This document discusses job evaluation, which is a systematic process for determining the value or worth of jobs within an organization. It describes the main steps in job evaluation, which include deciding which jobs to evaluate, analyzing each job and preparing descriptions, rating jobs based on selected evaluation factors, and comparing jobs to determine appropriate compensation. The key factors used in evaluating jobs are knowledge, problem-solving abilities, and accountability. Several common methods for conducting job evaluations are also outlined, including ranking, classification, point, and factor comparison methods, along with their advantages and disadvantages.

1. JOB EVALUATION

2. Job Evaluation
Job evaluaton is a
systematic way of
determining the
value/worth of a job
in an organisation.

3. Process of Job evaluation
Decide which jobs are to be evaluated
Job Analysis and preparing job
description.
 systematically rate each job based on the
job evaluation factors selected. The points
assigned for each of the factors are
totalled for each job.
A Job is evaluated in the following three
categories

4.  1. Know-how
 Know-how is the sum total of every kind of knowledge and
skill however acquired, e.g. experience, education, etc.
needed for accept-able job performance. Know-how
includes three elements:
 A. Specialized, technical or practical know-how: the basic job
knowledge needed.
 B. Managerial know-how: The degree with which the job
deals with planning and organizing the employee’s activities
and coordinating with others.
 C. Human relations skills: The persuasion and communication
skills for motivating, training, and developing others.

5. 2. Problem Solving
Problem solving is the amount of original self-starting
thinking required by the job for analyzing, evaluating,
creating, reasoning, arriving at and coming to
conclusions. Problem-solving has two elements:
A. Thinking environment – defines the degree to which
the incumbent is free to develop answers to problems,
ranging from the day-to-day decisions based on
simple memory to those which require creative
thinking or long-range strategies.
B. Thinking challenge – defines the complexity and
uniqueness of problems and may range from

6. Accountability is the answerability for action
and for the consequences of that action.
Accountability has three elements:
a) Freedom to act is the degree to which the
position can take action without consulting
a higher authority.
b) Impact on end results- advisory or
decision
c) Magnitude is the size of the area in
which the job functions, i.e, whole
organization, single department, etc.

7. Compare and see how much value does
this job have in the industry .
Decide the amount of compensation to
be given

8. Process of Job evaluation
Selecting the method of evaluation.
Classifying jobs.
Installing the programme.
Reviewing periodically.

9. Features of Job Evaluation
It tries to assess jobs, not people.
The standards of job evaluation
are relative, not absolute.
The basic information on which
job evaluations are made is
obtained from job analysis.

10. Features of Job Evaluation
Job evaluations are carried out by groups, not by
individuals.
Some degree of subjectivity is always present in job
evaluation.
Job evaluation does not fix pay scales, but merely
provides a basis for evaluating a rational wage
structure.

11. Benefits of job evaluation
It tries to link pay with the requirements of the job.
It offers a systematic procedure for determining the
relative worth of jobs.
An equitable wage structure is a natural outcome of
job evaluation
An unbiased job evaluation tends to eliminate salary
inequalities by placing jobs having similar
requirements in the same salary range.

12. Benefits of job evaluation
Employees as well as unions participate as members
of job evaluation committee.
Job evaluation, when conducted properly and with
care, helps in the evaluation of new jobs.
It points out possibilities of more appropriate use of
the plant’s labour force by indicating jobs that need
more or less skilled workers than those who are
manning these jobs currently.

13. 1- RANKING METHOD
2-CLASSIFICATION METHOD
3-POINT METHOD
4-FACTOR COMPARISON METHOD

14. RANKING METHOD
It is the simplest method of job evaluation.
In this method, jobs are arranged from highest to lowest, in
order of their value or merit to the organisation.
Jobs can also be arranged according to the relative difficulty
in performing them.
Jobs are usually ranked in each department and then the
department rankings are combined to develop an
organisational ranking.

15. JOB CLASSIFICATION
According to this method, a predetermined number of
job groups or job classes are established and jobs are
assigned to these classifications.
This method places groups of jobs into job classes or job
grades.
Separate classes may include office, clerical, managerial,
personnel, etc.

16. JOB CLASSIFICATION
Following is a brief description of classification in an
office:
 Class 1- Executives: Office manager, deputy office
manager, department supervisor, etc.
 Class 2- Skilled workers: Purchasing assistant, cashier,
receipts clerk, etc.
 Class 3- Semiskilled workers: Stenotypists, machine
operators, switchboard operator, etc.
 Class 4- Semiskilled workers: file clerks, office boys,
etc.

17. POINT METHOD
This method is widely used currently.
In this method jobs are expressed in terms of key
factors.
Points are assigned to each factor after priortising 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

18. Factor Comparison Method
It is more systematic and scientific method of job
evaluation.
Though it is the most complex method of all, it is
consistent and appreciable.
Under this method, instead of ranking complete jobs,
each job is ranked according to a series of factors.

19. These factors include:
>mental effort.
>physical effort.
>skills needed.
>responsibility.
>working conditions.
>know-how.
>problem solving abilities.
>accountibility, etc.
Wages are assigned to the job in comparison to its
ranking on each job factor.

20. Comparison of Job Evaluation Methods
Advantage Disadvantage
RankingRanking Fast, simple, easy toFast, simple, easy to
explain, suitable forexplain, suitable for
small org, not expensive.small org, not expensive.
Not very accurate , notNot very accurate , not
useful for large org.,leastuseful for large org.,least
used methodused method
ClassificationClassification Can group a wide rangeCan group a wide range
of work together in oneof work together in one
system, simple, moresystem, simple, more
accurate than rakingaccurate than raking
method.method.
Not useful for large org,Not useful for large org,
time consuming, nottime consuming, not
involved detailed jobinvolved detailed job
analysis.analysis.
PointPoint Compensable factors callCompensable factors call
out basis forout basis for
comparisons.comparisons.
Compensable factorsCompensable factors
communicate what iscommunicate what is
valued.valued.
Can becomeCan become
bureaucratic and rule-bureaucratic and rule-
bound.bound.

21. Comparison of Job Evaluation Methods
Advantage Disadvantage
Factor comparisonFactor comparison
methodmethod
Finds wages for a job,Finds wages for a job,
wages can be calculatedwages can be calculated
speedily, greaterspeedily, greater
consistency in theconsistency in the
judgment, size of jobsjudgment, size of jobs
can be measured.can be measured.
Expensive, timeExpensive, time
consuming,consuming,