Job Evaluation

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The Job Evaluation Factors- worth of a job is evaluated based upon factor

like -
1. Know-How,
2. Problem Solving
3. Accountability
4. Education
5. Experience
6. Complexity involved in the job
7. Scope of job
8. Supervision received and
9. Authority Exercised
JOB EVALUATION: QUALITATIVE METHODS- RANKING METHOD
• All jobs are ranked in the order of their importance from the simplest to the hardest
or from the highest the lowest.

• The importance of order of job is judged in terms of duties, responsibilities sand


demands on the job holder.

• .The method is best used for smaller organizations with fewer jobs (under 30‐40)

• The job ranking method usually ranks jobs according to „the whole job‟ rather than a
number of compensable factors.

• Jobs are compared to each other based on the overall worth of the job to the
organization. The 'worth' of a job is usually based on judgements of skill, effort
(physical and mental), responsibility (supervisory and fiscal), and working conditions.
JOB ROLES in a Company
Receptionist
Department Manager
Clerical Assistant
Section Supervisor
Team Leader and Task Specialist
Administrative Assistant
RANKED HIGH TO LOW

JOB ROLES in a Company 1. Department Manager


Receptionist
Department Manager
2. Section Supervisor
Clerical Assistant 3. Team Leader and Task Specialist
Section Supervisor
Team Leader and Task Specialist 4. Administrative Assistant
Administrative Assistant
5. Clerical Assistant
6. Receptionist
https://hr-guide.com/data/G909.htm
Merits – Ranking method has the following merits in terms of its procedure, resources
involvement and operational mechanisms.

1. It is the simplest method


2. It is quite economical to put it into effect
3. It is less time consuming and involves little paper work.

Demerits – The ranking method has the following demerits in terms of validity and
reliability.

1. The main demerit of the ranking method is that there are no definite standards of
judgement and also there is no way of measuring the differences between jobs.

2. It suffers from its sheer unmanageability when there are a large number of jobs.
JOB EVALUATION: QUALITATIVE METHODS- Job Classification or Grading

• This method of job evaluation was made popular by the U.S. Civil Service
Commission

• Under this method job grades or classes are established by an authorised body
or committee appointed for this purpose

• A job grade is defined as a group of different jobs of similar difficulty or


requiring similar skills to perform them.
JOB EVALUATION: QUALITATIVE METHODS- Job Classification or Grading
Merits -
1. This method is easy to understand and simple to operate.
2. It is economical and , therefore, suitable for small organizations.
3. The grouping of jobs into classifications makes pay determination problems easy to
administer.
4. This method is useful for Government jobs.

Demerits - 1. The method suffers form personal bias of the committee members.
2. It cannot deal with complex jobs which will not fit neatly into one grade.
3. This method is rarely used in industries.
4. It is difficult to know how much of a job‟s rank is influenced by the man on the job.
5. The system is rather rigid and unsuitable for a large organizations or for very varied
work.
Under the latest JOB classification based on the 7th Pay Commission and the Order
passed by the Department of Personnel and Training (DoPT), the various Groups are
aligned to the Levels under the 7th CPC.

Group A - 7th CPC Levels 10 to 18 Basic Pay - 56100 (Will be revised to 63000)

Group B - 7th CPC Levels 6 to 9 Basic Pay - 35400 (Will be revised to 40500)

Group C - 7th CPC Levels 1 to 5 Basic Pay - 18000 (Will be revised to 21000)


Grading Remuneration Players
Method  
Grade A+ 7,00,00,000 Virat Kohli, Rohit Sharma, Shikhar Dhawan, Bhuvneshwar Kunar,
Jaspreet Bumrah
Grade A 5,00,00,000 Ravichandran Ashwin, Ravindra Jadeja, Murali Vijay, Cheteshwar Pujara,
Ajinkya Rahane, MS Dhoni, Wridhhiman Saha
Grade B 3,00,00,000 KL Rahul, Umesh Yadav, Kuldeep Yadav, Yuzvendra Chahal, Hardik
Pandya, Ishant Sharma, Dinesh Karthik
Grade C 1,00,00,000 Kedar Jadhav, Manish Pandey, Axar Patel, Karun Nair, Suresh Raina,
Parthiv Patel, Jayant Yadav.
     
