8/18/2021 Competitive Exams: Job Evaluation- Examrace
Examrace
Competitive Exams: Job Evaluation
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What is job evaluation? what are the different ways in which a job evaluation can be
carried out?
Job evaluation is a systematic assessment of job content. It establishes the worth of a job
in terms of salary or wage compared to other jobs. Many elaborate schemes have been
developed and applied with varying degrees of success. While some structure is necessary
on a project, pay is more likely to be governed by market conditions, scarcity, individual
knowledge, performance or trade agreements. Job evaluation is the method of ordering
jobs or positions with respect to their value or worth to the organization, and placing them
into job families and zones. Job evaluation is the A formal process by which management
creates a job worth hierarchy within an organization. The two basic approaches are the
market data approach and the job content approach.
The different ways in which a job evaluation can be carried out is
Ranking
This method is one of the simplest to administer. Jobs are compared to each other based
on the overall worth of the job to the organization. The ‘worth’ of a job is usually based on
judgements of skill, effort (physical and mental) , responsibility (supervisory and fiscal) ,
and working conditions.
Advantages
Simple.
Very effective when there are relatively few jobs to be evaluated (less than 30) .
Disadvantages
Difficult to administer as the number of jobs increases.
Rank judgements are subjective.
Since there is no standard used for comparison, new jobs would have to be compared
with the existing jobs to determine its appropriate rank. In essence, the ranking process
would have to be repeated each time a new job is added to the organization: Ranking
Methods, Ordering Simply place job titles on 3 × 5 inch index cards then order the titles
by relative importance to the organization, Weighting and Paired Comparison
Classification
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the
grade/category structure has a description and associated job titles. Each job is assigned
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8/18/2021 Competitive Exams: Job Evaluation- Examrace
to the grade/category providing the closest match to the job. The classification of a
position is decided by comparing the whole job with the appropriate job grading standard.
To ensure equity in job grading and wage rates, a common set of job grading standards
and instructions are used. Because of differences in duties, skills and knowledge, and
other aspects of trades and labor jobs, job grading standards are developed mainly along
occupational lines. The standards do not attempt to describe every work assignment of
each position in the occupation covered. The standards identify and describe those key
characteristics of occupations which are significant for distinguishing different levels of
work. They define these key characteristics in such a way as to provide a basis for
assigning the appropriate grade level to all positions in the occupation to which the
standards apply.
Advantages
Simple.
The grade/category structure exists independent of the jobs. Therefore, new jobs can be
classified more easily than the Ranking Method.
Disadvantages
Classification judgments are subjective.
The standard used for comparison (the grade/category structure) may have built in
biases that would affect certain groups of employees (females or minorities) .
Some jobs may appear to fit within more than one grade/category.
Factor Comparison
A set of compensable factors are identified as determining the worth of jobs. Typically the
number of compensable factors is small (4 or 5) . Examples of compensable factors are:
Skill
Responsibilities
Effort
Working Conditions Next, benchmark jobs are identified. Benchmark jobs should be
selected as having certain characteristics.
equitable pay (not overpaid or underpaid)
range of the factors (for each factor, some jobs would be at the low end of the factor
while others would be at the high end of the factor) . This process establishes the rate of
pay for each factor for each benchmark job. Slight adjustments may need o be made to
the matrix to ensure equitable dollar weighting of the factors. The other jobs in the
organization are then compared with the benchmark jobs and rates of pay for each
factor are summed to determine the rates of pay for each of the other jobs.
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Advantages
The value of the job is expressed in monetary terms.
Can be applied to a wide range of jobs.
Can be applied to newly created jobs. Disadvantages
The pay for each factor is based on judgements that are subjective.
The standard used for determining the pay for each factor may have build in biases that
would affect certain groups of employees (females or minorities) .
Point Method
A set of compensable factors are identified as determining the worth of jobs. Typically the
compensable factors include the major categories of:
Skill
Responsibilities
Effort
Working Conditions
Factors
The point method is an extension of the factor comparison method. Each factor is then
divided into levels or degrees which are then assigned points. Each job is rated using the
job evaluation instrument. The points for each factor are summed to form a total point
score for the job. Jobs are then grouped by total point scores and assigned to wage/salary
grades so that similarly rated jobs would be placed in the same wage/salary grade. These
factors can then be further defined.
1. Skill
a. Experience
b. Education
c. Ability
2. Responsibilities
a. Fiscal
b. Supervisory
3. Effort
a. Mental
b. Physical
4. Working Conditions
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a. Location
b. Hazards
c. Extremes in Environment
Advantages
The value of the job is expressed in monetary terms.
Can be applied to a wide range of jobs.
Can be applied to newly created jobs. Disadvantages
The pay for each factor is based on judgements that are subjective.
The standard used for determining the pay for each factor may have build in biases that
would affect certain groups of employees (females or minorities) .
Developed by: Mindsprite Solutions
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