The document provides information about job evaluation. It defines what a job is and what job evaluation is. Job evaluation is a systematic process to define the relative importance of jobs based on factors like skills, effort, responsibility, and working conditions. It discusses different job evaluation methodologies like job ranking, job classification, factor comparison, and point method. The point method is explained in detail using the Hay factors as an example. Job evaluation helps create job bands and pay grades to determine compensation in an objective manner.

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EVALUATION

2. Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com

3. Experiences
becoming knowledge
Mission and
Vision
Values
Strategic
Competency
Job Analysis
Human Resources Development Practices
Job
Evaluation
Workload
Analysis
Job
Grading Reward
Performance
Management

5. What is a job?
• is a distinct role that may be
performed by one or more
incumbents and encompasses
roles with similar work profiles
and responsibilities.
• is person independent and refers
to the role/job being performed,
not the incumbent role holder or
job title or designation
• Also referred to as Unique role or
Unique position.

6. 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
6

7. ATTRACTIVENESS
WORKLOAD
FAIRNESS AND
EQUITY

8. Standards of J/E are
relative, not absolute.
Tries to access jobs, not people.
Basis of J/E is Job Analysis.
Carried on by groups,
not individuals.
JE categorizes unique jobs
into bands based on this logic.
In turn, these bands enable an
objective approach for the
development and design of
other key HRM systems.

9. 2. to determine the relative
value of existing positions in an
organization
3. As a basis for
determining career
paths.
6. As a basis for
determining
compensation or
remuneration
Benefit of JE
5. Design a fair and
transparent Pay and
Grading Structure
7. Determining
and evaluating
basic principles
of company pay
policy and
Benefits e.g. Car,
Bonus etc
1. Determination of functional levels of
responsibility and development of standard JDs
4. Reviewing
Organization
Structure and all
jobs post any large-
scale change

10. 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

11. 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

12. Sources of
data for Job
evaluation
• Job Descriptions, if drafted
properly and updated, can
be used for JE
• Separate data sheets/ fact
sheets can be created for
each unique job for the
purpose of JE
• The data sheet/ fact sheet
must reveal information
about the job that is in
line with the JE
parameters.

13. 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

14. Who does the
Job Evaluation?
• HR executive
• External experts/ analysts/
consultants
• 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.
14

15. Methodology
QUALITATIVE:
1. Job Ranking
2. Job Classification
QUANTITATIVE:
1. Factor
Comparison
2. Point method

16. Job Ranking
• Ranking method involves ranking jobs according to the perceived overall value
of each job.
• The basis of ranking could be complexity of the job, criticality of the job to the
organizational success and competencies needed to do the job.
• However, the jobs are examined as whole rather than on the basis of
important factors in the job.
• Job at the top of the list has highest perceived value and at the bottom of the
list has the lowest perceived value.
• Usually, each member in the JE committee does the ranking individually and
then the average of ranks is considered for the jobs for final ranking.

17. JOB RANKING
JOBS
• Secretary
• Office Boy
• Administration Officer
• Office Manager
• Personnel Officer
• Driver
• Spv. Operation
• Logistic Manager
• Security

18. Job Ranking
Advantages
1. Easy to understand
and apply
2. Effective with small
number of jobs. (less
than 40)
Limitations
1. Highly subjective.
2. Difficult to administer
when number of jobs
increase.
3. the ranking method has
to be repeated every
time a new job comes in.

19. Job classification
• Jobs are slotted into pre-defined job grades or job classes by
comparing the whole job description with the grade/ class
definition.
• The job grades are defined on the basis of kinds and levels
of responsibilities that should fall in that grade. It might also
pre-define certain job titles that might fall into that grade.
• The jobs are examined as whole and then matched with
grade definition to decide which grade they fit the best to.

20. Job classification

21. Job classification
Advantages
• Easy to understand and apply
• Grade definition exists independent of the jobs. Hence,
there is no problem classifying new jobs into grades.
Limitations
• Difficult to write objective definitions of each grade/ class
• Over-simplifies the sharp differences between jobs by
grouping too many jobs into the same grade.
• Evaluators use subjective judgement to group jobs into
grades when they do not find exact match between JDs
and grade definitions. This might affect a group of
employees.

