what is job evaluation...?

1. Module IV: Managing Compensation
Job evaluation
Methods of Job Evaluation

2. Job evaluation
OJob evaluation is the
process of
determining the worth
of one job in relation
to that of the other
jobs in a company.

3. ILO definition
“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”.
Confusing….

4. It simply means….
Studying / analyzing the
VALUE, IMPORTANCE,
and NECESSITY of a
particular job…

5. Objectives Of Job Evaluation
OTo gather data and information relating
to JD, job specification and employee
specifications of various jobs in an
organization.
OTo compare the duties, responsibilities
and demands of a job with that of other
jobs.
OTo minimize wage discrimination based
on sex, age, caste, region, religion etc.

6. Key Factors Considered For Job
Evaluation
OVolume of Responsibilities
OGeneral / Specialty
O Decision makers / decision
followers
O Emerging needs of the
company

7. Procedures in Job evaluation
OHR takes the lead in this exercise
with approval from the
management.
OAnalyze and prepare job description
OSelect and prepare a JE plan
OClassify jobs (assigning money
values to each class)

9. METHODS OF JOB
EVALUATION:
(1) RANKING,
(2) CLASSIFICATION,
(3) FACTOR
COMPARISON

10. RANKING METHOD
OPerhaps the simplest method of job
evaluation is the ranking method.
According to this method, jobs are
arranged from highest to lowest, in
order of their value or merit to the
organization

11. CLASSIFICATION METHOD
O Executives: Further classification under this
category may be Office Manager, Deputy
office manager, Office superintendent,
Departmental supervisor, etc.
O Skilled workers: Under this category may
come the Purchasing assistant, Cashier,
Receipts clerk, etc.
O Semiskilled workers: Under this category
may come, Machine-operators, Switchboard
operator etc.
O Unskilled workers: This category comprises
File clerks, Office boys, etc.

12. FACTOR COMPARISON
O A more systematic and scientific method of job
evaluation is the factor comparison method.
O Some of the factors include
O mental effort
O physical effort
O skill needed
O responsibility
O supervisory responsibility
O and other such factors.

13. Steps in job evaluation

14. OIntroduce the concept of job evaluation.
OObtain management approval for the
evaluation.
OTrain the job evaluation selection team.
OReview and select the job evaluation
method.
OGather information on all internal jobs.