1. Job Evaluation
Dr. Anil Mehta

2. Definition
“Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in organisation ”

3. features Tries to assess jobs ,not people
The standards of job evaluation are relative not absolute
The basic information is obtained from job analysis
Carried out by groups, not by individuals
Provides a basis for a rational wage-structure

4. Objectives Establishment of sound wage differentials between jobs
Discovery and elimination of inequalities
Establishment of sound wage foundation for incentives and bonus
Maintenance of consistent wage policy
Providing ground for negotiation
Effective means for wage control
Collection of job facts

5. Job Evaluation vs Performance Appraisal
Point
Job-Evaluation
Performance Appraisal
Define
Find the selective worth of a job
Find the worth of a job- holder
Aim
Determine wage rates for different jobs
Determine incentives and rewards for superior performance
Shows
How much a job is worth
How well an individual is doing on assigned jobs
Compulsion
Not Compulsory
Compulsory

6. Basis of Rating
Responsibility, qualification, experience, working condition etc.
Performance
Time
Before employee is hired
After employee is hired
Purpose
To establish satisfactory wage differentials
To effect promotions, offer rewards, award punishments, assess training needs resort to lay offs , transfers etc.

7. Objectives of Job evaluation
Job Evoluation Process
Objectives of Job evaluation
Job Analysis
Job Specification
Job Description
Job-evaluation Program
Wage-Survey
Employee Classification

8. Steps involved in Job Evaluation
Gaining acceptance
Creating job evaluation committee
Finding the jobs to be evaluated
Analyzing and preparing job evaluation
Selecting the method of evaluation
Classifying the jobs
Installing the program
Reviewing periodically

9. Essentials for success of a job evaluation program
Compensable factors should represent all the major aspects of job content
Operating manager must be convinced about the techniques and programs of job evaluation
Al employees should be provided with complete information about the evaluation techniques and program
All groups and grades of employees should be covered by the job evaluation program
Program and technique of job evaluation should be understood by all employees
The union’s acceptance and support to the program should be obtained

10. Benefits
Helps in removing inequalities in existing wage structure
Facilitates new jobs in fitting them into existing wage structure
Helps in removing grievances, improves in Labour-management relations and workers morale
enables wage differences to be purposeful
Basis for negotiations
Uniformity in wage structure
Effective use of Labour

11. Job Evaluation Methods Array of jobs according to the Ranking Method
Rank Monthly Salaries
1 Accountant Rs 6000
2 Accounts Clark Rs 3600
3 Purchase Assistant Rs 3400
4 Machine Operator Rs 2800
5 Typist Rs 1800
6 Office Boy Rs 1200

12. Advantages
Simple and easy to understand
Disadvantage
Not suitable for big organisation
Highly subjective

13. 2 Job Classification Method
Advantages
Cooperatively less subjective
Easy to understand
Takes into account all the factors
Effectively used for verity of jobs
Disadvantages
Oversimplifies sharp differences
Job descriptions are vague and are not quantified

14. 3 Factor Comparison Method
Steps involved
Select key jobs
Fond out the factors in terms of which the jobs are evaluated
Rank the selected jobs
Assign money value to each factor
The wage rate of every job is appropriated
All jobs are compared with the list of key jobs and wage rate is determined

15. Factor comparison Method
Responsibility
Factors
Daily wages Rate
Physical Effort
Mental effort
Skill
Working conditions
Key jobs
Electrician (3) (1) (1) (1) (2)
Fitter (1) (2) (2) (2) (1)
Welder (2) (3) (3) (3) (3)
Cleaner (4) (4) (5) (4) (4)
Laborer (5) (5) (4) (5) (5)

16. Advantages
Analytical and objective
Relative and valid as each job is compared
Disadvantage
Difficult to understand
Same criteria to assess all the jobs is questionable
Time consuming and costly

17. 4 Point Method
Steps involved
Select key jobs
Divide each major factor into a number of sub-factor
Point out the maximum number of points assigned
The points are converted into money value

18. Point Values to factors along a scale
Point values for Degrees Total
Factor
Skill
Physical effort
Mental effort
Responsibility
Working conditions
Maximum total points all factors on their importance to job

19. Job grades of key officials
Conversion of Job Grade Points into Money Value
Paint range
Daily Wage range
Job grades of key officials
1 Officer
2 Accountant
3 Manager Scale 1
4 Manager Scale 2
5 Manager Scale 3

20. Advantages Disadvantages Superior and widely used Systematic Reliable
Minimum of rating error
Disadvantages
Complex
Time consuming

21. Limitations of Job Evaluation
Rapid changes in demand, supply and technology
Substantial differences between job factors and market factors
Difficult to change initial stage wage fixation
Doubts and fears
Financial limitations
Not exactly scientific difficulty in selecting compensable factors

22. Certain Guidelines to Conduct Job Evaluation
Rate the job not to a person
Strive to collect all the facts accurately
Look especially the distinguished features of the job and for relationships to other jobs
Study the job objectively and independently
Must be conducted systematically
The results must be fair, rational and unbiased to the individuals being affected

23. Thank You