What are the different methods of job evaluation?

Following are the methods of job-evaluation:

(A) Non-Quantitative Methods:

(1) Ranking Method.

(2) Job classification or Grading System.

(B) Quantitative Methods:

(1) Factor Comparison Method.

(2) Point Method.

The non-quantitative or non-analytical or summary methods utilise non-quantitative methods of listing jobs

in order of difficulty. They are simple methods. The job is treated as a whole and job descriptions rather to

job specifications are often utilised. On the other hand, quantitative or analytical methods use quantitative

techniques in listing the jobs. They are more complex and are time consuming. Let us discuss these

methods in detail.

(1) Ranking Method—Under this system, all the jobs are arranged or ranked in the order of importance

from the simplest to the hardest, or in the reverse order each successive job being higher or lower than

the previous one in the sequence. It is not necessary to have job descriptions, although they are useful. A

common practice is to arrange all the jobs according to their requirements by rating them and then to

establish the group or classification. In this method, jobs are not split up into their component parts,

however comparison is made on the basis of whole jobs. Three techniques are generally used for ranking

purposes:

1. Utilizing job descriptions.

2. Making paired comparisons.

3. Ranking along a number line.

1. Utilizing job descriptions—When this procedure is followed, each rater is given a set of job

descriptions, one for each job to be ranked. The job descriptions are then studied and analysed. The

differences between them are noted with respect to the key points selected for comparison. The rater

determines which job in the series requires least amount of various characteristics used for comparison,

and places that job in the lowest rank position. He then determines which job requires next higher amount

of characteristics and places it next to preceding job's rank. And so on. Sometimes, two or more jobs fall in

the same rank position. In such cases, they are assigned the same rank position.

After each rater has assigned the rank independently, their rankings can be compared. This comparison is

usually made by having the raters meet as a committee and discuss with each other their respective

rankings. Final rankings may be done by majority vote or averaging the rankings of raters.

The method just described above involves independent ranking first and then and integration with the

ranking of the other raters.

2. Making group comparisons. In the preceding method, a rater is required to keep in mind all the jobs

being ranked in order to place them in their correct relationship to each other. But this task may become

difficult as the number of jobs increases. Distinguishing differences among jobs may be overlooked or

forgotten. This would result in less accurate evaluation. To do away with this weakness, "paired

comparison method" has been suggested. This method involves following steps :

(a) First of all, each job is paired with every other job in the series. Suppose there are four jobs say, refund

clerk, transfer clerk, adjuster and collection clerk, their pairs will occur as follows :

Refund Clerk------------------------------- Transfer Clerk

Transfer Clerk--------------------------------- Adjuster

Collection Clerk--------------------------- Refund Clerk

Refund Clerk--------------------------- Adjuster

Transfer Clerk--------------------------- Collection Clerk.

(b) Next the rater examines each pair and determines which of the two is more difficult in terms of

characteristics selected as guides. Thus he has to keep only two jobs in mind. He then underlines the more

difficult job.

© How many times a particular job is rated more difficult than others, is counted.

(3) Ranking along a number line—Here ranks obtained from job descriptions or paired comparison are

spaced along a number line. For example job X is the highest rank job and job Y is picked up to find out its

closeness to job X.

The ranking system of job evaluation usually measures each job in comparison with other jobs in terms of

the relative importance of the following five factors:

(i) Supervision and leadership of subordinates.

(ii) Cooperation with associates outside the line of authority.

(iii) Probability and consequence of errors.

(iv) Minimum experience requirement.

(v) Minimum education required.

(2) Job classification or grading method—Job classification or job grading is a process of scientific

study of all the facts about a job, so as to reveal the content of it. Job-grading refers to the classification

and analysis of jobs which are performed in an organisation and to their relative levels. According to

Denyer "Job-grading consists of a scientific study of all jobs (job evaluation) and then placing of these jobs

into broad categories called job-grades. It is fundamentally a technique of determining the differences

between jobs, and of rationalising rates of pay in large organisations." Job-grading is done by studying the

essential characteristics of each job. These characteristics are:

(a) the experience required,

(b) the skill required,

© the initiative required,

(d) the level of responsibility entailed, and

(e) the level of supervision needed for the job.

Identical jobs are grouped in as objective a manner as possible. There is no hard and fast rule about the

number of job-grades. However, too many grades should be avoided. A job grading scheme should be

prepared on scientific basis. When deciding about the grade, details of work performed, tools and

equipments necessary to do the job, the physical surroundings, risks, involved etc. are taken into

consideration. After preparing list of all existing jobs in the office, they are placed in various grades. The

number of grades depends the policy of the organisation regarding the number of job grades to be created

and titled given to them. When job contents change, job grading is also revised.

Job grading involves following steps:

(i) the preparation of job descriptions

(ii) the preparation of grade descriptions

(iii) Selection of grades and key jobs.

