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Job Evaluation

The objectives of job evaluation are to establish fair pay differentials between jobs requiring different skills, identify and address pay inequities, provide a foundation for variable pay programs, maintain consistent policies for career growth, and help management and unions deal with major compensation issues. Job evaluation methods include ranking jobs, classifying jobs into groups or grades, and quantitatively comparing jobs based on factors like mental/physical effort, skills, responsibilities, and working conditions. The most common quantitative method is the point method, which assigns points to jobs based on prioritized factors.

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Punit Kalra
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41 views

Job Evaluation

The objectives of job evaluation are to establish fair pay differentials between jobs requiring different skills, identify and address pay inequities, provide a foundation for variable pay programs, maintain consistent policies for career growth, and help management and unions deal with major compensation issues. Job evaluation methods include ranking jobs, classifying jobs into groups or grades, and quantitatively comparing jobs based on factors like mental/physical effort, skills, responsibilities, and working conditions. The most common quantitative method is the point method, which assigns points to jobs based on prioritized factors.

Uploaded by

Punit Kalra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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What are the objectives of job evaluation?

Objectives of Job Evaluation: The decision to measure or rate jobs should only be made with the intent to reach certain objectives which are important to both management and the employee. Although there are many side benefits of job evaluation, the purpose is to work towards a solution of the many wage and compensation related administrative problems which confront the industry. The below-mentioned are some of the important objectives of a job evaluation programme: Establishment of sound salary differentials between jobs differentiated on the skills required. Identification and elimination of salary-related inequities. Establishment of sound foundation for variable pay such as incentive and bonus. Maintenance of a consistent career and employee growth policy/ guidelines. In organizations with active unions, creation of a method of job classification, so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. Collection of job facts 1. Selection of employees 2. Promotion and transfer of employees 3. Training of new employees 4. Assignment of tasks to jobs 5. Improving working conditions 6. Administrative organization, and o Work simplification. Methods of Job Evaluation

1. Non-quantitative evaluation method

Ranking Method

Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs also can be arranged according to the relative difficulty in performing

them. The jobs are examined as a whole rather than on the basis of important factors in the job; and the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. The following table is a hypothetical illustration of ranking of jobs.

Classification Method

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.

(a)

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 Steno typists, Machine-operators, Switchboard operators, etc.

(b) (c)

(d) Class IV - Semiskilled workers: This category comprises Dataries, File clerks, Office boys, etc. 2. Quantitative evaluation method: Factor Comparison Method A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, supervisory responsibility, working conditions and other relevant factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this

method by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor. Point method This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in the order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades.

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