Page 151 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes 9.5 Methods of Job Evaluation

Figure 9.2: Methods of Job Evaluation

Job Evaluation

Analytical Non-analytical
Point-Ranking Method Ranking-Method
Factor Comparison Method Job-grading Method

9.5.1 Non-analytical Methods

This method make no use of detailed job factors. Each job is treated as a whole in determining its
relative ranking.
1. Ranking Method: The evaluation committee assesses the worth of each job on the basis of
its title or on its contents, if the latter is available. Each job is compared with others and its
place is determined. Under this method, all jobs are arranged or ranked in the order, each
successive job being higher or lower than the previous one in the sequence.

Generally speaking, the following five steps:
Preparation of job description: Particularly when the ranking of jobs is done by different
individuals and there is disagreement among them.

Selection of Raters: jobs may be usually ranked by department or in "cluster" (that is,
factory workers, clerical workers, etc). This removes need for directly comparing factory
jobs and clerical jobs. Most organizations use a committee of raters.
Selection of rates and key jobs: Usually, a series of key jobs or benchmark jobs (10 to 20
jobs, which include all major departments and functions) are first rated, then the other jobs
are roughly compared with these keys jobs to establish a rough rating.
Ranking of all jobs: each job is then compared in detail with other similar jobs to establish
its exact rank in the scale. These jobs are then ranked from 'lowest to highest' or from
'highest to lowest' are ranked first and then the next highest and next lowest and so forth
until all the cards have been ranked.
Preparation of job classification from the rating: The total ranking is divided into an
appropriate number of groups or classifications, usually 8 to 12. All the jobs within a
single group or classification receive the same wage or range of rates.
The ranking system of job evaluation usually measures each job in comparison with other
jobs in terms of the relative importance of the following five factors:
(a) Supervision and leadership of subordinates.
(b) Co-operation with associates outside the line of authority.
(c) Probability and consequences of errors.

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