How the company fix salary to their
• It is through job evaluation !
• Job evaluation is the outcome of job analysis.
• Each job is analyzed in terms of specific
dimensions like educational level, responsibility
level, discretion level, relationship with other
impact level. These are then evaluated and few
levels are fixed so that these can be used to
determine compensations to the job holder like
salary and other financial and non-financial
• Job evaluation is the process of analysis and
assessment of jobs to ascertain relatively their
relative worth, using the assessment as the
basis for a balanced wage structure.
• The techniques of job evaluation: Job analysis
has two techniques:
• Non quantitative technique
• Quantitative technique
Non quantitative technique
• Non-Quantitative techniques:
• This has
• Simple ranking method
• Paired comparison method
• Grading method
• Simple ranking method:
• This method compares one job with other job
based on duties, responsibility, and the degree
of importance to the organization. This mostly
used in small organization.
• Paired comparison method:
• The evaluator ranks each job in turn against all other
jobs to be appraised so that a series of paired ranking is
produced. In other words each job is paired with every
other job in turn, and the more difficult job of the pair
is indicated by the assessor.
• They are ranked according to the number of times they
are more judged as more difficult.
• It is usual to distribute the pairs of jobs among several
judges and collect the results on a computer.
• Grading method:
• Major job classes are established. Various jobs
are assigned by ranking to these grades based
on their personal interpretations of relative
difficulty of tasks, responsility
involved, knowledge and experience
required, authority level etc. This grading
method mostly followed in public sector
• Quantitative techniques:
• This has three techniques. They are
• Pont method
• Factor comparison method
• Hay method(For executives)
• Point method:
• The point method break the job in to
components and evaluate each of the job
elements against specially construed scales.
There are four steps in the point method. They
• Selection of compensable factors
• Establishment of factor scales
• Assignment of points to degrees and
• Application to organizational jobs
• Factor comparison method:
• The factor comparison method is a method of
quantifying the job versus the job comparison. It
is the least commonly used method of job
evaluation. There are three steps in this method.
• The first step is to select key jobs to help anchor
the system. Key jobs are those jobs that are found
many organizations that have relatively stable job
content ; they also have to be jobs for which the
prevailing wage rates are known.
• The second step is to rank the key jobson a few
compensable factors, such as
skill, effort, responsibility and job conditions.
• The third step is to determine for each key job
the amount of the present pay rate that is
attributable to each of the factors. Suppose the
trotal rate of a job is say $7.75, $1.75 is allocated
for its level of skill, $1.75 for effort, $1.25 for
responsibility and n$3.00 for working condition
• Problem solving is the amount of original thinking
required by the job for arriving decisions; it
includes the sub factors of degree of freedom and
type of mental activity. Accountability is defined
as being answerable for actions taken on the job;
its three sub factors are freedom to act, dollar
magnitude and impact.
• The hay guide chart allows the evaluator to
assign a point for each factor. The total of the
points across all factors is the value of the job
Computerized job evaluation
• This the recent trend in job evaluation. Here after
some training, incumbents complete the
structured questionnaires such as job position
analysis questionnaire or task oriented
questionnaire for the jobs they supervise.
• Responses about time spent on and importance
of various tasks are then incorporated into a
statistical regression technique to calculate job
points and the appropriate location of a job in the
• Services that score the position analysis
questionnaire also provide job evaluation
• Other computer based procedure operate in
similar fashions. That is they facilitate, a survey of
jobs, evaluation of jobs, and the aggregation of
market data for comparisons.
• More and more computers are playing an
important role in removing the drudgery from