2. JOB EVALUATION Job evaluation is the process of analysing & assessing the various jobs systematically to ascertain their relative worth in an org. purpose being fixation of satisfactory wage differentials among various jobs. provides logical basis for setting up of comparative values of jobs in a plant or industry.

3. . Job evaluation, begins with job analysis (a systematic way of gathering information about a job) and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs. evaluation or ranking of jobs to determine their position in the job hierarchy.

4. Job Evaluation Systems Job Evaluation  The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.

5. Job evaluation Performance appraisal DefineRelative worth of a job Find the worth of a job holder Aim Shows Determine wage rates for diff.jobs How much a job is worth Determine incentives & rewards for superior performance How well an individual is doing on assigned work

6. Job description –a statement of duties & responsibilities of a job Job specification– a statement of human qualities to fill the job. Job Rating– assigning a relative score to each job Money allocation --assigning a money rate of pay to each job acc. to its worth Job classification --grading jobs acc. to scale of pay Job Analysis-a process of obtaining job facts. Process of job evaluation

7. The Process Of Job Evaluation  Gaining acceptance from employees and trade unions  Creating a job evaluation committee  Finding the jobs to be evaluated  Analyzing and preparing job descriptions  Selecting the method of job evaluation  Classifying jobs  Installing the programme  Reviewing the process periodically The process of job evaluation involves the following steps

8. METHODS OF JOB EVALUATION Job evaluation involves evaluation of various jobs in terms of certain factors. Imp. factors are skill : mental & manual Education Experience Efforts & initiative responsibility working environment supervision needed More difficult job more worth More scarce supply higher demand more worth

9. More skills, edn.,responsibility required more worth These are general statements

10. Different Job Evaluation Systems JOB AS JOB PARTS BASIS FOR A WHOLE OR FACTORS COMPARISON (NONQUANTITATIVE)(QUANTITATIVE) Job vs. job Job ranking Factor comparison system system Job vs. scale Job classification Point system system SCOPE OF COMPARISON

11. A.Ranking method: Arranges jobs in numerical order from highest to lower on the basis of the importance of the job's duties and responsibilities to the organization. Jobs examined as a whole rather than imp. factors in the job. A committee of several executives evaluates job descriptions & ranks them in order of importance.

12. Rank order is determined by averaging the respective ranking of all committee members. Suitable for small org.s Rates of pay are associated with jobs in rank order. B. Grading or job Classification method: A no. of pre –determined grades /classifications are first established by a committee & then various jobs are assigned within each grade/ class.

13. Grade descriptions are derived from job analysis. Eg. Executives -office mgr., deputy office mgr., office superintendent Skilled worker- cashier, receptionist Semi skilled worker– file clerks, office boys

14. C.Factor comparison method: Needs expertise knowledge Used mostly for white collar workers Mostly following 5 factors are evaluated for each job  mental effort,  physical effort,  skill needed,  responsibility,  working conditions

15.  Select key jobs (say 15 to 20)representing wage / salary levels across the org. Selected jobs must represent as many deptt.s as possible  Find the factors in terms of which the jobs are evaluated (skill, mental effort etc.)  Rank the selected jobs under each factor ( by each & every member of the job evaluation committee) independently.  Assign money value to each factor & determine the wage rates for each key job.

16.  Wage rate for a job is apportioned along the identified factors.  All other jobs are compared with list of key jobs & wage rates are determined.

17. D. Point method: 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.

18. Merits Individual factors considered, rather than whole jobs. Is objective & quantitative helps in achieving consistency. Demerits Arbitrary wts. may be attached to factors. costly time consuming