Job Evaluation Methods

1. 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 It may be noted that because of the difficulties in ranking a large number of jobs at the 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.

2. 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

3. 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 These are chosen on the basis of job analysis.

The few factors which are customarily used are :

  1. mental requirements
  2. skill
  3. physical requirements
  4. responsibilities
  5. 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 stabilized over a period of time and whose wage rate is considered to be presently correct by the management and the union.