Job Evaluation

Methods

What is job evaluation?

Job evaluation is the process of
determining the worth of one job in
relation to that of the other jobs in a
company.
A system for comparing different jobs
systematically to assess their relative
worth, so providing a basis for a grading
and reward structure
Job Evaluation Techniques
Non-Quantitative Techniques
Computerized Job Evaluations
Quantitative techniques


Quantitative Techniques

The Factor Comparison Method
Point Rating Method
The Factor Comparison Method
Introduced by Thomas E. Hitten
Jobs are ranked according to a series
of factors
Mental Effort,
Physical Effort,
Skill Needed,
Responsibility,
Supervisory Responsibility
working conditions,

Steps
-Step 1. Obtain job information
Step 2. Select key benchmark jobs
Step 3. Rank key jobs by factor
Step 4. Distribute wage rates by factors
Step 5. Rank key jobs according to wages assigned to
each factor
Step 6. Compare the two sets of rankings to screen out
unusable key jobs
Step 7. Construct the job-comparison scale
Step 8. Use the job-comparison scale

Table: Ranking Jobs by Factor
Comparison
Job Skill Mental
Requirement
Physical
Requirements
Responsibility
Requirements
Working
Conditions
Toolmaker 1 1 2 1 4
Mechanist 2 2 3 2 3
Electrician 3 3 4 3 5
Assembler 4 4 5 5 2
Janitor 5 5 1 4 1




Table: Allocation of Money Value to the different
factors and Ranking of Jobs under the Factor
Comparison Method

Point Rating Method
In this method jobs are expressed in terms of
key factors.
Then various points are assigned to each factor
in order of their importance.
Then points are summed up to determine the
wage rate for the job.
Jobs with similar point totals are placed in
similar pay grades.
STEPS
1. Listing of Jobs:
skilled,
unskilled,
semi-skilled,
professional,
executives etc.




2. Selecting and defining factors
skill,
effort,
responsibility,
job conditions
3. Dividing the factors into degree:
The point method generally uses from four to six
degrees for each factor.

4.Weighting the factors

The relative importance of each factor selected
has to be determined. In other words, the factors
must be weighted..


5. Allocations points to each degree

Once the relative importance of the factors has
been determined in a preliminary way and the
factors suitably divided into degrees, each
degree must be assigned a numerical value.
These are the values that will be used in
determining the total point values of jobs.
.

6.Evaluation of Jobs:


Once the factor plan is adopted, it is usual to
prepare an evaluation handbook explaining the
procedure to be followed and summarising all the
elements required for evaluation.
7.Assign money value points:
For this purpose points are added to give the total
value of a job: its value of a job; its value is then
translated into terms of money with a pre-
determined formula


Computerized Job Evaluations

A computerized system that uses a structured
questionnaire and statistical models to streamline the job
evaluation process.

Advantages of computer-aided job evaluation (CAJE)
Simplify job analysis
Help keep job descriptions up to date
Increase evaluation objectivity
Reduce the time spent in committee meetings
Ease the burden of system maintenance

Non Quantitative Techniques
Ranking

Jobs are assessed on knowledge,
skills, effort etc. done with the help
of narrative position description. Job
is considered on its whole. Followed
in each department and then
compared with various dept.
Types of Ranking
Relative Ranking
Paired Comparison
Single factor ranking
360-Degree Feedback

Involves input from
Front-line staff
Supervisors
Managers
Directors and executive leadership.


Narrative Essay Job Evaluations

Narrative essay job evaluations
require a great deal of preparation
and time.
This is an extensive review of the
employee's file, job duties,
performance standards and
professional goals and objectives.


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