This document provides information about job evaluation including: 1. Job evaluation is used to assess the relative worth of jobs based on qualifications, skills, responsibilities, and other factors to determine appropriate pay. 2. The objectives of job evaluation are to determine which jobs should be paid more based on gathered job data and to establish a job hierarchy. 3. Common job evaluation methods include ranking, classification, point evaluation, factor comparison, and market comparison which assign points or rankings to job factors.

1. Job Evaluation
Submitted to:
Sir Talha Asim Ghazi

2. Definition
An assessment of the relative worth of
various jobs on the basis of a consistent set of
job and personal factors, such
as qualifications and skills required.
According to Kimball and Kimball,
“Job evaluation represents an effort to
determine the relative value of every job in a
plant and to determine what the fair basic
wage for such a job should be.”

3. Objective of Job
Evaluation
 The objective of job evaluation is to determine
which jobs should get more pay than others.
 Gather information and data relating to job
description, job specification and employee
specifications of various jobs in the
organizations.
 To determine the hierarchy/Rank based jobs
in the organization.
 To determine duties, responsibilities and
demands of the job with that of other jobs.

4. Goal of Job Evaluation
Define
defensible
Retain high ranking system
potential based on
employees rational and
acceptable pay
structure.
Attracting
Clarification of
desirable job
job structures
candidates

5. FACTORS IN JOB EVALUATION
Job evaluators often assess jobs based on these
factors:
Training level or qualification requirements
Knowledge or skill requirement
Complexity of tasks
Interaction with various levels of org.
Problem solving and independent judgment
Accountability and responsibility
Decision making authority

6. Steps in job evaluation
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.

7. Analyze job evaluation methods
Five Job Evaluation are most commonly used.
• Ranking
• Classification
• Point Evaluation
• Factor Comparsion
• Market Comparsion

8. RANKING
 Ranking jobs is the easiest, fastest, and least
expensive approach to job evaluation.
 Jobs are arranged in order form from highest to
lowest based on their relative value to your
organization.
 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 new position.

9. CLASSIFICATION
 The general purpose of job classification is to create and
maintain pay grades for comparable work across your
organization.
 Universities, government employers and agencies, and other
large organizations with limited resources typically use job
classification systems.
 Advantage Job classification is simple once you establish
your categories. 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.

10. POINT EVALUATION
 In a point evaluation system, you express the value of a particular
job in monetary terms. You first identify compensable factors that
a group of jobs possess. Based on these factors, you assign points
that numerically represent the description and range of the job.
 Examples of compensable factors are skills required, level of
decision-making authority, number of reporting staff
members, and working conditions.
 Advantage This method is often viewed as less biased than
other methods .
 Disadvantages 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.

11. FACTOR COMPARISON
 Job evaluators rank jobs that have similar
responsibilities and tasks according to points
assigned to compensable factors.
 The evaluators then analyze jobs in the external
labor market to establish the market rate for such
factors.
 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.
 Advantage :This method results in customized job-
ranking.
 Disadvantage: Compensable factor comparison
is a time-consuming and subjective process.

12. MARKET COMPARISON
 Job evaluators compare compensation for
your organization's jobs to the market rate for
similar jobs. This method requires accurate
market-pricing surveys.

13. Reasons for Job Evaluation
1. To determine what positions and job responsibilities are similar
for purposes of pay, promotions, lateral moves, transfers.
assignments and assigned work, and other internal parity issues.
2. To determine appropriate pay or salary grades and decide
other compensation issues.
3. To help with the development of job descriptions, job
specifications, performance standards, competencies, and
the performance appraisal system.
4. To assist with employee career paths, career planning
or pathing and succession planning.
5. To assist the employee recruiting process by having in place job
responsibilities that assist in the development of job postings, the
assessment of applicant qualifications, suitable compensation
and salary negotiation, and other factors related to recruiting
employees

14. Compensation and benefit
specialist
 Is responsible for developing:
 A fair compensation plan.
 A successful job evaluation system which can help
in making the organization's pay system
equitable, understandable, legally
defensible, approachable, and externally
competitive.

15. Problems During Job Evaluation
 No centralized job catalog.
For many organizations that may or may not have conducted
formalized job evaluations their results are often stored in excel
spreadsheets that are shared between HR professionals as
needed. The task of managing and updating these files becomes
unmanageable.
 No standard approach for evaluation of jobs.
Many organizations conduct ranking that is based on salary or a
somewhat subjective measure that is often not repeatable.
 Maintenance of catalog and expenses:
If an organization elects to conduct formalized job evaluation the
process usually requires a consultant to come in and use a
specialized methodology that will allow the organization to get an
accurate analysis of their job structure. .

16.  Corporate governance.
This is a problem more and more companies are facing as
they take their businesses into the global marketplace. How
do you account for dramatic differences in job requirements
based on geography, and who should be in charge of
updating and managing those differences?
 Salary surveys
If your organization participates in salary surveys how do you
gain the comfort level that the comparison you are making
between your jobs and the industry is accurate?
 Workflow
Managing the workflow of a job evaluation. To conduct an
accurate evaluation requires input from multiple
sources, how do you keep track of where you are at in any
given evaluation as information is delivered from different
sources at different times

17. Group members
 Ambreena Basharat
 Haris Iqbal Qureshi 5038
 Laiqa Ahmed 5143
 Syed Umer Ali 5087