Job Evaluation

Definition: Job evaluation can be defined as the method for estimating the monetary value of any job position. It takes into consideration the various elements which make a particular job worthful, i.e., the skills, experience, expertise, knowledge and training required for accomplishing the assigned tasks.

In other words, we can presume job evaluation as a means of salary and wage administration for a certain job position by using quantitative and non-quantitative methods.

Content: Job Evaluation

Employee Evaluation Form

An employee evaluation form is usually feedback of a particular worker submitted by his/her superior in a given format as follows:

Employee Evaluation Form

Example

ABC Ltd. conducted the employee evaluation. One of such filled employee evaluation forms is shown below:

Job Evaluation Example

Objectives of Job Evaluation

From a wider perspective, job evaluation is of supreme importance to the employees, organizations and society. Let us understand its various objectives below:

Objectives of Job Evaluation
  • Initiates Fair Play and Equality: Job evaluation discourages discrimination since the employee wages are determined on the grounds of capabilities and skills rather than personal preferences or favouritism.
  • Wage Structure Simplification: It identifies the various job elements allots a grade and wage rate to each of these components. It also helps to decide a wage range i.e., the minimum and maximum level of wages.
  • Wage Administration Planning: The promotion, training and transfer of the employees rely upon the job evaluation standards. Even employee performance is administered through such techniques.
  • Facilitates Survey and Comparison: This is also used as a basis for comparing the wage structure of the organizations belonging to the same industry. It also provides relevant data for community wage surveys.
  • Resolves Wage Related Disputes: When the wage rates are standardized, the related issues and conflicts among the employees and the company can be easily settled.
  • Brings Standardization: Job evaluation establishes wage standards throughout the different branches of an organization. This simplifies the task for the managers and paves a way for them.

Job Evaluation Process

Understanding the job evaluation process is simple yet indispensable for companies. The basic steps involved in it are stated below:

Job Evaluation Process
  1. Gaining Acceptance: The first step is to take the approval and support of the employees before proceeding with the job evaluation.
  2. Creating Job Evaluation Committee: Now, a team is formed comprising of the human resource experts, employees and union representatives to execute the process of job evaluation.
  3. Job Identification: Then, the given job position which needs to be evaluated is determined.
  4. Data Collection and Analysis: The committee now gathers relevant information for job analysis and interprets it to form the job description.
  5. Preparation of Job Description: A job description is to simplify the understanding process of the employees. Here the job-related responsibilities are divided into various small duties.
  6. Selection of Job Evaluation Method: Next step is to adopt a suitable job evaluation technique whether it be a qualitative or quantitative method.
  7. Job Classification: A certain job position is given a proper weightage and thus, allocated a suitable monetary value on the grounds of job analysis.
  8. Installation of Program: The program so designed is demonstrated in front of the staff and the same is then implemented in the corporate practice.
  9. Program Review, Upgradation and Maintenance: Lastly, this program is periodically examined, required changes are made as per the prevailing dynamic environment and the revised program is regularly monitored.

Job Evaluation Methods

A company can either choose a quantitative or qualitative technique. The various related methods are explained in detail below:

Job Evaluation Methods

Quantitative Methods

This method of job evaluation relies upon the facts and figures acquired through research and data collection of a particular job position. Let us find out its two basic types:

  1. Factor Comparison Method: Under this job evaluation method, different job positions are compared in terms of skills, physical efforts, mental abilities, working conditions, responsibilities and other factors. Accordingly, these jobs are ranked.
  2. Point Rating Method: In this quantitative method, the key factor of a certain job position is ascertained. Also, points are allocated to various sub-factors of every job based on their importance.

Non-Quantitative Methods

The non-quantitative method is based on the qualitative aspect. It analyzes a job with the help of observations and illustrations. It includes the following two techniques:

  1. Ranking Method: Under this method, an expert committee comprising of the employees, management and experts is constituted. Each job is ranked logically by using any of the following three techniques i.e., job description, ranking along a number line and paired comparison.
  2. Grading Method: The grading method is widely applied to administrative, marketing, clerical, managerial, sales and defence jobs. The basis for grade allocation is the skills, expertise, knowledge, duties and responsibilities associated with that particular position.

Principles of Job Evaluation

A.R. Kress brought forward eight principles that when applied by the companies can make job evaluation successful. These scientific principles are as follows:

Principles of Job Evaluation

Initiate Employee Cooperation: Job evaluation needs mutual efforts of the employees on whom it is to be applied. Thus, the overall plan should be discussed with the staff, however, the confidential details shouldn’t be revealed.

Rate the Job and Not the Person: Another thing to be kept in mind is that it evaluates a job position rather than an employee placed in that particular position. Therefore, the various job elements are taken into consideration in this method.

Uniformity in Understanding: Each job element should be given equal importance and also every aspect of job evaluation should be clearly inferred. Then only all these elements can be fairly rated.

Avoid Excessive Occupational Wages: Multiple rates of occupational wages or rate ranges is a bad idea since it creates discrimination and confusion. Try to keep the labour grades uncomplicated.

Clarity of Job Elements: The job elements to be included in job evaluation should be unique, specific and coherent. This is essential to avoid unnecessary repetition and workload.

Detailed Explanation of Plan: Indeed, it’s evident to disclose even the smallest of the details regarding the job evaluation plan in front of the workers and the supervisors. This will help in better understanding and prevents confusion.

Discuss Point Values Instead of Money Values: To boost the employee morale and confidence, its important to explain the point values i.e., the degree of significance of different job elements. However, discussing its monetary values is baseless.

Foremen Participation: For the success of job evaluation, the supervisors of different departments must make genuine efforts to rate the jobs within their scope.

Disadvantages of Job Evaluation

When applied to stable market conditions job evaluation can be highly effective, else it can backfire. Following are some of its known drawbacks:

Disadvantages of Job Evaluation
  • Inaccurate at Times: Job evaluation may not be suitable to resolve all the wage-related problems among the employees and the management.
  • Fails to Include all Factors: The factors of job evaluation cannot be standardized, it sometimes miss out on the essential elements or else involves many unnecessary aspects.
  • Difficulty in Method Selection: Determining a suitable technique for job evaluation can be a crucial task since it requires logical thinking and data examination.
  • Expensive and Time-Consuming Process: It is a tedious task, that requires a lot of efforts and time for the committee and money of the company.
  • Problems in Committee Formation: In job evaluation, forming an efficient team is a difficult task where the skills, expertise and knowledge of the committee members have to be kept in mind.
  • Inefficient for Managerial Jobs: The personnel hired for managerial jobs are paid according to their personal expertise, experience and management skills which is difficult to be analyzed or standardized.
  • Unsuitable for Small Entities: In small business firms where there is no human resource department and limited staff, conducting job evaluation is pointless.
  • Prone to Human Errors: Since job evaluation is a team effort based on critical interpretation of the facts and figures, it isn’t free from mistakes and errors.

Conclusion

Job evaluation on one hand establishes the wage standards of the companies and on the other hand, it determines the job description for the employees.

Even after multiple drawbacks, it is widely applied by organizations to affirm their wage structure and estimate the worth of any job position. It has also been an essential part of human resource planning.

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