Professional Documents
Culture Documents
Job Evaluation Methods
Job Evaluation Methods
Ledger
Clerk
Junior
Typist
Order
Clerk
Messen
ger
Simple or easy to Ranking is highly
understand and subjective in nature and
practice; may offend many
Best suited for small employees;
organization; Rankings are difficult to
Fast and less develop in a large,
complex organization;
expensive;
Can be legally challenged
Most commonly used
Unreliable
The general purpose of job classification
is to create and maintain pay grades for
comparable work across your
organization. According to this method, a
predetermined number of job groups or
job classes are established and jobs are
assigned to these classifications. This
method places groups of jobs into job
classes or job grades.
Following is a brief description of such a classification in an
office.
1. Class I - Executives: Further classification under this
category may be Office manager, Deputy Office manager,
Office superintendent, Departmental supervisor, etc.
2. Class II - Skilled workers: Under this category may have the
Purchasing assistant, Cashier, Receipts clerk, etc.
3. Class III - Semiskilled workers: Under this category may
come Steno typists, Machine-operators, Switchboard
operators, etc.
4. Class IV - Semiskilled workers: This category comprises
Daftaris, File clerks, Office boys, etc.
Less subjective when Not useful when jobs are very
compared to the earlier different from each other
ranking method; It is difficult to write all-
Easy to understand and
inclusive descriptions of a grade.
acceptable to almost all When
employees without individual job
hesitation; descriptions and grade
Takes into account all the descriptions do not match well,
factors that a job comprises; the evaluators have the
May produce same results tendency to classify the job
using their subjective
as Point Method, but is less
costly. judgments.
A more systematic and scientific method of job evaluation.
Under this method, instead of ranking complete jobs, each
job is ranked according to a series of factors to obtain a
numerical value for each job and to arrive at a job
structure. Thus it may be classified as a quantitative
method.
Factor comparison itself is not widely used: it probably
represents less than 10% of the installations of job
evaluation plans. But the concepts on which it is based are
incorporated in numerous job evaluation plans, including
the one that is probably used the most, the Hay Plan.
The compensable factors used are usually (1) mental
requirements, (2) physical requirements, (3) skill
requirements, (4) responsibility, and (5) working
conditions, and other relevant factors (for instance,
know-how, problem solving abilities, accountability,
etc.). These are considered to be universal factors
found in all jobs. This means that one job-
comparison scale for all jobs in the organization may
be constructed, and this practice is often followed
upon installation of factor comparison.
Analytical and objective. Difficult to understand,
Reliable and valid as each job explain and operate.
is compared with all other
jobs in terms of key factors.
Its use of the same
Money values are assigned in criteria to assess all jobs
a fair way based on an agreed is questionable as jobs
rank order fixed by the job differ across and within
evaluation committee.
organizations.
Flexible as there is no upper
limitation on the rating of a Time consuming and
factor. costly.
The point-factor method, or point plan, involves
rating each job on several compensable factors
and adding the scores on each factor to obtain a
point total for a job. A carefully worded rating
scale is constructed for each compensable factor.
This rating scale includes a definition of the factor,
several divisions called degrees (also carefully
defined), and a point score for each degree. The
rating scales may be thought of as a set of rulers
used to measure jobs.
The most frequent factors employed in point systems are:
1. Skill (key factor): Education and training required,
Breadth/depth of experience required, Social skills
required, Problem-solving skills, Degree of discretion/use
of judgment, Creative thinking;
2. Responsibility/Accountability: Breadth of responsibility,
Specialized responsibility, Complexity of the work, Degree
of freedom to act, Number and nature of subordinate staff,
Extent of accountability for equipment/plant, Extent of
accountability for product/materials;
3. Effort: Mental demands of a job, Physical demands of a job,
Degree of potential stress.
The educational requirements (sub factor) under the skill
(key factor) may be expressed thus in the order of
importance.
Degree Define
1. Able to carry out simple calculations; High School
educated
2. Does all the clerical operations; computer literate;
graduate
3. Handles mail, develops contacts, takes initiative and
does work independently; post graduate
Assign point values to degrees after fixing a relative value
for each key factor.
Table: Point Values to Factors along a Scale
Point values for Degrees Total
Factor 1 2 3 4 5
Skill 10 20 30 40 50 150
Physical effort 8 16 24 32 40 120
Mental effort 5 10 15 20 25 75
Responsibility 7 14 21 28 35 105
Working conditions 6 12 18 24 30 90