job evaluation method

8/9/2019 Job Evaluation Method

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Ranking Method

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. Jobs alsocan be arranged according to the relative difficulty in performing them. The jobs are examined

as a whole rather than on the basis of important factors in the job; and the job at the top of

the list has the highest value and obviously the job at the bottom of the list will have the lowest

value.

Jobs are usually ranked in each department and then the department rankings are combined to

develop an organizational ranking. The following table is a hypothetical illustration of ranking of

jobs.

Table: Array of Jobs according to the Ranking Method

Sr. # Rank Monthly salaries

1. Accountant Rs 30,000

2. Accounts clerk Rs 18,000

3. Purchase assistant Rs 1,7000

4. Machine-oerator Rs 14,000!. "yist Rs ,000

$. %&&ice 'oy Rs 7,000

The variation in payment of salaries depends on the variation of the nature of the job performed

by the employees. The ranking method is simple to understand and practice and it is best suited

for a small organization. ts simplicity, however, works to its disadvantage in big organizations

because rankings are difficult to develop in a large, complex organization. !oreover, this kind of

ranking is highly subjective in nature and may offend many employees.

Classifcation Method


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According to this method, a predetermined number of job groups or job classes are established

and jobs are assigned to these classifications. This method places groups of jobs into job classes

or job grades. "eparate classes may include office, clerical, managerial, personnel, etc. #ollowing

is a brief description of such a classification in an office.

(a) Class I $ %xecutives& #urther classification under this category may be 'ffice manager,

(eputy 'ffice manager, 'ffice superintendent, (epartmental supervisor, etc.

(b) Class II $ "killed workers& )nder this category may come the *urchasing assistant,

+ashier, eceipts clerk, etc.

(c) Class III $ "emiskilled workers& this category may include "teno typists, !achine$

operators, "witchboard operators, etc.

(d) Class I $ "emiskilled workers& This category comprises #ile clerks, 'ffice boys, etc.

The job classification method is less subjective when compared to the earlier ranking method.

The system is very easy to understand and acceptable to almost all employees without hesitation.

'ne strong point in favor of the method is that it takes into account all the factors that a job

comprises. This system can be effectively used for a variety of jobs.

The weaknesses of the job classification method are&

%ven when the re-uirements of different jobs differ, they may be combined into a single

category, depending on the status a job carries.

t is difficult to write all$inclusive descriptions of a grade.

The method oversimplifies sharp differences between different jobs and different grades.

hen individual job descriptions and grade descriptions do not match well, the

evaluators have the tendency to classify the job using their subjective judgments.


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Factor Comparison Method

A more systematic and scientific method of job evaluation is the factor comparison method.Though it is the most complex method of all, it is consistent and appreciable. )nder this method,

instead of ranking complete jobs, each job is ranked according to a series of factors. These

factors include mental effort, physical effort, skill needed, supervisory responsibility, working

conditions and other relevant factors /for instance, know$how, problem solving abilities,

accountability, etc.0. *ay will be assigned in this method by comparing the weights of the factors

re-uired for each job, i.e., the present wages paid for key jobs may be divided among the factors

weighed by importance /the most important factor, for instance, mental effort, receives the

highest weight0. n other words, wages are assigned to the job in comparison to its ranking on

each job factor.

The steps involved in factor comparison method may be briefly stated thus&

!elect key jobs (say "# to $%), representing wage1salary levels across the organization.

The selected jobs must represent as many departments as possible.

&ind the factors in terms of which the jobs are evaluated /such as skill, mental effort,

responsibility, physical effort, working conditions, etc.0.

Rank the selected jobs under each factor /by each and every member of the job

evaluation committee0 independently.

'ssign money value to each factor and determine the wage rates for each key job.

The wage rate for a job is apportioned along the identified factors.

All other jobs are compared with the list of key jobs and wage rates are determined.

An example of how the factor comparison method works is given below&

Table: Merits and Demerits of Factor Comparison Method


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Merits emerits

Analytical and objective.

eliable and valid as each job is

compared with all other jobs in terms

of key factors.

!oney values are assigned in a

fair way based on an agreed rank order

fixed by the job evaluation committee.

#lexible as there is no upper

limitation on the rating of a factor.

