2. DEFINITION:
Wendell L French- “A process to determine the relative worth of
various jobs within the organization, so that differential wages
may be paid to jobs of different worth.”
“The process of determining the worth of one job in relation to
that of the other jobs in a company.”
3. KEY FACTORS:
• Volume of Responsibilities
• Output / deliverables
• General / Specialty
• Decision makers / decision followers
• Emerging needs of the company
4. OBJECTIVES:
• To gather data and information.
• Comparison.
• Determine the hierarchy.
• Equal wages.
• Minimize wage discrimination.
5. PRINCIPLES:
• Rate the job but not the employee.
• Elements / tasks selected should be easily understood.
• Educated and convinced about the program.
• Encouraged to participate in rating the jobs.
• Consensus with the supervisors and employees on rating.
• Should be a collective effort, chance for equal representation
from all departments.
7. Non Analytical Methods
Ranking Method
•Least Expensive method.
•Overall worth of job as it measure whole jobs.
•Jobs Ranking.
•The 'worth' of a Job.
•Jobs are usually ranked in each department.
Drawbacks
Job evaluation may be subjective as the jobs are not broken
into factors.
10. Job Grading/Classification Method
• Group of different Jobs.
• The grades or classes are created by identifying some
common denominator such as skills, knowledge and
responsibilities.
• Job is then placed into a grade depending on how well its
characteristics fit in a grade. In this way, a series of job grades
is created. Then, different wage/salary rate is fixed for each
grade.
11. Example.
To develop a class for administrative workers. Within this class,
she may have three different grades, or levels, based upon the
nature of the work and the level of responsibility.
12. Level or
Grade
Definition
1 Very simple tasks of a largely physical nature
2 Simple tasks carried out in accordance with a small number of clearly defined rules, tasks which
can be carried out after short training of 2-3 weeks. The work is checked & supervised
3 Tasks calling for independent arrangement of work, some initiative & those which require little
supervision.
4 Routine work but those involving an individual degree of responsibility for answering non-routine
queries & exercising some measure of control over a small group of staff.
13.
14. ANALYTICAL METHODS
Point-Ranking Method:
•Jobs are expressed in terms of key factors.
•Points are assigned to each factor.
•The points are summed up to determine the wage rate.
1.Skill (key factor):
2.Responsibility/Accountability:
3.Effort.
16. FACTOR COMPARISON METHOD:
Ranked on The Basis of Factors.
•Mental requirements.
•Skill requirements.
•Physical exertion
•Responsibility.
•Job condition.
Worth of job is obtained by adding together all the point values.
17. The steps involved in factor comparison method may be briefly stated thus:
• Select key jobs.
• Rank the selected jobs under each factor (by each and every member of
the job evaluation committee) independently.
• Assign money value to each factor and determine the wage rates for each
key job.
• All other jobs are compared with the list of key jobs and wage rates are
determined.
18.
19. Benefits of Job Evaluation
• Link pay with the requirements of the job.
• Systematic procedure for determination the relative worth of jobs.
• Outcome is an equitable wage structure.
• Employees and unions are also an active part of the Job evaluation
process.
• Helps in evaluation of new jobs.
• Points out possibilities of more appropriate use of the plant’s
labour force.
