Job evaluation is the process of analyzing and assessing jobs to determine their relative worth. It involves gathering job data, comparing duties across roles, establishing a job hierarchy and grades, and ensuring equitable pay. Key methods include ranking, classification, point and factor comparison. Ranking simply lists jobs in order. Classification matches jobs to predetermined categories. Point assigns numerical weights to job characteristics to derive a total score and grade. Factor comparison evaluates jobs based on compensable elements like skills, effort and responsibility compared to benchmark roles. The goal is a valid, understandable and acceptable system to structure compensation.

1. JOB EVALUATION
PRATIBHA. C.U
U02AO21C0049
B. COm
II sem Asec

2. OUTLINE
:
 Basic approach to Job Evaluation.
The importance of Job
Evaluation effectiveness.
 Important methods of Job
Evaluation.
 Conclusion

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. THE FOLLOWING OBJECTIVES ARE DERIVED FROM
THE ANALYSIS
 To gather data and information relating to job description,
job specification and employee specifications for various
jobs in an organization
 To compare the duties, responsibilities and demands of
a job with that of other jobs
 To determine the hierarchy and place of various jobs
in an organization.
 To determine the ranks or grades of various jobs
 To ensure fair and equitable wages on the basis of
relative worth or value of jobs.
 To minimize wage discrimination based on sex, age,
caste, region, religion etc.

5. 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.

6. PRINCIPLES OF JOB EVALUATION
PROGRAM
 Rate the job but not the employee. Rate the elements on the
basis of the job demands.
 The elements selected for rating should be easily
understood.
 The elements should be defined clearly and properly
selected.
 Employees concerned and the supervisors should be
educated and convinced about the program
 Supervisors should be encouraged to participate in rating
the
jobs.
 Secure employee cooperation by encouraging them to
participate in the rating program.
 Discuss with the supervisors and employees about rating
but not

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

8. METHODS

9. 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

10. 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 categoriesbased on the similarity of
tasks.
RESULTS:
Job classes are classified like managerial , office clerical and
then jobs are assigned to these classifications.

11. 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
Classification Method (con’t)

12. 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

13. 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)

14. 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

15. 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

16. 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.
THE FACTOR COMPARISON METHOD
(CON’T)

17. 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.