Job Evaluation

Presented By: Sujaya Thapa KVC, Vth Semester

Job Evaluation
Job evaluation is a process of determining the relative worth of various jobs with the organizations, so that different wages may be paid to jobs of different worth. Its characteristics are:
It is the quantitative measurement of relative job worth. It does not set the price of a job; it merely fixes its relative worth. It rates the job, not the qualities of individual employee on the job. It measures differences between job requirements.

Purpose of Job Evaluation

It tries to assess jobs, not people. The standards of job evaluation are relative, not absolute. The basic information on which job evaluations are made is obtained from job analysis. Job evaluations are carried out by groups, not by individuals. Some subjective element is there in job evaluation. Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

Job Evaluation System - Methods

1. Ranking Method
Jobs are arranged and ranked according to their importance from simplest to hardest. Merits Simple to use, suitable for small organizations Demerits based on judgment so possibility of biasness

2. The grade or classification method

Overall evaluation of all jobs based on common sense & experience Job structure is divided into different classes with salary range maximum to minimum. Merits Easy to operate & understand, less costly & suitable for organizations with small work. Demerits Rigid & improper for organization with varied works

Contd
3. Point rating method
Jobs are ranked by assigning points. Sum-total of points will give an index of relative value of jobs.

4. Factor comparison method

Each job is ranked several times. Merits uses job-by-job comparison so its accurate, easy to explain to employees Demerits Costly to install and complex to use, 5 or 7 factors might not be appropriate