3. Job evaluation
methods
Job evaluation can be
defined as a systematic
process designed to
determine the relative
worth of jobs within an
organization.
5. Job evaluation
methods
Ranking Method
Job classification
(or job grading)
Point method’s
The ranking Method is simple system
that places jobs in order, from highest
to lowest, by their value to
organization
For Example, A restaurant
restaurant manager
bookkeepers and
accountants
chefs and cooks
dishwashers
servers and bartenders
6. Job evaluation
methods
Ranking Method
Job classification
(or job grading)
Point method’s
Description of job classes are written and than
each job is put into grade according to the class
it best match.
e.g., Government pay scale, army with ranks like
private, corporal, and general
7. Job evaluation
methods
Ranking Method
Job classification
(or job grading)
Point method’s
The point method involves identifying
several compensable factors for the
jobs as well as the degree to which
each factor is present in each job
Editor's Notes
Employers use two basic approaches to setting pay rates: market-based approaches and job evaluation methods. Many firms, particularly smaller ones, simply use a market-based approach. Doing so involves conducting formal or informal salary surveys to determine what others in the relevant labor markets are paying for particular jobs. They then use these figures to price their own job .
Job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. We could compare the jobs by focusing on certain basic factors the jobs have in common. In job evaluation we collect the information in job analysis to systematically determine the value of each job in relation to all jobs within the organization. The basic principle of job evaluation is this: Jobs that require greater qualifications, more responsibilities, and more complex job duties should receive more pay than jobs with lesser requirements.
Identifying compensable factors plays a central role in job evaluation. You usually compare each job with all comparable jobs using the same compensable factors. However, the compensable factors you use depend on the job and the job evaluation method. For example, decision making might make sense for a manager's job, but not for a cleaner’s job.