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JOB EVALUATION
       Presented by-
       Sandeep Singh
Meaning of Job Evaluation
Job evaluation : Systematic way of determining
 the value or worth of a job in relation to other jobs
 in an organization.

It tries to make a systematic comparison b/w jobs
 to assess their relative worth for the purpose of
 establishing a rational pay structure.
Features of Job Evaluation
 Tries to assess jobs, not people.


 Standards of J/E are relative, not absolute.


 Basis of Job Evaluation is job analysis.


 Carried on by groups not individuals.


 Degree of Subjectivity is always present.
Job Evaluation Vs Performance Appraisal
Point        Job Evaluation               Job Appraisal



1.Meaning    Finding the relative worth   Finding the worth of a
             of a job.                    jobholder.


2.Aim        Determine wage rates of      Determining incentives
             different jobs.              and rewards for superior
                                          performance.

3.Shows      How much a job is worth      How well an individual is
                                          doing an assigned work.
Job Evaluation Vs Job Analysis
 Job Analysis : A systematic way of gathering
 information about a job.



 Job Evaluation begins with job analysis and
 ends at the point of determination of worth of a
 job.
Process of Job Evaluation
             Gaining Acceptance


      Creating Job evaluation Committee


       Finding the jobs to be evaluated


    Analysing and preparing job description


      Selecting the method of evaluation


               Classifying jobs


           Installing the programme


            Reviewing periodically
Conducting Job Evaluation: Guidelines
 Rate the job-not the person or employee on the job.


 Strive to collect all the facts accurately.


 Look especially for distinguishing features of jobs and
  relationship to other jobs.

 Job evaluation must be conducted systematically, based on
  factual and accurate information.

 The result must be fair, rational and unbiased to the
  individuals being affected.
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.
2.Classification
1.Ranking Method
                                     Method




                    Methods of
                       Job
                    Evaluation




    3. Factor                     4.Point Method
comparison Method
1. Ranking Method
 As per this method, jobs are arranged from
  highest to lowest, in order of their values or merit
  to the organisation.
 Jobs can also be arranged according to the
  relative difficulty in performing them.
 The job at the top has the highest value and job
  at the lowest has the lowest value.
 Jobs are arranged in each department and then
  department ranking are combined to develop an
  organisation ranking.
                                           Cont…..
e.g.- Ranking of jobs in any department can be done as
  follows- Rank           Monthly Salaries(in INR)
        1.   Accountant       3000
        2.   Accounts Clerk   1800
        3.   Purchase         1700
             Assistant
        4.   Machine-         1400
             operator
        5.   Typist           900
        6.   Office boy       600
The variation in payment of salaries depends upon the
 nature of the job performed by the employees. Also the
 ranking shows the variation in type of job being
 performed.

                                               Cont….
Merits of Ranking Method
  Simple to understand and practice.
  Best suited for small organisation.


 Demerits of Ranking Method-
  Ranks are highly subjective in nature.
  Rankings are difficult to develop in large, complex
   organisation.
  May offend employees.
2. Classification Method
As per this method, a predetermined group of
jobs are assigned to their classification.
Classification is-
  Class     Rank        Employees
 Class1    Executives          Office manager, Deputy office
                               manager, Office superintendent
                               etc.
 Class2    Skilled Workers     Purchasing Assistant, Cashier,
                               Receipts clerk etc.
 Class3    Semiskilled         Stenotypists, Machine-operators
           workers             etc.
 Class4     Less skilled       Daftaris, File clerks, Office boys
The  variation in class
            workers          ofetc. depends upon the
                                jobs
nature of the job performed by the employees.
Also the class shows the variation in type of job
being performed.
                                                          Cont…
 Merits of Classification method-
   Less subjective as compared to ranking method.
  Very easy to understand
  Acceptable to all employees without hesitation.
  Takes into account all the factors that a job comprises.


 Demerits of Classification Method-
   Requirement of jobs is not taken into account.
  Difficult to write all-inclusive descriptions of a grade.
  Oversimplifies sharp differences b/w different jobs and
   grades.
   Due to mismatch of jobs and grades, the evaluator have
   the tendency to classify the job using their subjective
   judgment.
3. Factor comparison method
 Under this method, instead of ranking complete
  jobs, each job is ranked according to a series of
  factors. These factors include mental effort,
  physical effort, skill needed, responsibility,
  working conditions etc.
 Pay will be assigned in this method by comparing
  the weights of factors required for each job
 Wages are assigned to the job in comparison to
  its ranking on each job factor.



