• Job evaluation is the process of determining the worth of one job in
relation to that of the other jobs in a company.
• Is a process of determining the relative worth of a job.
• An effort to determine the relative value of every job in an
• A practical technique to judge the size one job relative to others.
IT SIMPLY MEANS
Studying / analyzing the value, importance, and necessity of a
Key factors considered for Job evaluation are:
• Volume of Responsibilities
• Decision makers
• Maintain needs of the company
OBJECTIVES OF JOB EVALUATION
• To gather data and information relating to job description, job
specification and employee specifications of various jobs in an
• To compare the duties, responsibilities and demands of a job with
that of other jobs.
• To determine the hierarchy and place of various jobs in an
• To ensure equal wages are fixed to the jobs of equal worth or value.
• To minimize wage discrimination based on sex, age, caste, region,
PRINCIPLES OF JOB EVALUATION
• Rate the job but not the employee.
• Elements / tasks selected should be easily understood, defined
clearly and properly selected.
• Employee concerned and supervisors should be educated and
convinced about the program.
• Supervisors should be encouraged to participate in rating the jobs.
• Encourage employee cooperation to participate in the rating
• Do not establish too many occupational wages.
PROCEDURE IN JOB EVALUATION
• Analyze and prepare job description (JA, JD, JS)
• Select and prepare a Job Evaluation plan (job should be divided into
detailed tasks and positions)
• Classify jobs (assigning money values to each class)
• Install / roll out the program
• Maintain / upgrade the program.
METHODS OF JOB EVALUATION
1) Non-quantitative method
i) Ranking method:
a) Simple ranking method
- Jobs and the employees who perform those jobs are ranked from
highest to lowest depending on their quality and value to the
b) Ranking the key jobs:
- The evaluator has to identify the key or representative jobs at the 1st
stage, rank the key jobs at the 2nd stage, identify and rank all other jobs
at the 3rd stage
c) Paired comparison: The evaluator ranks each job in turn against all
other jobs to be appraised, so that a series of paired ranking is
d) Single factor ranking method: The single most important task to be
performed in a job is identified and compared with the single most
important task to be performed in other jobs.
ii) Job Classification
– The job classification method uses job classes or job groups to
provide more customization in the evaluation.
– This method also uses scales to measure performance rather than
comparing and ranking employees.
2) Quantitative method
i) Point Method
• It was introduced by Merrill R. Lott.
• The earliest approach for evaluating job based on quantitative
• This method is analytical and quantitative because the component of
the job is assigned a numerical value.
• Aspects or parts of the job such as education and experience
required to perform the job are assessed and a points value awarded.
• The higher educational requirements of the job higher points scored.
ii) Factor comparison method
• Based on the principles of points rating & principle of ranking.
• This method is analytical as jobs are broken into sub factors and
• It is analytical & quantitative.
ADVANTAGES OF JOB EVALUATION
• It is a logical & to a certain extent an objective method of ranking &
grading of jobs.
• It helps to fit the newly created jobs In the existing structure.
• It satisfies the principles of fair wage, wage equity, uniformity in
• It helps to redesign the jobs for minimizing wide wage differentials.
• It ensures employee satisfaction about wage level & wage equity.
• Helps in redesign the jobs by reallocating the easy & difficult tasks
equally among various jobs.
PROBLEMS IN JOB EVALUATION
• It is not exactly scientific.
• The factors taken by the programme are not exhaustive.
• There may be wide fluctuations in compensable factors in view of
changes in technology, values & etc.
• The result of Job evaluation may not exactly coincide with social
evaluations which in turn result in employee dissatisfaction.
• Job evaluation is only one several factors in determining wage level.
• Job evaluation programme once structured may not be useful for
the next time.