JOB EVALUATION

Job evaluation is the process of analysing &

assessing the various jobs systematically to

ascertain their relative worth in an org.

• purpose being fixation of satisfactory wage

differentials among various jobs.

• provides logical basis for setting up of

comparative values of jobs in a plant or industry.

.

Job evaluation, begins with job analysis (a

systematic way of gathering information about

a job) and ends at that point where the worth

of a job is ascertained for achieving pay equity

between jobs.

• evaluation or ranking of jobs to determine their position in the job hierarchy.

Job Evaluation Systems

Job Evaluation The systematic process of determining the

relative worth of jobs in order to establish which jobs should be paid more than others within an organization.

Job evaluation

Performance appraisal

Define Relative worth of a job

Find the worth of a job holder

Aim

Shows

Determine wage rates for diff.jobs

How much a job is worth

Determine incentives & rewards for superior performance

How well an individual is doing on assigned work

Job description –a statement of duties &

responsibilities of a job

Job specification– a statement of human qualities to fill the job.

Job Rating– assigning a relative

score to each job

Money allocation --assigning a money rate

of pay to each job acc. to its worth

Job classification--grading jobs acc. to

scale of pay

Job Analysis-a process of obtaining job facts.

Process of job evaluation

The Process Of Job Evaluation

Gaining acceptance from employees and trade unions

Creating a job evaluation committee

Finding the jobs to be evaluated

Analyzing and preparing job descriptions

Selecting the method of job evaluation

Classifying jobs

Installing the programme

Reviewing the process periodically

The process of job evaluation involves the following steps

METHODS OF JOB EVALUATIONJob evaluation involves evaluation of various jobs in terms of certain factors. Imp. factors are• skill : mental & manual• Education• Experience• Efforts & initiative• responsibility• working environment• supervision needed

More difficult job more worthMore scarce supply higher demand

more worth

More skills , edn. ,responsibility required more

worthThese are general statements

Different Job Evaluation Systems

JOB AS JOB PARTSBASIS FOR A WHOLE OR FACTORSCOMPARISON (NONQUANTITATIVE) (QUANTITATIVE)

Job vs. job Job ranking Factor comparison system system

Job vs. scale Job classification Point system system

SCOPE OF COMPARISON

A.Ranking method:

Arranges jobs in numerical order from highest to lower on the basis of the importance of the job's duties and responsibilities to the organization.

Jobs examined as a whole rather than imp.

factors in the job.

A committee of several executives evaluates job descriptions & ranks them in order of importance.

Rank order is determined by averaging the respective ranking of all committee members.

Suitable for small org.s

Rates of pay are associated with jobs in rank order.

B. Grading or job Classification method:

A no. of pre –determined grades /classifications are first established by a committee & then various jobs are assigned within each grade/ class.

Grade descriptions are derived from job analysis.

Eg. Executives -office mgr., deputy office mgr., office superintendent

Skilled worker- cashier, receptionist

Semi skilled worker– file clerks, office boys

C.Factor comparison method:

• Needs expertise knowledge

• Used mostly for white collar workers

• Mostly following 5 factors are evaluated for each jobmental effort, physical effort, skill needed, responsibility,working conditions

Select key jobs (say 15 to 20)representing wage / salary levels across the org. Selected jobs must represent as many deptt.s as possible

Find the factors in terms of which the jobs are evaluated (skill, mental effort etc.)

Rank the selected jobs under each factor ( by each & every member of the job evaluation committee) independently.

Assign money value to each factor & determine the wage rates for each key job.

Wage rate for a job is apportioned along the identified factors.

All other jobs are compared with list of key jobs & wage rates are determined.

D. Point method: Select key jobs Identify the factors to all 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 in order of importance. Find the maximum number of points assigned to each job Once the worth of a job in terms of total points is known, the points are converted into money values, keeping the wage rates in mind.

Merits• Individual factors considered, rather than whole jobs.• Is objective & quantitative• helps in achieving consistency.

Demerits• Arbitrary wts. may be attached to factors.• costly• time consuming