                                        Cont….
 Steps in Factor Comparison method-
  Select key jobs (say 15 to 20), representing
   wage/salary levels across the organisation. The
   selected jobs must represent as many departments
   as possible.
   Find the factors in terms of which the jobs are
   evaluated (such as skill, mental effort, responsibility,
   physical effort etc.)
  Rank the selected jobs under each factor (by each
   and every member of the job evaluation committee)
   independently.
  Assign money value to each level of each factor
   (example: consider problem solving is one of the
   factor, what level of problem solving is required
   {basic, intermediate or advance}) and determine the
   wage rates for each key job.
  The wage rate for a job is apportioned along the
                                             Cont..
An Example of Factor comparison method

Key job     Daily         Physical     Factors      Skill    Responsibilit Working
            Wage          Effort       Mental                y             condition
            Rate                       Effort                              s
Electrician 60            11(3)        14(1)        15(1)    12(1)             8(2)
Fitter      50            14(1)        10(2)        9(2)     8(2)              9(1)
Welder      40            12(2)        7(3)         8(3)     7(3)              6(3)
Cleaner     30            9(4)         6(4)         4(5)     6(4)              5(4)
Labourer    25            8(5)         4(5)         6(4)     3(5)              4(5)

  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). The wage rate for this job would be
  (15+10+12+6+4) is 47.
4. Point Method
 Jobs are expressed in terms of key factors
 Points are assigned to each factor after prioritizing
  each factor in order of importance.
 The points are summed up to determine the wage
  rate for the job
 Jobs with similar point totals are placed in similar
  pay grades.
Procedure of Point method
 Select key jobs. Identify the factors common to all
  the 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
  clearly in the order of importance, preferably
  along a scale.
 Find the maximum number of points assigned to
  each job (after adding up the point values of all
  sub-factors of such a job).
 4. Once the worth of a job in terms of total points
  is expressed, the points are converted into money
  values keeping in view the hourly/daily wage
Point method of Job Evaluation
Degree                                      Define
1               Able to carry out simple calculations; High School educated
2               Does all the clerical operations; computer literate; graduate
3               Handles mail, develop contacts, takes initiative and does
                work independently; post graduate.
                            Points Values for Degrees                 TOTAL
FACTORS
                            1        2      3        4       5
Skill                       10       20     30       40      50       150
Physical effort             8        16     24       32      40       120
Mental effort               5        10     15       20      25       75
Responsibility              7        14     21       28      35       105
Working Conditions          6        12     18       24      30       90
Maximum total points of all factors depending upon their importance to
job=150
                                                            Cont….
Point Range   Daily Wage Rate( Rs.)   Job Grade of Key bank
                                      officials
500-600       300-400                 1 Officer

600-700       400-500                 2 Accountant

700-800       500-600                 3 Manager I Scale

800-900       600-700                 4 Manager II Scale

900-1000      700-800                 5 Manager III Scale
   Merits of Point Method :-
     Superior and widely used method of evaluating jobs.
     Forces raters to look into all key factors and sub-
     factors of a job.
    The methodology underlying the approach contributes
     to a minimum of rating error.



 Demerits of Point Method:-
   Complex method.
  Time consuming process.
  May be too taxing, especially while evaluating
   managerial jobs where the nature of work is such that
   it cannot be expressed in quantifiable numbers.
Major Evaluation Method: Comparative
             Study
Method       What fact       How is job        Types of   Major    Major
             of job is       Evaluated         Methods    Advantag Disadvanta
             Evaluated                                    e        ge
Ranking      Whole job(      Jobs are          Non-        Relatively Entirely
             Compensab       subjectively      Quantitativ quick and subjective
             le factors      ordered           e           expensive
             are implicit)   according to
                             relative worth.
Classificatio Whole job      Compare job       Non-        Readily   Cumbersom
n                            to descriptions   Quantitativ available e system
                                               e           and
                                                           expensive
Factor       Compensab Compare job             Quantitativ Easy to    Hard to
comparison   le factors of to key jobs on      e           use        construct;
             job           scale of                                   inaccurate
                           compensable                                over time
                           factors
Point        Compensab Compare job             Quantitativ Accurate   May be
Method       le factors of to                  e           and        costly
             job           Standardized                    overtime
                           description
Job Evaluation : Demerits
 Not exactly scientific
 Factors taken by the programme are not
  exhaustive.
 There may be wide fluctuations in compensable
  factors in view of changes in technology, values
  and aspirations of employer, etc.
 Employees, trade union leaders, management
  and the programme operators may assign weight
  to different factors, thus creating grounds for
  dispute.
 THANK YOU


