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JOB EVALUATION

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JOB EVALUATION

Process of determining the worth of 1 job in

relation to that of another in an organization

without regard to personalities

Involves comparison of one job to other job

in the same organization to equitably

compensate employees for their services

An important tool for fixing scales of wages

for different grades of jobs

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OBJECTIVES &

SIGNIFICANCE

To determine wage rates for jobs

To establish internal alignment between

wages of various jobs within organization

To recognize the relevance of

knowledge,skill,experience,effort etc.

required for a job

Establish an equitable wage structure and

an internal consistency

To provide for an acceptable basis for wage

differentials

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Designing Equitable Comp

Systems

There are three elements to it:

1. Internal Equity

2. External Equity

3. Individual Equity

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EVALUATION

Non Quantitative comparison Quantitative Comparison using

involving Job as a whole Job Components

Job Vs Job

Comparison

Job Vs Scale

Comparison

JOB RANKING FACTOR

COMPARISON

JOB

GRADING/CLASSIFICATION

POINT PLAN METHOD

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METHODS OF JOB EVALUATION. cont

3. POINTS RATING METHOD

Each job broken into compensable factors likeSkill, Responsibility, Effort, Working conditions

etc.

Assign points to each factor

Award points to each job and total of suchpoints establishes point value of the job

This provides worth of job in terms of points and

wage structure is designed

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FACTORS ____________________Points________________Degrees 1ST 2ND 3RD 4TH 5TH

Skill

1 Education 14 28 42 56 70

2 experience 22 44 66 88 110

3 knowledge 14 28 42 56 70

Effort4 Physical 10 20 30 40 50

5 mental, visual 5 10 15 20 25

Responsibility

6 Equipment or process 5 10 15 20 25

7 material or product 5 10 15 20 25

8 safety of others 5 10 15 20 25

9 work of others 5 10 15 20 25

Job Conditions

10 Working conditions 10 20 30 40 50

11 hazards 5 10 15 20 25

A Typical Point Plan

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FACTOR EVALUATION

SYSTEM(FES)FACTOR750,950, POINTS VALUE OF

FACTOR(

%)

NO. OF

LEVEL

S

POINTS FOR EACH

LEVEL

Knowledge 1850 41.3 9 50,200,350,550,750,950

,1250,1550,1850

Supervisory Control 650 14.5 5 25,125,275,450,650

Guidelines 650 14.5 5 25,125,275,450,650

Complexity 450 10.0 6 25,75,150,225,325,450

Scope and Effect 450 10.0 6 25,75,150,225,325,450

Personal Contact 110 2.5 4 10,25,60,110

Purpose Of Contact 220 4.9 4 20,50,120,220

Physical Demand 50 1.1 3 5,20,50

Work Environment 50 1.1 3 5,20,50

Total Points 4480 99.9

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METHODS OF JOB EVALUATION. cont

4. FACTOR COMPARISON METHOD

Some key jobs are selected

Factors in terms of which jobs are to be

evaluated are determined

Monetary value assigned to each factor

All jobs are then ranked under each factor and

total worth of job worked out

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PRE-REQUISITES/MAJOR STEPS IN

INSTALLATION OF JOB EVALUATION

SYSTEM

Planning acceptance of Job evaluation

programs

Appointment of a Job evaluation committee

Preparing Job descriptions & Job

specifications

Selection of Job evaluation method

Periodic review

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DESIGNING EQUITABLE

COMPENSATION SYSTEMS

INTERNAL EQUITY

EXTERNAL EQUITY

INDIVIDUAL EQUITY