JOB EVALUATION
JOB EVALUATION
Job evaluation is the systematic process of
determining the worth of a job in relation to
other jobs.
Edwin B. Flippo
Job Evaluation is the evaluation or rating of
jobs to determine their position in the job
hierarchy
CHARACTERISTICS OF JOB EVALUATION
It evaluates jobs, not people
Job analysis is the basis of job evaluation
It is carried out by group of individuals
It provides a basis for evaluating a wage
structure
OBJECTIVES OF JOB EVALUATION
To know the worth of each job
To determine fair wages
To ensure equal wages for persons with equal
qualification
To ensure job satisfaction to all employees
To provide fair chance to all employees for
advancement
To provide information for forming good recruitment,
selection & training methods
PRINCIPLES OF JOB EVALUATION
Rate the job & not the man
Any job rating programme should be explained
clearly to employees
The supervisors should participate in job ratings
of their own department
Employees should be allowed to discuss the job
ratings
The elements taken for rating jobs must be
properly selected
ADVANTAGES OF JOB EVALUATION
Helps to remove inequalities in wage
structure
Helps in fixing new jobs in existing wage
structure
Information collected for job evaluation may
help in improving selection, promotion
procedures
ADVANTAGES OF JOB EVALUATION
Any dispute regarding wages can be settled
by job evaluation committee
Technology change also changes job contents
& job evaluation helps in evaluating these
jobs
It provides sound basis for bonus schemes
LIMITATIONS/ DRAWBACKS OF JOB EVALUATION
Human bias cannot be eliminated from any
job evaluation method
Factors selected today for job evaluation
may not be valid tomorrow
Job evaluation may create doubts in minds of
employees whose jobs are evaluated
Job evaluation programme takes long time &
requires specialized technical personnel
LIMITATIONS OF JOB EVALUATION
It may be costly
Trade unions take it as an interference on
their right to negotiate for wages
Conflict may arise on factors to be selected
for job evaluation between workers &
management
JOB EVALUATION VS PERFORMANCE APPRAISAL
Sr Job Evaluation Performance Appraisal
No
1 It’s a method of finding out It’s a method to find out relative
relative worth of a job worth of a job holder
2 Objective of job evaluation Objective of performance
is to determine wage rates appraisal is to determine
for different jobs incentives & rewards for superior
performance
3 It shows how much a job is It shows how well an individual is
worth doing an assigned work
PROCESS OF JOB EVALUATION
1.Gaining Acceptance
2.Constituting Job evaluation Committee
3.Selection of Key Jobs for evaluation
4.Job Description
5.Selecting the method for evaluation
6.Classifying jobs
7.Installing the programme
8.Periodic review
ESSENTIALS FOR SUCCESS OF JOB EVALUATION
PROGRAMME
Supervisors should be clear about the job
evaluation system
Proper training to supervisors to implement
the system properly
Employees to be made aware of the system
& factors considered
Must have full approval & continued support
of top management
Before launching a job evaluation programme
certain factors need to be considered
Which category of employees are to be
covered
Who will evaluate the jobs-outside
consultants or HR manager
How will the employees be consulted
regarding implementation of the programme
METHODS OF JOB EVALUATION-NON-
QUANTITATIVE OR QUALITATIVE METHODS
1. Ranking Method
All jobs ranked in order of their
importance from simplest to hardest
Steps:
a)Preparation of job description
b)Selection of raters
c) Selection of rates & key jobs
d)Ranking of all jobs
EXAMPLE:
Accounts officer
Accountant
Sr. Accounts clerk
Accounts clerk
Computer operator
Purchase assistant
Office boy
Peon
MERITS –RANKING METHOD
Easy to understand & explain to employees
Economical compared to other methods
Requires much less time in installation
DEMERITS-RANKING METHOD
Different raters may rank jobs differently
Exact difference between different jobs is
not determined
May be chances of inaccurate ranking
Employees may resent random ranking of
jobs
(II) JOB GRADING METHOD
A no of pre-determined grades or
classifications are decided & each job
assigned to one of theses grades or classes
Steps :
1.Preparation of grade descriptions
2.Selection of grades & key jobs
3.Grading the key jobs
4.All the jobs put in relevant grades or
classifications
JOB GRADING-EXAMPLE
Grade Description
1 Very simple task requiring minimum mental ability, manual
work
2 Desk work, minimum training needed
3 Straight forward tasks, should guide others
4 Routine work but having control over a small group
5 Involves decision making, professional qualification needed
6 Highest grade, involves policy making & control
JOB GRADING-MERITS
Systematic criteria used for grading jobs
Easy for employees to understand
Simple method & easy to operate
Easy to determine pay scales for various jobs
Successfully used in govt. services
JOB GRADING - DEMERITS
Human bias cannot be ruled out
This method becomes difficult to operate
when no. of jobs increases
Not suitable for large organizations
QUANTITATIVE METHODS OF
JOB EVALUATION
1.Point System
Most widely used
Steps:
1.Type of jobs to be evaluated
2.No. of factors to be used
3.Determination of degrees
4.Assigning of weights
5.Assigning money values to points
POINT SYSTEM -MERITS
Gives a numerical basis for wage differentials
Scale once decided can be used for a long
time
More acceptable to workers
Human bias is minimized
Is useful even in large no of jobs
More accurate compared to other methods
POINT SYSTEM-DEMERITS
Involves high costs
Can be used only by large organizations
Defining job factors & degree of factors is time
consuming
Selection of factors difficult
Allotment of marks to factors & sub-factors is
also difficult
II)FACTOR COMPARISON
METHOD
Combination of ranking & point system
Developed by E.J.Benge in 1926
Some key jobs selected & ranked
STEPS – FACTOR COMPARISON METHOD
1. Selecting Factors to be used
2. Selection of key jobs
3. Ranking of Key jobs
4. Valuing the factors
5. Comparison of jobs
6. Establishing wage structure
MERITS-FACTOR COMPARISON METHOD
It is systematic where every job factor is
quantified
It can be easily explained to employees
Relative value of each job is determined by
comparing it with some key job
No. of factors used being limited, helps in
avoiding overlapping
DEMERITS-FACTOR COMPARISON METHOD
Difficult to operate
System is complex & cannot be easily
understood by supervisory staff
Expensive method
