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Following are the methods of job-evaluation:
(A) Non-Quantitative Methods:
(1) Ranking Method.
(2) Job classification or Grading System.
(B) Quantitative Methods:
(1) Factor Comparison Method.
(2) Point Method.
The non-quantitative or non-analytical or summary methods utilise non-quantitative methods of listing jobs in order of difficulty. They are simple methods. The job is treated as a whole and job descriptions rather to job specifications are often utilised. On the other hand, quantitative or analytical methods use quantitative techniques in listing the jobs. They are more complex and are time consuming. Let us discuss these methods in detail.
(1) Ranking Method—Under this system, all the jobs are arranged or ranked in the order of importance from the simplest to the hardest, or in the reverse order each successive job being higher or lower than the previous one in the sequence. It is not necessary to have job descriptions, although they are useful. A common practice is to arrange all the jobs according to their requirements by rating them and then to establish the group or classification. In this method, jobs are not split up into their component parts, however comparison is made on the basis of whole jobs. Three techniques are generally used for ranking purposes:
1. Utilizing job descriptions.
2. Making paired comparisons.
3. Ranking along a number line.
1. Utilizing job descriptions—When this procedure is followed, each rater is given a set of job descriptions, one for each job to be ranked. The job descriptions are then studied and analysed. The differences between them are noted with respect to the key points selected for comparison. The rater determines which job in the series requires least amount of various characteristics used for comparison, and places that job in the lowest rank position. He then determines which job requires next higher amount of characteristics and places it next to preceding job's rank. And so on. Sometimes, two or more jobs fall in the same rank position. In such cases, they are assigned the same rank position.
After each rater has assigned the rank independently, their rankings can be compared. This comparison is usually made by having the raters meet as a committee and discuss with each other their respective rankings. Final rankings may be done by majority vote or averaging the rankings of raters.
The method just described above involves independent ranking first and then and integration with the ranking of the other raters.
2. Making group comparisons. In the preceding method, a rater is required to keep in mind all the jobs being ranked in order to place them in their correct relationship to each other. But this task may become difficult as the number of jobs increases. Distinguishing differences among jobs may be overlooked or forgotten. This would result in less accurate evaluation. To do away with this weakness, "paired comparison method" has been suggested. This method involves following steps :
(a) First of all, each job is paired with every other job in the series. Suppose there are four jobs say, refund clerk, transfer clerk, adjuster and collection clerk, their pairs will occur as follows :
Refund Clerk------------------------------- Transfer Clerk
Transfer Clerk--------------------------------- Adjuster
Collection Clerk--------------------------- Refund Clerk
Refund Clerk--------------------------- Adjuster
Transfer Clerk--------------------------- Collection Clerk.
(b) Next the rater examines each pair and determines which of the two is more difficult in terms of characteristics selected as guides. Thus he has to keep only two jobs in mind. He then underlines the more difficult job.
© How many times a particular job is rated more difficult than others, is counted.
(3) Ranking along a number line—Here ranks obtained from job descriptions or paired comparison are spaced along a number line. For example job X is the highest rank job and job Y is picked up to find out its closeness to job X.
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:
(i) Supervision and leadership of subordinates.
(ii) Cooperation with associates outside the line of authority.
(iii) Probability and consequence of errors.
(iv) Minimum experience requirement.
(v) Minimum education required.
(2) Job classification or grading method—Job classification or job grading is a process of scientific study of all the facts about a job, so as to reveal the content of it. Job-grading refers to the classification and analysis of jobs which are performed in an organisation and to their relative levels. According to Denyer "Job-grading consists of a scientific study of all jobs (job evaluation) and then placing of these jobs into broad categories called job-grades. It is fundamentally a technique of determining the differences between jobs, and of rationalising rates of pay in large organisations." Job-grading is done by studying the essential characteristics of each job. These characteristics are:
(a) the experience required,
(b) the skill required,
© the initiative required,
(d) the level of responsibility entailed, and
(e) the level of supervision needed for the job.
Identical jobs are grouped in as objective a manner as possible. There is no hard and fast rule about the number of job-grades. However, too many grades should be avoided. A job grading scheme should be prepared on scientific basis. When deciding about the grade, details of work performed, tools and equipments necessary to do the job, the physical surroundings, risks, involved etc. are taken into consideration. After preparing list of all existing jobs in the office, they are placed in various grades. The number of grades depends the policy of the organisation regarding the number of job grades to be created and titled given to them. When job contents change, job grading is also revised.
Job grading involves following steps:
(i) the preparation of job descriptions
(ii) the preparation of grade descriptions
(iii) Selection of grades and key jobs.
(iv) Grading the key jobs
(v) Classification of all jobs.
