JOB EVALUATION Compensation Administration Process JOB EVALUATION n

JOB EVALUATION

Compensation Administration Process

JOB EVALUATION n n n Job evaluation provides a systematic basis for determining the relative worth of jobs within an organization. It flows from the job analysis process and is based on job descriptions and job specifications. In a job evaluation, every job in an organization is examined and ultimately priced according to the following features: Relative importance of the job Knowledge, skills, and abilities (KSAs) needed to perform the job Difficulty of the job

Job Evaluation Vs. Performance Appraisal Job Evaluation Performance Appraisal Define Find the relative worth of a job Find the worth of a job holder Aim Determine wage rates for different jobs Determine incentives and rewards for superior performance How much job is worth How well an individual is doing an assigned work Outcome

Methods of Job Evaluation n n Ranking Method Classification Method Factor Comparision Method Point Method

RANKING METHOD n n n According to this method , jobs are arranged from highest to lowest, in order of their value to the organization. Jobs can also be arranged according to the relative difficulty in performing them. The jobs at the top of the list has the highest value and the job at the bottom of the list will have the lowest value.

RANKING METHOD Rank 1. 2. 3. 4. 5. 6. Accountant Accounts Clerk Purchase assistant Machine Operator Typist Office boy Monthly Salaries (Rs. ) 3000 1800 1700 1400 900 600

Classification Method n A predetermined number of job groups or job classes are established and jobs are assigned to these classifications.

Classification Method CLASS III CLASS IV Executives Skilled Workers Semi Skilled workers Un- Skilled workers/ Helpers CEO Manager Deputy Office Manager Superintendent Dept. Supervisor Purchasing Steno typists Office boys Assistant Cashier Machine operators etc. File Clerks Receipts Clerk

FACTOR COMPARISION METHOD Factors Daily Wage Rate Physical Effort Mental Effort Skill Responsibili ty Working Conditions Electrician 60 (11)3 (14)1 (15)1 (12)1 (8)2 Fitter 50 (14)1 (10)2 (9)2 (8)2 (9)1 Welder 40 (12)2 (7)3 (8)3 (7)3 (6)3 Cleaner 30 (9)4 (6)4 (4)5 (6)4 (5)4 Laborer 25 (8)5 (4)5 (6)4 (3)5 (4)5 Key Job

POINT METHOD

n select the benchmark jobs from the jobs that have been evaluated. The benchmark jobs are those jobs commonly found in most organizations and are typically included in salary surveys. The benchmark jobs connect the internal pay structure with the external labor market.