In this article we will discuss about the process of job evaluation. Job evaluation is the rating of jobs in an organisation.
job evaluation explains the duties of a job, authority relationships, skills required conditions of work, and additional relevant information and uses the information in job analysis to evaluate each job- valuing its components and ascertaining relative job worth.
The job evaluation process begins with defining objectives of evaluation and finishes with establishing wage and salary differentials. The main objective of job evaluation is to establish satisfactory wage and salary differentials. Job analysis should precede the actual program of evaluation.
Job analysis provides job-related data which would be useful in drafting job description and job specification. Jobs are evaluated more systematically taking the compensable factors into account.
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A: According to Lentz an effective job evaluation involves five steps:- 1. Preparation of Job Description 2. Selection and Preparation of a Job Evaluation Plan 3. Manual Evaluation and Classification of the Jobs 4. Installation of the Job Evaluation Program 5. Maintenance of the Program.
B: A job evaluation process may consist of the following stages: a. Select the Programme b. Plan the Programme c. Analyse the Jobs d. Internal Evaluation e. External Evaluation f. Designing of Salary Structure g. Grading of Jobs h. Development and Maintenance Procedure.
C: The process of job evaluation involves the following steps: 1. Co-Operation and Support 2. Job Evaluation Committee 3. Evaluation of Key Jobs 4. Job Description 5. Method of Evaluation 6. Assignment of Weightage 7. Assignment of Money Value 8. Periodical Review and Revision.
D: The process to be taken for job evaluation, according to the Indian Institute of professional management are as follows: 1. Analyse and Prepare Job Description 2. Select and Prepare a Job Evaluation Plan 3. Classify Jobs 4. Install the Programme 5. Maintain the Programme.
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E: The main steps in the process of job evaluation are as follows: I. Need Identification II. Obtaining Cooperation III. Constitution of an Evaluation Committee IV. Identification of Key Jobs V. Selection of Compensable Factors VI. Selection of Method VII. Obtaining the Job Information VIII. Job Rating IX. Wage Rate Allocation X. Job Classification.
F: The process of job evaluation involves the following steps: 1. Garnering Support & Commitment 2. Formation of Job Evaluation Committee 3. Identifying Jobs to be Evaluated 4. Job Analysis 5. Selecting the Method of Evaluation 6. Classifying Jobs 7. Assigning Money Values 8. Periodic Reviews.
G: An outline of the procedure involved in job evaluation is given: (1) Job-Analysis (2) Job-Description (3) Job Grading (4) Pricing the Jobs.
Process of Job Evaluation in an Organization
Process of Job Evaluation – According to Lentz
According to Lentz an effective job evaluation involves five steps:
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i. Preparation of job description;
ii. Selection and Preparation of a job evaluation plan;
iii. Manual evaluation and classification of the jobs
iv. Installation of the Job Evaluation Program
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v. Maintenance of the program
Process # 1. Preparation of Job Description:
Job description relates to a written record of the duties, responsibilities and conditions of the job to be prepared by a trained, qualified individual with a view to providing the rater or evaluating committee with all significant information regarding the job under review.
An effective procedure for preparing job description involves the following steps:
(i) Preparation of a list of all jobs under purview;
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(ii) Initial announcement of the program to all individuals concerned;
(iii) Discussion with the departmental head and immediate supervisor;
(iv) Interview with the job occupants;
(v) Tentative preparation of a written job description;
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(vi) Review discussions with departmental heads and supervisors to ensure full coverage of relevant information;
(vii) Preparation of the final job descriptions with the approval of the plant manager.
Process # 2. Selection and Preparation of a Job Evaluation Plan:
At the time of selecting a job evaluation plan, effort should be done at the beginning to determine as to whether to use a quantitative or qualitative type of evaluation.
The quantitative evaluation plan necessitate that jobs are broken into elements and include factor comparison method and point method. The qualitative systems necessitate comparison of the job as a whole with other jobs and include ranking method and grading method. Then it is necessary to prepare a job evaluation manual which provides consistency in wage and salary administration.
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The preparation of a manual for a quantitative system is highly complex and requires enough care. The preparation of job evaluation manual for qualitative system requires outlining the methods to be used indicating detailed instructions about grade definition, procedure for selection of key jobs, and classification of rated or graded jobs and a period review of the program.
The job evaluation manual should contain procedure to update and review the program in view of changing job situations Jobs that have experienced change should be re-evaluated in terms of factors which have changed.
