This document discusses job evaluation, which is defined as the systematic process of defining the relative worth of jobs within an organization to establish internal pay structures. It describes the key features, objectives, processes, and methods of job evaluation. The common methods discussed are ranking, grading, and point rating. The point rating method divides jobs into factors that are assigned point values which are later converted to monetary values.

1. HUMAN RESOURCE
MANAGEMENT
JOB EVALUATION

2. Job Evaluation
 Concept of Job Evaluation
 Features
 Process
 Methods

3. Job Evaluation
It is the systematic process for defining the relative
worth of jobs within an organisation, in order to
establish internal relativities & provide the basis
for designing an equitable pay structure.
It is the evaluation or rating of jobs to determine
their position in the job hierarchy in an
organisation. This method is widely used for
elimination of wage inequities
3

4. Job Evaluation
Features of job evaluation
1.Systematic: - Here the relative size or value of
jobs is determined on the basis of factual
evidence.The evidence is analysed within a
structured framework of criteria
2.Judgemental:- The facts collected need to be
interpreted. Human judgement is required to
make the final decisions based on clear evidence &
sound reasoning
4

5. Job Evaluation
3. Concerned with the job & not the person:-
While evaluating a job, the concern is for the
content of that job in terms of its demand on
the job holder.
It does not take into consideration the
performance of the individual in relation to the
job
4.Concerned with internal relativities:- It is
only concerned with the worth of a job within
the organisation & not concerned about the
external relativities like market rates 5

6. Objectives
Major objectives of Job evaluation are:-
1.Equitability in the wage structure within an
organisation
2.Consistency of the firm’s wage structure with that
of the industry in which it operates
3.Establishment of a sound scheme for incentives &
bonuses.
4.Provide a framework for periodic review of wages
6

7. Objectives
5. Classify functions, authority & responsibility
which in turn aids in work simplification &
elimination of duplicate tasks.
6. Reduce grievances & employee tturnover,
thusincreasing employee morale &
management-employee relationships.
7.Serves as a basis for negotiation with the
unions
7

8. Job Evaluation Process
Job evaluation process involves the following
steps:-
1. A thorough examination of jobs
2. Preparation of Job descriptions
3.Comparison of one job with another
4. Arrangement of jobs in their correct sequence
5.Relating the sequence to the money scale
8

9. Methods of Job Evaluation
There are different types of job evaluation
methods.
Non Quantitative methods
a) Ranking method
b) Grading method
Quantitative methods
a) Points Ranking method
9

10. Methods of Job Evaluation
Ranking method
All the jobs in a organisation are checked & are
rated in the order of complexity ,responsibility
& the demands they make on the respective
employees
Ranking is made easier by identifying those that
come at the extreme ends of the scale & locating
the rest in the middle region.
In the Ranking system, jobs are not split up into
component parts but the comparison is made on
the whole jobs.
10

11. Methods of Job Evaluation
Job Grading method
Also called predetermined grading method. Jobs
are classified into the grade/category structure.
Each of the grades are defined in terms of
general functions & qualifications
required.Jobs are assigned to the
grade/category providing closest match to it.
11

12. Job grading method
This method involves
a)Establishment of Grades or Classes
b)Definition of each class
c)Classification of individual jobs according to
how well their characteristics match the different
grade descriptions.
12

13. Methods of Job Evaluation
Point ranking method
This is the most widely used method of job
evaluation & is a Quantitative method of job
evaluation
It uses a more analytical & systematic approach
to the measurement of a job’s worth.
The whole job is divided to different job factors
& maximum point values are assigned for each
of the factors. Each job is awarded points for
each of the factors considered. 13

14. Point rating method
This method measures jobs as the overall
position over the various job factors and not as
a whole job. These points are later converted
to money value
A Job factor is a specific requirement levied
upon the job holder which he must contribute
for the proper functioning of the job
Eg:- skill,effort, responsibility etc.
14

15. Computer based JE Systems
LINK
This software operates on the basis of the
answers given to structured questionnaire by
the job holders & supervisors
Gauge
In this process, the job holder & the line manager
with the help of the facilitator answers a
series of inter-related questions that are
presented on the screen