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Job EvaluationJob Evaluation

Definition- Job Evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization.

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Difference between Job Evaluation and Performance Appraisal

Job Evaluation Performance Appraisal

Job Rated keeping in mind responsibility, qualification, experience, working conditions etc.

Employee rated on basis of his performance

A job rated before employee is appointed

Employee rated after the employee has been hired and placed

Purpose is to establish Wage differentials

Purpose is to effect promotions, rewards, punishments, assess training needs etc.

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Difference between Job Evaluation and Performance Appraisal

Job Evaluation Performance Appraisal

It is not compulsory

Compulsory. It is done regularly for all jobs

Job evaluation committee is consulted for the purpose of evaluation

Appraisal is done by the employees themselves

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Scope of Job Evaluation

In theory, application of job evaluation is universal.

In practice, the theory of job evaluation is followed in a few companies and that too for hourly-rated jobs

2 examples of companies employing Job evaluation are NGEF and KEC

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Job Evaluation Process

The Job Evaluation process starts with defining objectives of evaluation and ends with establishing wage and salary differentials

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Job Evaluation Process

The important considerations in the Job Evaluation process are as follows:

1. Which Jobs are to be evaluated?2. Staffing the evaluation exercise3. Training for the committee 4. Time factor

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Methods of Job Evaluation

A. AnalyticalB. Non-Analytical

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Analytical methods of Job Evaluation1. Point ranking Method- The method 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

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Analytical methods of Job Evaluation2. Factor Comparison method- Under this

method, one begins with the selection of factors, usually five of them-

Mental Requirements Skill Requirements Physical exertion Responsibility Job conditions

Each factor is ranked individually with other jobs

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Non-Analytical Methods of Job Evaluation

1. Ranking method- The evaluation committee assesses the worth of each job on the basis of its title or on its contents.

2. Job Grading method- It is based on the job as a whole. The yardstick used in this system is in the form of Job classes or grades.

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Criticisms of Job Evaluation It encourages employees to focus on ‘

how to advance in position’ at a time when there may be shortage of opportunities.

It promotes an internal focus instead of a customer-oriented focus

It is not suitable for a forward looking organization

Elaborate exercises of wage and salary fixation through job evaluation.