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Job Evaluation

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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.

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Objectives of job evaluation

 Establish a basic pay and grading structure

 Create simple and transparent pay structures

 Reduce the number of grievances over relative

wages
 Fit new jobs into existing pay structures

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The process of job evaluation involves

 Communicating information to and consulting with managers,
employees and representatives in order to gain acceptance of the
scheme
 Deciding the technique(s) to be used and the group(s) of
employees to be covered
 Ensuring the scheme is free from any bias on grounds of race,
gender, disability, and religion or belief
 Setting a realistic timetable

 Analyzing jobs and writing job descriptions as a basis for

evaluation
 Determining the grading structure after evaluation

 Setting up an appeals procedure for employees who dispute their

grading
 Making provision for monitoring the scheme and keeping it up-to-
date

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Process of job evaluation

 A. Establish the purpose –

 Supporting organization strategy

 Supporting work flow
 Being fair to the employees
 Motivating employees to perform towards achievement of the
organization objectives

 B. Decide on single versus multiple plans

 Single Job evaluation plan aims at being implemented universally

across the operation in an organizations. Multiple plan improves
organizational ability to design category specific compensable factors.
To be sure that all the aspects of the jobs have been considered while
evaluating, organizations may prefer to benchmark certain jobs, which
may represent the other jobs in terms of difficulty levels, worth and so
on.

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C. Selecting the best method from the alternatives

1. Non-quantitative methods
 Ranking method:
 Alternation Ranking
 Paired Comparison
 Classification method
 
2. Quantitative methods
 Point method

D. Obtain involvement of relevant stakeholders

E. Evaluate the usefulness of the results

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Ranking method
 Jobs are arranged from highest to lowest, in order of their
value or merit to the organization.

 Jobs can also be arranged according to the relative difficulty

in performing them.

 The jobs are examined as a whole rather than on the basis of

important factors in the job; the job at the top of the list has
the highest value and obviously the job at the bottom of the
list will have the lowest value.

 Jobs are usually ranked in each department and then the

department rankings are combined to develop an
organizational ranking.

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Example of paired Comparison ranking

Total favorable comparison:

Clerk: 0
Assistant Account: 2
Accounts Manager: 4
General Manager – Finance: 6
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Job classification
 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. For example:

 Class I - Executives: Further classification under this category may

be Office Manager, Deputy office manager, Office superintendent,
Departmental supervisor, etc.
 Class II - Skilled workers: Under this category may come the
Purchasing assistant, Cashier, Receipts clerk, etc.
 Class III - Semiskilled workers: Under this category may come
Machine-operators, Switchboard operator etc.
 Class IV - Semiskilled workers: This category comprises File clerks,
Office boys, etc
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 5-10

Point method
 Jobs are expressed in terms of key factors.
 Points are assigned to each factor after prioritising each factor in
order of importance. The points are summed up to determine the
wage rate for the job.
 Jobs with similar point totals are placed in similar pay grades.
Procedure:

 Select key jobs. Identify the factors common to all the identified jobs
such as skill, effort, responsibility, etc.
 Divide each major factor into a number of sub factors. Each sub
factor is defined and expressed clearly in the order of importance,
preferably along a scale.
 Find the maximum number of points assigned to each job (after
adding up the point values of all sub-factors of such a job). This
would help in finding the relative worth of a job.
 Once the worth of a job in terms of total points is expressed, the
points are converted into money values.

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Point Values to Factors along a Scale

Job : An Officer

Job 1 2 3 4 5 Total
Factor

Skill 10 20 30 40 50 150
Physical effort 8 16 24 32 40 120
Mental effort 5 10 15 20 25 75
Responsibility 7 14 21 28 35 105
Working 6 12 18 24 30 90
conditions
540

Maximum total points of all factors depending on their

importance to job = 540. Therefore, the maximum points
assigned to an officer’s job come to 540.

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Job values of Officers of different levels

and responsibilities

Point range Basic Salary range Job grades of key Officer

(INR) officers
300-350 3000-4000 1 Officer
350-400 4000-5000 2 Accountant
400-450 5000-6000 3 Manager I Scale
450– 500 6000-7000 4 Manager II Scale

500 – 540 7000-8000 5 Manager III Scale

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Comparison of
Job Evaluation Methods
Advantage Disadvantage

Cumbersome as number of
Ranking Fast, simple, easy to explain. jobs increases. Basis for
comparisons is not called out.

Can group a wide range of Descriptions may leave too

Classification
work together in one system. much room for manipulation.

Compensable factors call out

basis for comparisons. Can become bureaucratic
Point
Compensable factors and rule-bound.
communicate what is valued.

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