Job evaluation is a systematic process that analyzes and evaluates jobs to determine their relative worth within an organization. This establishes a fair pay structure and forms the basis for compensation management. The objectives are to determine the value of different jobs, their position in the organizational hierarchy, and maintain internal and external pay consistency. The process involves job analysis, descriptions, selecting evaluation factors, classifying jobs based on their values, implementing the system, and updating it over time. Non-quantitative techniques include ranking and comparing jobs based on skills and responsibilities. Quantitative methods use point rating or factor comparison, where jobs are evaluated on factors and assigned monetary values.

1. Job EvaluationJob Evaluation

2. DefinitionDefinition
It is a systematic process of analyzingIt is a systematic process of analyzing
and evaluating jobs to determine theand evaluating jobs to determine the
relative worth of each job in anrelative worth of each job in an
organisation. It forms the basis fororganisation. It forms the basis for
designing the compensationdesigning the compensation
management system in an organisation.management system in an organisation.
Aims at establishing pay structures that areAims at establishing pay structures that are
fair & equitablefair & equitable

3. ObjectivesObjectives
 Determining the relative worth (value) ofDetermining the relative worth (value) of
different jobs in the organisation and providedifferent jobs in the organisation and provide
the basis for the compensation managementthe basis for the compensation management
 To determine the position and place of a job inTo determine the position and place of a job in
the organisational hierarchythe organisational hierarchy
 To maintain internal and external consistencyTo maintain internal and external consistency
in the compensationsin the compensations
 To avoid discrimination in wages administrationTo avoid discrimination in wages administration

4. ProcessProcess
 Preparation of a job evaluation plan:Preparation of a job evaluation plan:
 Job analysisJob analysis
 Job description and job specificationJob description and job specification
 Selection of job dimensions: selection ofSelection of job dimensions: selection of
factors and attachment of monetaryfactors and attachment of monetary
values to themvalues to them
 Classification of jobs: acc to monetaryClassification of jobs: acc to monetary
values attached to themvalues attached to them

5.  Implementation of the evaluation:Implementation of the evaluation:
educating them about the programeducating them about the program
 Maintenance: results of JE have to beMaintenance: results of JE have to be
updated and modified continusely toupdated and modified continusely to
match organisational changes.match organisational changes.

6. TechniquesTechniques
Two types of techniques are used toTwo types of techniques are used to
compare jobscompare jobs
1.1. Non-Quantitative TechniquesNon-Quantitative Techniques
2.2. Quantitative techniquesQuantitative techniques

7. Non quantitativeNon quantitative
techniquestechniques
 Ranking: jobs are assessed on knowledge, skills,Ranking: jobs are assessed on knowledge, skills,
effort etc. done with the help of narrative positioneffort etc. done with the help of narrative position
description. Job is considered on its whole. Followeddescription. Job is considered on its whole. Followed
in each department and then compared with variousin each department and then compared with various
dept.dept.
1.1. Relative Ranking: a key job is identified and its worthRelative Ranking: a key job is identified and its worth
is determined. And each job worth is decidedis determined. And each job worth is decided
according to its job worthaccording to its job worth
2.2. Paired Comparison: in this technique each job isPaired Comparison: in this technique each job is
compared with every job and ranks are assigned tocompared with every job and ranks are assigned to
themthem
3.3. Single factor ranking: single factor of each job isSingle factor ranking: single factor of each job is
identified and comparedidentified and compared

8. Job classification or job grading: jobs areJob classification or job grading: jobs are
placed under different grades based onplaced under different grades based on
nature of tasks & responsibilities,nature of tasks & responsibilities,
authority, knowledge & skill required. Aauthority, knowledge & skill required. A
single grade is assigned to the jobssingle grade is assigned to the jobs
across the Co at same levelacross the Co at same level
StepsSteps
 Analyzing the organisational structureAnalyzing the organisational structure

9.  Determining the job dimensions/ factorsDetermining the job dimensions/ factors
 Defining & determining the job gradesDefining & determining the job grades
 Classifying the jobs of the organisation underClassifying the jobs of the organisation under
different gradesdifferent grades
 Using inputs from employees and trade unionsUsing inputs from employees and trade unions
for gradingfor grading
 Freezing the grades and assigning monetaryFreezing the grades and assigning monetary
values to the key grades, and then to othervalues to the key grades, and then to other
gradesgrades

10. Quantitative MethodsQuantitative Methods
Point rating Method: a quantitative pointPoint rating Method: a quantitative point
scale is developed to evaluate the jobsscale is developed to evaluate the jobs
 Determine the job factors orDetermine the job factors or
compensable factors (characteristicscompensable factors (characteristics
which are considered important &which are considered important &
present in all jobs)present in all jobs)
 Determine the subfactors: factors areDetermine the subfactors: factors are
subdivided into subfactors specific tosubdivided into subfactors specific to
jobsjobs

11.  Define the degree statements: usually tillDefine the degree statements: usually till
5 degrees5 degrees
 Assign points to factors, subfactors andAssign points to factors, subfactors and
degreesdegrees
 Preparation of chartPreparation of chart

12. Factor ComparisonFactor Comparison
MethodMethod
 Determine and define the specific factorsDetermine and define the specific factors
 Identify key jobsIdentify key jobs
 The factors in each benchmark job areThe factors in each benchmark job are
compared and rankedcompared and ranked
 The factors are assigned monetary values & itThe factors are assigned monetary values & it
should add upto the pay of key jobshould add upto the pay of key job
 The remaining jobs are then evaluated on itsThe remaining jobs are then evaluated on its
basisbasis