JOB EVALUATION

JOB EVALUATION-
INTRODUCTION
 Process of systematically determining the
relative worth of jobs to create a job
structure for the organization.
 The evaluation is based on a combination of
job content, skills required, value to the
organization, organizational culture, and
the external market.
 This potential to blend internal forces and
external market forces is both a strength
and a challenge to job evaluation.

WHAT IS JOB ANALYSIS


 Job evaluation can be defined as

“a systematic procedure designed to aid
in establishing pay differentials among
jobs…”1
 ASPECTS OF JOB
EVALUATION
Job Evaluation is: Assumption

A measure of relative value Relevant groups can reach consensus on

relative value

A measure of job Content has an innate value outside of external

market. content

Link with external market Job worth cannot be specified without

external market information.

Measurement device Honing instruments will provide objective

measures.

Negotiation Puts face of rationality to a social / political

process.
 There are four major
methods of job evaluation:
ranking, classification, factor
comparison, and point plans.
METHODS OF JOB
EVALUATION
 Ranking

Ranking simply orders the job

descriptions from smallest to largest
based on the evaluator’s perception of
relative value or contribution to the
organization’s success.
 Ranking

Only workable for a small organization

with very few different jobs.
Depends on evaluator consistency –
perspectives change over time.

 Classification

Job descriptions are slotted into a

series of classes that cover the range
of jobs. Each class has a definition.
These definitions are the standards
against which the jobs are compared.

 FactorComparison
Jobs are compared against other jobs
on the basis of how much of some
desired factor they possess.
Each job’s factors are ranked against
each other job’s factors.
The market pay rate for each job is then
allocated among the factors based
upon a market pay rate scale.

 Factor Comparison
Very complex and requires total rework
each year to determine the market pay
rates.
Can perpetuate equity issues from the
market.
 Point Method
These systems have three common
characteristics:
Compensable elements
Factor degrees are numerically scaled
Weights reflecting the relative importance
of each factor

 Point Method
Compensable elements are those
characteristics in the job (not the
person) that the organization values,
that help it pursue its strategy and
achieve its objectives.

 COMPARISON OF
METHODS Advantage Disadvantage

Ranking Fast, simple, easy to explain. Cumbersome as number of

jobs increases. Basis for
comparisons is not called out.

Classification Can group a wide range of Descriptions may leave too

work together in one system. much room for manipulation.

Point Compensable factors call out Can become bureaucratic and

basis for comparisons. rule-bound.
Compensable factors
communicate what is valued.


 CONCLUSION
 THANK YOU


Presented By
Ankur Dubey

Ammat Juzar