On Job Evaluation- HR

1. {
JOB EVALUATION
Prepared by: Deepika Tripathi
PGDBM IVth Trimester (2013-2015)

2. Your employees want fair pay. Your
employees want regular raises. You want to
attract and retain talented employees in
your organization. Your employees need
clarity about their roles and responsibilities
as well as about what's expected from
them.
WHAT WILL YOU DO???

3. EVALUATE:
Role 1- Plant Head of a Chemical Plant which manufactures 4
different types of chemicals & has end to end responsibility of
all the plant functions such as Production, Maintenance, HR,
Security, Administration, Quality etc.
Role 2- Secretary who manages all the administrative requirement of
the finance department of an organization (e.g. booking
flights, scheduling meetings etc.)

4.  ROLE 1: The Manager-
1. MANAGEMENT AND LEADERSHIP
2. STRATEGIC COMMUNICATION & COLLABORATION
3. IMPORTANCE OF CRITICAL THINKING
4. FINANCE SKILLS - Other Dept skills too
5. PROJECT MANAGEMENT
6. COMPLEXITY, ACCOUNTABILITY, DECISION-
MAKING, JOB REQUIREMENTS
 ROLE 2: The Secretary-
1.Knowledge/ Computer Awareness
2.Verbal and written communication skills
3.An eye for detail and perfectionism
4. Transactional/ Functional

5. A job evaluation is a systematic way of
determining the value/worth of a job in relation to
other jobs in an organization. Source: Wikipedia
ILO- “An attempt to determine and compare
demands which the normal performance of a job
makes on normal workers WITHOUT taking into
account the individual abilities or performance of
workers concerned”

6. OTHER DEFINITIONS
Wendell L French- “A process to determine he
relative worth of various jobs within the
organization, so that differential wages may be paid
to jobs of different worth.”
Netherlands committee of experts- Job Evaluation is
a method which helps to establish a justified rank
order of jobs as a whole being a foundation for the
setting of wages.”
DEFINING JOB
EVALUATION
CONTENT VALUE

7. JOB
ANALYSIS
JOB
DESCRIPTION
JOB
EVALUATION
JOB
STRUCTURE

9.  Establish the purpose of evaluation
 Decide whether to use single or multiple plans
 Choose among alternative approaches
 Obtain involvement of relevant stakeholders
 Evaluate plan’s usefulness
SOME MAJOR DECISIONS IN JOB
EVALUATION

10. PROCESS OF JOB EVALUATION:
It is best to perform job evaluation after Job
Analysis. Job evaluation, in conjunction with Job
analysis, helps to develop a job description that is
broad, descriptive, and flexible so that company
can adapt the description to the organization's
changing needs.

11.  Introduce the concept of job evaluation.
 Obtain management approval for the evaluation.
 Train the job evaluation selection team.
 Review and select the job evaluation method.
 Gather information on all internal jobs.
 Use information to fully expand job descriptions.
 Use the selected job evaluation method to rank jobs
hierarchically or in groups.
 Link the ranked jobs with your compensation system
or develop a new system.
 Implement the job evaluation and compensation
systems.
 Periodically review your job evaluation system and the
resulting compensation decisions.

12. DIFFERENCE BETWEEN
JOB EVALUATION &
PERFORMANCE
APPRAISAL???

13. JOB EVALUATION PERFORMANCE APPRAISAL
DEFINE Find the selective worth of a job Find the worth of a job holder
AIM Determine wage rates
for different jobs
Determine incentives and
rewards for superior
performance
SHOWS How much a job is worth How well an individual is doing
on assigned jobs
COMPULSION Not compulsory Compulsory
BASIS OF RATING Responsibility, qualification,
experience, working condition, etc.
Performance
TIME Before employee is hired After the employee is hired
PURPOSE To establish satisfactory wage
differentials
To effect promotions, offers,
awards, punishments, assess
training needs resorts to lay
offs, transfers, etc.

