2. What is Job Evaluation?
Job Evaluation (JE) is a consistent and systematic
process for defining the relative size or importance of
unique jobs in an organization based on job content
Factors emphasized for JE are:
Skills
Effort
Responsibility
Working conditions
3. What is job evaluation?
Job evaluation is the process of analyzing and assessing the
various jobs systematically to ascertain their relative worth in
an organization. Job is evaluated on the basis of their content
and is placed in the order of their importance.
4. Definition
Dale Yoder, “Job Evaluation is a practice which seeks to provide a category of
objectivity in measuring the comparative value on jobs within an organisation and
among similar organisations. It is essentially a job rating process, not unlike the rating
of employees.”
Edwin B. Flippo, “The system and Orderly process of .measuring the work of jobs
within an’ organisation, is called job evaluation,”
The I.L.O. defines job evaluation as an attempt to determine and compare demands
which the normal performance of a particular job makes on normal workers without
taking into account the individual abilities or performance of the workers concerned.
5. Job Evaluation – Objectives
(1) To provide a standard procedure for determining the relative worth of each job in a
plant;
(2) To secure and maintain complete, accurate and impersonal descriptions of each
distinct job or occupation in the entire plant;
(3) To ensure that like wages are paid to all qualified employees for like work;
(4) To promote a fair and accurate consideration of all employees for advancement and
transfer;
(5) To determine the rate of pay for each job which is fair and equitable with relation to
other jobs in the plant, community of industry?
(6) To provide a factual, basis for the consideration of wage rates for & similar jobs in a
community and in an industry;
(7) To provide information for work organisation, employees selection, placement,
training and numerous other similar problems.
In fact, the primary purpose of job evaluation is to set wages
6. Why do we need to evaluate jobs?
In turn, these bands enable an objective approach for the development and design
of other key HRM systems.
JE categorizes unique jobs into bands based on this logic.
Unique jobs with the same level of responsibilities and accountabilities must fall
within the same band for the purpose of internal equity
JE helps to recognize the relative importance of different unique jobs to the
organization.
1
2
3
4
7. Where can the results of JE be used?
Results
of Job
Evaluation
can be
applied to ..
Design a fair and transparent Pay and
Grading Structure
1
Determination of functional levels of
responsibility and development of standard
JDs
2
Determining and evaluating basic principles
of company pay policy and Benefits e.g.
Car, Bonus etc
3
Creating Total Rewards package aligned to
Job Grades
4
Enabling key HR mechanisms e.g. Career
Paths and Succession Planning
5
Reviewing Organization Structure and all
jobs post any large-scale change
6
8. The role of job evaluation in organizations
•Job evaluation includes comparative processes due to the fact that the relations and
dependencies among the jobs have to be explained.
•This consists of an essential determinant that allows the management (through the
analysis of the targets, achievements and factors that influence the requirements of the
jobs) to assign the corresponding proportions of every job.
•For this reason job evaluation usually includes an extensive analysis of the roles, the
objectives and the corresponding actions and achievements of the jobs.
•The outcome of this analysis is the establishment of structures that aid the comparison
among the jobs and support the evaluators to make consistent and reasonable
judgments.
9. JE helps us create job bands
Job 8
Job 5 Job 6 Job 7
Job 2 Job 3
Job 1
Job 4
Job Bands Functional Structure
Band A
(Job 8)
Band C
(Jobs 2,3,4)
Band D
(Job 1)
Band B
(Jobs 5,6,7)
Work
levels
corresponding
to
job
bands
10. Pay grades are then mapped on to job bands
Pay bands stretch across more than one job bands in order to
accommodate easy promotions, without having to necessarily
change the pay band.
Job Bands
Band A
(Job 8)
Band C
(Jobs 2,3,4)
Band D
(Job 1)
Band B
(Jobs 5,6,7)
Grade D
Job 1
Grade C
Jobs 2,3,4
Grade B
Jobs 5,6,7
Grade A
Job 8
Job Value
Rupees
Pay Grades
11. Sources of data for Job evaluation
1. Job Descriptions, if drafted
properly and updated, can be
used for JE
2. Separate data sheets/ fact sheets
can be created for each unique
job for the purpose of JE
3. The data sheet/ fact sheet must
reveal information about the job
that is in line with the JE
parameters.
12. The importance of job evaluation may be enu-
merated as follows:
1. It ensures rational wage and salary structure. A consistent
policy can be pursued through job evaluation. So, it is a
valuable technique in the hands of management.
2. Job evaluation offers advantages of job analysis process
such as proper recruitment, selection, training, promotion,
transfers etc.
13. Cont..
3. Job evaluation ensures harmonious structural
relationships in the organisation. This is possible because
job evaluation establishes a rational and consistent wage
structure.
4. The logical sequence of different steps as ensured in the
job evaluation process determines the worth of jobs. It
also works as a safeguard against industrial disputes.
5. It is on the basis of job evaluation that various incentive
methods of wage payments can be introduced by
determining the base compensation of job.