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Job Evaluation

  • 1. JOB EVALUATION Presented by- Sandeep Singh
  • 2. Meaning of Job Evaluation Job evaluation : Systematic way of determining the value or worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure.
  • 3. Features of Job Evaluation  Tries to assess jobs, not people.  Standards of J/E are relative, not absolute.  Basis of Job Evaluation is job analysis.  Carried on by groups not individuals.  Degree of Subjectivity is always present.
  • 4. Job Evaluation Vs Performance Appraisal Point Job Evaluation Job Appraisal 1.Meaning Finding the relative worth Finding the worth of a of a job. jobholder. 2.Aim Determine wage rates of Determining incentives different jobs. and rewards for superior performance. 3.Shows How much a job is worth How well an individual is doing an assigned work.
  • 5. Job Evaluation Vs Job Analysis  Job Analysis : A systematic way of gathering information about a job.  Job Evaluation begins with job analysis and ends at the point of determination of worth of a job.
  • 6. Process of Job Evaluation Gaining Acceptance Creating Job evaluation Committee Finding the jobs to be evaluated Analysing and preparing job description Selecting the method of evaluation Classifying jobs Installing the programme Reviewing periodically
  • 7. Conducting Job Evaluation: Guidelines  Rate the job-not the person or employee on the job.  Strive to collect all the facts accurately.  Look especially for distinguishing features of jobs and relationship to other jobs.  Job evaluation must be conducted systematically, based on factual and accurate information.  The result must be fair, rational and unbiased to the individuals being affected.
  • 8. 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.
  • 9. 2.Classification 1.Ranking Method Method Methods of Job Evaluation 3. Factor 4.Point Method comparison Method
  • 10. 1. Ranking Method  As per this method, jobs are arranged from highest to lowest, in order of their values or merit to the organisation.  Jobs can also be arranged according to the relative difficulty in performing them.  The job at the top has the highest value and job at the lowest has the lowest value.  Jobs are arranged in each department and then department ranking are combined to develop an organisation ranking. Cont…..
  • 11. e.g.- Ranking of jobs in any department can be done as follows- Rank Monthly Salaries(in INR) 1. Accountant 3000 2. Accounts Clerk 1800 3. Purchase 1700 Assistant 4. Machine- 1400 operator 5. Typist 900 6. Office boy 600 The variation in payment of salaries depends upon the nature of the job performed by the employees. Also the ranking shows the variation in type of job being performed. Cont….
  • 12. Merits of Ranking Method Simple to understand and practice. Best suited for small organisation.  Demerits of Ranking Method- Ranks are highly subjective in nature. Rankings are difficult to develop in large, complex organisation. May offend employees.
  • 13. 2. Classification Method As per this method, a predetermined group of jobs are assigned to their classification. Classification is- Class Rank Employees Class1 Executives Office manager, Deputy office manager, Office superintendent etc. Class2 Skilled Workers Purchasing Assistant, Cashier, Receipts clerk etc. Class3 Semiskilled Stenotypists, Machine-operators workers etc. Class4 Less skilled Daftaris, File clerks, Office boys The variation in class workers ofetc. depends upon the jobs nature of the job performed by the employees. Also the class shows the variation in type of job being performed. Cont…
  • 14.  Merits of Classification method-  Less subjective as compared to ranking method. Very easy to understand Acceptable to all employees without hesitation. Takes into account all the factors that a job comprises.  Demerits of Classification Method-  Requirement of jobs is not taken into account. Difficult to write all-inclusive descriptions of a grade. Oversimplifies sharp differences b/w different jobs and grades.  Due to mismatch of jobs and grades, the evaluator have the tendency to classify the job using their subjective judgment.