Process # 3. Manual Evaluation and Classification of the Jobs:
As a next step, a committee consisting of management and union representatives should evaluate and classify the jobs. Evaluation meetings should be held to review the manual factor by factor and determine the numbers jobs to be evaluated during the evaluation session. Effort should be made to evaluate all jobs for the same factor before moving to the next factor stressing the factor and its relationship to the job.
Each committee member should evaluate each factor privately, and thereafter the values assigned should be compared and differences should be removed by discussions. After the completion of the evaluation session total points for all jobs should be completed. Generally, the total evaluated points for different jobs are indicated on a chart divided in terms of department, section or plant. After that, the number of wage classifications ranging from nine to 14 and the difference between the minimum and maximum point value for different job under review are determined.
Then, job classification are obtained by assigning the same range for each job category, assigning increasing ranges to each job category and assigning values by observing the chart visually irrespective of job titles. After the classification is over, review of each job and its relation to other jobs in the same group is done.
Process # 4. Installation of the Job Evaluation Program:
At the time of installing the job evaluation program, it is necessary to convince the employees of the impartiality of the job evaluation principles and inform them about the program adequately. It should also be recognized that job evaluation is not a remedy for all wage problems. Care should also be taken to ensure that no employee suffers loss of wages because of the program.
Process # 5. Maintenance of the Program:
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Proper operation and maintenance of a job evaluation program requires periodic review and adjust changes. Clearly, job evaluation programs are likely to fail in view of changed job situations. This requires that a permanent job evaluation committee is established to review annually all job descriptions, conduct quarterly meetings to review old jobs as well as newly created job. Indeed, even the most technically 100 percent plan cannot survive if proper care is not taken to maintain it.
Process of Job Evaluation – With Questions
The job evaluation process begins with defining objectives of evaluation and finishes with establishing wage and salary differentials. The main objective of job evaluation is to establish satisfactory wage and salary differentials. Job analysis should precede the actual program of evaluation. Job analysis provides job-related data which would be useful in drafting job description and job specification.
Usually, a job evaluation process may consist of the following stages:
a. Select the Programme:
This is the stage where job evaluation begins. This stage consists of obtaining the required information about present arrangements and decision making on the need for a new programme or revision of an existing one. A definite choice is made about the type of program to be used by the organisation.
b. Plan the Programme:
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The job evaluation programme is drawn up and the job incumbents to be affected are informed. Proper arrangements are made regarding the setting up of joint working committees and the jobs to be evaluated are selected.
c. Analyse the Jobs:
After the required information about the jobs to be evaluated is obtained. The jobs are analysed.
d. Internal Evaluation:
At this stage, the samples of bench-mark jobs are ranked by means of the chosen evaluation scheme. Jobs are then graded on the basis of data pending the collection of market rate. Relative worth of jobs is determined by comparing grades between the jobs.
e. External Evaluation:
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External evaluation stage involves the collection of information on market rates prevalent at that time.
f. Designing of Salary Structure:
After the grades for the jobs are ascertained, the salary structure appropriate for the organisation is designed.
g. Grading of Jobs:
Different jobs are slotted into the salary structure as designed in the previous stage.
h. Development and Maintenance Procedure:
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This stage involves the development of procedures for the maintenance of salary structure with a view to accommodate inflationary pressures in the salary levels, greeting new jobs into the structure and regarding the existing jobs in the light of changes in their responsibilities and market rates.
A job evaluation program involves answering several questions such as:
i. Which jobs are to be evaluated?
ii. Who should evaluate the jobs?
iii. What training do the evaluators need?
iv. How much time is involved?
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v. What should be the criteria for evaluation?
vi. What methods of evaluation are to be employed?
i. Which Jobs are to be Evaluated?
In any exercise, where there are more than 30 or 40 jobs to be evaluated, it is necessary to identify and select a sample of benchmark jobs which can be used for comparisons inside and outside the organization. The benchmark jobs should be so selected as to achieve representative sample of each of the main levels of jobs in each of the principal occupations.
ii. Staffing the Evaluation Exercise:
Job evaluation is carried out by a committee consisting of heads of various departments, representatives of employee unions and specialists drawn from National Productivity Council. An HR specialist will be normally the chairman of the committee.
iii. Training for the Committee:
Members of the job evaluation committee should be trained in its procedure so as to make the program successful. Training is given through series of meetings discussing several issues and doubts cleared.
Job evaluation should not be conducted in haste. Any rushing through will lead to appeals against the grade of jobs.
The criteria for evaluation of a job are the center of job evaluation. Most job evaluations use responsibility, skills, effort and working conditions as main criteria. It needs no emphasis that job- evaluation criteria vary across jobs. After seeking answers to the above questions, the procedure for job evaluation is determined. In fact, the procedure of job evaluation varies from organisation to organisation.
