2. ANNOTATED OUTLINE 14-2 INTRODUCTION Job Evaluation The purpose of job evaluation is to find the relative worth of a job and determine what a fair wage for such a job should be. Job evaluation, it should be noted, begins with job analysis (a systematic way of gathering information about a job) and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs. Job evaluation is different from performance appraisal too. Performance appraisal is the systematic description of an employee's job related strengths and weaknesses.
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6. 14-6 Job Evaluation Methods Job Evaluation A. Ranking method: The job ranking method arranges jobs in numerical order on the basis of the importance of the job's duties and responsibilities to the organization. This method, though easy to understand, is highly subjective in nature. B. Classification method: The job classification method slots jobs into preestablished grades. Higher-rated grades demand more responsibilities, tougher working conditions and varied job duties. This method is easy to understand and takes care of all relevant factors affecting the performance of a job. However, it is not easy to write all inclusive descriptions of a grade. Further, the method oversimplifies sharp differences between different jobs and different grades. C. Factor comparison method: In this method, jobs are ranked according to a series of factors such as mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions, etc. pay will be assigned in this method by comparing the weights of the factors required for each job.
7. 14-7 An example of factor comparison method Job Evaluation Suppose the job of a painter is found to be similar to electrician in skill (15), fitter in mental effort (10), welder in physical effort (12), cleaner in responsibility (6) and labourer in working conditions (4) then the wage for the job would be 47.