(iv) Grading the key jobs

(v) Classification of all jobs.

(3) Point Method—This method is most widely used system of job evaluation. It involves a more detailed,

quantitative and analytical evaluation of jobs. It requires identifying a number of compensable factors i.e.

various characteristics of jobs and the determining degree to which each of these factors is present in the

job. A different number of points is usually assigned for each degree, of each factor. According to Dale S.

Beads— "Every point plan consists of a number of compensable job factors or characteristics. This can be

classified under four headings of skill, effort, responsibility, and job conditions." 

Following are the steps involved in point method:

(i) Determination of Type of Job-The jobs in any organisation will range from the top executive down to

watchman, each involving different skills, responsibility, efforts, and working conditions. Many of the jobs

are unskilled also. There should be separate evaluation programme for different categories of jobs. It

would be better to select 'key* or 'benchmark' jobs which represent each major level of duties, efforts and

skills for each classification of jobs to be rated. It enables to work with relatively few jobs in selecting

factors.

(ii) Selection of Factors—A factor is a distinguishing feature of a job. In the selection of factors, the

following points should be kept into consideration: (a) factors chosen must be rateable, (b) factors must

not be too many, © factors must not overlap in meaning, and (d) factors must meet both employer and

employee standards.

It is very difficult to lay down the exact number of factors which should be used for evaluating a job. C.W.

Lytie, after analysing the problem of the number of factors, feels that there are only four major job

characteristics, namely skill, effort, responsibility and working conditions. These factors are genei^_

divided into a number of sub-factors called specific factors. A possible division of general factors i specific

factors is given below :

Skill: Education, experience, training, judgment.

Responsibility : Machinery and equipment used, raw-materials used, quality of output, work of others.

Effort: Physical and mental.

Working Conditions : Working environment, accident hazard, discomfort, etc.

Each of the above mentioned general and specific factors must be defined precisely. It would ensure

consistency in evaluation by different job evaluators.

(iii) Construction of Factor Scales—The next step is to construct factor scale. It will include (a) determine

relative value of each factor (b, determine degree of each factor and © assign point values to each degree

factor.

(iv) Evaluation of jobs— After the construction of scales the task of evaluation can be started. Read job

analysis information carefully. Compare it with degree definitions. Decide at which degree the job falls and

obtain the points. Do it with each factor and total up to the points so obtained. This will give worth of job in

terms of points.

(v) Conducting the wage survey-When the worth of jobs in terms of points is available, the next logical step

is to convert these into money value. For this purpose, a wage survey must be conducted to know what

wages are being paid by others in the industry. This information should be collected in respect of only the

representative jobs.

(vi) Design the wage structure-Management takes a decision what kind of wage structure does it wish to

have. There are two main kinds of wage structure in vogue:

(1) In the first kind same amount of wages are paid to each job falling in any particualr job class. The rates

do not vary within a particular job class.

(2) In the second kind the wages change not only between different job classes but also within the job

classes.

(vii) Adjusting the existing wage structure—The wage structure designed in the preceding step is the one

to which the existing structure must conform. Those who are getting less than what they should as per the

new wage structure should get a wage raise. But those who are getting more should not have their wages

reduced. Instead such job should be "red circled" so that when the occupant leaves the organisation, the

job in question is either eliminated or changed or when the new person occupies it he is given

"appropriate" wage.

(4) Factor Comparison Method—Thomas E. Hitten was the first to originate factor comparison -method

of job-evaluation. This method determines the relative rank of the jobs to be evaluated in relation to

monetary scale. It is often used in evaluating, the managing administrative and white-collared jobs. It is

essentially a combination of the ranking and point systems. Like the rank order method it rates jobs by

comparing one with another. Like the point system, it is more analytical in the sense of sub-dividing jobs

into compensable factors and finds ratings one expressed in terms of numbers. These factors are not

predetermined and chosen on the basis of job-analysis. The most widely used factors are (a) mental

requirements (b) skill requirements, © physical requirements (d) responsibilities and (e) working

conditions.

Under this system, a few jobs arc selected as key jobs which serve as standard against which all other jobs

are compared. Key job is one whose contents has been stabilised over a period of time and whose wage

rate is considered to be presently correct by the management and the union. The steps in evaluating the

job under this method can be enumerated as under:

(a) first, various factors (as given above) are selected and defined clearly.

(b) Secondly, key jobs are selected.

(c.) Thirdly, wages are fixed for different factors of each key job.

(d) Fourthly, a comparison scale is developed. Each key job should be fitted to it, when all the key jobs

have been evaluated and wages allocated in this manner, a job comparison scale is constructed.

(e) Fifthly, jobs are evaluated factor by factor, in relation to key jobs on job comparison scale. Then each

job is to be evaluated and compared to other jobs in terms of each factor, and

(f) Lastly, a wage structure is designed, adjusted and operated.

The system is usually used to evaluate white collar, professional and managerial positions.