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Job Evaluation: It Is The Grading & Weighing of Jobs To Determine The Value of 1 Job With Other Jobs

Job evaluation involves grading and ranking jobs to determine their relative value and establish a fair pay scale. There are qualitative and quantitative techniques for doing so. Qualitative techniques include grading/classification which establishes job grades and descriptions, and ranking methods like simple ranking, ranking key jobs, paired comparison, and single factor ranking. Quantitative techniques include points ranking which assigns percentages to factors like skill and responsibility, and factor comparison which allocates wages based on factors for key jobs. The goal is to fairly evaluate and compensate jobs in a systematic way.

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63 views

Job Evaluation: It Is The Grading & Weighing of Jobs To Determine The Value of 1 Job With Other Jobs

Job evaluation involves grading and ranking jobs to determine their relative value and establish a fair pay scale. There are qualitative and quantitative techniques for doing so. Qualitative techniques include grading/classification which establishes job grades and descriptions, and ranking methods like simple ranking, ranking key jobs, paired comparison, and single factor ranking. Quantitative techniques include points ranking which assigns percentages to factors like skill and responsibility, and factor comparison which allocates wages based on factors for key jobs. The goal is to fairly evaluate and compensate jobs in a systematic way.

Uploaded by

9755895939
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit 4

JOB EVALUATION
It is the grading & weighing of jobs to determine
the value of 1 job with other jobs.
It is the ranking of the job, not people.
Objectives:
¨ To compare duties & demands of a job with other
jobs.
¨ To determine the hierarchy and place of various
jobs in an organisation.
¨ To determine the grades of each job.
¨ To ensure fair wages..

1
Job evaluation process
• Q – WHICH JOBS ARE TO BE EVALUATED?
• A.--In any exercise, where there are more than
30 or 40 jobs to be evaluated, it is necessary
to identify and select a sample of benchmark
jobs which can be used for comparisons inside
and outside the organization.
Who should evaluate the jobs?
• It is done by a committee which consists of
heads of various departments, representatives
of employee unions and specialist drawn from
National Productivity Counsel. An HR specialist
will be normally the chairman of the
committee.
How much time does it involve?
• Eight jobs in a day can be the ideal pace.
• The final review of all grades allocated to
check that on inconsistencies have occurred,
should be done meticulously and enough time
should be allowed for re-evaluation, if
necessary.
What training do the evaluator need?

• What is job evaluation?


• Why does a company need job evaluation?
• How will it work?
• How does it affect promotion policy?
• How will the system be kept up-to-date?
• Does job evaluation means that everyone
whose job is in the same grade gets the same
rate to pay?
Cont…..
• How does the publication of job grades and
salary bands affect confidentiality?
• How does the system cater to additional or
alteration in job?
• What happens if an individual disagrees with
his grading?
• How quickly will appeals on grading be dealt
with? etc
What should be the criteria for evaluation?

• Most job evaluations use responsibility, skill,


effort and working conditions as major
criteria. Other criteria used are difficulty, time-
span of discretion, size of subordinate staff,
and the degree of creativity needed.
Techniques of Job Evaluation:

QUALITATIVE methods QUANTITATIVE methods

Grading/ Classification Factor


Ranking: Comparison
1. Simple Ranking
2. Ranking Key Jobs Points Ranking
3. Paired Comparison
4. Single Factor Ranking

8
Job evaluation techniques…
1. Qualitative technique/ method:
[A] Ranking method- 4 types:
(a). Simple ranking: Comparison of one job with others based on
duties & demands made by job. Suitable for small no. of simple
jobs.
(b). Ranking key jobs: For ranking many jobs. Key jobs are identified
and ranked. Then other jobs are identified and ranked.
(c). Paired comparison: The evaluator ranks each job against all
other jobs, so that a series of paired ranking is obtained.
(d). Single factor ranking method: A single most important factor
(task) is identified and compared with other job. Then, money
value is assigned to each job. Eg: Sales:?
[B] Classification/Grading method- steps… 

9
[B]. Classification/ Grading method:
Grade is a group of different jobs of similar knowledge and
skills. A class is a sub-division of a given occupation.

Steps of grading:
1.  Prepare job description & grade description.
2. Establish job descriptions & divide organisation into
grades.
3.   Discuss & negotiate with trade union & finalize.
4.   Select key jobs and grade them.
5.   Grade the entire jobs.
6.   Classify jobs.
7. Assign money value to grades..

10
Job evaluation techniques…
2. Quantitative technique/ method:
[A] Points Ranking method: Steps:
1. Select sample jobs & prepare job description.
2. Select the factors (skill, responsibility, experience etc.)
3. Determine the weight of each factor & assign percentage
value to each (total should be 100).
4. Divide each factor into levels.
5. Determine relative value of each level.
6. Convert point scores into money value..

11
[B] Factor Comparison method- Steps:
1. Determine critical factors (Responsibility, skills, mental
& physical effort, working conditions).
2. Determine key jobs.
3. Allocate current wage for key jobs depending on
importance of factors.
4. Place key jobs on factor comparison table.
TABLE: Mechanic Secretary
Responsibility Rs. 8 Rs. 24
Skills Rs. 8 Rs. 20
Mental effort Rs. 5 Rs. 18
Physical effort Rs. 27 Rs. 7
working condition Rs. 19 Rs. 6
Total  Rs. 67 Rs. 75
12
Techniques of Job Evaluation: Recap

QUALITATIVE methods QUANTITATIVE methods

Grading/ Classification Factor


Ranking: Comparison
1. Simple Ranking
2. Ranking Key Jobs Points Ranking
3. Paired Comparison
4. Single Factor Ranking

13

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