2. JOB EVALUATION
• Job evaluation -is the systematic process for
assessing the relative worth of jobs within an
organization
• It tries to make a systematic comparison
between jobs to assess their relative worth for
the purpose of establishing a relational pay
structure.
3. PROCESS OF JOB EVALUATION
• Gaining Acceptance
• Creating job evaluation committee
• Finding the job to be evaluated
• Preparing job description
• Selecting the method of job evaluation
• Classifying jobs
• Installing the method
• Reviewing periodically
4. Job evaluation guidelines
• Rate the job-not the person or employee on
the job.
• Strive to collect all the facts accurately.
• Look especially for distinguish feature of jobs
and Relationship to other job.
• Job evaluation must be conduct
systematically , based on factual and accurate
information.
5. Benefits of Job evaluation
• Link pay with the requirement of job.
• Systematic procedure for determination the
relative worth of jobs
• Outcomes is an equitable wage structure.
• Employees and union are also an active part of
the job evaluation process.
• Helps in evaluation of new jobs.
• Point out possibilities of more appropriate use of
the plant ‘s labour force.
6. Methods of Job evaluation
• Ranking Method
• Classification Method
• Factor comparison Method
• Point Method
7. Ranking method
RANK Monthly
Salaries(in
INR)
1 ACCOUNTANT 30000
2 ACCOUNTS CLERK 20000
3 PURCHASE ASSISTANT 15000
4 MACHINE OPERATOR 10000
5 TYPIST 8000
6 OFFICE BOY 5000
• As per this method jobs are
arranged from highest to
lowest , in order of their
value or merit to the
organization
• Job at the top has highest
value and job at the lowest
has the lowest value
• Jobs are arranges in each
department then
department ranking are
combined to develop an
organization ranking.
8. CLASSIFICATION METHOD
CLASS RANK EMPLOYEE
CLASS 1 EXECUTIVES Office manger,
deputy office
manager,
Office
superintendent
CLASS 2 SKILLED
WORKERS
Purchasing
assistant,
Cashier, Receipt
clerk
CLASS 3 SEMI SKILLED
WORKER
machine operator
CLASS4 LESS SKILLED
WORKER
File clerk office
boy.
As per this method , a
predetermined group of job
are assign to their
classification
9. Factor comparison method
• Under this method instead of ranking
complete jobs ,each job is ranked according to
series of factor .these factor include mental
effort, physical effort, skill needed,
responsibility, working condition .
• Pay will be assigned in this method by
comparing the weights of factor require for
each job.
10. Point factor
• Jobs are expressed in terms of key factor.
• Points assigned to each factor after prioritizing
each factor in order of importance
• The point are summed up to determine the
wage rate for the job
11. Hongkong Electric Company
Job evaluation case study
• Founded in 1890
• In 1984 company started the job
evaluation exercises
Need of job evaluation
• There was inequality of paying
different salaries for local and
expatriate staff doing the same
job.
• The objectives of the whole
exercise is to have more
consistency in salary scale design
so as to maintain fairness and
equity, to have payroll cost
controlled and rate of promotion
reduced and finally to have
performance rewarded.
12. Case study cont..
• The company decided to use external consultant as they were considered
to be more technically qualified and could be viewed as the impartial and
objective third party. Hay was chosen after reviewing proposals from
various consultants
• To minimize the cost, it was decided that the consultant' should be
involved in the design stage and in the evaluation of the Benchmark jobs
only Internal resources would involve in every stage of the job evaluation,
so that subsequent work of evaluating the remaining jobs and maintaining
the system could be born by internal staff. Three senior staff were then
employed to form the salary administration group to handle the project.
13. Case study cont..
• The exercise was carried out in two stages, viz, the benchmark and non-
benchmark evaluation.
• Benchmark Job Evaluation -A total of 163 benchmark jobs were selected
by the consultant in consultation with the 3 General Managers. Job
descriptions for Head of Division (HOD) level were written by Hay
consultant whereas staff on Department head level were given training by
Hay to write their own job description. In addition, 15 job analysts were
appointed and arranged to receive training from Hay to write job
descriptions for jobs in lower grades after conducting interview with the
job holders .
14. Case study cont..
Question
1- The most important activity you perform
2- To what extent do you develop policies or procedures for others to follow.
Please explain policies or procedures you – develop
3- To what extent do you follow policies or procedures. Please explain
•what: policies or procedures you follow
4- List the area you need general approval form your superior eg staffing
,capital expenditure, promotion , salaries, organizational change.
5- What decisions can you make without reference to your superior
6- What is your Involvement and impact on the planning and budgeting
processes of the Company, i.e. Approve departmental annual budget or
Contribute to long term planning by providing sales statistics
7- What are the major results expected from your job and the type of
impact you have on those results, i.e. Ensure completion date of "the
building is attained by directing and controlling the subcontractor
.Contribute to management ! control and planning by providing timely and
accurate financial accounts.
15. Case study cont..
• A total of 15 Benchmark Committee meetings were organized to evaluate
the benchmark jobs by determining the scores on know-how, problem
solving and accountability for each individual post- Altogether 12 HODs
were appointed as members o£ the Committee with equal representation
from different Branches. Nevertheless each session o£ committee meeting
only required 5 HODS plus Hay consultant and the Personnel Manager to
attend
• Finally, two sore-thumb sessions with all the Benchmark committee
members present were held to agree the final scores o£ the benchmark
job.
16. Case study cont..
• Non-benchmark job evaluation
Due to the large member of non-benchmark jobs (more than 800)it was not
possible for the job analyst to write all job descriptions Therefore, all non-
benchmark job holders were given training by either Hay (for Departmental
head level) or job analysts. A total of 63 training sessions were conducted by
staff in Salary Administration and Management Development.
• To speed up the evaluation, process, individual HOD carried out the initial
evaluation on the jobs of their own division by comparison with benchmark jobs.
The divisional results were then presented to the Non-benchmark committee for
further evaluation. The Non-benchmark committee consisted of 2 Benchmark
committee members outside the function being evaluated, 1 Benchmark
committee member responsible for the function and one representative from
Personnel. There was also a final sore-thumb session to finalize and agree on all
jobs
