Dr. Pinki InsanAstt. ProfessorMDU Rohtak IGPGRC

An assessment of the relative worth of various 

jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills 

required.

JOB EVALUATION:

14-3

Features of job evaluation

It tries to assess jobs

The standards of job evaluation are relative, not absolute

It gets the basic information through job analysis

It is generally carried out by groups, not individuals

Some amount of subjectivity is always present in job evaluation

It does not fix pay scales but offers a sound basis for determining a rational wage structureJob

Evaluation

According to Kimball and Kimball, “Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.”

Objective

The objective of job evaluation is to

determine which jobs should get

more pay than others. Several 

methods such as job ranking, job

grading, and factor comparison are

used in job evaluation.

Goal of Job EvaluationDefine

defensible ranking

system based on rational

and acceptable

pay structure.

Clarification of job

structures

Attracting desirable job candidates

Retain high potential

employees

FACTORS IN JOB EVALUATIONJob evaluators often assess jobs based on these factors:

Training level or qualification requirements

Knowledge or skill requirement

Complexity of tasks

Interaction with various levels of org.

Problem solving and independent judgment

Accountability and responsibility

Decision making authority

Steps in job evaluationIntroduce the concept of job evaluation.

Obtain management approval for the evaluation.

Train the job evaluation selection team.

Review and select the job evaluation method.

Gather information on all internal jobs.

Use information to fully expand job descriptions.

Use the selected job evaluation method to rank jobs hierarchically or in groups.Link the ranked jobs with your compensation system or develop a new system.

Implement the job evaluation and compensation systems.

Periodically review your job evaluation system and the resulting compensation decisions.

RANKING JOBS IS THE EASIEST, FASTEST, AND LEAST EXPENSIVE APPROACH TO JOB EVALUATION.

JOBS ARE ARRANGED IN ORDER FORM FROM HIGHEST TO LOWEST BASED ON THEIR RELATIVE VALUE

TO YOUR ORGANIZATION. THE PROCESS OF JOB RANKING TYPICALLY GIVES MORE VALUE TO JOBS THAT REQUIRE MANAGERIAL

OR TECHNICAL COMPETENCIES

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. Following is a brief description of such a classification in an office.

CLASSIFICATION(GRADING)

Class I - Executives: Further classification under this category may be Office Manager, Deputy office manager,

Office superintendent, Departmental supervisor, etc.

Class II - Skilled workers: Under this category may come the Purchasing

assistant, Cashier, Receipts clerk, etc.Class III - Semiskilled workers: Under this category may come Stenotypists,

Machine-operators, Switchboard operator etc.

Class IV - Unskilled workers: This category comprises Daftaris, File clerks,

Office boys, etc.

Point evaluation is the most widely used job evaluation method. In a point evaluation

system, you express the value of a particular job in monetary terms. You first identify compensable factors that a group of jobs

possess. Based on these factors, you assign points that numerically represent the

description and range of the job. Examples of compensable factors are skills

required, level of decision-making authority, number of reporting staff members, and

working conditions.

POINT EVALUATION

Point values for Degrees To ta l

Facto r 1 2 3 4 5

Skill 10 20 30 40 50 150

Physical effort 8 16 24 32 40 120

Mental effort 5 10 15 20 25 75

Responsibility 7 14 21 28 35 105

Working conditions 6 12 18 24 30 90

Maximum total points of all factors depending on their importance to job = 540

(Bank Officer)

Po int range Daily Wage rate (Rs) Job grades of key bank officia ls

500-600 300-400 1 O fficer

600-700 400-500 2 Accoun tan t

700-800 500-600 3 Manager I Scale

800-900 600-700 4 Manager II Scale

900-1000 700-800 5 Manager III Scale

Job evaluators rank jobs that have similar responsibilities and tasks .

The evaluators then analyze jobs in the external labor market .

Jobs across the organization are then compared to the benchmark jobs according to the market rate of each job's compensable factors to determine job salaries.

FACTOR COMPARISON

Suppose the job of a painter is found to be similar to electrician in skill (15), fitter in mental effort (10), welder in physical effort (12), cleaner in responsibility (6) and labourer in working conditions (4) then the wage for the job would be 47.

Factors Daily Phys ical F ac tors Sk il l R espo ns ib il ity W o rk in gKey W ag e e ff o r t m e n t a l co nd itio n sJo b Rate e ff o r t

Electrician 60 11(3 ) 14(1) 15 (1) 12 (1) 8(2)

Fitter 50 14 (1) 10(2 ) 9 (2) 8(2) 9(1 )

Welder 40 12(2 ) 7(3) 8 (3) 7(3 ) 6(3)

Cleaner 30 9 (4) 6(4 ) 4(5 ) 6(4 ) 5 (4)

Labou rer 25 8 (5) 4(5 ) 6(4 ) 3(5 ) 4 (5)