(ifficult to understand, explain

and operate.

ts use of the same criteria to

assess all jobs is -uestionable as jobs

differ across and within organizations.

Time consuming and costly.

oint method

This -uantitative method is widely used currently. 2ere, jobs are expressed in terms of key

factors. *oints are assigned to each factor after prioritizing each factor in the order of

importance. The points are summed up to determine the wage rate for the job. Jobs with similar

point totals are placed in similar pay grades. The procedure involved may be explained thus&

(a) !elect key jobs. dentify the factors common to all the identified jobs such as skill, effort,

responsibility, etc.

(b) ivide each major factor into a number of sub factors. %ach sub factor is defined and

expressed clearly in the order of importance, preferably along a scale.

The most fre-uent factors employed in point systems are&


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. !kill /key factor0& %ducation and training re-uired, 3readth1depth of

experience re-uired, "ocial skills re-uired, *roblem$solving skills, (egree of discretion1use of

judgment, +reative thinking4

* Responsibility+'ccountability& 3readth of responsibility, "pecialized

responsibility, +omplexity of the work, (egree of freedom to act, 5umber and nature of

subordinate staff, %xtent of accountability for e-uipment1plant, %xtent of accountability for

product1materials4

. ,ffort& !ental demands of a job, *hysical demands of a job, (egree of

potential stress.

The educational re-uirements /sub factor0 under the skill /key factor0 may be expressed thus in

the order of importance.

Degre

e

Define

6. Able to carry out simple calculations4 2igh "chool educated

7. (oes all the clerical operations4 computer literate4 graduate

8. 2andles mail, develops contacts, takes initiative and does work independently4 post graduate

Assign point values to degrees after fixing a relative value for each key factor.

POINT VALU! TO "A#TOR! ALON$ A !#AL

POINT VALUES FOR DEGREES TOTAL

FACTOR 1 2 3 4 5


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Skill 10 20 30 40 !0 1!0

Physical e&&ort 8 1$ 24 32 40 120

Mental e&&ort ! 10 1! 20 2! 7!

Resonsi'ility 7 14 21 28 3! 10!

(orkin)

con*itions

$ 12 18 24 30 0

Ma+iu total oints o& all &actors *een*in) on their iortance to o' !40/3ank 'fficer0

9 #ind the maximum number of points assigned to each job /after adding up the point values

of all sub$factors of such a job0. This would help in finding the relative worth of a job. #or

instance, the maximum points assigned to an officer:s job in a bank come to ;9;<

from the job evaluation committee. This job is now priced at a higher level.

; 'nce the worth of a job in terms of total points is expressed, the points are converted intomoney values keeping in view the hourly1daily wage rates. A wage survey, usually, is undertaken

to collect wage rates of certain key jobs in the organization. ?et:s explain this&

Table: #on%ersion of Job $rade Points into Money Val&e

Point

range

Dail !age rate

"R#$

%o& gra'e# o( )e &an) o((i*ial#

!00-$00 300-400 1 %&&icer

$00-700 400-!00 2 Accountant

700-800 !00-$00 3 Mana)er / Scale

800-00 $00-700 4 Mana)er // Scale

00-1,000 700-800 ! Mana)er /// Scale

Merits and emerits

The point method is a superior and widely used method of evaluating jobs. t forces raters to look

into all keys factors and sub$factors of a job. *oint values are assigned to all factors in a

systematic way, eliminating bias at every stage. t is reliable because raters using similar criteria

would get more or less similar answers. @The methodology underlying the approach contributes

to a minimum of rating error /obbins, p.8>60. t accounts for differences in wage rates for

various jobs on the strength of job factors. Jobs may change over time, but the rating scales

established under the point method remain unaffected.


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'n the negative side, the point method is complex. *reparing a manual for various jobs, fixing

values for key and sub$factors, establishing wage rates for different grades, etc., is a time

consuming process. According to (ecenzo and obbins, @the key criteria must be carefully and

clearly identified, degrees of factors have to be agreed upon in terms that mean the same to allrates, the weight of each criterion has to be established and point values must be assigned to

degrees. This may be too taxing, especially while evaluating managerial jobs where the nature

of work /varied, complex, novel0 is such that it cannot be expressed in -uantifiable numbers.

job evaluation method

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