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Methods of Job Evaluation

Job Evaluation

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Job Evaluation Meaning

A job evaluation is a systematic process for determining the value or worth of a particular job within an organization. It involves analyzing the responsibilities, duties, and requirements of a job, and comparing it to other jobs within the organization to determine its relative worth. 

This information is used to establish a fair and consistent basis for setting salaries and other rewards, and to ensure that the organization's compensation structure is aligned with its overall business strategy and goals. 

In general, a job evaluation is intended to provide a comprehensive and objective assessment of a job's worth, and to serve as a fair and transparent basis for determining compensation and other rewards.

Human resource is the most powerful resource of any organization today especially with increasing pressure and the need to get the work done faster. Different organizations might have different means to get work and also having different processes of job assessment, given below are some of the most common methods of jobs evaluation:

1. The Grading system

The grading system ensures that each job is graded properly from the simple rank order starting from the highest to the lowest one. The committee that comprises management and also the employee representatives decides this. 

The committee first compares the 2 jobs to grade the important one and then compares other jobs with the first two jobs. This continues till the time all the jobs have been done assessing and ranking.

2. The factor comparison method

In these methods the evaluators select the key position jobs as the standard jobs for evaluation. These jobs are well known and established in the community. These jobs represent the cross section of all the evaluated jobs that starts from lowest to highest level in the company, the selection would consist of 25 odd jobs. 

The key factors required in these key jobs are the skill and physical requirements, mental requirements, responsiveness and a good amount of working conditions. After deciding on the key jobs and the policies, the committee starts ranking the key jobs. They decide on the base rate of the job and then rate it among the five criteria we discussed.

3. The classification method

The evaluators identify the common elements like the skills in processes, the knowledge, the responsibility, etc. that goes well with the desired goal and the type of jobs for example clerical jobs, sales jobs and more. These are then ranked according to the organizationâ??s important priorities.

4. The point method

The important areas are identified and the job break down is done and the points are given according to the criteria. Based on the importance of each of the criteria, the points are summed and the jobs identified with the same points totaled and put in pay grades.

Any of the above human resource pay structures can be used for the job assessment of the organization. Once the job evaluation is done in an organization, it becomes the center point for improving the pay structure of the organization.

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