Job evaluation is the process of analyzing and assessing jobs to determine their relative worth. The objectives are to maintain accurate job descriptions, determine relative worth of jobs, ensure fair wages, and provide information for employee placement and training. The process involves job analysis, establishing a job evaluation program, conducting wage surveys, classifying employees, creating job descriptions and specifications. Methods include analytical (point-ranking and factor-comparison) and non-analytical (ranking and grading). Factors like skills, responsibilities, conditions are evaluated. Job evaluation provides effective wage control, allows comparison between jobs, and standardizes working conditions, but can encourage employees to focus internally rather than on customers.

1. Job Evaluation
Submitted to:- Made By:-
Prof. Garima Agrawal Mahendra Singh Verma
Mona Singh
Neha Ghadge
Nidhi Parikh
Nitin Malviya

2. Contents-
• Definition
• Objectives of job evaluation
• Job evaluation process
• Methods of job evaluation
• Significance of job evaluation
• Criticisms of Job Evaluation

3. Job evaluation
• Job evaluation is the process of analyzing and
assessing the various jobs systematically to ascertain
their relative worth in an organization.
• Job evaluation is a practical technique, designed to
enable trained and experienced staff to judge the size
of one job relative to others. It does not directly
determine pay levels, but will establish the basis for
an internal ranking of jobs.

4. Objectives of job evaluation
• To maintain complete and accurate description of
each job or occupation.
• To provide a standard procedure to determine the
relative worth of each job.
• To ensure that fair wages is paid to all qualified
employees.
• To provide information for selection, placement and
training of employees.

5. Job evaluation process
Objectives of Job Evaluation
Job Analysis
Job Evaluation Programme
Wage Survey
Employee Classification
Job
Description
Job
Specification

6. • The Job Evaluation process starts with defining
objectives of evaluation and ends with establishing
wage and salary
differentials.
• The important considerations in the Job Evaluation
process are as follows:
(1) Which Jobs are to be evaluated?
(2) Staffing the evaluation exercise
(3) Training for the committee
(4) Time factor

7. METHODS OF JOB
EVALUATIONJob evaluation methods are of two categories-non-analytical and
analytical
Analytical Methods
• Point Ranking
Method
•Factor Comparison
Method
Job Evaluation
Non-
Analytical Methods
•Ranking Method
•Job Grading
Method

8. Analytical methods:-
These include the point ranking method and the factor
comparison method.
1. Point-Ranking Method –
The system starts with the selection of job factors,
construction for each factor, and assignment of points
to each degree. Different factors are selected for
different jobs, with accompanying differences in
degrees and points.
The range of score and grades is also pre determined-
for example, from 210 to 230 points, the 5th
grade;
231 to 251 points, the 6th
grade; and so forth. A given
job is placed in a particular grade, depending on the
number of point it scores.

9. • Develop a list of compensable factors…
– A set of standards the organization uses to distinguish
among jobs for pay purposes
– Examples of commonly used compensable factors:
– Degree of responsibility, supervision
– Knowledge needed to perform the job
– Discretion in performing the job, independent
judgment
– Job conditions
– Effort
– Hazard
– Consequence of error

10. Factors - Degrees 1st
2nd
3rd
4th
5th
6th
Job Knowledge 25 10 17 25
Judgment &
Decision Making
10 33 55 78 10
Independent
judgment
25 10 17 25
Accountability 20 65 11 15 20
Working
conditions
5 20 35 50
Mental 15 42 69 96 12 15

11. 2. Factor-Comparison Method –
Under this method, one begins with the selection of
factors, usually five of them- mental requirements,
skill requirements, physical exertion, responsibility and
job conditions. These factors are assumed to be
constant for all the jobs. Each factor is ranked
individually with the other jobs. For example- all the
jobs may be compared first by the factor ‘mental
requirements’. Then the skills factor, physical
requirements, responsibility, and job conditions. These
factors are assumed to be constant for all the jobs.
Each factor is ranked individually with the other jobs.

12. Non-Analytical methods:-
These include the ranking method and the Job-grading
method.
1. Ranking Method –
According to this method, jobs are arranged from
highest to lowest, in order of their value or merit to
the organization. The jobs are examined as a whole
rather than on the basis of important factors in the
job, and the job at the top of the list has the
highest value ant the job at the bottom has the
lowest value. The following table is a hypothetical
illustration of ranking of jobs.

13. Table: array of jobs according to the ranking method
Rank Monthly Salaries
1. Accountant Rs.3000
2. Accounts clerk Rs.1800
3.Purchase assistant Rs.1700
4.Machine operator Rs.1400
5.Typist Rs.900
6.Office boy Rs.600

14. 2. Job Grading Method –
It is also known as job classification method. It is based
on the job as a whole. Under this method, the
number of grades is first decided upon, and the factors
corresponding to these grades are then determined.
Facts about jobs are collected and are matched with
the grades which have been established. Following is
a brief description of such a classification in an office-
(a) Class I- Executives:
Further classification under this category may be office
manager, deputy office manager, office
superintendent, departmental supervisor etc.

15. (b) Class II- Skilled workers:
Under this category may come the Purchasing
assistant, cashier, receipts clerk etc.
(c) Class III- Semi skilled workers:
Under this category may come Steno typists, machine
operators, switch-board operators etc.
(d) Class IV- Semi skilled workers:
This category comprises File clerks, office boys etc.

16. Significance of job evaluation
• Provide effective wages and salary control.
• Comparison of wage and salary rates with other
employees.
• Standardization and improvement in working
conditions.
• Systematic review of jobs.

17. Criticisms of Job Evaluation
• It encourages employees to focus on ‘how to advance in
position’ at a time when there may be shortage of
opportunities.
• It promotes an internal focus instead of a customer-
oriented focus
• It is not suitable for a forward looking organization.
• Elaborate exercises of wage and salary fixation through
job evaluation