Define Job Evaluation
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
Define Job Evaluation and which methods of Job Evaluation method is the best one? Explain your answer. (methods of job evaluation are in the picture below)

Transcribed Image Text:time, the paired comparison technique of ranking is sometimes used.
With this technique, decisions are made about the relative worth of only
two jobs at a time. However, since each job is compared with every other
jobs, the number of comparisons to be made increases rapidly with the
addition of each job to the list.
Job Grading or Job Classification Method : This method works
by assigning each job a grade, level or class that corresponds to a pay
grade for instance Grade i, Grade II, Grade III and so forth. These grades
or classifications are created by identifying gradations of some common
denominations, such as job responsibility, skill, knowledge, education
required, and so on. Then, for each job grade so created standard job
descriptions are determined. Thereafter, such standard description is
matched with job descriptions in the organisation. The standard
description that most nearly matches the job description determines the
job's grading. This method requires a decision at the initial stage on the
number of pay grades to be included in the wage and salary plan. Of
course, the actual amount to be assigned to pay grades made after the
job evaluation is completed.
Factor-comparison Method : This method is a combination of
ranking and point systems. All jobs are compared to each other for the
purpose of determining their relative importance by selecting four or five
major job elements or factors which are more or less common to all jobs.
These elements are not predetermined. These are chosen on the basis of
job analysis. The few factors which are customarily used are :
mental requirements (ii) skill (ii) physical requirements (iv)
responsibilities (v) working conditions, etc.
A few jobs are selected as key jobs which serve as standard against
which all other jobs are compared. key job is one whose contents have
been stabilised over a period of time and whose wage rate is considered
to be presently correct by the management and the union.
Evaluation of Various Methods : None of the systems is free from
defects. None is the best in all conditions and for all types of
organisations. However, the point system is the best in the present
circumstances. It is widely used in almost all the enterprises as a
technique of job evaluation since it presents an analytical approach to the
measurement of job worth. It is better not to insist on a particular system
of job evaluation. A mix of all the methods should be adopted.

Transcribed Image Text:Ranking Method : The ranking method requires a committee
typically composed of both management and employee representatives of
job in a simple rank order, from highest to lowest. Rating specialists
review the job analysis information and thereafter appraise each job
subjectively according to its general importance in comparison with other
jobs. In other words, an overall judgment is made of the relative worth of
each job, and the job is ranked accordingly. These are overall rankings,
although raters may consider individually the responsibility, skill, effort,
and working conditions and each job. No attempt is made to determine
the critical factors in each job. Therefore, it is quite possible that important
elements of some jobs may be overlooked while unimportant items are
weighed too heavily. It may be noted that because of the difficulties in
ranking a large number of jobs at the
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