JOB EVALUATION: QUANTITATIVE METHODS- Point Rating Method

 Set of compensable factors are identified as determining the worth of jobs. The major categories of:
1) Skill
2) Responsibilities
3) Effort
4) Working Conditions
These factors can then be further defined.

Skill Working Conditions


Responsibilities Effort
Experience
Education Location
Fiscal Mental
Ability Hazards
Supervisory Physical
Extremes in Environment
• Each factor is then divided into levels
or degrees which are then assigned
points.

• Each job is rated using the job


evaluation instrument.

• The points for each factor are summed


to form a total point score for the job. 

• Jobs are then grouped by total point


score and assigned to wage/salary
grades so that similarly rated jobs
would be placed in the same
wage/salary grade.
Merits -
1. It is the most comprehensive and accurate method of job evaluation
2. Prejudice and human judgement are minimised. The method can not be manipulated.
3. Being the systematic method, workers of the organization favour this method.
4. The value of the job is expressed in monetary terms.
5. Can be applied to a wide range of jobs.
6. Can be applied to newly created jobs.

Demerits –
1. It is both time-consuming and expensive method.
2. It is difficult to understand for an average worker.
3. A lot of clerical work is involved in recording rating scales.
4. it is not suitable for managerial jobs wherein the work content is not measurable in quantitative terms.
https://hr-software.net/cgi/JobEvaluation.cgi
JOB EVALUATION: QUANTITATIVE METHODS-FACTOR COMPARISION

This is a combination of both rating and point rating


methods .

It means ranking jobs by comparing them and


makes analysis by breaking jobs into compensable
factors

This system is usually used to evaluate white


collar, professional and managerial positions
RANKED HIGH TO LOW

JOB ROLES in a Company 1. Department Manager


Receptionist
Department Manager
2. Section Supervisor
Clerical Assistant 3. Team Leader and Task Specialist
Section Supervisor
Team Leader and Task Specialist 4. Administrative Assistant
Administrative Assistant
5. Clerical Assistant
6. Receptionist
Compensable or Department Section Team Leader and Administrative Clerical Receptionist
critical factors Manager Supervisor Task Specialist Assistant Assistant

Responsibility 3000 2000 1500 1000 500 100


Skill 5000 3000 2000 1500 1000 500
Mental Effort 15000 5000 2000 1000 500 400
Physical Effort 1000 1500 4000 5000 5000 7000
Working Conditions 100 500 500 1000 1000 1500
Compensable or Department Section Team Leader and Administrative Clerical Receptionist
critical factors Manager Supervisor Task Specialist Assistant Assistant

Responsibility 3000 2000 1500 1000 500 100


Skill 5000 3000 2000 1500 1000 500
Mental Effort 15000 5000 2000 1000 500 400
Physical Effort 1000 1500 4000 5000 5000 7000
Working Conditions 100 500 500 1000 1000 1500
Total Wage 24,100 12000 10000 9,500 8000 9,500
rate
Merits –
1. It is more objective method of job evaluation
2. The method is flexible as there is no upper limit on the rating.
3. It is fairly easy method to explain to employees.
4. The use of limited number of factors (usually five) ensures less chances of overlapping
and over-weighting of factors.
5. It facilitates determining the relative worth of different jobs.

Demerits –
1. It is expensive and time consuming method.
2. Using the same five factors for evaluating jobs may not always be appropriate because
jobs differ across and within organization.
3. It is difficult to understand and operate.
Human Resource Mangers when launching job evaluation
exercise must take note of:
1. Job that should be evaluated and not the person performing it,
2. Defining clearly purpose of evaluation,
3. Adoption of one of the four job evaluation methods based upon
organization size, internal needs and organizational culture and,
4.. Allocation of sufficient resources for the exercise.

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