Job evaluation is a technique for systematically comparing jobs based on factors like skill, effort, and responsibility required, in order to assess their relative worth and provide a basis for determining pay grades. It aims to ensure fairness and objectiveness in remuneration. The key methods are ranking, classification, factor comparison, and point methods, with the point method assigning numerical points to jobs based on compensable factors and converting points to salary levels. While job evaluation provides structure and addresses both employee and employer needs, it also has disadvantages like not accounting for performance differences and involving some subjectivity.

1. Job Evaluation

2. Job Evaluation
 Technique for comparing JOBS
rather than employees.
 “system for comparing different jobs
systematically to assess their
relative worth, so providing a basis
for a grading and reward structure”.

3. Job Evaluation
Good remuneration systems must be
seen as fair – especially by employees!
The law also demands that jobs of
equal worth should attract equal pay.
A key factor in fairness will be linking
the degree of difficulty of the job with
the reward. Job evaluation can be
used to assess the relative difficulty of
the job.

4. Job Evaluation Methods
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 . pre established 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.

5. 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.

6. D. Point method: The point system of job evaluation uses a point
scheme based on the compensable job factors of skill, effort,
responsibility and working conditions. The more compensable
factors a job possesses, the more points are assigned to it. Jobs
with higher accumulated points are considered more valuable to
the organization.
 Select key jobs
 Identify the factors to all identified jobs such as skill, effort,
responsibility etc.
 Divide each major factor into a number of sub factors. Each
sub factor is defined and expressed in order of importance.
 Find the maximum number of points assigned to each job
 Once the worth of a job in terms of total points is known, the
points are converted into money values, keeping the wage rates
in mind.
Job Evaluation Methods

7. Job Evaluation Advantages
 Provides a systematic and rational
procedure for valuing each job
 Ensures a degree of equity and
objectiveness in remuneration
 Job descriptions generated are useful for
other activities
 Helps motivation and morale
 Both employee and employer needs are
addressed
 Scope for union/employee involvement

8. Job Evaluation Disadvantages
 Lack of allowance for differences in
performance
 Assessment can be costly & time-
consuming especially at the start
 Assessment can be inaccurate or
approximate
 It’s still subjective!