Job Evaluation: Process and Importance
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JOB EVALUATION
Dr.Sapna Awasthi
OUTLI
N
E
:
B
asic
approach
to
Job
Evaluation.
Th
e
i
m
por
t
ance
of
Job
E
v
alu
a
t
i
on
effectiveness.
Impor
t
a
n
t
m
e
thods
of
Job
E
v
alu
a
t
i
o
n
.
Conclusion
What
is
job
evaluation?
Job
evaluation
is the
process
of analyzing
and
assessing
the
various jobs
systematically to
ascertain
their
relative
worth
in an
organization.
Job is
evaluated
on
the
basis of
their
content
and is
placed
in the
order
of
their
importance.
THE
FOLLOWING
OBJECTIVES
ARE
DERIVED
FROM
THE
ANALYSIS
To
gather data
and
information relating
to
job
description,
job
specification
and
employee specifications
for
various
jobs
in an
organization
To
compare
the
duties, responsibilities
and
demands of
a
job
with
that
of other
jobs
To
determine
the
hierarchy
and
place of
various jobs
in an
organization.
To
determine
the
ranks
or grades of various
jobs
To
ensure
fair
and
equitable
wages
on
the
basis of
relative
worth
or
value
of
jobs.
To
minimize
wage
discrimination based on
sex,
age,
caste,
region, religion
etc.
THE ROLE
OF JOB
EVALUATION
IN
ORGANIZATIONS
Job
evaluation
includes
comparative
processes
due
to
the
fact that
the
relations
and
dependencies
among the
jobs
have to
be
explained. This
consists
of
an
essential
determinant that allows
the
management
(through the
analysis of
the
targets,
achievements
and
factors
that
influence
the requirements
of
the
jobs)
to
assign the
corresponding proportions
of
every
job.
For
this
reason
job
evaluation
usually includes
an
extensive
analysis of
the
roles,
the
objectives
and
the
corresponding
actions and
achievements of the
jobs.
The
outcome
of
this
analysis
is the
establishment
of
structures that
aid the
comparison
among the
jobs
and
support the
evaluators to
make
consistent
and
reasonable
judgments.
PRINCIPLES
OF JOB
EVALUATION
PROGRAM
Rate
the
job but not
the
employee.
Rate
the
elements on
the
basis
of
the
job
demands.
The elements selected
for
rating
should be
easily
understood.
The elements should be
defined
clearly and
properly
selected.
Employees
concerned
and the
supervisors should be
educated
and
convinced
about the
program
Supervisors should be
encouraged to
participate
in
rating
the
jobs.
Secure
employee
cooperation
by encouraging
them
to
participate
in the
rating
program.
Discuss
with the
supervisors
and
employees about
rating
but
not
about assigning
money
values
to
the
points.
Do not
establish too
many
occupational
wages
.
JOB
EVALUATION
PROCESS
Objectives
of
Job
Evaluation
Job
Analysis
Job
Specification
Wage
Survey
Employee
Classification
Job
Evaluation
Program
Job
Description
M
ETHODS
RANKING
METHOD
This
is the
simplest,
the
most
inexpensive
and the
most
expedient
method of
evaluation. Each
job
is
considered
as a whole
and is then
given
a
ranking
in
relation
to
all other
jobs.
A
ranking
table
is then
drawn
up
and
the
ranked
jobs grouped
into
grades.
The
main
disadvantage
of this method
is
that
it
lacks
substantiating data
for
later
use
in
justifying
the
relative
position
given
certain
jobs.
So this
method
is
not
suitable
for
large
organization.
CLASSIFICATION
METHOD
Classification
systems
define
the
value
of jobs, people,
or
teams with
written
standards
for
a
hierarchy
of
classification
level. It
involves
only
matching
a
specific job
with a
list
of
tasks
in a
predetermined
labor
grade. Each grade
has asset money
rate.
PROCESS:
1.
D
e
v
elop
de
s
cr
i
p
tions
f
o
r
a
c
at
e
g
o
r
y
o
f
jo
b
s—job
classes/grade
2.
Develop
standards
for
each
category by
describing
the
key
characteristics
of those
jobs
in the
category.
3.
M
a
t
ch
jo
b
s
t
o
the
c
at
e
g
orie
s
base
d
o
n
the
sim
i
larity
of
tasks.
RESULTS:
Job
classes
are
classified
like
managerial
,
office
clerical and
then
jobs
are
assigned
to
these
classifications.
ADVANTAGES:
Jobs, people,
and
teams
can
be quickly
slotted into
the
structure
Classification levels
have
face
validity
for
employees
Standards
to
establish value are
made
explicit
Disadvantages
Many
jobs,
people,
or teams do not fit
neatly
into
a
classification
level
Extensive
judgment
is
required
Differences
between classification
levels
may
not be
equal
Creates status
hierarchies
within
organizations
Extensive
administration required
.
