JOB EVALUTING

Job evaluation involves the comparisons of the related importance worth of different jobs within an
organization which could be termed as internal alignment. It is essentially a process of measurement. Job
evaluation for that matter is a periodic activity. This is done by using arbitrarily designed to evaluate factors
considered of important in job, and then this sum is converted into a rupee value. Thus, each job has a
logical relation to other jobs, since all have been measured by the same yardsticks. Here we can discuss
couples of definitions to enlarge our understanding of job evaluation.
International labour organization says job evaluation is an attempt to determine and
compares the demand with the normal performance of particular labour makes and normal workers without
taking into account all the individual abilities and performance of the workers concerned.
British institute of management define job evaluation as the process of analysis and assessment of jobs to
ascertain reliably their relative worth using the assessment as a basis for a balance wage structure.
The objective of job evaluation is specific primarily job evaluation leads to a balanced wages
structure. Secondly it measures reliably the relative worth of each job. Thus by determine the relative worth
of each job wage structure is adjusted and balanced accordingly. Another objective of job evaluation is to
gain the confidence of both the management and employees. That is approval of job evaluation plans must
be in the bands of some top line executives, at the same time full cooperation of trade unions and the using
department must be secured. Thus more and more, job evaluation has become subject to collective
bargaining.
The selection of the job to be evaluated must be pursued with lot of care. The evaluation plan should
be developed with a view to including all jobs ultimately through at the out set only particular groups jobs
are to be evaluated.
The basic material for job evaluation is provided by job analysis. That is why job evaluation is provided by
job analysis. That is why job evaluation must follow job analysis.
Various methods have been designed to make measurement of jobs. Such method could be broadly
divided into two categories i.e. non quantitative method which includes ranking method and grading
method, the other method is quantitative method which involves the point rating system and factor
comparison system. The non quantitative method are specially based on human judgment where as the
incidence of human judgment is greatly reduced in the latter method.

RANKING METHOD
Under this method the ranking is to be of the jobs. Jobs may either be ranked on different factors or else
jobs may be ranked as a whole. However the latter method is a better approach. Under this plan of
evaluation jobs are arranged in order of increase value in accordance with the judgment of the arrangers.
That is different members rank these jobs separately. A member ranks the jobs atleast three times on three
different occasions. Then the ranking of the different members of the committee are reconciled. This is
normally done by mutual discussion. This method is simple inexpensive and useful for a small organization.
It can not be successfully applied to large organization. However this method is totally dependent on human
judgment. It is difficult to explain the reason why the job has been ranked as they are? Therefore job
ranking method should be used when time and resource to employ a better method are not available.

GRADING OR JOB CLASSIFICATION METHOD

Under this method jobs are divided into different grades or classifications. The idea of grading is to
reduce the number of jobs by putting them into specific classes or grades by means of frequency
distribution. Thus jobs could be grouped into unskilled, semi-skilled, skilled and highly skilled jobs. Jobs
description of various grades or classes is prepared i.e. the grade descriptions. This gives us the related
worth of various jobs in an organization. Under this method although the element of human judgment gets
reduce because jobs description is matched with grade description, some element of value biases are still
present because personnel evaluations of the evaluators established the major classes and determine into
which class each job shall be placed. The method nevertheless is simple to operate and understand and
inexpensive. This method also can not be applied in an organization where the number of jobs is very high.

POINT-RATING METHOD:-

The point system of job evaluation is the most widely used and according to its yield, accurate result
without undue expense or effort. Under this system the relative worth of a job is determine on the basis of
certain numerical points or values. For that matter a manual is used which is either prepared by the
organization for its own use or a standard manual is already available. This manual gives points in numbers
which could be assigned to various factors sub-factors and sub-sub-factors. Such method was used in
Western Electric Co. for the first time. Thus suppose the requirement of the job is divided into four factors
i.e. skill, effort, responsibility and working conditions. After the factors are identified they could be again
divided into sub-factors such as skill is divided into education, experience, initiative, effort into manual
mental, visual, responsibility into handling of material equipment, human being and working condition
which is divided into good and bad working condition. Further these sub-factors could be divided into sub-
sub-factors. Highest paid jobs in the organization are identified and the maximum point that could be
assigned to those jobs is determined. Suppose, in this case the point s assigned to the maximum paid job is
500. This maximum point is then divided into various factors depending on their relative importance.
Suppose skill received 250 points responsibility 100 effort and working condition 75 points each. Now the
point given to the factor is again divided between various sub-factors. For example 250 points for skill is
divided among education experience initiative ingenuity and enterprise which constitute skill. It can be
shown by a seal.

Major factors minors factors no.of points no of points of jobs ‘X’

Skill education 75 60
Experience 100 50
Initiative 75 50
250 160

Effort physical 45 20
Mental 15 15
Visual 15 15
75 50

Responsibility for equip 25 15

For material 25 15
For safety 25 15
For work 25 15
100 60

working condition good 25 5

bad 50 15
75 20
 Total 500 290

The illustration makes it clear that job ‘X’ get 160 points out of 250 points assigned to skill, 50 points out
of 75 assigned to effort, 60 points out of 100 assigned to responsibility and 20 points out of 75 assigned to
working conditions. Thus job ‘X’ get total 290 points out of 500 points assigned to maximum paid job in the
organization. Suppose the highest paid job is to be 5000/- per month, i.e. one point will be equivalent to
rupees 10/-. Thus, as job “X’ has 290 points it salary per month will be 290 x 10 i.e. Rs 2900/- points rating
method, therefore, is an objective method, where element of judgment is very little. However it is very
complicated method. It is particularly suitable to large organization.

FACTORS-COMPARISION METHOD

This method was for the first time used by E.J.Benge in 1926. The factors used in this method are the same
as in the point-rating method i.e. skill, effort, responsibility and working condition. This method is based on
assumption that the job evolution is done in respect of a concern which is a going concern. The first step
involves the selection of key jobs i.e. representing all the jobs in the organization and most include most
lowest and highest paid jobs. The remunerations in respect of key jobs is considered to be fair. The various
method of job evolution committee rank the job according to the various of actors according their relative
importance as they think fit. Then such ranking is to be arranged or recognized. The next job is
apportionment of the remuneration among the various factors. The following illustration shows the
evaluation of the job ‘X’ by the factor comparision method one member of the job evaluation committee,
however such evaluation is arrived at a after reconciling the evolution of the several member of the
committee.

Key prevalent money apportionment (in rs) evaluation of

Jobs remuneration skill response effort wc Job ‘X’
Per day

A 150 85A 50B 30E 25D support for job X

Skill=B=55
B 140 55B 45A 22.50D 22.50D Response=C=30
Effort=E=30
C 110 45C 30C 20B 20C WC=A=10
Total= 125.00
D 85 25D 12.50D 15C 15B remuneration per day

E 70 10E 7.50E 10A 10A

Factor comparison method is an objective method where element of judgment is very little. However it is a
very complicated method and particularly suitable to large organizations.
However for the purpose of evaluating jobs at Orient Express Co PVT.LTD.