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by: Govindam
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Date: Fri, 17 Feb 2012 Time: 5:03 AM


Methods of job Evaluation


The various methods used in job evaluation are:

(1)    Ranking Method (2) Factor comparison Method.(3) Point Method (4) Classification method.


(1)    Ranking Method.  Other name Grading Method. This method involves the preparation of a list of jobs in the order of importance beginning with the most important to the least important job in office. The job descriptions are arranged in rank according to the value of work as judged by the analysis the ranking consist of three stages.

·         Making a thorough job analysis.

·         Express the findings of this analysis in a job description.

·         Rank each job in the ascending order , starting with the one with  minimum requirements and ending up with the one with maximum requirements

The merits of ranking method are

1.       Methodology is very simple

2.       Consumes lesser time.

Its demerits are

1.       It merely tells that a job  is higher or lower and does not tell how much one job differs from another

2.       In comparing jobs the organization is to consider the same factors in other approaches of analysis, otherwise the results may be inaccurate

3.       Wages for the job are likely to influence  the ranking in the absence of details for analysis.

This method is best suited for small organizations


(2)    Factor comparison method .  other names weight-in-money method  and Benge Plan                                                                  in this method following five important factors are to be considere

(a)    Mental requirements (b)skill requirements (c) physical requirements (d) responsibility and (e)working

The steps involved in this method are:

(a)    The above-mentioned factors are listed in a sheet in a columnar form.

(b)   Salary for each key job is allocated to different factors are related to each job.

(c)    Each  key job is evaluated with regard to each of the given factors and entered in the factor column against the appropriate salary index.

(d)   The salary components for each factor are added to get the appropriate salary level for each key job.

(e)   Other jobs are ranked in relation to the ranking of jobs.

The merits of this method are

(a)    It facilitates the comparison of unlike jobs.

(b)   Easily applicable to combination of clerical mannual and supervisory positions.

Its demerits are

(a)    This  system is complicated and its installation is expensive

(b)   Not  easily intelligible  to employees

(c)    Only experts can establish and conduct this method



(3)    Point method. In this method a manual is developed by the organization. The contents of the manual are.

(a)    Elements or factors upon which each job is to be rated are given

(b)   It provides scale and yardsticks by which  each degree of each factor is to be valued.

(c)    It describes several job elements and prescribes the weighing to be applied to each element.

The technique for rating is as follows:

(a)    A quantitative evaluation of different jobs in terms of various factors is made

(b)   Maximum point values are assigned to each of the job factors to be considered.

(c)    Each job is awarded points for each of the factors.

(d)   The salary level is appropriate for each job is fixed on the basis of total points scored by it. Though this method is capable of producing accurate results it suffers from the following demerits. It is expensive to administer and not suitable for small organizations. It is also difficult to arrive at equitable job by classifying the job requirements and determining the degree of which these requirements are needed.

(4)    Classification method. Other name job grading method  in this method the technique adopted for grading each is

(a)    Jobs are classified on  the basis of predetermined level of skills required for each class of job.

(b)   For each grade or class there is a different scale of pay

This method is very useful for job evaluation. But the main difficulty arises in defining the different grades.

The limitations of job evaluation are:

(a)    In all these methods there is no standard list of factors to be considered and all factors can not be measured  accurately. So the concept of job evaluation lacks scientific precision.

(b)   A properly evaluated rate might not retain workers who can make  more money elsewhere because of law of demand and supply.

(c)    The expectation of the employees is to have merit rating for  every individual so it is necessary to have super imposed evaluated rates  are to be evolved. This again creates complications and problems

(d)   Job evaluation presumes that jobs of equal worth are equally attractive to the employees. But this is not time in real life. Between two jobs of equal nature a job with bright prospects will attract more people.

(e)   If tends to be inflexible in so for as it does not place the night deal of emphasis in the wage rates prevalent in the industry as a whole  the methods used are not easily intelligible to employees and they fear that job evaluation will remove their right of collective bargaining. So this creates a sense of distrust among employees.


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Govindam Business School offers you an unparallel opportunity to study at advance level, to work with in a challenging, stimulating and rewarding environment, to develop skills and competencies which will last throughout life.



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