  • 15. 3. Factor comparison method  Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, working conditions etc.  Pay will be assigned in this method by comparing the weights of factors required for each job  Wages are assigned to the job in comparison to its ranking on each job factor. Cont….
  • 16.  Steps in Factor Comparison method- Select key jobs (say 15 to 20), representing wage/salary levels across the organisation. The selected jobs must represent as many departments as possible.  Find the factors in terms of which the jobs are evaluated (such as skill, mental effort, responsibility, physical effort etc.) Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently. Assign money value to each level of each factor (example: consider problem solving is one of the factor, what level of problem solving is required {basic, intermediate or advance}) and determine the wage rates for each key job. The wage rate for a job is apportioned along the Cont..
  • 17. An Example of Factor comparison method Key job Daily Physical Factors Skill Responsibilit Working Wage Effort Mental y condition Rate Effort s Electrician 60 11(3) 14(1) 15(1) 12(1) 8(2) Fitter 50 14(1) 10(2) 9(2) 8(2) 9(1) Welder 40 12(2) 7(3) 8(3) 7(3) 6(3) Cleaner 30 9(4) 6(4) 4(5) 6(4) 5(4) Labourer 25 8(5) 4(5) 6(4) 3(5) 4(5) 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). The wage rate for this job would be (15+10+12+6+4) is 47.
  • 18. 4. Point Method  Jobs are expressed in terms of key factors  Points are assigned to each factor after prioritizing each factor in order of importance.  The points are summed up to determine the wage rate for the job  Jobs with similar point totals are placed in similar pay grades.
  • 19. Procedure of Point method  Select key jobs. Identify the factors common to all the 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 clearly in the order of importance, preferably along a scale.  Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job).  4. Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage
  • 20. Point method of Job Evaluation Degree Define 1 Able to carry out simple calculations; High School educated 2 Does all the clerical operations; computer literate; graduate 3 Handles mail, develop contacts, takes initiative and does work independently; post graduate. Points Values for Degrees TOTAL FACTORS 1 2 3 4 5 Skill 10 20 30 40 50 150 Physical effort 8 16 24 32 40 120 Mental effort 5 10 15 20 25 75 Responsibility 7 14 21 28 35 105 Working Conditions 6 12 18 24 30 90 Maximum total points of all factors depending upon their importance to job=150 Cont….
  • 21. Point Range Daily Wage Rate( Rs.) Job Grade of Key bank officials 500-600 300-400 1 Officer 600-700 400-500 2 Accountant 700-800 500-600 3 Manager I Scale 800-900 600-700 4 Manager II Scale 900-1000 700-800 5 Manager III Scale
  • 22. Merits of Point Method :-  Superior and widely used method of evaluating jobs.  Forces raters to look into all key factors and sub- factors of a job. The methodology underlying the approach contributes to a minimum of rating error.  Demerits of Point Method:-  Complex method. Time consuming process. May be too taxing, especially while evaluating managerial jobs where the nature of work is such that it cannot be expressed in quantifiable numbers.
  • 23. Major Evaluation Method: Comparative Study Method What fact How is job Types of Major Major of job is Evaluated Methods Advantag Disadvanta Evaluated e ge Ranking Whole job( Jobs are Non- Relatively Entirely Compensab subjectively Quantitativ quick and subjective le factors ordered e expensive are implicit) according to relative worth. Classificatio Whole job Compare job Non- Readily Cumbersom n to descriptions Quantitativ available e system e and expensive Factor Compensab Compare job Quantitativ Easy to Hard to comparison le factors of to key jobs on e use construct; job scale of inaccurate compensable over time factors Point Compensab Compare job Quantitativ Accurate May be Method le factors of to e and costly job Standardized overtime description
  • 24. Job Evaluation : Demerits  Not exactly scientific  Factors taken by the programme are not exhaustive.  There may be wide fluctuations in compensable factors in view of changes in technology, values and aspirations of employer, etc.  Employees, trade union leaders, management and the programme operators may assign weight to different factors, thus creating grounds for dispute.