JOB EVALUATION

GROUP EIGHT
PRESESNTATION 1
 JOB EVALUATION
INTRODUCTION
DEFINITIONS
PROCESSOF JOB EVALUATION
TECHNIQUES/METHODS
ADVANTAGES AND DISADVANTAGES
CONCLUSION

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INTRODUCTION
 Meaning of the word job?
 Why job evaluation?

 Its purpose in an organisation

 Objectives of job evaluation

 Principles of job evaluation

 Process of job evaluation

 Methods of job evaluation

 Advantages and disadvantages

 Benefits of job evaluation

 conclusion

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Question1:

what do we mean by
the word ‘job’?

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Key definitions:
 Job: a piece of work, especially a specific task done as part of
the routine of one's occupation or for an agreed price
(dictionary.com)
 Evaluation: The process of examining a system or system

component to determine the extent to which specified properties

are present. (dictionary.com). or Evaluation is the systematic
collection and analysis of data needed to make decisions, a process
in which most well-run programs engage from the outset. (defined
by. American Evaluation Association)
 “Job evaluation is the systematic and orderly process of determining

the worth of job in relation to other jobs.”( Edwin B. Flippo)

 “Job evaluation is the process of analysis and assessment of jobs to

ascertain reliably their relative wealth, using the assessment as a

basis for a balanced wage structure.”(British Institute of
Management.)

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Why job evaluation?
In an organization, different employees perform
different jobs and salary is also not the same. But
how do companies decide the importance and
hierarchy of jobs. The answer is job evaluation. Job
evaluation is done on the basis of the value of the
particular job and how important it is to the
organization. One cannot judge the worth of a job
unless it is evaluated to make visible the
distribution of rewards where credit is due in order
to bridge the discrepancies that occur in
organization in terms of remuneration and reward
system.

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Purpose of job evaluation
The purpose of job evaluation techniques is to
measure the relative worth of jobs so that the
relationship between the jobs can be
expressed in salary and wages scales, based
on logical, ordered system. ‘Job evaluation’ is
a term used in general way for a number of
techniques that are in different forms. These
techniques entail analyzing and assessing the
content of jobs so that they may be classified
in an order relating to one another and to the
marketplace.

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Question2:

Who performs job

evaluation in an organization?

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Objectives of job evaluation
 To establish impartial judgement
 To promote employee goodwill
 To select employees more accurately
 To establish satisfactory wage and salary
 To determine the rate of pay for each job
 To provide management with a basis for

proper control

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Principles of Job Evaluation

 Rate the Job And Not The Man

 Easily Explained Elements Of Rating
 Exposure Of Plan To Employees
 Employees Participation In Rating

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PROCESS OF JOB EVALUATION

The process of job evaluation is lengthy and has to

be taken in a systematic manner. The process of
job evaluation involves the following steps;
 Securing Acceptance from Employees
 Forming Job Evaluation Committee
 Deciding The Jobs To Be Evaluated
 Analyzing And Preparing Job Description
 Selecting The Method of Evaluation
 Classify Jobs
 Executing The Programme
 Periodic Review

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METHODS OR TECHNIQUES
There are four basic methods of Job evaluation:

 Ranking Method

 Classification Method

 Factor Comparison Method

 Point method

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Ranking method:
This method is one of the simplest to administer.
According to this method, jobs are arranged from
the highest to lowest, in order of their value or
merit to the organisation. Jobs are compare to each
other based on the overall worth of the job to the
organization. The “worth” of the job is usually
based on the judgement of skill, effort (physical
and mental), responsibility (supervisory and fiscal )
and working conditions. Jobs are usually ranked in
each department and then the department rankings
combined to develop an organizational ranking.

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The following table is a hypothesis illustration
of ranking of jobs
Table: Array of jobs according to the
Ranking method

RANK MONTHLY SALARIES

Medical Doctor Gh¢ 3,000
Pharmacist Gh¢ 2,500
Nurse Gh¢ 2,000
Stores Manager Gh¢ 1,500

Secretary Gh¢ 700

Security Gh¢ 300

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advantages of RM

 Its simple to understand and practice

 Most effective when there are relatively few

jobs to be evaluated (less than 30)

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Disadvantages Of RM
 Difficultto develop in large and complex
organization.
 Rank judgements are subjective.
 Since there is no standard used for comparison,

new jobs would have to be compared with the

existing jobs to determine its appropriate rank.
In essence, the ranking process would have to
be repeated each time a new job is added to the
organization. There is therefore the call for
more fruitful and scientific approach.

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Classification method
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 classes or
job grades. Separate classes may include office, clerical,
managerial, personnel, etc. following is brief description of such a
classification in an office.
 Class I – Executives: further classification under this category may

be office manager, deputy office manager, office superintendent,

department supervisor, etc.
 Class II-Skilled workers : under this category may come the

marketing assistant, cashier, receipts clerk, etc.

 Class III – semiskilled workers: under this category may come

stenotypists, machine-operators, etc.

 Class IV – semiskilled workers: this category comprises Daftaris,

File clerks, office boys, etc.

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Advantages Of CM

 It is less subjective when compared to

ranking method.
 Easy to understand and accepted to almost all

employees without hesitation.

 It takes into account all the factors that a job

comprises
 This system can be effectively used for a

variety of jobs.

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Disadvantages Of CM

 Its is difficult to write all-inclusive descriptions of

grade.
 The method oversimplifies sharp difference between

different jobs and different grades

 When individual job descriptions and grade description

do not much well, the evaluators have the tendency to

classify the job using their subjective judgements.
 More so, where the requirements of different jobs

differ, they may be combined into a single category,

depending on the status a job carries which is one
weakness of this method.

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Factor comparison method
This method is more scientific and systematic.
Though it is the most complex method of all,
it is consistent and appreciable. Under 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.

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Advantages of FCM
 Analytical and objective
 Money values are assigned in a fair way based

on an agreed rank order fixed by the job

evaluation committee
 Flexible as there is no upper limitation on the

rating of a factor
 Reliable and valid as each job is compared

with other jobs in terms of the key factors.

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Disadvantage of FCM
 Difficultto understand, explain and operate
 The use of the same criteria to assess all jobs

is questionable as jobs differ across and

within organizations
 Time consuming and costly

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Point method
Point method is widely used currently in the
world and the best method according to
Microsoft. The point method techniques
entails the analysis and comparison of jobs
according to compensable factors, which are
represented by a number of points, the
amount depending on the degree of each
factor present. The number of points each
position is worth equals an assigned
monetary value.

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procedure
The procedure involved may be explained in
these steps.
 Determine or Collect Information

 Select or Define the jobs

 Define or Determine the jobs

 Assign or Rate the jobs

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Factors employed in point system

 Skill and Knowledge

 Responsibility/Accountability

 Effort

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diagram2.0

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 Merits
 It is superior and widely used method of
evaluating jobs
 It faces rates to look into all key factors and

sub-factors of the job

 Point values are assigned to all factors in a

systematic way, eliminating bias at every stage

 It is reliable because raters using similar criteria

would get more or less answers

 It accounts for the difference in wage rates for

various jobs on the strength of job factors

 When jobs are changed overtime, the rating

scale of the point method is unaffected.

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demerits
 It is complex

 Time consuming process

 Expensive to implement

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benefits of job evaluation

 It indicates the relative worth of different jobs

 It helps to Establish the hierarchy of jobs
 Useful for introducing a satisfactory, rational

and balanced wage structure

 Provides scientific base for promotions and

transfers
 Avoids injustice to employees
 Removes grievances and disputes among

employees

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conclusion

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