Process of Job Evaluation – With Steps
The process of job evaluation involves the following steps:
Step # 1. Co-Operation and Support:
First of all, co-operation and support of top management, employees and trade unions should be obtained through effective communication and participation.
Step # 2. Job Evaluation Committee:
Since it is not possible for a single individual to evaluate all jobs in the organisation, a committee consisting of representatives of management, employees and outside experts may be constituted for this purpose. Participation of employees’ representatives in job evaluation will reduce their doubts and suspicion.
Step # 3. Evaluation of Key Jobs:
Because of constraints of time and money, it may not be possible to evaluate each and every job in the organisation. Therefore, some key jobs in each department are selected and evaluated in detail and other jobs are compared with the key jobs. However, the key jobs selected for evaluation should be representative of each type of work performed.
Step # 4. Job Description:
A description of every job is prepared in detail to indicate the duties and responsibilities involved in it. Such a job description is checked very carefully to see that there is no omission nor duplication of any aspect of the job. Employees’ acceptance to the job description is also obtained.
Step # 5. Method of Evaluation:
There are several methods of job evaluation but that method which is most suitable to the job as well as to the organisation is selected. Sometimes, more than one method may also be used for the purpose of achieving greater accuracy in the evaluation.
Step # 6. Assignment of Weightage:
All jobs are not uniform. They differ in such factors as skill, knowledge, duties, responsibilities, experience, working conditions, supervision etc. Therefore it becomes necessary to assign weights to each job factor and total weights for a job suggest the relative value of that job.
Step # 7. Assignment of Money Value:
The worth of each job is expressed in terms of money to indicate its money value.
Step # 8. Periodical Review and Revision:
Job description is reviewed and revised periodically to allay the feelings of employees who think that their job was not properly evaluated. Such periodical review and revision will also help the management to bring the job description up-to-date in the light of technological and other changes.
Process of Job Evaluation – According to Indian Institute of Professional Management
The basic procedure of job evaluation is to compare the job content of one job with those of another job. The contents to be compared are decided based on ‘intuition’ of the rater or by comparing with other jobs focusing on certain factors. These factors are known as compensable factors. Some organisations decide these factors based on the types of the jobs and internal factors. Some other organisations adopt the factors from other similar companies. Jobs are evaluated more systematically taking the compensable factors into account.
The process to be taken for job evaluation, according to the Indian Institute of professional management are as follows:
1. Analyse and Prepare Job Description:
Job evaluation is the result of job analysis. Job analysis furnishes information required for appraising jobs like skills, abilities, knowledge, abilities and aptitudes. Job description provides the information relating to duties and responsibilities. Job specification provides information relating to employee’s minimum acceptance qualities.
2. Select and Prepare a Job Evaluation Plan:
Job should be divided into detailed tasks and positions. It should also include selection of factors, elements required for the performance or the jobs, determination of the money value for ‘each factor and element and writing instructions for the purpose of evaluation.
3. Classify Jobs:
Classify the jobs in a sequential order which should be based on the significance and contribution to the organisation. For this purpose, money values should be added to each class or jobs.
4. Install the Programme:
Educate the employees, win their confident and afterward, put the programme into operation.
5. Maintain the Programme:
This is the final step to be undertaken. This step involves updating the job evaluation programme, bring modifications based on the changes in the conditions, and situations. Make sure from time to time that the programme runs smoothly and perfectly without any difficulty or obstacles.
Process of Job Evaluation – 10 Main Steps
The main steps in the process of job evaluation are as follows:
I. Need Identification:
The first step is identifying the need for the job evaluation programme in the organization. For example, dissatisfaction reflected in the high turnover, work stoppages or arguments may result from applying different wage rates for similar jobs. This reveals that there is a need of systematic evaluation of jobs in order to know their worth rather than informally assigning payments to all jobs.
II. Obtaining Cooperation:
The next step is getting cooperation of employees in the evaluation. For launching job evaluation programme, close cooperation among managers, trade unions and employees is essential. The management should assure the employees that they will not be adversely affected due to job evaluation process.
III. Constitution of an Evaluation Committee:
After ensuring the cooperation of the employees, a committee comprising about 5 to 8 members should be formed. The committee should include several people who are familiar with the jobs in question, each of whom may have a different perspective regarding the nature of the jobs.
Generally, committee members include employees, trade union representative, HR specialists and outside specialists. Each committee member should be provided with the manuals, which will explain the job evaluation procedure and special instruction for conducting job evaluation.
