Job evaluation JOB EVALUATION An attempt to identify

Job evaluation

JOB EVALUATION � An attempt to identify inputs that are most valuable to the organization & to develop job hierarchy based on which jobs have more or less of those dimensions. � Wendell L. French defined job evaluation as, “a process of determining the relative worth of the various jobs within the organization, so that differential wages may be paid to jobs of different worth. ”

� Job evaluation is an attempt to determine & compare the demands which the normal performance of a particular job makes on normal workers, without taking into account the individual abilities or performance of the workers concerned.

Features � Assess job not people � Standards of job evaluation are relative not absolute � Job analysis information used � Carried out in groups � eliminates wage inequality within the organization. � It provides a basis for ranking different jobs. It helps in establishing line of authority, responsibility and accountability.

Process of job evaluation � Gaining acceptance � Creating job evaluation committee � Finding jobs to be evaluated � Analyzing & preparing job description � Selecting method of evaluation � Classifying jobs � Installing the programme � Reviewing periodically

Job Evaluation Techniques Types of job evaluation methods

Job Evaluation Methods Comparison Method Analysis Method Entire Job Against Scale Job Against Job Factors Classification Point Method Ranking Factor Comparison

Ranking Method � Ranking simply orders the job descriptions from smallest to largest based on the evaluator’s perception of relative value or contribution to the organization’s success.

Ranking method Each job as a whole is compared with other & this comparison of jobs goes until all jobs have been evaluated & ranked. � Jobs ranked in order of their importance…highest to lowest � Importance of job judged in terms of duties , responsibilities & demands on job holder. �

Ranking Method Advantages • Simple • • “Alternation” method ranks “highest” then “lowest, ” then next “highest, ” then next “lowest” • “Paired comparisons” method picks highest out of each pair • • Fast • • Most commonly used • Disadvantages Comparisons can be problematic depending on number and complexity of jobs May appear arbitrary to employees Can be legally challenged Unreliable

Classification Method � Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared

Classification method � � � Classification method Job grades or classes are established by an authorized body or committee appointed for this purpose. Job grade is defined as group of different jobs of similar difficulty or requiring similar skills to perform them. Determined on the basis of information derived from job analysis. Grades or classes created by identifying some common denominator such as skills, knowledge & responsibilities. Once grades are established, each job is placed into its appropriate grade or class depending on how well its characteristics fit in a grade.

� Class I : Executives: office manager, deputy office manager, office superindent , departmental supervisor etc. � Class II: Skilled workers: purchasing assistant, cashier, receipts clerk etc � Class III: Semi skilled workers: stenotypists, machine-operators , switch board operators � Class IV: Semiskilled workers: office boys, clerks

Classification Method Advantages • Uses job families/groups instead of individual jobs • is less costly than other methods Disadvantages • Not useful when jobs are very different from each other • May be confusing to employees about why jobs are included in a class

Factor Comparison � Jobs are compared against other jobs on the basis of how much of some desired factor they possess. � Each job’s factors are ranked against each other job’s factors. � T h e market pay rate for each job is then allocated among the factors based upon a market pay rate scale.

Factor comparison method � Used to evaluate white collar, professional & managerial positions. � Benchmark jobs selected as standards � Factors common to all jobs identified, selected & defined precisely � Common factors…. mental requirements, physical requirements, skill requirements, working conditions & responsibility � Key jobs are ranked in terms of selected common factors.

Factor Comparison Method Advantages • Customized to the organization • Relatively easy to use once it’s set up • Results in ranking of jobs and a specific dollar value for each job, based on allocating part of the job’s total wage to each factor Disadvantages Using dollar values may bias evaluators by assigning more � money to a factor than a job is worth � Hard to set up � Not easily explained to employees � Every time wage rates change, the schedule becomes obsolete � • •

Point Method � These systems have three common characteristics: �Compensable elements � Factor degrees are numerically scaled � Weights reflecting the relative importance of each factor

contd �Compensable elements are those characteristics in the job (not the person) that the organization values, that help it pursue its strategy and achieve its objectives. 3

Point Method • • Advantages Highly stable over time Perceived as valid by users and employees Likely to be reliable among committee that assesses the jobs Provides good data to prepare a response to an appeal Disadvantages • Time, money, and effort required to set up • Relies heavily on key (benchmark) jobs, so if key jobs and correct pay rates don’t exist, the point method may not be valid

Point rating method � Jobs broken down based on various identifiable factors. . skill, effort , knowledge, training, hazards, responsibility etc. . points allocated…depending on their importance to perform the job. � Points so allocated to various factors are summed. � Jobs with similar total points placed in similar pay scale.

� Determine a fair & equitable base rate & allocate this among 5 common factors � Compare & evaluate remaining jobs in organization.

Key Jobs Base rate(daily) Mental Physi require cal ments req skills Working condition s respons ibility Electrici 60 an 13 12 5 12 18 Welder 50 10 19 5 4 12 Mechan ist 80 25 5 23 24 3 Toolmaker job…skill-electrician, mrwelder, pr-electrician, wc-mechanist, resmechanist…. wage=5+10+12+24+3=rs 54