Presented By:

Parakramesh JaroliMBA (Dual) II - Semester

Faculty of Management Studies

JOB EVALUATION

JOB EVALUATION

Job evaluaton is a systematic way of determining the value/worth of a job in an organisation.

PROCESS OF JOB EVALUATION Decide which jobs are to be evaluated Job Analysis and preparing job

description. systematically rate each job based on

the job evaluation factors selected. The points assigned for each of the factors are totalled for each job.

A Job is evaluated in the following three categories

1. Know-how Know-how is the sum total of every kind of knowledge and skill

however acquired, e.g. experience, education, etc. needed for accept-able job performance. Know-how includes three elements:

A. Specialized, technical or practical know-how: the basic job knowledge needed.

B. Managerial know-how: The degree with which the job deals with planning and organizing the employee’s activities and coordinating with others.

C. Human relations skills: The persuasion and communication skills

for motivating, training, and developing others.

2. Problem Solving

Problem solving is the amount of original self-starting thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and coming to conclusions. Problem-solving has two elements:

A. Thinking environment – defines the degree to which the incumbent is free to develop answers to problems, ranging from the day-to-day decisions based on simple memory to those which require creative thinking or long-range strategies.

B. Thinking challenge – defines the complexity and uniqueness of problems and may range from repetitive to highly creative.

Accountability is the answerability for action and for the consequences of that action. Accountability has three elements:

a) Freedom to act is the degree to which the position can take action without consulting a higher authority.

b) Impact on end results- advisory or decision

c) Magnitude is the size of the area in which the job functions, i.e, whole organization, single department, etc.

Compare and see how much value does this job have in the industry .

Decide the amount of compensation to be given

PROCESS OF JOB EVALUATION Selecting the method of evaluation.

Classifying jobs.

Installing the programme.

Reviewing periodically.

FEATURES OF JOB EVALUATION

It tries to assess jobs, not people.

The standards of job evaluation are relative, not absolute.

The basic information on which job evaluations are made is obtained from job analysis.

FEATURES OF JOB EVALUATION Job evaluations are carried out by groups,

not by individuals.

Some degree of subjectivity is always present in job evaluation.

Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

BENEFITS OF JOB EVALUATION It tries to link pay with the requirements of the

job.

It offers a systematic procedure for determining the relative worth of jobs.

An equitable wage structure is a natural outcome of job evaluation

An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range.

BENEFITS OF JOB EVALUATION Employees as well as unions participate as

members of job evaluation committee.

Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs.

It points out possibilities of more appropriate use of the plant’s labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

JOB EVALUATION METHODS

1- RANKING METHOD

2-CLASSIFICATION METHOD

3-POINT METHOD

4-FACTOR COMPARISON METHOD

RANKING METHOD

It is the simplest method of job evaluation.

In this method, jobs are arranged from highest to lowest, in order of their value or merit to the organisation.

Jobs can also be arranged according to the relative difficulty in performing them.

Jobs are usually ranked in each department and then the department rankings are combined to develop an organisational ranking.

JOB CLASSIFICATION

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.

JOB CLASSIFICATION

Following is a brief description of classification in an office:

Class 1- Executives: Office manager, deputy office manager, department supervisor, etc.

Class 2- Skilled workers: Purchasing assistant, cashier, receipts clerk, etc.

Class 3- Semiskilled workers: Stenotypists, machine operators, switchboard operator, etc.

Class 4- Semiskilled workers: file clerks, office boys, etc.

POINT METHOD

This method is widely used currently.

In this method jobs are expressed in terms of key factors.

Points are assigned to each factor after priortising each factor in 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

FACTOR COMPARISON METHOD

It is more systematic and scientific method of job evaluation.

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. >skills needed. >responsibility. >working conditions. >know-how. >problem solving abilities. >accountibility, etc. Wages are assigned to the job in comparison

to its ranking on each job factor.

COMPARISON OF JOB EVALUATION METHODS

Advantage Disadvantage

Ranking Fast, simple, easy to explain, suitable for small org, not expensive.

Not very accurate , not useful for large org.,least used method

Classification Can group a wide range of work together in one system, simple, more accurate than raking method.

Not useful for large org, time consuming, not involved detailed job analysis.

Point Compensable factors call out basis for comparisons. Compensable factors communicate what is valued.

Can become bureaucratic and rule-bound.

COMPARISON OF JOB EVALUATION METHODS

Advantage Disadvantage

Factor comparison method

Finds wages for a job, wages can be calculated speedily, greater consistency in the judgment, size of jobs can be measured.

Expensive, time consuming,

Thank You