IV. Identification of Key Jobs:
It is not practically possible to evaluate each and every job. Thus, the appointed committee identifies 10 to 15 key benchmark jobs. These jobs will be evaluated and later on, these will serve as standards against which the relative value of all other jobs can be obtained.
V. Selection of Compensable Factors:
Now the committee selects the compensable factors. These are the factors that establish how the jobs compare to one another. A compensable factor is a fundamental element of a job, such as skills, efforts, responsibility and working conditions that can be compensated for.
VI. Selection of Method:
This is the most important task of a committee. At this stage, the committee chooses the most appropriate method of evaluation.
VII. Obtaining the Job Information:
The next step is to get detailed information about key jobs. The products of job analysis, i.e. job description and job specification can be used for obtaining job facts. Job description is a statement of duties and responsibilities and job specification is a statement of minimum human qualities needed for the job.
VIII. Job Rating:
The method of job evaluation so selected is used to study the job description and job specification. Then on the basis of this analysis, a relative score is assigned to each key job.
IX. Wage Rate Allocation:
Appropriate wage rates are to be allocated to each key job according to its worth.
X. Job Classification:
The jobs are graded and categorised on the basis of pay scale.
Process of Job Evaluation:
The process of job evaluation involves the following steps:
1. Garnering Support & Commitment:
Before undertaking job evaluation, cooperation, support and commitment of top management, employees and trade unions must be obtained. This can be done be proper communication and participation through presentations, conferences, letters and booklets about all the aspects of job evaluation.
2. Formation of Job Evaluation Committee:
It is not possible for a single person to evaluate all the key jobs in an organization. Therefore a job evaluation committee is formed consisting of representatives from management, workers, trade union and outside experts. Participation from all sides of an organization makes the process easier.
3. Identifying Jobs to be Evaluated:
It is not possible to evaluate each and every job in an organization due to time and cost constraints. Certain key job which represents type of work done in a particular department is identified.
4. Job Analysis:
After jobs are identified, job analysis of each selected job is done. The outcome, as we all know, is job description and job specification.
It helps to identify specific duties and responsibilities of each job and experience, qualification skills required for each job and also ensures that there is no omission and duplication of jobs identified.
5. Selecting the Method of Evaluation:
The method suited is chosen for job evaluation keeping kind the demands of the organization.
6. Classifying Jobs:
A job is compared with other jobs in terms of significant factors such as:
(i) Skill requirements
(ii) Experience
(iii) Working conditions
(iv) Responsibilities to be undertaken
(v) Degree of supervision needed, etc.
Weights are assigned to each job factor and total weights for a job indicate its relative value. Different jobs are then arranged in a sequence in terms of their relative worth to the company.
7. Assigning Money Values:
Each job is priced in terms of its worth. That is the sequences of jobs classified in the step above are related in terms of money.
8. Periodic Reviews:
At regular intervals, review and revision of job description is done as changes creep in fast due changes in business environment. Job description need to be updated accordingly and job evaluation done accordingly. For example, jobs in banks, insurance railways have undergone a tremendous change due to computerization. Therefore, new job description needs to be written and duly incorporated in the evaluation process.
Process of Job Evaluation – With Outline of the Procedure
Job evaluation is the rating of jobs in an organisation. It explains the duties of a job, authority relationships, skills required conditions of work, and additional relevant information and uses the information in job analysis to evaluate each job- valuing its components and ascertaining relative job worth.
It involves a formal and systematic comparison of jobs in order to determine the worth of one job relative to another, so that a wage or salary hierarchy results. Thus, job evaluation is a comparative process.
Job evaluation aims to assess the relation worth of a given collection of duties and responsibilities to the organization. It helps the management to maintain high levels of employee productivity and employee satisfaction. In the absence of proper job evaluation, it is very likely that jobs would not be properly priced. Consequently high valued jobs may receive less pay than low-valued jobs.
The employees realizing this may become dissatisfied, leave the organization, reduce their efforts or may adopt other modes of behavior detrimental to the organization. Therefore, organizations pay a great deal of attention to the relative worth of jobs so that they are able to determine what a particular job should be paid. A person is paid for what he brings to a job – his education, training and experience.
Job evaluation as a part of compensation system relates to the systematic procedure for creating a wage structure with a view to determining a proper value relationship between several jobs in an enterprise to attract, motivate and maintain effective human resources by adequately compensating them for work performed.
Job evaluation establishes pay structures that are fair and equitable in the sense of ensuring equal pay for jobs demanding what are considered to be broadly similar sacrifices and of rewarding appropriately the greater efforts and hardships involved in some jobs as compared with others.
