JOB ANALYSIS & JOB

EVALUATION
Asst. Prof. Arti More
Chapter 2 Job Analysis & Job
Evaluation
 Task – A task is some work or activity carried out with a specific purpose.
 Position – It is a specific set of tasks & duties performed by a given individual
in a given firm at a given time. In any organization there are many positions
as there are many employees.
 Job – A job is a group of similar positions in the same organization. There
may be one or more person in the same job.
 Occupation – It is a group of similar jobs in different organizations.
 Process of Job Analysis

1. Determine the time fro job analysis.

2. Collection of background data.
3. Selecting representative sample of job.
4. Collection of job analysis data.
5. Developing job description.---(written statement that describes the task,
duties and responsibilities which need to be discharged for effective
performance).
6. Preparing job specification --- (It mentions the qualification & personal
attributes that the employee needs to have for effective job performance).
 Job Description

 When hiring, your job description is the first impression you make with a potential future employee.
 It should outline not only the skills and experience you seek but also provide a glimpse into your
company and the specifics of the position.
 It should answer any questions a job seeker has and entice the right ones to apply.
 It usually contain the following:-
1. Job identification - Information regarding job title, code number, dept or division where the job is
located.
2. Job Summary – It describes the activities or tasks performed on the job.
3. Job duties & responsibilities – It is the heart of the job description.
4. Work condition – physical environment, risk in workplace etc.
5. Machine, tools, equipment –
6. Social environment – size of the work group, interaction.
7. Supervision
8. Relation to other jobs.
 Job Specification

 Also known as man specifications or employee specifications, a job

specification is a written statement of educational qualifications, specific
qualities, level of experience, knowledge, physical, emotional, technical
and communication skills required to perform a job, responsibilities involved
in a job.
 Methods of Job Analysis

 Interview Method
 Observation Method
 Questionnaire Method
 Work Participation Method
 Critical Incident Technique
Importance / Purpose of Job Analysis

1. Human Resource planning

2. Personnel Recruitment, selection and placement
3. Training & Personnel development
4. Employee compensation
5. Engineering design – Means taking into account human limitations and human strengths
while designing machines so that they are easier, safer and economical to operate.
6. Job design – It is the process of organizing work into the tasks required to perform a
specific job.
7. Performance Measurement & Rating
8. Administrative control
9. Health &safety measures
10. Career planning – Planning educational Curricula & Vocational counselling.
Job Evaluation
 Features of Job Evaluation

 It attempts to assess jobs, not people.

 Job Evaluation is the output provided by job Analysis.
 It provides bases for wage negotiation founded on facts.
 Job Evaluation does not design wage structure, it helps in rationalizing the
system by reducing number of separate and different rates.
 Job Evaluation is done by group of experts.
 Job Evaluation determines the value of job and the value of each of the
aspects of job such as skill and responsibility levels are also related and
studied in connection with the job.
 Job Evaluation helps the management to maintain high levels of employee
productivity and employee satisfaction.
Advantages & Limitations

 The system of job evaluation is a powerful tool in the hands of

management in managing manpower. It claims the following points to its
credit.
1. Sound Wage Policy
 Job evaluation is basically an attempt to measure the real worth of each
job by a process of expert judgement. Therefore, any wage policy based
on a scientific job evaluation is bound to be systematic and sound.

2. Settlement of Wage Disputes

 The chances for disputes and grievances regarding the individual rates of
wages are very rare. Even if there arises any disputes, it can be
conveniently settled by referring to the job evaluation machinery.
3. Better Control over Labour Costs
 Job evaluation enables the management to exercise effective control over
the labour costs, because they can give appropriate pays for the each job.

4. Building up of Employee Morale

 Since this system aims to reward employees’ suitability, it will help to build
up employee morale and bring job satisfaction.

5. Proper Placement of Personnel

 It helps in selecting the right man for the right job. Besides, this system facilitates
to form a logical basis for designing training programmes for the worker.
6. Elimination of Personal Bias
 The evils of personal bias, favoritism, and arbitrary judgement on the part of
the management in fixing wage differential etc. are avoided, because
wage rates are set by experts other than the management and that too
after a careful job evaluation programme.

7. Reliable in All
 This system provides well-defined methods for measuring various jobs.
Besides, it also helps to justify the existence of different scales for different
jobs. For these reasons, it is accepted by both workers and the
management without any hesitation.
In spite of the various advantages cited above, it will not be wise for
management to place too much reliance on it. There are several limitations to
this technique. The important demerits of this system are as follows:
 Inaccuracy – Many of the factors considered while making JE cannot be
measured perfectly and hence lack accuracy.
 Market forces – The wages determined through market forces of demand
for and supply of human resources tend to be higher than those fixed
through job evaluation.
 Changes in technology – The fast changing technology leads to change in
job factors also. Hence an evaluation of the job today may not reflect the
job value in the future. Hence frequent evaluation is necessary.
 Dissatisfaction – sometimes jobs that are higher in the hierarchy are rated
low and those at lower levels are rated high. This leads to dissatisfaction
and creates human relation problems.
 Time consuming & Expensive – JE is a time consuming process. People with
expertise are required in order to carry it out which makes job evaluation
expensive.
 Financial Burden – Job evaluation leads to substantial changes in wage
and salary structure. This may increase the financial burden of the
organization.
 Job evaluation methods

