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Unit 4: Job Analysis and Evaluation
Relevance of new jobs: Through job evaluation, one can understand the relative value of Notes
new jobs in a concern.
According to Kimball and Kimball, “Job evaluation represents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be.”
Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is
calculated while in performance appraisal, the worth of employee is rated.
Notes Job evaluation is a process of determining the relative worth of a job.
Self Assessment
Fill in the blanks:
3. Job Evaluation is a process which is helpful even for framing …………. plans by the
personnel manager.
4. In ……………… method, the jobs are taken as a whole and ranked against each other.
5. In ………………… method, the jobs are compared in pairs.
6. ……………….. helps in bringing uniformity into salary structure.
4.3 Job Evaluation Methods
4.3.1 Quantitative Methods of Job Evaluation
Factor Comparison Method
This method is a combination of the ranking and point system. Thomas E. Hitten was the first to
originate factor comparison method of job evaluation. As originally developed this method
involves ranking of jobs in respect of certain factors and usually involves the assigning of
money wages to the job depending upon the ranking. This is more systematic and scientific
method. Under this method, jobs are evaluated by some standards. In this method, instead of
ranking complete jobs, each job is ranked according to series of factors. All jobs are compared to
each other for the purpose of determining their relative importance by selecting four or five
major job elements which are more common or less common to all jobs. These elements are not
pre-determined. These are chosen on the basis of job analysis. The five factors which are commonly
used are
(i) Mental requirement
(ii) Skill
(iii) Physical requirement
(iv) Responsibilities and
(v) Working conditions.
The number of factors may be more than five. Pay will be assigned in this method by comparing
the weights of the factor required for each job, i.e., the present wages paid for key jobs may be
divided among the factors weighted by importance. So the wages are assigned to the job in
comparison to its ranking on each job factor.
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