Production & Operation Management

1. CHAPTER 16: JOB EVALUATION
Responses to Questions
1. The purpose is to have a relative ranking of the jobs in the organization
based on the demands of the jobs so that the same may be used to bring
in internal equity as regards pay and compensation structures.
2. Yes. It is a ranking of the job in terms of the demands of the job.
3. Yes. Method and time studies can bring out the job difficulties. Therefore,
a work study can give inputs to job evaluation.
4. Go by the job descriptions and comparable compensable elements or job
factors. This will automatically avoid evaluation of the man doing the job.
5. Job ‘difficulties’ for managerial jobs will involve a different set of factors as
compared to Blue collar jobs. Skills, physical effort, working conditions
would not matter much for the managerial jobs; what matters would be:
responsibility, accountability, problem-solving, know-how, etc.
White collar jobs at the lower levels will come closer to Blue collar jobs but
will emphasize Mental effort and Knowledge base.
Supervisory jobs will come closer to the managerial ones and would take
an account of job responsibility and accountability.
However, the supervisory jobs may still need to be evaluated on skills,
working conditions and physical effort in some organizations.
It must be added with some emphasis that ‘Blue’ collar jobs today are
getting ‘enriched’ to include self-supervision, own quality checks, own
maintenance breaks facilitating the implementation of Just-in-Time
production, TQM and TPM systems. There is a lot more participatory
management.
6. In a capitalist market economy, the ‘market’ decides on the worth of
different jobs. Much depends on the perceptions of the ‘market’.
A large ‘market’ or society does not necessarily function like a microcosm
of industrial / business organization. Therefore, sometimes the ‘perceived’
inequities remain. A social awakening can cause a shift in the society’s
norms and modes of functioning.
7. In theory, labour unions should welcome job evaluation. However, if they
do not trust the management, they may fear that the weak points may be

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taken advantage of by the management. For instance, due to constant
technological input over the years certain jobs might have reduced
physical and mental effort and have better work conditions; yet, they
continue to draw higher level of wages. Unions may fear that the
management may point out such issues convenient to it, while the issues
that the unions consider as important may not be addressed.
Most of the objections arise when there is lack of trust and a lack of
communication. In an atmosphere of good intentions and trust, all
objections can be considered and/or clarified and resolved to mutual
satisfaction.
8. Two of the possible drawbacks of the Factor Comparison method:
(i) Use of ‘monetary’ points for arriving at the rating scales,
perpetrating existing inequities.
(ii) Use of ‘key’ jobs – the choice may be disputed.
9. Collective bargaining would highlight the employees’ perception regarding
inequities in the organization. Ultimately, a job evaluation is done with the
intention of having good industrial relations.
10. There is no question of ‘sub-ordination’. It is an effort for the collective
good of the organization including all its people. Therefore, it should be a
collective effort or collective acceptance. The modes of infusing the
‘collectivity’ may be different in different settings.
11.‘Frequency’ may not always add to the job difficulty. It could be a criterion
where it does.
12.Merit rating is about rating the person on the job. Based on such ‘merit
rating’ the person may be considered for suitable compensation or reward.
Merit rating is akin to ‘performance appraisal.’ Job evaluation does not
concern itself with the person; it concerns itself only with the job. This is
the core difference between Merit rating and Job evaluation.

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CHAPTER 16: JOB EVALUATION
Objective Questions
1. Key jobs in Factor Comparison method are:
a. jobs that are high in either existing wage rates or in position.
b. jobs randomly selected by the Job evaluation analyst.
c. jobs that involve a large fraction of the labour force.
√d. jobs that have no dispute regarding wage rates.
2. Factors for a Points system of Job evaluation should be:
a. Common to all jobs
b. Distinctive
c. Comprehensive
√d. All of the above
3. Hay’s Guide Chart – Profile can be used in:
a. calibration of ‘key’ jobs in Factor Comparison method of job
evaluation.
√b. Job evaluation for managerial and professional jobs.
c. determining wage-rates for the shop-floor workers.
d. none of the above.
4. ‘Key phrases’ regarding job characteristics are a characteristic feature of
which system of Job evaluation?
a. Ranking method
b. Points system
√c. Grading system
d. Factor Comparison system
5. The limitation of Job Evaluation is that:
a. it is subjective in nature
b. it is defense-less against irrationalities in the market outside of the
firm
√c. all of the above
d. none of the above
6. Job evaluation exercise usually leads to enhanced financial burden to the
firm
√a. Yes b. No
7. Job evaluation does not do justice to an employee’s :
a. seniority
b. loyalty and ability
√c. all of the above
d. none of the above

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8. Labour Unions may be apprehensive of a Job Evaluation exercise
because:
a. equity in pay-structure threatens the Unions.
√b. such an exercise may be perceived to tread on their prerogative to
negotiate and collective bargaining.
c. all of the above
d. none of the above.
9. Paired Comparison is used in:
√a. Ranking system of Job Evaluation
b. Points system of Job Evaluation
c. Grading system of Job Evaluation
d. All of the above.
10.Time Span of Discretion is used in:
a. Ranking system of Job Evaluation
b. Points system of Job Evaluation
c. a & b
√d. none of the above.
11.In evaluating managerial jobs one may use :
a. Hay’s Guide chart-Profile
b. TSD
√ c. all of the above
d. none of the above
12.Points are derived from monetary values of wages in:
a. TSD
√b. Factor Comparison system
c. Points system
d. none of the above
13. In designing pay-scales:
a. pay-scale spreads must always be equal.
√b. pay-scales could be overlapping.
c. per cent increase in successive pay ranges must be the same.
d. all of the above.
14. A job evaluation system that compares one whole job with another is:
a. Points system
b. Factor comparison system
√c. Ranking system
d. none of the above

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15.The main basis of Job evaluation is:
√ a. job descriptions
b. prevailing wage rates in the market
c. existing wages in the firm
d. none of the above
16.Which of the following is true?
a. Job evaluation rates the value of the job to the firm.
√b. Job evaluation does not rate the man doing the job.
c. all of the above
d. none of the above