Job Evaluation
What are the quantitative and qualitative techniques of job evaluation?
The basic job evaluation methods can be categorized as non-analytical and
analytical, based on the nature of method used. The classification of job
evaluation methods is shown in the following figure:
Job
Evaluation
Non Analytical Analytical
Methods Methods
Job- Factor Point
Ranking
Classification Comparison Ranking
Method Method Method Method
As shown in the preceding figure, the non-analytical methods are also known as
qualitative methods and analytical are also known as quantitative methods.
Qualitative Techniques
In qualitative techniques, different jobs are compared with each other on basis
on their importance. It includes two methods described next.
1. Ranking Method
2. Classification Method
Ranking Method
Ranking is the simplest method in which jobs are arranged from highest to
lowest order in terms of their value or benefit to the organization. In general,
the jobs are characterized by the level of difficulty involved in performing
them. The following table illustrates the ranking done by HR department
considering the salary as an evaluating factor:
Example of Ranking Method
Rank Designation Monthly Salaries
1 Senior Manager – HR Rs 75000
2 Manager – HR Rs 50000
3 Assistant Manager – HR Rs 32000
4 Senior Officer Rs 23000
5 Officer Rs 18000
6 Trainee Rs 1000
Merits of Ranking Method
1. Simple to understand
2. Practically used in small organizations
Merits of Ranking Method
1. Highly subjective in nature
2. Complex & time consuming
Classification Method
In the classification method, various jobs of similar nature from various
departments in an organization are grouped under one job group or one
job class. Specifically, this method consists of three simple steps:
1. Setting up the job classes or job grades
2. Defining each grade or job class
3. Classifying individual jobs in various grades as per the
definitions of these grades
There is a different wage rate for each job or each grade. The
classification of jobs of a large organization can be explained with the
help of the following example:
Class I – Executives : Represents the grade
that can be further classified into Chief Technical Officer,
business heads & team leaders
Class II – Skilled Workers : Refers to the grade
that can be further classified into engineers, technicians, and
like managers
Class III – Semi Skilled Workers : Involves supervisors,
line men, machine operators, and stenographers
Class IV – Unskilled Workers : Denotes the grade
that includes office boys, peons, and courier boys.
Merits of classification method:
It is less subjective in nature
It is a widely acceptable method
It can cover a variety of jobs
Demerits of classification method:
Clubbing various status jobs under one category is
difficult
Mismatching of the job description and grades makes
it subjective in nature
Writing an all inclusive description of a grade is
difficult
Quantitative Techniques
Quantitative Techniques are also known as analytical methods in which a job is
divided into numerous factors that can be measured or quantified. In the
analytical method, numerical scores are assigned to various components of a job
on a definite rating scale.
Factor Comparison Method
Factor comparison method is more systematic and scientific in approach
than any other non-quantitative or quantitative method. This method
overcomes all the demerits of the ranking method. In this method, each
job is ranked according to a series of factors, such as mental efforts,
physical efforts, skills required, working conditions, responsibilities, and
direction of responsibilities. After ranking, each factor is assigned
weights, and wages are decided by comparing the weights of these
factors. This can be illustrated with the help of an example as described in
the following table:
Key Job Job Factors
Wage Physical Mental Skills Responsibility Working
Rate Efforts Efforts Conditions
(Per
day)
Mason 61 14(1) 12(1) 13(1) 13(1) 9(2)
Plumber 48 11(3) 10(2) 8(3) 9(2) 10(1)
Carpenter 42 12(2) 8(3) 7(4) 8(3) 7(3)
Electrician 31 8(4) 5(4) 5(5) 7(4) 6(4)
Laborer 28 7(5) 3(5) 9(2) 4(5) 5(5)
In the preceding table, five jobs, such as mason, plumber, carpenter,
electrician, and labourer, are categorized into a series of job factors.
These job factors are mental efforts, physical efforts, skills,
responsibility, and working conditions. Each job factor of a job is given
some rank; for instance, physical effort has been assigned 14 th rank for
the mason job. An individual weight I assigned to all job categories based
on their ranks. For instance, the wage rates for physical effort will be
multiplied by the weight assigned to this job factor, which will be further
added to the subsequent factors that have resulted due to multiplication of
the wage rates of the job factors and the assigned weightages. This
weighted sum determines the total wage rate of the key job.
Merits of the factor comparison method are as follows:
It is objective and more scientific
It ensures that the compensation is fixed on the basis of ranking of
key factors
It is a flexible method, as there is no limitation on the rating of
factors
Demerits of the factor comparison method are as follows
It is a difficult method to understand and explain
It is a time consuming method
It is a costly method
Point Method
It is the most popular method in which key job factors are defined for every job.
After that, they are arranged in order of their importance. Further, the degrees
are constructed for each factor and points are assigned to each degree. The sum
of these points decides the wage rate. Jobs with similar points are covered under
one pay grade. The detailed procedure of the point method involves the
following steps:
1. Selecting the key jobs
2. Finding the common factors of all identified key jobs
3. Dividing each factor into a number of sub-factors
4. Defining each sub-factor and arranging tem along a predefined
scale in order of their importance
5. Assigning point values to degrees after establishing a relative value
for each key factor
6. Calculating the total point values of all sub-factors for each job
7. Converting the total points into monetary terms according to the
hourly/daily wage rates
Merits of the Point Method are as follows:
It is most widely used
It is most systematic method in application
It is more reliable than any other method
It reduces the changes of rating errors to minimum
Demerits of the Point Method are as follows:
Its systematic nature makes it complex and difficult to use
It is very time consuming
It is very costly method
