Job evaluation is the process of analyzing and assessing jobs systematically to determine their relative worth. It provides objective measurements of jobs to establish fair pay structures. The main methods of job evaluation are ranking, classification, point, and factor comparison. Ranking simply ranks jobs, while classification matches jobs to predefined categories. Point and factor comparison methods assign numerical scores to jobs based on compensable factors like skills, effort, responsibility, and working conditions. The scores are used to group jobs into salary grades. The goal of job evaluation is to establish rational, consistent pay structures that reduce disputes.

1. PROF. REENA PATIL
JOB
EVALUATION

2. NATURE OF JOB EVALUATION

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. 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.

7. THE IMPORTANCE OF JOB EVALUATION
MAY BE ENUMERATED 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.

8. 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 en-
sured 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 in-
troduced by determining the base compensation
of job.

9. 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

10. 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.

11. JOB EVALUATION PROCESS
Objectives of Job Evaluation
Job Analysis
Job Specification
Wage Survey
Employee Classification
Job Evaluation Program
Job Description

12. METHODS

13. 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

14. 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.

15. 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)

16. 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

17. 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)

18. Factors 1st
Degree
2nd
Degree
3rd
Degree
4th
Degree
5th Degree
SKILL
• Education 15 30 45 60 75
• Experience 20 40 60 80 100
• Initiative and Ingenuity 15 30 45 60 75
EFFORT
• Physical demand 10 20 30 40 50
• Mental or visual demand 5 10 15 20 25
RESPONSIBILITY
• Equipment or process 5 10 15 20 25
• Material or product 5 10 15 20 25
• Safety of others 5 10 15 20 25
• Work of other job conditions 5 10 15 20 25
JOB CONDITIONS
• Working conditions 10 20 30 40 50
• Unavoidable hazards 5 10 15 20 25

19. 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

20. 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.

21. 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.