2. DEFINITION
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.
JE
3. OBJECTIVES
• To gather data and information relating to JD, job
specification and employee specifications of various jobs in an
organization .
• To compare the duties, responsibilities and demands of a job
with that of other jobs.
• To determine the hierarchy /rank based on jobs in an
organization.
• To ensure equal wages are fixed to the jobs of equal worth or
value.
• To minimize wage discrimination based on sex, age, caste,
JE
4. KEY FACTORS
• Volume of Responsibilities
• Output / deliverables
• General / Specialty
• Decision makers / decision followers
• Emerging needs of the company
JE
5. PROCEDURES
• HR takes the lead in this exercise with approval from the
management.
• Analyze and prepare job description.
• Select and prepare a JE 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.
JE
7. •Simple ranking
method
• Places jobs in order
• Value to organization
• Quantitative value of job
• Consider entire job
• Best for small organizations
JE
•Classification
method
•Groups similar jobs
•Best matched, similar values
•Uses class descriptions
•Think of it as ‘book shelfing’
•Subjective judgments
•Point factor method
•Compensable factors
•Assign points
•Most popular internal method
• Most effective method
•Best for complex organisations
8. •Market Pricing
•Use market data to value
•Good ‘matches’ better
•Focus on market competitions
•Matches not always available
•Currently gaining popularity
JE
9. ADVANTAGES
JE
• Reduction in inequalities in salary structure
• Specialization
• Helps in selection of employees
• Harmonious relationship between employees and
manager
• Standardization
• Relevance of new jobs