14. BENEFITS OF JOB EVALUATION
Objective method of
ranking and grading
jobs
Fits the jobs in the
existing structure
Employee
grievances, doubts
and complaints will
be at a lower ebb.
Reduction in
inequalities in salary
structure
Enhances
Specialization
Helps in selection of
employees
Harmonious
relationship between
employees and
manager
Standardization-
Redesign jobs-
Distributes easy and
difficult jobs equally
Minimizes wage
differentials- Wage
equity

15. Non-Analytical/ Non-
Quantitative Method
Ranking Method:
 Simple Ranking
 Ranking Key Jobs
 Paired Comparison
 Single factor Ranking
Job Classification & Grading
Method
Analytical/
Quantitative Method
Points Rating Method
The Factor comparison
method
TECHNIQUES OF JOB
EVALUATION

16. NON- QUANTITATIVE
TECHNIQUES

17. i) RANKING METHOD
 Simple Ranking-
Simplest, least expensive and administratively the easiest.
Comparison of one job with another based on duties, responsibilities and
demands & degree of importance of the job to the organization
Ranks all jobs from most important to least important.
 Ranking the Key Jobs-
• Identify the key/ representative jobs – 1st Stage
• Rank the key jobs- 2nd Stage
• Identify and rank all other jobs- 3rd Stage
 Paired Comparison-
Job A Job B Job C Job D Total
Points
Job A x 0 0 0 0
Job B 0 x 1 1 2
Job C 0 0 x 1 1
Job D 1 1 1 x 3
RANK MONTHLY SALARIES
1) ACCOUNTANT 6000
2) ACCOUNT CLERK 3600
3) PURCHASE
ASSISTANT
3400
4) MACHINE
OPERATOR
2800
5) TYPIST 1800
6) OFFICE BOY 1200

18. Advantages
Simplicity is the main advantage in using a ranking
system. It is also easy to communicate the results to
employees, and it is easy to understand.
Disadvantages
Ranking jobs is subjective. Jobs are evaluated, and
their value and complexity are often assessed on
the basis of opinion. Also, when creating a new job,
existing jobs must be reranked to accommodate the
the new position.

19. SINGLE FACTOR RANKING METHOD
 Simplest and most common technique
 They then base compensation on ranking order with
the highest ranked position earning the highest pay.
 Least expensive method
 Works well for smaller businesses with tight budgets.
 Although this method can prove effective, its
analytical system does not reach deep enough to
determine other things associated with job
evaluation, such as the value of the job to the
individual organization or experiential competencies
necessary to properly perform the job.

20. ii) Grading Method –
Job Classification
GRADE- Group of different jobs of similar
difficulty/ requiring similar knowledge and skills
to perform.
CLASS- Similar jobs , Various difficulty level
CLASS RANK EMPLOYEES
Class 1 Executives Office manager, Deputy
Office manager, Office
Superintendent, etc.
Class 2 Skilled workers Purchasing Assistant,
Cashier, Receipts Clerk, etc.
Class 3 Semi-skilled workers Steno typists, Machine-
operators, etc.
Class 4 Less-skilled workers File Clerks, Office boys, etc.
E.g.-
Grade- Financial
Accountants, Cost
Accountants, Management
Accountants
Class- Asst Financial
Accountants, Financial
Accountants, Senior
Financial Accountants,
Chief Financial
Accountants.

21. Advantage
 Job classification is simple once the categories are
established.
 You can assign new jobs and jobs with changing
responsibilities within the existing system.
Disadvantages
 Job classification is subjective, so jobs might fall
into several categories.
 Decisions rely on the judgment of the job
evaluator. Job evaluators must evaluate jobs
carefully because similar titles might describe
different jobs from different work sites.