14. Job Evaluation – Factors that Job Evaluators Consider
while Evaluating a Job
(a) Specific training need or qualification requirements to perform the assigned
tasks better
(b) Requisite knowledge and skills for successful accomplishment of the job
(c) Complexity or intricacy of tasks demanding special skills
(d) Interaction with different departments of the organization
(e) Problem-solving skills and independent judgement for promptness
(f) Accountability and responsibility for fault-free activities
(g) Decision-making authority to develop leadership skills
(h) Degree of supervision required for the task
(i) Cross-training requirements for multiskilling and multitasking
(j) Working conditions such as illumination, noise, ventilation, etc. in which the
job is performed
15. Principles of job evaluation program
1. Rate the job but not the employee. Rate the elements on the basis of the job demands.
2. The elements selected for rating should be easily understood.
3. The elements should be defined clearly and properly selected.
4. Employees concerned and the supervisors should be educated and convinced about
the program
5. Supervisors should be encouraged to participate in rating the jobs.
6. Secure employee cooperation by encouraging them to participate in the rating program.
7. Discuss with the supervisors and employees about rating but note about assigning money
values to the points.
8. Do not establish too many occupational wages.
16. Job Evaluation Process
Objectives of Job Evaluation
Job Analysis
Job Specification
Wage Survey
Employee Classification
Job Evaluation Program
Job Description
17. The process of JE
Articulating objective
Selecting the most appropriate method
Making a project plan
Communicating with employees
Selecting benchmark jobs
Analysing benchmark jobs
Evaluating select benchmark jobs
18. Who does the Job Evaluation?
1. HR executive
2. External experts/ analysts/ consultants
3. Job evaluation committee comprising mostly HoDs.
•The JE committee needs to be trained about the JE
methods and process first by experts.
•The results and process of the JE needs to be approved
by the top management in all cases.
20. Ranking method
This is the simplest, the most inexpensive and the most expedient method of
evaluation. Each job is considered as a whole and is then given a ranking in relation to all
other jobs. A ranking table is then drawn up and the ranked jobs grouped into grades.
The main disadvantage of this method is that it lacks substantiating data
for later use in justifying the relative position given certain jobs. So this method is
not suitable for large organization.
Job title Grade Salary (Taka)
Engineer 9 25000
Accountant 8 20000
Purchase assistant 7 18000
Machine Operator 6 15000
Office Boy 5 10000
21. Classification method
Classification systems define the value of jobs, people, or teams with written
standards for a hierarchy of classification level. It involves only matching a specific job
with a list of tasks in a predetermined labor grade. Each grade has asset money rate.
PROCESS:
1.Develop descriptions for a category of jobs—job
classes/grade
2. Develop standards for each category by describing the key characteristics of
those jobs in the category.
3.Match jobs to the categories based on the
similarity of tasks.
RESULTS:
Job classes are classified like managerial , office clerical and then jobs are assigned to these
classifications.
22. Advantages:
⮚ Jobs, people, and teams can be quickly slotted into the structure
⮚ Classification levels have face validity for employees
⮚ Standards to establish value are made explicit
Disadvantages
⮚ Many jobs, people, or teams do not fit neatly into a
classification level
⮚ Extensive judgment is required
⮚ Differences between classification levels may not be equal
⮚ Creates status hierarchies within organizations
⮚ Extensive administration required .
Classification Method (con’t)
23. Point Method
The system starts with the selection of job factors, construction of degrees 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 most popular number of factors is
between ten and fifteen .
Skill
❖ Education
❖ Experience
❖ Initiative & ingenuity
Effort
❖ Physical demand
❖ Mental and / or visual
demand
Responsibility
❖ Responsibility for equipment or process
❖ Responsibility for materials or product
❖ Responsibility for safety of others
Job Conditions
❖ Working conditions
❖ Hazards
24. PROCESS:
⮚ A set of compensable factors are identified
⮚ Assign points to a these compensable factors based on the perceived importance to the
job
⮚ Once this is dine for all compensable factors, evaluate the level to which each of these
factors are present in the job and assign points(weights) accordingly.
⮚ The points for each factor are totaled to form a score for
the job.
RESULT:
⮚ Jobs are then grouped by total score and assigned to salary grades so that jobs with the
highest points would have the highest pay.
Point Method (con’t)
26. The Factor Comparison Method
This method is based on the assumption that all jobs contain certain common factors to
determine the worth of jobs. These factors may differ in the degree to which they are present in different
jobs. Typically the number of compensable factors is small (4 or 5).
PROCESS:
1. Select the set of Benchmark Jobs
2. Rank the Benchmark jobs on the basis of each compensable factor.
3. For each Benchmark job, allocate market pay across the compensable factor
4. Determine the pay for each job by adding up the pay from each compensable factor.
RESULTS: Pay Range= Pay from skill + Pay from effort + Pay from responsibility + Pay from working
conditions
27. Advantages:
⮚ Analytical and objective
⮚ Reliable and valid as each job is compared with other job
Disadvantages
⮚ It is difficult to understand and explain
⮚ Using the same criteria to access all job is not accurate as jobs
differ within organization as with point method.
⮚ Time consuming and costly.
28. Conclusion
A job evaluation scheme should be chosen cautiously. It
should be devised and administered on the basis of
employment market, demand for labor, bargaining power of
the parties & job conditions.