Classification
Method
(con’t)
POINT
METHOD
The
system
starts
with
the
selection of
job
factors,
construction
of
degrees
for
each
factor,
and
assignment
of
points
to
each
degree.
Different factors are
selected
for
different
jobs,
with
accompanying differences
in
degrees
and
points.
The
most
popular number of
factors
is
between
ten
and
fifteen
.
Skill
Education
Experience
Initiative
&
ingenuity
Effort
Physical
demand
Mental
and /
or
visual
demand
Responsibility
Responsibility
for
equipment or
process
Responsibility
for
materials
or
product
Responsibility
for safety
of
others
Job
Conditions
Working
c
onditions
Hazards
PROCESS:
A
set of
compensable
factors
are
identified
Assign
points
to
a these
compensable
factors
based
on
the
perceived
importance
to
the
job
Once
this is
dine
for
all
compensable
factors,
evaluate
the
level
to
which each
of
these
factors
are
present
in the
job
and assign
points(weights)
accordingly.
The
points
for
each
factor
are totaled to form
a
score
for
the
job.
RESULT:
Jobs
are
then
grouped
by
total score
and assigned
to
salary
grades
so
that jobs
with the
highest points would
have
the
highest
pay
.
POINT
METHOD
(CON’T)
THE
FACTOR
COMPARISON
METHOD
This method
is
based on
the
assumption
that
all
jobs
contain
certain
common
factors
to
determine
the
worth
of jobs. These
factors
may
differ
in the
degree
to
which
they
are
present
in
different
jobs.
Typically
the number of compensable
factors
is
small
(4
or
5).
PROCESS:
1.
Select the
set of Benchmark
Jobs
2.
Rank
the
Benchmark
jobs on
the
basis of
each
compensable
factor.
3.
For
each
Benchmark job,
allocate
market
pay
across
the
compensable
factor
4.
Determine
the
pay
for
each
job
by
adding
up
the
pay
from
each
compensable
factor.
RESULTS:
Pay
Range=
Pay
from
skill
+
Pay
from
effort
+
Pay
from
responsibility
+
Pay
from
working
conditions
Advantages:
Analytical and
objective
Reliable
and
valid
as each
job
is
compared
with
other
job
Disadvantages
It is
difficult
to understand
and
explain
Using
the
same criteria
to
access all
job
is
not
accurate
as
jobs
differ
within
organization
as with
point
method.
Time
consuming
and
costly.
THE
FACTOR
COMPARISON METHOD
(CON’T)
CONCLUSION
A
job
evaluation
scheme should be
chosen
cautiously.
It should be
devised and
administered
on
the
basis of employment
market,
demand
for
labor,
bargaining power
of the parties
&
job
conditions.
Job evaluation involves systematically analyzing and assessing the relative worth of different jobs within an organization. It helps determine job hierarchy, fair wages, and minimize discrimination. The process includes gathering job-related data, comparing job duties, and ensuring equitable pay based on job value. Job evaluation plays a crucial role in organizations by enabling fair comparisons among jobs and helping to make consistent judgments.
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Presentation Transcript
JOB EVALUATION Dr.Sapna Awasthi
OUTLINE : Basic approach to Job Evaluation. The importance of Job Evaluation effectiveness. Important methods of Job Evaluation. Conclusion
What is job evaluation? Job evaluation is the process of analyzing and assessing the systematically to ascertain their relative worth in an organization. Job is evaluated on the basis of their content and is placed in the order of their importance. various jobs
THE FOLLOWING OBJECTIVES ARE DERIVED FROM THE ANALYSIS To gather data and information relating to job description, job specification and employee specifications for various jobs in an organization To compare the duties, responsibilities and demands of a job with that of other jobs To determine the hierarchy and place of various jobs in an organization. To determine the ranks or grades of various jobs To ensure fair and equitable wages on the basis of relative worth or value of jobs. To minimize wage discrimination based on sex, age, caste, region, religion etc.
THE ROLE OF JOB EVALUATION IN ORGANIZATIONS Job evaluation includes comparative processes due to the fact that the relations and dependencies among the jobs have to be explained. This consists of an essential determinant that allows the management (through the analysis of the targets, achievements and factors that influence the requirements of the jobs) to assign the corresponding proportions of every job. For this reason job evaluation usually includes an extensive analysis of the roles, the objectives and the corresponding actions and achievements of the jobs. The outcome of this analysis is the establishment of structures that aid the comparison among the jobs and support the evaluators to make consistentand reasonable judgments.