In this way, it seeks to minimize the dissatisfaction associated with pay differentials and thus to contribute to more harmonious human relations at the work place.
There is no standardized procedure for evaluating a job. The procedure of job evaluation is tailored according to the needs of the organisation.
An outline of the procedure involved in job evaluation is given below:
(1) Job-Analysis:
It means collection of data through job analysis. Job analysis is the pre-requisite for job-evaluation. All necessary information’s are collected through job analysis. It explains the activities involved, job requirements, machines, tools and materials to be used, time taken by the employees in completing a given task, abilities of employees to meet the job evaluation and it is conveniently done in job analysis.
(2) Job-Description:
It gives a detailed account of job. Here, the information collected by the job analysis process is systematically presented in a prescribed form. For each job in the organisation. It is very helpful in job-evaluation process because it defines the title of job; analyses the job into its constituent tasks and records why, how and when these are done; states the responsibilities involved and conditions of employment for each job. Such grouping of information is very important for evaluating the job.
(3) Job Grading:
It is the process by which the relative levels of various jobs are determined according to the nature of jobs. Jobs in the organisation are classified into several groups such as clerical, accounting, stenographic etc. according to the similarity of duty, responsibility and specification.
(4) Pricing the Jobs:
Pricing the jobs can be done by any of the methods of job- evaluation taking into consideration the internal and external consistencies. Internal consistency is concerned with the concept of relative wages within the firm, for example if a supervisor is paid less than a subordinate; it is inconsistency in wage rates.
Process of Job Evaluation – Job Analysis, Appointment of Committee, Training, Defining Criteria, Selecting Methods and Job Classification
Job evaluation is a process consisting of several steps.
Process # 1. Job Analysis:
Job evaluation process starts with the base provided by job analysis. Job analysis identifies various dimensions of a job in two forms- job description and job specification. Job description provides responsibilities involved in the performance of the job while job specification provides attributes required in the job performer. Both these taken together provide information about various factors involved in different jobs.
Process # 2. Appointment of Committee:
Job evaluation is a specialized function and is carried on by a committee consisting of members drawn from different line departments of the organization, outside experts, besides HR personnel. An HR person generally acts as committee convener or chairman of the committee.
Process # 3. Training:
Since members of the job evaluation committee are drawn from different fields, they should be provided brief training for job evaluation. Armstrong observes that the training should be given through a series of meetings in which the following issues are generally discussed and doubts cleared.
(i) What is job evaluation?
(ii) Why does this company need job evaluation?
(iii) How will it work?
(iv) How does it affect promotion policy?
(v) How will the system be kept up-to-date?
(vi) Does job evaluation mean that everyone whose job is in the same grade gets the same rate of pay?
(vii) How does the publication of job grades and salary bands affect confidentiality?
(viii) How does the system cater to additions or alterations in jobs?
(ix) What happens if an individual disagrees with his grading?
(x) How quickly will appeals on grading be dealt with?
(xi) How will the company go about grading new jobs created as the result of change or expansion?
Process # 4. Defining Criteria:
Evaluation of job or any other element, within or without organizational context, is always comparative, and for comparison, some evaluative criteria must exist. For job evaluation, defining of criteria involves two aspects. First, there should be identification of critical factors involved in a job which must be evaluated. These factors are responsibility, skill, and effort.
Other factors which are relevant for consideration are working conditions, difficulty involved in job performance, time-span of discretion, number of subordinates to be supervised, etc. Second, after identifying various factors, criteria in respect of these have to be fixed. For fixing criteria, some benchmark has to be established.
Such a benchmark can be established either by taking various jobs within the organization or the benchmark being used by the industry sector. Various industry associations throughout the world have developed benchmarks for various jobs in their own sector.
Process # 5. Selecting Methods:
After fixing the criteria, the next step is the determination of methods through which various criteria can be applied in job evaluation. There are both qualitative and quantitative methods which can be used. Since a particular method emphasizes some specific aspects and is not complete in itself, usually, a combination of different methods has to be followed.
Process # 6. Job Classification:
Based on the results obtained by different methods used for evaluating different factors in a job or the evaluation of the whole job as such, various jobs are classified into different grades. This classification may produce a large number of jobs, e.g., class three clerk, class two clerk, class one clerk, senior clerk, and so on. These numbers are merged into one to have a grade.
From wage and salary administration point of view, there may be internal classification of a grade. This job classification is used to build job hierarchy which shows the relative worth of different jobs within the organization. A job at higher level of hierarchy is more worthwhile as compared to that at lower level. Wages and salaries are fixed according to this ordering.