Job Evaluation is a systematic technique which aims at determining the worth of a job. It is a technique of rating the job and not the man.
According to Edwin.D.Flippo, Job evaluation is a systematic and orderly process of determining the worth of a job in related to other jobs.
PROCESS OF JOB EVALUATION
- Gaining acceptance from the management
- Constituting job evaluation committee
- Selection of key jobs for evaluation
- Formulation of Job description
- Selecting the method of evaluation
- Classifying jobs
- Installing the program
- Periodic review of the program.
METHODS OF JOB EVALUATION
Methods of job evaluation is classified into two categories based on the measurement techniques used, the methods of job evaluation are as follows,
- Qualitative Methods
- Quantitative Methods
01. QUALITATIVE METHODS
The Qualitative methods are the techniques of job evaluation which uses non-quantifiable methods as follows,
(i) Ranking Method
In Ranking method all the jobs are ranked in order of their importance from simplest to the hardest order, each job being higher than the previous one in the sequence. The process of ranking method is as follows,
- Preparation of job description
- Selection of raters
- Selection of rates and key jobs
- Ranking of all jobs
(ii) Job Grading Method
Under the grading method, a number of pre-determined grades are decided by the committee and each job is assigned to one of the grades. Grades are formulated on the basis of nature of task and responsibilities of jobs, authorities associated with them and knowledge and skill required for the job.
02. QUANTITATIVE METHODS
The Quantitative methods are the techniques which use measurable data techniques as follows,
(i) Point System
Point System involves a quantitative and analytical approach to the measurement of job worth using the point ranges, grades and pay-scales for jobs in a structured way. Points are attached to each factor and they are summed up to determine the key factors. Jobs with similar points are placed in similar pay grade.
(ii) Factor Comparison Method
In this method, a combination of ranking and point system of job evaluation is done. Instead of ranking complete job, each job is ranked according to a series of factors such as mental effort, physical effort, skills needed, working conditions o the job, etc.