1. Suggestion Schemes: Job Evaluation
Prepared by: Bhakti Joshi
Date: February 20, 2013

2. Job Evaluation
…is a process of determining the relative worth of a job.
Aims at…
Reduction in inequalities in salary structure
Specialisation
Selection in employees
Harmony between employees and manager
Standardisation
Creating relevance for new jobs

3. Job Evaluation: Pre-requisites
Job content – job description and specification
Top management support
Cooperation of union and individual workers
Comparison of Jobs
Involvement of expert in job-evaluation techniques

4. Job Evaluation Methods
Non-Analytical Methods
Analytical Methods
Ranking Method
Classification Method
Factor Comparison
Point Method
Methods designed on the basis of the jobs as a whole
Methods designed on the basis of the requirements and elements of the jobs

5. Example: Ranking Method
Job
Monthly Salaries 1.
Accountant
Rs 60,000 2.
Accounts Clerk
Rs 30,000 3.
Purchase Assistant
Rs 25,000 4.
Machine-Operator
Rs 20,000 5.
Typist
Rs 17,000 6.
Office Boy
Rs. 15,000

6. Ranking Method Worth of a job based on: Processes:
Judgement of skill; Effort (physical and mental); Responsibility (supervisory and fiscal); Working conditions; Ranked in descending order from best to worst
Processes:
Make a list of benchmark jobs or list of each position in a business (benchmark jobs as in producers, maintainers, administrators, cashiers, etc) [NOT employees]
Write short description or primary duties of each position
Determine the characteristics that is considered most important for the company
Jobs are perceived to be the ones with the highest and lowest value; selecting a job mid-way and finally choosing others at lower or higher intermediate points.
Divide the ranked jobs into grades and an initial estimate (based on common features among groups to bring about distinction between groups)

7. Ranking Method (Contd…)
Presentations and continuous iterations
Simple, quick and inexpensive only if agreement of the jobs and ranks are reached easily
Used in small organisations
LIMITATIONS:
Highly subjective.
Not diagnostic to point the specific areas of weakness and strength of a worker.
Existing jobs must be re-ranked to accommodate new position
Requires detailed knowledge of every job for evaluation and ranking and difficult when a large number of jobs are under consideration
Difficult to justify slotting new jobs

8. Example: Classification Method
Executives:
Office manager, Deputy office manager, Office superintendent, Departmental supervisor, etc.
CLASS I
Skilled Workers:
Purchasing assistant, Cashier, Receipts Clerk, etc
CLASS II
Semi-Skilled Workers:
Stenotypists, Machine-operators, Switchboard operators, etc.
CLASS III
Semi-Skilled Workers:
Daftaris (book-binders), File clerks, Office boys, etc.
CLASS IV

9. Classification Method
One whole job
Slots jobs into grades
Hierarchy of grade definitions
Skill
Competence
Experience
Initiative
Responsibility
Grades are limited to 4 to 8 levels and more than 8 grades become unmanageable
Simplicity and easily understood

10. Classification Method (Contd…)
Limitations
Cannot cope with complex jobs
Grade definitions tend to be generalised – When individual job descriptions and grade descriptions do not match well, evaluators have a tendency to classify job using subjective judgements
Requirements of different jobs differ but are combined in the single category

11. Factor Comparison Method
Analytical extension of Classification Method
Select a number of “key jobs” (generally 15 to 20) [NOT whole but separate]
Analyse them on certain critical factors. For example, 5 critical factors are identified
Mental Requirement
Physical requirements
Skill requirements
Working conditions
Responsibility

12. Factor Comparison Method (Contd…)
Rank each key-job within each factor which will be different for different jobs
Assign wages to each factor. Wages should be in proportion to the estimated total price of a job
Calculate total wage for a job by adding wage rate for each factor. This provides a job comparison scale and insert key jobs in it

13. Factor Comparison Method (Contd…)
Evaluate the job under consideration based on the job comparison scale identified above. Then evaluate and compare each job with other jobs in terms of each factor
Design, adjust and operate the wage structure

14. Example: Factor Comparison Method – Tools Workshop
Job
Skill
Mental Requirement
Physical requirement
Responsibilities
Working conditions
Tool maker 1 4
Craft worker 2 3
Process Operator
Maintenance assistant
Ranking Jobs by Factors

15. Example: Factor Comparison Method – Tools Workshop
Job
Skill
Mental Requirement
Physical requirement
Responsibilities
Working conditions
Tool maker 35 30 5 20 10
Craft worker 25 15
Process Operator
Maintenance assistant
Relative Importance of Jobs

16. Example: Factor Comparison Method
Job
Skill
Mental Requirement
Physical requirement
Responsibilities
Working conditions
Tool maker 91 78 13 52 26
Craft worker 66 55 33
Process Operator 54 27 18
Maintenance assistant 32 24 40
Allocation of Money Values
(in Rs)

17. Example: Factor Comparison Method – Tools Workshop
Job
Benchmark Jobs (Rs)
Non-Benchmark jobs (Rs)
Tool maker 91
Craft worker 66
Process Operator 54
Assembler 42
Maintenance Assistant 32
Jobs evaluation based on:
Education
Financial Responsibility
Job-related experience
Supervision
Teamwork
Creativity
Slotting Non-Benchmark jobs

18. Factor Comparison Method: Advantages
Job comparison on factor-to-factor basis
Rankings made by defining factors thus avoiding imprecise definitions
Not need to convert points to money value – leads directly to a price for a job
Useful for medium to large organisations

19. Factor Comparison Method: Disadvantages
Complete dependence on the benchmark jobs…How do you believe that the benchmark jobs lead to equal incomes?
Could be held to be discriminatory
Though analytical still requires subjective judgement

20. Example 2: Factor Comparison Method
Job
Hourly Rate
Skill
Physical requirement
Responsibilities
Working conditions
Secretary
Rs. 90
Rs 45
Rs 20
Rs 5
Admin Assistant
Rs 110
Rs 55
Rs 25
Supervisor
Rs 150
Rs 60
Rs 35
Rs 40
Rs 15
Manager
Rs 210
Rs 90
Rs 70

21. Point-Method Select job cluster and the jobs to be evaluated
Jobs should be analysed and job descriptions/specifications should be prepared
Select compensable factors
Define each factors’ specifications
Working conditions: noise levels, temperature
Education: SSC, HSC, Undergraduate, Graduate,Post-graduate
Experience: Entry-level, 0 – 2 years, 3-5 years, etc

22. Point Method (Contd…) Define factor degrees:
Degree 1 for entry-level, Degree 2 for 0-2 years of experience, Degree 3 for 3 – 5years of experience, etc.
Determine total points in plan
Degree 1 for entry-level = 30 points
Degree 2 for 0-2 years of experience = 75 points
Degree 3 for 3 – 5 years of experience = 120 points
Degree 4 for 6-10 years of experience = 165 points
Degree 5 for 11 to 25 years = 255 points, Degree 6 for 26 to 40 years = 300 points

23. Point Method (Contd…) Evaluate jobs Key jobs are known
Then other jobs are evaluated based on the factors identified

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