PRINCIPLES OF JOB EVALUATION PROGRAM Rate the job but not the employee. Rate the elements on the basis of the job demands. The elements selected for rating should be easily understood. The elements should be defined clearly and properly selected. Employees concerned and the supervisors should be educated and convinced about the program Supervisors should be encouraged to participate in ratingthe jobs. Secure employee cooperation by encouraging them to participate in the ratingprogram. Discuss with the supervisors and employees about rating butnot about assigning money values to the points. Do not establish too many occupationalwages.
JOB EVALUATION PROCESS Objectives of JobEvaluation Job Analysis JobDescription Job Specification Job EvaluationProgram Wage Survey EmployeeClassification
RANKING METHOD This is the simplest, the most inexpensive and the most expedient method of evaluation. Each job is considered as a whole and is then given a ranking in relation to all other jobs. A ranking table is then drawnup and the ranked jobs grouped into grades. Job title Grade Salary (Taka) Engineer 9 25000 Accountant 8 20000 Purchase assistant 7 18000 Machine Operator 6 15000 Office Boy 5 10000 The main disadvantage of this method is that it lacks substantiating data for later use in justifying the relative position given certain jobs. So this method is not suitable for largeorganization.
CLASSIFICATION METHOD Classification systems define the value of jobs, people, or teams with written standards for a hierarchy of classification level. It involves only matching a specific job with a list of tasks in a predeterminedlabor grade. Each grade has asset moneyrate. PROCESS: 1.Develop descriptions classes/grade 2.Develop standards for each category by describing the key characteristics of those jobs in the category. 3.Match jobs to the categories based on the similarity of tasks. RESULTS: Job classes are classified like managerial , office clerical and then jobs are assigned to these classifications. for a category of jobs job
Classification Method (cont) ADVANTAGES: Jobs, people, and teams can be quickly slotted into the structure Classification levels have face validity for employees Standards to establish value are made explicit Disadvantages Many jobs, people, or teams do not fit neatly into a classification level Extensive judgment is required Differences between classification levels may not be equal Creates status hierarchies within organizations Extensive administration required .
POINT METHOD The system starts with the selection of job factors, construction of degrees for each factor, and assignment of points to each degree. Different factors are selected for different jobs, with accompanying differences in degrees and points. The most popular number of factors is between ten and fifteen . Effort Physical demand Mental and / or visual demand Skill Education Experience Initiative & ingenuity Responsibility Responsibility for equipment or process Responsibility for materials or product Responsibility for safety of others Job Conditions Working conditions Hazards
POINT METHOD (CONT) PROCESS: A set of compensable factors are identified Assign points to a these compensable factors based on the perceived importance to the job Once this is dine for all compensable factors, evaluate the level to which each of these factors are present in the job and assign points(weights) accordingly. The points for each factor are totaledto form a score for the job. RESULT: Jobs are then grouped by total score and assigned to salary grades so that jobs with the highest points would have the highest pay.
1st Degree 2nd Degree 3rd Degree 4th Degree 5thDegree Factors SKILL Education 15 30 45 60 75 Experience 20 40 60 80 100 Initiative andIngenuity 15 30 45 60 75 EFFORT Physicaldemand Mental or visualdemand 10 20 30 40 50 5 10 15 20 25 RESPONSIBILITY Equipment or process 5 10 15 20 25 Material or product 5 10 15 20 25 Safety of others 5 10 15 20 25 Work of other job conditions 5 10 15 20 25 JOB CONDITIONS Working conditions Unavoidable hazards 10 20 30 40 50 5 10 15 20 25
THE FACTOR COMPARISON METHOD This method is based on the assumption that all jobs contain certain common factors to determine the worth of jobs. These factors may differ in the degree to which they are present in different jobs. Typicallythe number of compensable factors is small (4 or 5). PROCESS: 1. Select the set of BenchmarkJobs 2. Rank the Benchmark jobs on the basis of each compensable factor. 3. For each Benchmark job, allocate market pay across the compensable factor 4. Determine the pay for each job by adding up the payfrom each compensablefactor. RESULTS: Pay Range= Pay from skill + Pay from effort + Pay from responsibility + Pay from workingconditions
THE FACTOR COMPARISON METHOD (CON T) Advantages: Analytical and objective Reliable and valid as each job is compared with otherjob Disadvantages It is difficult to understand and explain Using the same criteria to access all job is not accurate asjobs differ within organization as with point method. Time consuming and costly.
CONCLUSION A job evaluation scheme should be chosen cautiously. It should administered on the basis of employment market, demand for labor, bargaining power of the parties & job conditions. be devised and