22. Factor
comparison
• Jobs are ranked as per a series of factors rather than being ranked as
whole jobs.
• Compensable factors : Skill, Mental requirement, physical
requirement, supervisory responsibilities, working conditions etc. are
commonly used.
• The present wages for the job is divided amongst the factors as per
the weightage of that factor (importance of that factor) in doing the
job.
• Thereby, it gives us a wage rate for each factor for each benchmark
job.
• Additional jobs are then compared with the benchmark jobs to
establish pay rates for each factor. These rates are summed up to get
the total wage for the job.

23. Factor comparison

24. Factor Comparison
Limitations
1. Time-consuming and costly
2. Difficult to understand and
explain to others.
3. It uses same criteria/ factors to
review each job while jobs
might differ across the
organization.
Advantages
1. Objective and analytical
2. Detailed approach.
Hence, more reliable as
each job is compared
with every other job.

25. Point method
• Jobs are rated on certain compensable
factors and the score on each factor is
summed up to give the total job score.
• Compensable factors are chosen and
divided into sub-factors. Sub-factors are
further divided into degrees by choosing
a scale for each factor.
• Jobs are then matched against the scale
to receive score on individual factors.
• Factors might have equal weights or
might have weightage assigned as per
their importance to the organizational
success.
• One of the most popular scales for point
method is the Hay Job evaluation scales.

26. General Compensable Factors

27. Point Factors

28. Range

29. Compensable Factors

30. Result Point Factor

31. Point method – The Hay factors
Factor Sub-factors/ dimensions
Know-how
Professional know-how
Business awareness
Social competence
Problem-solving
Scope of thinking
Degree of difficulty
Accountability
Freedom to act
Job impact
Magnitude of job measured in appropriate terms
Working conditions
Physical effort
Physical environment
Sensory attention
Mental stress

32. Point method –scales for dimensions
32
Job Evaluation
Factors
1 2 3 4 5
Business
awareness
Aware of only his/
her own task
Aware of the tasks
performed by others inside
his/ her own team
Aware of tasks/ job roles even
outside his/ her own team
Social
competence
Limited
interaction; with
only team
members
Interacts with employees
across all functions and
departments inside the
organization
Interacts with even external
stakeholders like vendors,
suppliers, customers etc.
Scope of
thinking
Operates on
SOPs*. Solves
problems by using
certain defined
solutions.
Solves problems by using
defined methods/ operating
procedures.
Creates new solutions/
methods to solve problems that
arise.
Freedom to act Follows orders.
Needs to get things
authorized from
senior for most
decisions
Moderate decision making
authority. Might not need to
get everything authorized
from senior manager.
Has the autonomy to take
decisions on own and proceed
with task without getting it
authorized from senior
manager.
Financial /job
impact
No financial
targets or
budgetary control
Has financial targets to
achieve or recommends
budget for the year
Has budgetary control. Sets
financial targets

33. Point System

34. Point Method
Factors Know how Problem solving
Sub-factors/
dimesniosn
Professional
Know how
Business
Awareness
Social
Competence
Scope of
thinking
Degree of
difficulty
Total
job
score
Jobs
Clerk 2 1 3 1 2 9
Finance Manager 4 3 3 3 4 17
Factors Know how (60%) Problem solving (40%)
Sub-factors/
dimesniosn
Professional
Know how
Business
Awareness
Social
Competence
Scope of
thinking
Degree of
difficulty
Total
job
score
Clerk 2 1 3 1 2 4.8
Total score = (2+1+3)*0.6 + (1+2)*0.4 = 3.6+1.2 = 4.8
Assigned weightages to factors
Equal weightages to factors

35. Point Method
Advantages
• Objective and analytical
• Avoids biases by pre-defining the scale for each factor
• Can be applied to any number of jobs as well as new jobs
Limitations
• Time-consuming, complex and costly.
• The standard/ scales developed for the factors might have
built-in biases which might affect minority work groups.
• Subjective judgement of evaluator still comes to play while
rating jobs against each factor on the factor scale.

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