaluation
Non – Analytical methods
1)Ranking method
2) Classification method
Analytical Methods
1)Point Ranking method
2)Factor comparison Method
 Ranking Method
One technique used to rank jobs consists of having
the raters arrange cards listing the duties and re­
sponsibilities of each job in order of the importance
of the jobs.
After jobs are evaluated, wage rates can be as­
signed to them through use of the salary survey
Since the comparisons are normally made on the
basis of the job as a whole, it is quite easy for one
or more of the factors of a job to bias the ranking.
 Classification Method
Jobs are classified and grouped according to a series
of predetermined “grades.”
Successive grades require increasing amounts of job
responsibility, skill, knowledge, ability, or other
factors selected to compare jobs.
Managers then evaluate jobs by comparing job
descriptions with the different wage grades in order
to “slot” the job into the appropriate grade.
 Point Ranking Method
The point system is a quantitative job evaluation
procedure that determines a job’s relative value
by calculating the total points assigned to it.
1.Determine the job to be evaluated
2.Determine the factors to be used
3.Define the factors to be covered
4.Define degree of each factor and assign point
value to each degree
 Factor Comparison System
It differs from the point system, however, in that the
compensable factors of the jobs to be evaluated are
compared against the compensable factors of key jobs
within the organization that serve as the job evaluation
scale.
1)Key or benchmark jobs are selected
2)Selection of comparable factors: Eg: Mental
requirement, skill requirement, physical exertion,
responsibility and job conditions
3)Comparison of a job factor with comparable factor
4)Determination of worth of a job.
Example : A tool maker job is to be evaluated whose job factors are
Skill Similar to Electrician
Mental Requirement similar to welder
Physical requirement similar to welder
Working conditions & responsibility to machine operator
Total Points = 5+ 10+ 19+ 24+ 3 = 61
Thank You