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Methods of Job Evaluation

Job-evaluation methods are of two categories:-

a) Analytical Methods

  • Point Ranking Methods
  • Factor Comparison Method

b) Non-analytical Methods

  • Ranking Method
  • Job-grading Method


Non-analytical Methods

Ranking and job-classification methods come under this category because they make no use of detailed job factors. Each job is treated as a whole in determining its relative ranking.

Ranking Method

This is the simplest, the most inexpensive and the most expensive method of evaluation. The evaluation committee assesses the worth of each job on the basis of its title or on its contents, if the latter are available. But the job is not broken down into elements or factors. Each job is compared with others and its place is determined.

The method has several drawbacks. Job evaluation may be subjective as the jobs are not broken into factors. It is hard to measure whole jobs.

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Job-grading Method

As in the ranking method, the job-grading method (or job-classification method) does not call for a detailed or quantitative analysis of job factors. It is based on the job as a whole.The difference between the two is that in the ranking method, there is no yardstick for evaluation, while in the classification method, there is such an yardstick in the form of job classes or grades.

Under the classification method, the number of grades is first decided upon, and the factors corresponding to these grades are then determined. Facts about jobs are collected and are matched with the grades which have been established.

The essential requirement of the job-grading method is to frame grade descriptions to cover discernible differences in degree of skill, responsibility and other job characteristics. Job grades are arranged in the order of their importance in the form of a schedule. The lowest grade may cover jobs requiring greater physical work under close supervision, but carrying little responsibility. Each succeeding grade reflects a higher level of skill and responsibility, with less and less supervision.

The advantages of the job-classification method include its simplicity and inexpensiveness. Secondly, in organizations where number of jobs is small, this method yields satisfactory results.

The disadvantages of the method are:

(i) job grade descriptions are vague and are not quantified;

(ii) difficulty in convincing employees about the inclusion of a job in a particular grade because of vagueness of grade descriptions; and

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(iii) more job classification schedules need to be prepared because the same schedule cannot be used for all types of jobs.

Analytical Methods

These include the point-ranking method and the factor-comparison method

Point-Ranking Method

The system starts with the selection of job factors, construction of degrees for each factor, and assignment of points to each degree. Different factors are selected for different jobs with accompanying differences in degrees an points. The National Electrical Manufacturer’s Association (NEMA), USA, has given the factors, degrees and points for hourly rated.

The range of score and grades is also predetermined-for example, from 210 to 230 points, the
5th grade; 231 to 251 points, the 6th grade; and so forth. A given job is placed in a particular grade, depending on the number of points it scores.

The advantages of point system are:

1. A job is split into a number of factors. The worth of each job is determined on the basis of its factors and not by considering the job as a whole.

2. The procedure adopted is systematic and can easily be explained to the employees.

3. The method is simple to understand and easy to administer.

At least two defects are noticed in the point system. First, employees may disagree with the points allotted and the factors and their degrees identified. Second, serious doubts are expressed about the range of points allotted and matching them with the job grades. For example, a score range of 238 to 249 is grade seven and the next range of 250 to 271 is grade six. A variation of one point makes all the difference.

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Factor-Comparison Method

The factor-comparison method is yet another approach for job evaluation in the analytical group. Under this method, one begins with the selection of factors, usually five of them: mental requirements, skill requirements, physical exertion, responsibility, and job conditions. These factors are assumed to be constant for all the jobs. Each factor is ranked individually with other jobs.

For example, all the jobs may be compared first by the factor ‘mental requirements’. Then the skills factor, physical requirements, responsibility, and working conditions are ranked. Thus, a job may rank near the top in skills but low in physical requirements. Then total point values are then assigned to each factor. The worth of a job is then obtained by adding together all the point values.

An advantage of the factor-comparison methods that jobs of unlike nature – for example, manual, clerical and supervisory – may be evaluated with same set of factors. But the method is complicated and expensive.

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About Sonia Kukreja

I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.