JOB

EVALUATION
 Job Evaluation

Job evaluaton is a
systematic way of
determining the
value/worth of a job
in an organisation.
 Process of Job evaluation
Decide which jobs are to be evaluated

Job Analysis and preparing job

description.
systematically rate each job based on the

job evaluation factors selected. The points

assigned for each of the factors are
totalled for each job.
A Job is evaluated in the following three

categories
 1. Know-how

Know-how is the sum total of every kind of knowledge and

skill however acquired, e.g. experience, education, etc.

needed for accept-able job performance. Know-how includes
three elements:
A. Specialized, technical or practical know-how: the basic job

knowledge needed.
B. Managerial know-how: The degree with which the job deals

with planning and organizing the employees activities and

coordinating with others.
C. Human relations skills: The persuasion and communication

skills for motivating, training, and developing others.

2. Problem Solving

Problem solving is the amount of original self-starting

thinking required by the job for analyzing, evaluating,
creating, reasoning, arriving at and coming to conclusions.
Problem-solving has two elements:
A. Thinking environment defines the degree to which the

incumbent is free to develop answers to problems, ranging

from the day-to-day decisions based on simple memory to
those which require creative thinking or long-range
strategies.
B. Thinking challenge defines the complexity and

uniqueness of problems and may range from repetitive to

highly creative.
 Accountability is the answerability for action

and for the consequences of that action.

Accountability has three elements:
a) Freedom to act is the degree to which the

position can take action without consulting a

higher authority.
b) Impact on end results- advisory or

decision

c) Magnitude is the size of the area in

which the job functions, i.e, whole
organization, single department, etc.
Compare and see how much value

does this job have in the industry .

Decide the amount of compensation to

be given
Process of Job evaluation
Selecting the method of evaluation.

Classifying jobs.

Installing the programme.

Reviewing periodically.
Features of Job Evaluation

It tries to assess jobs, not people.

The standards of job evaluation

are relative, not absolute.

The basic information on which

job evaluations are made is
obtained from job analysis.
Features of Job Evaluation
Job evaluations are carried out by groups, not
by individuals.

Some degree of subjectivity is always present

in job evaluation.

Job evaluation does not fix pay scales, but

merely provides a basis for evaluating a
rational wage structure.
Benefits of job evaluation
It tries to link pay with the requirements of the
job.

It offers a systematic procedure for

determining the relative worth of jobs.

An equitable wage structure is a natural

outcome of job evaluation

An unbiased job evaluation tends to eliminate

salary inequalities by placing jobs having
similar requirements in the same salary range.
Benefits of job evaluation
Employees as well as unions participate as
members of job evaluation committee.

Job evaluation, when conducted properly and

with care, helps in the evaluation of new jobs.

It points out possibilities of more appropriate

use of the plants labour force by indicating
jobs that need more or less skilled workers
than those who are manning these jobs
currently.
JOB EVALUATION METHODS
 RANKING METHOD

It is the simplest method of job evaluation.

In this method, jobs are arranged from highest to

lowest, in order of their value or merit to the
organisation.

Jobs can also be arranged according to the relative

difficulty in performing them.

Jobs are usually ranked in each department and

then the department rankings are combined to
develop an organisational ranking.
According to this method, a predetermined
number of job groups or job classes are
established and jobs are assigned to these
classifications.

This method places groups of jobs into job

classes or job grades.

Separate classes may include office, clerical,

managerial, personnel, etc.

JOB CLASSIFICATION
 Following is a brief description of classification in an
office:
Class 1- Executives: Office manager, deputy office
manager, department supervisor, etc.

Class 2- Skilled workers: Purchasing assistant, cashier,

receipts clerk, etc.

Class 3- Semiskilled workers: Stenotypists, machine

operators, switchboard operator, etc.

Class 4- Semiskilled workers: file clerks, office boys, etc.

 POINT METHOD
This method is widely used currently.

In this method jobs are expressed in terms of

key factors.

Points are assigned to each factor after

priortising each factor in order of importance.

The points are summed up to determine the

wage rate for the job.

Jobs with similar point totals are placed in

similar pay grades
 Factor Comparison
Method
It is more systematic and scientific method of
job evaluation.

Though it is the most complex method of all, it is

consistent and appreciable.

Under this method, instead of ranking complete

jobs, each job is ranked according to a series of
factors.
These factors include:
>mental effort.
>physical effort.
>skills needed.
>responsibility.
>working conditions.
>know-how.
>problem solving abilities.
>accountibility, etc.

Wages are assigned to the job in comparison

to its ranking on each job factor.
 Comparison of Job Evaluation
Methods
Advantage Disadvantage
Ranking Fast, simple, easy to Not very accurate , not
explain, suitable for useful for large org.,least
small org, not expensive. used method

Classification Can group a wide range Not useful for large org,
of work together in one time consuming, not
system, simple, more involved detailed job
accurate than raking analysis.
method.
Point Compensable factors call Can become
out basis for bureaucratic and rule-
comparisons. bound.
Compensable factors
communicate what is
valued.
 Comparison of Job Evaluation
Methods
Advantage Disadvantage
Factor comparison Finds wages for a job, Expensive, time
method wages can be calculated consuming,
speedily, greater
consistency in the
judgment, size of jobs
can be measured.