3. 1.INRODUCTION
Job Evaluation originated in the United
State in 1971.In 1909,the civil service
Commission and the Commonwealth Edison
Company in Chicago pioneered the field .In
1926,Merill R Lott wrote a book on “Wage
scales and Job Evaluation ’’,describing
methods used in his company,the Sperry
Gyroscope Co.,Inc.
4. INRODUCTION
Job evaluation is the process of determining the worth of one
in relation to that of another without regard to the
personalities.It analyses and assesses the content of jobs ,to
place them in some standard rank order .The end resulte is
used as the basis for a fair and logical remuneration system .
A properly devised job evaluation scheme provides
management with definite, systematic and reliable data for
working out wage and salary scales.Thus ,logical wage
negotiation reduces wage grievances and dissatisfaction with
wage differentials and ensures fair treatment for each
employee.It also provides a logical basis for promotion .A
survey of British Institute of Management indicated the
following reasons for its use.
5. INRODUCTION
1. To reduce layout turnover ,
2. To increase output,
3. To improve morale,
4. To reduce loss of time due to wage negotiation and
disputes,
5. To reduce the complaints regarding wages,
6. To reduce wage and salary anomalies.
6. Steps In Job Evaluation
1.Through examination of the job (job assessment),
2.Preparation of job description (recording its
characteristics to suit assessment of method),
3.Preparation of job analysis to set out the
requirements of the job under various factor
headings,
4.Comparison of one job with another ,
5.Arrangement of jobs in a progression ,
6.Relating the progression of jobs to a money scale.
7. TYPES OF JOB EVALUATION
SCHEMES
There are four baic types of job evaluation,which can be
enumerated as follows:
1.RANKING :This is a simple system to judge each job
as a whole to understand its relative worth by ranking
one whole job against another job .To start with ,a job
description is prepared in a narrative from ,starting
with duties,responsibilities and qualifications,required
for the job .Jobs are then ranked in order of relative
difficulty or value to the company and grade levels are
then defined and wage levels are finalized .One of the
disadvantages of this method is that the degree of
difference between jobs cannot be indicated.
8. TYPES OF JOB EVALUATION
SCHEMES
Ranking , therefore , may be incorrect and unduly
influenced .Relative value of the employees
(currently occupying the jobs) may be ranked rather
than the jobs.The method may be adequate for the
easily defined jobs of a small number of workemen
but it is regarded as impractical for complicated
jobs and large number of workmen .
9. TYPES OF JOB EVALUATION SCHEMES
2.Classification :This is different from ranking as
in this case grade and wage levels are
predetermined before jobs are ranked and
descriptions are written defining the types of job
which should fall into each group .Under this
method, usually a committee allocates jobs to
each group using job description .The system is
simple but suffers from limitations similar to the
ranking system .
10. TYPES OF JOB EVALUATION SCHEMES
3.POINTS RATING :Under this system , to achieve a
higher level of accuracy, each job is broken down into its
component factors or characteristics and then evaluated
separately rather than evaluating the job as a whole . A
narrative job description is prepared and supplemented
by a statement of the various requirement (present in the
job).Characteristics like experience and training ,
mental and physical effort, common to the jobs are
selected and a point value for each Characteristic or
factor is determined .Factors are defined objectively and
points are given to each factors based on its estimated
importance .Consolidated point values are finally
converted into money terms.
11. TYPES OF JOB EVALUATION
SCHEMES
4.FACTOR COMPARISON: The method is also
similar to the points rating system as here also each job
is broken into factors.The only difference being here
five factors are used ,i.e.,mental requirements ,skill
requirements ,physical requirements ,responsibility and
working conditions .After job descriptions , key jobs are
judged and related to one another .The jobs are
considered one by one and reviewed to understand how
much of the current wage rate for the job is paid for
each factor.Key jobs are arranged in a scale in order of
their value for each factor.
12. TYPES OF JOB EVALUATION SCHEMES
Remaining jobs are compared with the key job
factors and a comparative money value is
determined for each factor in each individual job .
The total of the factor value so determined for each
job represents its rate . This is a complex system ,
however, higher degree of accuracy can be attained
through this .
13. LIMITATIONS OF JOB EVALUATION
Job evaluation alone cannot establish a wage scale
.For wage fixation , we need to take into cognizance
statutory requirements ,like minimum wages
Act,1948. Similarly , other factors of wage fixation
like ,capacity to play ,inter-industry wage variation,
inter-regional wage variation ,collective bargaining
agreement ,if any , also need to be given importance
. Job evaluation is highly subjective ( being based on
judgemental estimate).Similarly , it cannot take
into account the cyclical effect of market value of
occupations .
14. LIMITATIONS OF JOB EVALUATION
For example , finance jobs were highly priced in the
market at one point of time (now IT and marketing
has taken its place).However ,with the failure of
NBFC , finance jobs are not that highly priced in the
market at least at this point of time ,even though no
material change in the job profile of finance
professionals has taken place in between .Despite
such limitations ,job evaluation technique is
considered very useful for reasons explained earlier.
