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Job Evaluation

Meaning
JE is to find the relative value/ worth of a job JE is aim is to determine wage rates for

different jobs Shows - How much a job is worth?

Process of job evaluation


1. Creating Job Evaluation Committee
2. Finding the jobs to be evaluated 3. Analyzing and preparing Job Description 4. Selecting the method of evaluation 5. Classifying jobs 6. Installing the programme 7. Reviewing periodically

Job Evaluation Methods


1. Ranking Method

Jobs are arranged from highest to lowest The job at the top of the list has the highest value The job at the bottom of the list will have the lowest value

Sample for Ranking Method


Rank
Accountant Accounts Clerk Purchase Assistant Machine Operator Typist Office Boy

Monthly salaries in RS
3000 1800 1700 1400 900 600

2. Classification Methods
Class I Executives Purchase Assistant, Deputy Office manager, Office Superindent, Departmental Supervisor
Cashier, Receipts clerk Steno typist, Machine operators, Switch board operators

Class II Class III

Skilled workers Semiskilled workers

Factor Comparison Method


Jobs are ranked according to a serious factors.
Jobs are ranking by comparing with the

respective factors. Some factors involved in the jobs are: Mental effort, Physical effort, Skill needed, problem solving abilities, etc.,

Factor Comparison Method


Factors Key job Daily wage Rate Physical effort Mental effort Skill Responsi Working bility conditio ns
12 10 7 5 4 14 13 12 11 10

Electrician 60 Fitter Welder Cleaner Labourer 50 40 30 25

11(3) 14(2) 12(2) 9(4) 8(5)

14 13 12 11 10

15 13 9 7 5

Point Method
Select key jobs
Identify the factors involved in it Prioritising each factor Divide each factor into a number of sub

factors Points are assigned to each factor

Sample for Point Method


Point values for degrees
Factor Skill Physical Effort 1 10 8 2 20 16 3 30 24 4 40 32 5 50 40 Total 150 120

Mental Effort
Responsibilit y Working Conditions

5
7 6

10
14 12

15
21 18

20
28 24

25
35 30

75
105 90 540

Maximum total points of all factors depending on their importance to job

Conversion of job grade points into money value


Point range
500-600 600-700 700-800 800-900 900-1000

Daily wage rate (Rs)


3000-4000 4000-5000 5000-6000 7000-8000 8000-9000

Job grades of key bank officials


1. Officer 2. Accountant 3. Manager I scale 4. Manager II scale 5. Manager III scale

Benefits of JE
It tries to link with the requirements of the job
It is a systematic procedure for determining

the relative worth of the job An equitable wage structure is a natural outcome of Job evaluation Employees as well as unions participate as members of job evaluation committee while determining rate grades for different jobs.

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