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Understanding Job Evaluation Methods

Job evaluation is a systematic process to assess and compare the relative worth of different jobs in an organization. It establishes pay scales by ordering jobs into hierarchies and classifications based on factors like skills, responsibilities, effort, and working conditions. The objectives are to comply with equal pay legislation and maintain internal pay equity. Common methods include point-ranking, factor comparison, ranking, and job grading. Performance evaluations measure an individual employee's performance, while job evaluation determines the pay for a particular role.

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20 views13 pages

Understanding Job Evaluation Methods

Job evaluation is a systematic process to assess and compare the relative worth of different jobs in an organization. It establishes pay scales by ordering jobs into hierarchies and classifications based on factors like skills, responsibilities, effort, and working conditions. The objectives are to comply with equal pay legislation and maintain internal pay equity. Common methods include point-ranking, factor comparison, ranking, and job grading. Performance evaluations measure an individual employee's performance, while job evaluation determines the pay for a particular role.

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anon_156435489
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© Attribution Non-Commercial (BY-NC)
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R .

Elavarasi
MBA(GEN)
1st Yr-”A”
DMS…
 Job evaluation is a systematic assessment of job
content. It establishes the worth of a job in
terms of salary or wage compared to other jobs.
 It is the method of ordering jobs or positions
with respect to their value or worth to the
organization, and placing them into job families
and zones.
 It is a formal process by which management
creates a job worth hierarchy within an
organization.
 In theory, application of job evaluation is
universal.
 Principles job evaluation are relevant to all
jobs and in all organizations.
 In practice, the techniques of job evaluation
is followed in a few companies and that too
for hourly-rated jobs.
Misconceptions:
 Job evaluations are not the same as performance
evaluations. Performance evaluations are directly for
evaluating the performance of an employee for
incentive purposes, whereas job evaluation determines
the pay rate for a job.
 These two terms are easily mistaken to mean the same;
however, they have two different names because they
have two different purposes.
Objectives of job
evaluation

Job analysis

Job description Job specification

Job evaluation
program me

Wage survey

Employee
classification
Process of Job Evaluation
 Gaining acceptance:
Before undertaking job evaluation,
top management must explain the aims
and uses of the program to employees and
unions.

 Job evaluation committee:


A single person cannot evaluate all
the key jobs in an organization .
 Jobs to be evaluated:
All jobs need not be evaluated as
it can lead to high costs and can become
too taxing

 Analyzing and preparing job description

 Selecting the method of evaluation:


The most important method
evaluating the jobs must be identified
keeping the job factors and organizational
demands in mind .
Non-
Analytical analytical
methods: methods:
[Link] [Link]
ranking Job method
evaluation
[Link] [Link]-
comparison grading
 Point-ranking method:
The system starts with 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.
Factor comparison method:

 This method begins with the selection of


factors like mental requirements ,skill
requirements, physical exertion,
responsibility and job conditions.

 These factors are constant for all jobs.

 Each factor is ranked individually with other


jobs.
Ranking method:
This is the simplest ,the most inexpensive
and the most expedient method of
evaluation.
The evaluation committee assesses the
worth of each job on the basis of its title or
on its contents.
Each job is compared with others and its
place is determined.
Job-grading method:

The number of grades is first decided


upon and the factors corresponding to these
grades are then determined.

Job-grading method is to frame grade


descriptions to cover the degree of skill,
responsibility and other job characteristics.
thank you….

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