(3) Point Method—This method is most widely used system of job evaluation. It involves a more detailed, quantitative and analytical evaluation of jobs. It requires identifying a number of compensable factors i.e. various characteristics of jobs and the determining degree to which each of these factors is present in the job. A different number of points is usually assigned for each degree, of each factor. According to Dale S. Beads— "Every point plan consists of a number of compensable job factors or characteristics. This can be classified under four headings of skill, effort, responsibility, and job conditions."
Following are the steps involved in point method:
(i) Determination of Type of Job-The jobs in any organisation will range from the top executive down to watchman, each involving different skills, responsibility, efforts, and working conditions. Many of the jobs are unskilled also. There should be separate evaluation programme for different categories of jobs. It would be better to select 'key* or 'benchmark' jobs which represent each major level of duties, efforts and skills for each classification of jobs to be rated. It enables to work with relatively few jobs in selecting factors.
(ii) Selection of Factors—A factor is a distinguishing feature of a job. In the selection of factors, the following points should be kept into consideration: (a) factors chosen must be rateable, (b) factors must not be too many, © factors must not overlap in meaning, and (d) factors must meet both employer and employee standards.
It is very difficult to lay down the exact number of factors which should be used for evaluating a job. C.W. Lytie, after analysing the problem of the number of factors, feels that there are only four major job characteristics, namely skill, effort, responsibility and working conditions. These factors are genei^_ divided into a number of sub-factors called specific factors. A possible division of general factors i specific factors is given below :
Skill: Education, experience, training, judgment.
Responsibility : Machinery and equipment used, raw-materials used, quality of output, work of others.
Effort: Physical and mental.
Working Conditions : Working environment, accident hazard, discomfort, etc.
Each of the above mentioned general and specific factors must be defined precisely. It would ensure consistency in evaluation by different job evaluators.
(iii) Construction of Factor Scales—The next step is to construct factor scale. It will include (a) determine relative value of each factor (b, determine degree of each factor and © assign point values to each degree factor.
(iv) Evaluation of jobs— After the construction of scales the task of evaluation can be started. Read job analysis information carefully. Compare it with degree definitions. Decide at which degree the job falls and obtain the points. Do it with each factor and total up to the points so obtained. This will give worth of job in terms of points.
(v) Conducting the wage survey-When the worth of jobs in terms of points is available, the next logical step is to convert these into money value. For this purpose, a wage survey must be conducted to know what wages are being paid by others in the industry. This information should be collected in respect of only the representative jobs.
(vi) Design the wage structure-Management takes a decision what kind of wage structure does it wish to have. There are two main kinds of wage structure in vogue:
(1) In the first kind same amount of wages are paid to each job falling in any particualr job class. The rates do not vary within a particular job class.
(2) In the second kind the wages change not only between different job classes but also within the job classes.
(vii) Adjusting the existing wage structure—The wage structure designed in the preceding step is the one to which the existing structure must conform. Those who are getting less than what they should as per the new wage structure should get a wage raise. But those who are getting more should not have their wages reduced. Instead such job should be "red circled" so that when the occupant leaves the organisation, the job in question is either eliminated or changed or when the new person occupies it he is given "appropriate" wage.
(4) Factor Comparison Method—Thomas E. Hitten was the first to originate factor comparison -method of job-evaluation. This method determines the relative rank of the jobs to be evaluated in relation to monetary scale. It is often used in evaluating, the managing administrative and white-collared jobs. It is essentially a combination of the ranking and point systems. Like the rank order method it rates jobs by comparing one with another. Like the point system, it is more analytical in the sense of sub-dividing jobs into compensable factors and finds ratings one expressed in terms of numbers. These factors are not predetermined and chosen on the basis of job-analysis. The most widely used factors are (a) mental requirements (b) skill requirements, © physical requirements (d) responsibilities and (e) working conditions.
Under this system, a few jobs arc selected as key jobs which serve as standard against which all other jobs are compared. Key job is one whose contents has been stabilised over a period of time and whose wage rate is considered to be presently correct by the management and the union. The steps in evaluating the job under this method can be enumerated as under:
(a) first, various factors (as given above) are selected and defined clearly.
(b) Secondly, key jobs are selected.
(c.) Thirdly, wages are fixed for different factors of each key job.
(d) Fourthly, a comparison scale is developed. Each key job should be fitted to it, when all the key jobs have been evaluated and wages allocated in this manner, a job comparison scale is constructed.
(e) Fifthly, jobs are evaluated factor by factor, in relation to key jobs on job comparison scale. Then each job is to be evaluated and compared to other jobs in terms of each factor, and
(f) Lastly, a wage structure is designed, adjusted and operated.
The system is usually used to evaluate white collar, professional and managerial positions.