There are four basic methods of job evaluation currently in use which are grouped
into two categories:
1. Non-quantitative Methods: (A job is compared as a whole with other jobs in the
organization).
 (a) Ranking or Job Comparison
 (b) Grading or Job Classification

2. Quantitative Methods (The key factors of a job are selected and, then,
measured).
 (a) Point Rating
 (b) Factor Comparison
Ranking Method
 The ranking method is the simplest form of job evaluation.
 In this method, each job as a whole is compared with other and this
comparison of jobs goes on until all the jobs have been evaluated and
ranked.
 All jobs are ranked in the order of their importance from the simplest to the
hardest or from the highest to the lowest.
 The importance of order of job is judged in terms of duties, responsibilities
and demands on the job holder.
Merits:
 1. It is the simplest method & easy to understand.
 2. It is quite economical to put it into effect & less time consuming.
 3. It involves very little paper work.
 It is suitable for small organizations.
Demerits:
 1. It merely states that one jobs is more important than the other.
 Ranking involves subjective judgement as the jobs are not analyzed and
key factors are not compared.
 There is every possibility of bias in the ranking.
Job classification / Grading Method:
 In this method jobs are classified into various categories or grades on the basis of job
description. Classification may be as follows – Professionals, managers, officers, clerical
staff, skilled workers, semi- skilled workers, Un-skilled workers.
Merits:
 1. This method is easy to understand and simple to use.
 2. The grouping of jobs into classifications makes pay determination problems easy to
administer.
 3. This method is useful for Government jobs.

Demerits:
 1. It is very difficult to write accurate job description of job grades.
 2. It is a rigid system, which depend heavily on personal judgement.
 3. This method is rarely used in an industry.
Points Rating:

 This is the most widely used method of job evaluation.

 Under this method, jobs are broken down based on various identifiable
factors such as skill, effort, training, knowledge, hazards, responsibility, etc.
Thereafter, points are allocated to each of these factors.
 Weights are given to factors depending on their importance to perform the
job. Eg- Mental requirement carry more importance or weightage for a
manager position, physical requirements will carry more weightage to a job
of factor worker.
 Points so allocated to various factors of a job are then summed.
 Then, the jobs with similar total of points are placed in similar pay grades.
Weightage are given on a five point scales. For example, if experience is
important for a particular job, the weightage may be given as follows:
 5 – No experience
 10 – Less than 1 yr. experience
 15 – 1-3 yrs. experience
 20 – 3-5 yrs. Experience
 25 – More than 5 yrs. experience
Merits:
 1. It is the most comprehensive and accurate method of job evaluation.
 2. Prejudice and human judgment are minimised, i.e. the system cannot be easily
manipulated.
 3. Being the systematic method, workers of the organisation favour this method.
 4. The scales developed in this method can be used for long time.
 5. Jobs can be easily placed in distinct categories.
Demerits:
 1. It is both time-consuming and expensive method.
 2. It is difficult to understand for an average worker.
 3. A lot of clerical work is involved in recording rating scales.
 4. It is not suitable for managerial jobs wherein the work content is not measurable in
quantitative terms.
Factor Comparison Method:

 In this method of job evaluation, a few key jobs are compared in terms of
common factors common to all jobs. The factor comparison method
involves the following steps:-
 1). Selection & definition of factors - The factors common to all jobs are
selected and defined. Common factors are – physical requirements,
mental requirements, skill requirements, responsibility, working conditions.
 2). Selection of key jobs – Certain key jobs are selected. They are those
about which there are no controversies or disputes about payment is
accepted as fair.
 3). Ranking of key jobs – The members of the job evaluation committee
rank each key job on each of the factors selected in step 1.
 4). Determine wage rate – A fair & equitable wage rate is determined for
each key job.
 5). Apportioning the wage rate – The wage for each key job is broken down
to find out how much portion of the wage is for which of the factors. Money
rate for each of the factors on the key jobs are assigned ranks.
 6). Comparing all jobs with key jobs – All other jobs are compared with the
key jobs, factor by factor, to determine the relative importance and
evaluated on each factors.
Merits:
 1. It is more analytical & objective method of job evaluation.
 2. It is more reliable and valid as each job is compared with other jobs in terms of key
factors.
 Money values are assigned in a fair and objective manner depending on factor
rankings.
 Demerits:
 1. It is expensive and time-consuming method, as it requires service of experts.
 2. Employee find it difficult to understand.
 It is often difficult to assign weightage to each factor.
Competency – Based Job Analysis
Thank You