JOB EVALUATION

Job EvaluationJob evaluation is a way of breaking down a job

into measurable parts, so each part of a job can be given a points value. To do this, job evaluation looks at all aspects of the job. Job evaluation is about the job and not the person doing the job.

Process of systematically determining the relative worth of jobs to create a job structure for the organization. Depending upon the characteristics and requirements of a job. These relative values of jobs assist in deciding wage rate and salaries for different jobs.

Strategic

objective HR Plan Job Analysis Job evaluation Reward structure

Some Major Decisions in Job EvaluationSome Major Decisions in Job Evaluation• determine overall strategy & objectivesdetermine overall strategy & objectives• to get right people with right skill in the right place to get right people with right skill in the right place at the right time.at the right time.• getting information about job.• Obtain involvement of relevant stakeholdersObtain involvement of relevant stakeholders• Evaluate plan’s usefulnessEvaluate plan’s usefulness

Some Major Decisions in Job EvaluationSome Major Decisions in Job Evaluation• determine overall strategy & objectivesdetermine overall strategy & objectives• to get right people with right skill in the right place to get right people with right skill in the right place at the right time.at the right time.• getting information about job.• Obtain involvement of relevant stakeholdersObtain involvement of relevant stakeholders• Evaluate plan’s usefulnessEvaluate plan’s usefulness

Work relationships within the Work relationships within the organizationorganization

Job Evaluation MethodsJob Ranking

The different jobs, depending upon their requirements, responsibilities involved and their importance to the organization ere ranked, graded or placed from top to bottom.

Job ClassificationJobs are classified or graded in groups or levels of

equal skill, difficulty, responsibility, importance and requirements. Classes or grades are defined to describe a group of jobs.

Point MethodEach job is divided into a number of factors which

are further divided into grades or degrees. Each degree is awarded certan points, these points are totaled and then they indicate the importance of job.

Factor Comparison This method depend upon five factors .Skill (the experience, training, ability, and

education )Mental or Physical effort (the measurement of the

physical or mental exertion needed for performance) Responsibility (the extent to which an employer

depends on the employee to perform the job as expected, with emphasis on the importance of job obligation)

Working condition (hazards, dust, smoke, noise, temperature etc)

Comparison of Job Evaluation MethodsAdvantage Disadvantage

RankingRanking Fast, simple, easy to Fast, simple, easy to explain, suitable for explain, suitable for small org, not expensive.small org, not expensive.

Not very accurate , not Not very accurate , not useful for large org.,least useful for large org.,least used methodused method

ClassificationClassification Can group a wide range Can group a wide range of work together in one of work together in one system, simple, more system, simple, more accurate than raking accurate than raking method.method.

Not useful for large org, Not useful for large org, time consuming, not time consuming, not involved detailed job involved detailed job analysis.analysis.

PointPoint Compensable factors call Compensable factors call out basis for out basis for comparisons. comparisons. Compensable factors Compensable factors communicate what is communicate what is valued.valued.

Can become Can become bureaucratic and rule-bureaucratic and rule-bound.bound.

Comparison of Job Evaluation MethodsAdvantage Disadvantage

Factor comparison Factor comparison methodmethod

Finds wages for a job, Finds wages for a job, wages can be calculated wages can be calculated speedily, greater speedily, greater consistency in the consistency in the judgment, size of jobs judgment, size of jobs can be measured.can be measured.

Expensive, time Expensive, time consuming, consuming,

SummaryThe differences in the rates paid for different jobs

and skills affect the ability of managers to achieve their business objectives.

Differences in pay matter. Differences in the rates paid for different jobs and skills also influences how fairly employees believe they are being treated. Unfair treatment is ultimately counterproductive.

Job evaluation has evolved into many different forms and methods. Consequently, wide variations exist in its use and how it is perceived.

No matter how job evaluation is designed, its ultimate use is to help design and manage work-related, business-focused, and agreed-upon pay structure.