Page 154 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 9: Job Evaluation

Selection of the Job Factors Notes

In contrast to the ranking and grading method, which considers job as a whole, the point
ranking method is more analytical in approach and deals with job components and factors.
In general, there are four job factors in use:
1. Skill

2. Responsibility
3. Effort

4. Working conditions
The number of factors in use vary from organization to organization and from industry to
industry. These four factors are further divided into number of sub-factors.
The advantages are:
1. The worth of a job is determined on the basis of factors and not by considering the job as
a whole.
2. The procedure adopted is systematic and can be easily be explained to the employees.

3. The method is simple to understand and easy to administer.
The two defects include, firstly employee may disagree with the points allotted and the factors
selected. Secondly, serious doubts are raised to the range of points allotted and matching them
with grades.

Factor Comparison Method

In this method five factors namely – mental requirement, skill requirements, physical exertion,
responsibility and job conditions. These factors are assumed to be constant for all jobs. Each
factor is ranked individually with other jobs. For example, all jobs are compared with mental
requirement and the followed by skill requirement and so on. Then total points values are
assigned to each factor. The worth of a job is then obtained by adding together all the points.
An advantage is that jobs of unlike nature as manual, clerical and supervisory may be evaluated
with the same set of factors. But the method is complicated and expensive.

Task A company has asked you to design a job evaluation system. How would you go
about this task?

9.6 Criticisms for Job Evaluation

1. It encourages employees to focus on advancement when there is limited scope for
enhancement as a result of downsizing.

2. It encourages an internal focus instead of a customer-oriented focus.
3. Salaries can be easily be fixed by adopting going rates, which can be easily ascertained
through wages.

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