22. QUANTITATIVE
TECHNIQUES

23.  This is a commonly used job evaluation technique.
 It is an analytical method which breaks down each job into a
number of factors; for example, skill, responsibility and effort,
with the factors sometimes being further broken down into sub-
factors, for example, education, decision making and dexterity.
 These sub-factors will be further divided into degrees or levels.
Points are awarded for each factor according to a predetermined
scale and the total points decide a job's place in the ranking order.
 The factors should reflect the varying degrees of importance
attached to them.
 Care must be taken to ensure that the weightings do not result in a
sex-biased scheme - for example, by attaching an unjustified
weighting to the physical strength factor at the expense of manual
dexterity.
i) POINT- RATING METHOD

24. For example, he could define the "experience" factor into 5 levels
with points distributed as follows:
No experience (entry level) = 10 points
1-3 years experience = 30 points
4-6 years experience = 50 points
7-10 years experience = 75 points
Over 10 years experience = 100 points
Advantage: This method is often viewed as less biased than
other methods because the job evaluator assigns each job's total
points before the compensable factors become part of the
equation.
Disadvantage: Subjective decisions about compensable factors
and the associated points assigned might be dominate. The job
evaluator must be aware of biases and ensure that they are not
represented in points assigned to jobs that are traditionally held
by minority and female employees.

25. ii) FACTOR COMPARISON METHOD
• Job evaluators rank jobs that have similar responsibilities and
tasks.
• The evaluators then analyse jobs in the external labour
market.
• Jobs across the organization are then compared to the
benchmark jobs according to the market rate of each job’s
compensable factors to determine job salaries.
• Under this method, instead of ranking complete jobs, each job
is ranked according to a series of factors.
• These factors include mental effort, physical effort, skill
needed, responsibility, working conditions, etc.
• Pay will be assigned in this method by comparing the weights
of factors required for each job.
• Wages are assigned to the job in comparison to its ranking on
each job factor.

26. AN EXAMPLE OF FACTOR COMPARISON
METHOD
Suppose the job of a painter is found to be similar to
electrician in skill (15), filter in mental effort (10),
welder in physical effort (12), cleaner in responsibility
(6), and labourer in working conditions (4). The wage
rate for this job would be (15+10+12+6+4) is 47.

27. SOME FACTORS:
Advantage
This method results in
customized job-ranking.
Disadvantage
Compensable factor comparison
is a time-consuming and
subjective process.

28.  Training level or qualifications requirements
 Knowledge and skills requirements
 Complexity of tasks
 Interaction with various levels of the organization
 Problem-solving and independent judgment
 Accountability and responsibility
 Decision-making authority
 Degree of supervision required
 Cross-training requirements
 Working conditions
 Degree of difficulty in filling job
FACTORS IN JOB
EVALUATION

29. METHOD WHAT FACT
OF JOB IS
EVALUATED
HOW IS JOB
EVALUATED
TYPES OF
METHODS
MAJOR
ADVANTA
GE
MAJOR
DISADVANT
AGE
RANKING Whole job
(Compensable
factors are
implicit)
Jobs are
subjectively
ordered
according to
relative worth
Non-
quantitative
Relatively
quick and
inexpensive
Entirely
subjective
CLASSIFICATION Whole job Compare job
to descriptions
Non-
quantitative
Readily
available
and
inexpensive
Cumbersome
system
FACTOR
COMPARISON
Compensable
factors of job
Compare job
to key jobs on
scale of
compensable
factors
Quantitative Easy to use Hard to
construct;
inaccurate
over time
POINT
METHOD
Compensable
factors of job
Compare job
to
standardized
description
Quantitative Accurate
and less
biased
May be costly

30. Job evaluation is alive
and well. Leading
organization use job
evaluation as a source of
competitive advantage
by improving the
organization’s ability to
manage its investment
in human resources with
greater credibility,
discipline, and fairness.
Job evaluation is not
only about
maintaining internal
equity in the
compensation
program. It facilitate
organizational clarity,
building capability,
and establishing
commitment through
culture and rewards.
It is a critical
management tool,
extremely useful in
ensuring an
organization’s
proper integration
of strategy, culture,
structure, process,
people, and
rewards.

31. INDIVIDUAL
Vision, values, philosophy,
knowledge, competencies,
abilities, Life/ career stages,
Style, interests
JOB DEMANDS
Tasks
Functions
Roles
Organizational Environment
Culture & Climate, Structure
& Systems, Maturity of
industry, Strategic position of
Orgn, Core competence,
Larger context
BEST
FIT
… And this is what
job evaluation
helps to attain.

32. Companies who consider job
evaluation an essential part:

33. THANK YOU !!