Job Evaluation

Job Evaluation

 Technique for comparing JOBS

rather than employees.

 “system for comparing different jobs

systematically to assess their
relative worth, so providing a basis
for a grading and reward structure”.
Job Evaluation

Job evaluation is, by definition,

subjective. Subjectivity reduces
effectiveness. However, analytical
systems try to reduce subjectivity.

Effectiveness of job evaluation can also be

affected by external forces (eg market
shortages) and ‘tinkering’ (eg using
perks)
Job Evaluation

Good remuneration systems must be

seen as fair – especially by employees!
The law also demands that jobs of
equal worth should attract equal pay. A
key factor in fairness will be linking the
degree of difficulty of the job with the
reward. Job evaluation can be used to
assess the relative difficulty of the job.
Job Evaluation Methods
A. Ranking method: The job ranking method arranges jobs in
numerical order on the basis of the importance of the job's
duties and responsibilities to the organization. This method,
though easy to understand, is highly subjective in nature.
B. Classification method: The job classification method slots
jobs into . pre established grades. Higher-rated grades demand
more responsibilities, tougher working conditions and varied job
duties. This method is easy to understand and takes care of all
relevant factors affecting the performance of a job. However, it
is not easy to write all inclusive descriptions of a grade.
Further, the method oversimplifies sharp differences between
different jobs and different grades.
C. Factor comparison method: In this method, jobs are ranked
according to a series of factors such as mental effort, physical
effort, skill needed, responsibility, supervisory responsibility,
working conditions, etc. pay will be assigned in this method by
comparing the weights of the factors required for each job.
 Job Evaluation Methods
D. Point method: The point system of job evaluation uses a point
scheme based on the compensable job factors of skill, effort,
responsibility and working conditions. The more compensable factors a
job possesses, the more points are assigned to it. Jobs with higher
accumulated points 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, the
points are converted into money values, keeping the wage rates in
mind.
Job Evaluation Advantages
 Provides a systematic and rational
procedure 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 are
addressed
 Scope for union/employee involvement
Job Evaluation Disadvantages

 Lack of allowance for differences in

performance
 Assessment can be costly & time-
consuming especially at the start
 Assessment can be inaccurate or
approximate
 It’s still subjective!