job evaluation.ppt2 (2)

8/13/2019 Job Evaluation.ppt2 (2)

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Job evaluation


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Job evaluation

Job evaluationis the process ofsystematically determining a relativeinternal value of a job in an organization.

Job evaluation is the process ofdetermining the worth of one job in relationto that of the other jobs in a company sothat a fair and equitable wage and salary

system can be established


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Job evaluation

Technique for comparing JOBS ratherthan employees

system for comparing different jobssystematically to assess their relativeworth, so providing a basis for agrading and reward structure.


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Job evaluation

Good remuneration systems must beseen as fair especially byemployees! The law also demandsthat jobs of equal worth shouldattract equal pay. A key factor infairness will be linking the degree of

difficulty of the job with the reward.Job evaluation can be used to assessthe relative difficulty of the job.


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Job Evaluation MethodsRanking method:The job ranking method arranges jobs in

numerical order on the basis of the importance of the job'sduties and responsibilities to the organization. This method,though easy to understand, is highly subjective in nature.

B. Classification method:The job classification method slotsjobs into . pre established grades. Higher-rated grades

demand more responsibilities, tougher working conditionsand varied job duties. This method is easy to understandand takes care of all relevant factors affecting theperformance of a job. However, it is not easy to write all inclusivedescriptions of a grade. Further, the method oversimplifies sharpdifferences between different jobs and different grades.

C. Factor comparison method:In this method, jobs are rankedaccording to a series of factors such as mental effort, physicaleffort, skill needed, responsibility, supervisory responsibility,working conditions, etc. pay will be assigned in this method bycomparing the weights of the factors required for each job.


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Job Evaluation Methods

Point method: The point system of job evaluation uses apoint scheme based on the compensable job factors ofskill, effort, responsibility and working conditions.The more compensable factors a job possesses, the morepoints are assigned to it. Jobs with higher accumulatedpoints are considered more valuable to the organization. Select key jobs Identify the factors to all identified jobs such as skill, effort,

responsibility etc. Divide each major factor into a number of sub factors. Each

sub factor is defined and expressed in order of importance. Find the maximum number of points assigned to each job

Once the worth of a job in terms of total points is known, thepoints are converted into money values, keeping the wagerates in mind.


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Provides a systematic and rationalprocedure for valuing each job

Ensures a degree of equity and

objectiveness in remuneration Job descriptions generated are useful for

other activities

Helps motivation and morale

Both employee and employer needs areaddressed

Scope for union/employee involvement


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Lack of allowance for differences inperformance

Assessment can be costly & time-

consuming especially at the start Assessment can be inaccurate or

approximate

Its still subjective

job evaluation.ppt2 (2)

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