JOB EVALUATION

WHAT IS 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.

These relative values of jobs assist in deciding wage rate and salaries for different jobs. Main stages in the Job Evaluation process:
Strategic Objective HR Plan Job Analysis Job Evaluation Reward Structure

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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. Evaluate plans usefulness.

IMPORTANCE OF JOB EVALUATION

Job evaluation has some benefits. The organization, management and employees enjoy these benefits directly or indirectly. The benefits of job evaluation are listed below:

Wage structure:
Job evaluation helps management establish an acceptable pay structure in the organization.

Measuring importance of jobs:

Job evaluation makes pricing of jobs determining status and importance of jobs.

Reduction of discrimination:
It reduces discrimination among same level of jobs through determining relative importance of jobs.
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Measure of work:
It helps constitute standard of work and wages, which are acceptable to various levels of employees.

Labor-management relations:
Another benefit of job evaluation is the establishment of good human relation among management and labor.

Data collection:
For making the job evaluation a success, several data and information can be collected.
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Nature of work:
Management comes to know about the nature of work for many purposes. Job evaluation helps in this respect.

Price determination:
Management can determine worth of each job in relation to other jobs with the help of job evaluation program.

Objectives/Purposes
Job evaluation is done to achieve a number of objectives in the organization. These objectives are given below: To provide systematic, definite and factual information for determining the relative worth of the jobs of an organization. To provide a basis for equity in wage and salary administration within the organization. To enable the management to predict and control pay roll cost more accurately.
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 To serve as a basis for negotiation with the employees unions and collective bargaining agent of the organization.

To help in selecting, placing, training, promoting and transferring of the employees of the organization.
To provide a frame work for periodic review of the wages and salaries of the employees in the organization
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JOB EVALUATION METHODS

Four techniques are widely used by the rater or evaluator. These are: Ranking method. Job classification method. Point system. Factor Comparison method

JOB EVALUATION METHODS

Ranking method:
In the ranking method jobs of the organization are arranged or values in order of their increasing levels i.e. from lower position to higher position. In another way it can be said that, the different jobs, depending upon their requirements, responsibilities involved and their importance to the organization ere ranked, graded or placed from top to bottom.

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For Example: Jobs: A B C D Arrangements on departmental level: Department -1 Department -2 Jobs Ranks Jobs Ranks B 3 A 4 C 1 B 3 A 4 D 1 D 2 C 2

Department -3 Jobs Ranks A 4 C 2 B 3 D 1

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Job Classification Method:

In this method first major job classes of the organization are established with necessary job descriptions. Then each job of the organization is compared and fitted or placed in the related job class on the basis of job descriptions. For Example: Job class for clerical positions: Job Classification Job Descriptions A grade clerk Capable of handling complicated work. B grade clerk Must assume more clerical responsibilities. C grade clerk Must be skilled for the clerical job by a knowledge of details. 12

Point Method:
In this method the evaluator first of all decides a number of factors Which are more or less common to all jobs of the organization. Then some point values / weight values are assigned to each of these factors on the basis of their relative importance to the jobs of the organization.

For Example:
Factors A (Skills) 1 2 3 4 5 Point Values 500 100 125 75 150 50
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Point Method:
For Example:
Factors Point Values B (Efforts) 250 1 50 2 50 3 50 4 50 5 50 Each degree is awarded certain points, these points are totaled and then they indicate the importance of job.
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Factor Comparison Method:

In this method the evaluator first of all selects number key jobs from among the jobs of the organization. Then the evaluator will select a number of factors which are common more or less to all jobs of the organization. Then key jobs are ranked on the basis of their relative importance to the organization. This ranking is done in two ways: FirstlyOn overall basis. Secondly- Factor by factor basis.
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This method depends upon four 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, noise, temperature).

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COMPARISON OF JOB EVALUATION METHODS

RANKING METHOD ADVANTAGE DISADVANTAGE

It rates the job and It rates the man and determines the compensation determines the compensation for it. to him for his services.

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CLASSIFICATION METHOD ADVANTAGE

Can group a wide range of work together in one system, simple, more accurate than raking method.

DISADVANTAGE
Not useful for large org, time consuming, not involved detailed job analysis

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POINT METHOD ADVANTAGE DISADVANTAGE

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

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FACTOR COMPARISON METHOD

ADVANTAGE

DISADVANTAGE

Finds wages for a job, wages can Expensive, Time Consuming be calculated speedily, greater consistency in the judgment, size of jobs can be measured.

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wish you all the best in your future endeavour

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