JOB EVALUATION

Job Evaluation
Job 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
Job Job Reward
HR Plan
objective structure
Analysis evaluatio
n

Work relationships
within the
organization Some Major Decisions in Job Evaluation
• determine overall strategy & objectives
• to get right people with right skill in the right place
at the right time.
• getting information about job.
• Obtain involvement of relevant stakeholders
• Evaluate plan’s usefulness
Job Evaluation Methods
Job 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 Classification
Jobs 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 Method
Each 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
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,
Comparison of Job Evaluation Methods
Advantage Disadvantage
Ranking Fast, simple, easy to Not very accurate , not
explain, suitable for useful for large org.,least
small org, not expensive. used method

Classification Can group a wide range Not useful for large org,
of work together in one time consuming, not
system, simple, more involved detailed job
accurate than raking analysis.
method.
Point Compensable factors call Can become
out basis for bureaucratic and rule-
comparisons. bound.
Compensable factors
communicate what is
valued.
Comparison of Job Evaluation Methods
Advantage Disadvantage
Factor comparison Finds wages for a job, Expensive, time
method wages can be calculated consuming,
speedily, greater
consistency in the
judgment, size of jobs
can be measured.
Summary
The 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.