1 Job Evaluation  Definition- Job Evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization.

2 Difference between Job Evaluation and Performance Appraisal Job EvaluationPerformance Appraisal Job Rated keeping in mind responsibility, qualification, experience, working conditions etc. Employee rated on basis of his performance A job rated before employee is appointed Employee rated after the employee has been hired and placed Purpose is to establish Wage differentials Purpose is to effect promotions, rewards, punishments, assess training needs etc.

3 Difference between Job Evaluation and Performance Appraisal Job EvaluationPerformance Appraisal It is not compulsory Compulsory. It is done regularly for all jobs Job evaluation committee is consulted for the purpose of evaluation Appraisal is done by the employees themselves

4 Scope of Job Evaluation  In theory, application of job evaluation is universal.  In practice, the theory of job evaluation is followed in a few companies and that too for hourly- rated jobs  2 examples of companies employing Job evaluation are NGEF and KEC

5 Job Evaluation Process  The Job Evaluation process starts with defining objectives of evaluation and ends with establishing wage and salary differentials

6 Job Evaluation Process  The important considerations in the Job Evaluation process are as follows: 1. Which Jobs are to be evaluated? 2. Staffing the evaluation exercise 3. Training for the committee 4. Time factor

7 Methods of Job Evaluation  A. Analytical  B. Non-Analytical

8 Analytical methods of Job Evaluation 1. Point ranking Method-  The method starts with the selection of job factors, construction of degrees for each factor, and assignment of points to each degree.  Different factors are selected for different jobs, with accompanying differences in degrees and points

9 Analytical methods of Job Evaluation 2. Factor Comparison method- Under this method, one begins with the selection of factors, usually five of them-  Mental Requirements  Skill Requirements  Physical exertion  Responsibility  Job conditions Each factor is ranked individually with other jobs

10 Non-Analytical Methods of Job Evaluation 1. Ranking method- The evaluation committee assesses the worth of each job on the basis of its title or on its contents. 2. Job Grading method- It is based on the job as a whole. The yardstick used in this system is in the form of Job classes or grades.

11 Criticisms of Job Evaluation  It encourages employees to focus on ‘ how to advance in position’ at a time when there may be shortage of opportunities.  It promotes an internal focus instead of a customer-oriented focus  It is not suitable for a forward looking organization  Elaborate exercises of wage and salary fixation through job evaluation.