Notes On Job Evaluation:

       Job evaluation is a method of measuring the comparative value of job within a business enterprise and among a number of enterprises. It does not actually price job but places each job in its position in the whole business structure.

Defined by Edwin B. Flippo:

       According to him, "job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs."

Defined by Kimball and Kimball:

       In the words of Kimble and Kimble, "job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the four basic wages for such a job should be."

Steps of Job Evaluation:

       There are four basic steps of job evaluation:

  1. Determining the factors required for the performance of all jobs.
  2. Company each job with other jobs on the basis of these factors.
  3. Finding out a position for a job in the entire job structure.
  4. Converting this position into money rates.
Methods of Job Evaluation:

       The different ways of job evaluation may be discussed under two categories. They are-

I. Quantitative Methods:

       They are of two types-

1) Factor Comparison Method:

       It is based on the principle that each job has certain factors and its pay should be fixed on these basic. The most common method are-

  1. Physical Requirement
  2. Mental Requirement
  3. Skilled (drawing ability, engineering etc)
  4. Responsibility
  5. Working condition.

       The next step is to select a number of key jobs. Key jobs may be machine operator, cleaner, watchman, ordinary labour, driver etc.

       The third step is to break up the total money paid to each key job. e.g.; if a machine operator is paid Rs 48 per day; then Rs 10 is for physical effort; Rs 2 for mental contribution; Rs 18 for skill; Rs 10 for responsibility; Rs 8 for working condition.

       The final stage is to fit other jobs into this skill by comparing them to key jobs.

Advantages Of Factor Comparison Method:
  1. It gives a more accurate job evaluation.
  2. It reduces the possibility of over lapping
  3. It is relatively more flexible.
Disadvantages Of Factor Comparison Method:
  1. It is costly to install and somewhat difficult for inexperienced evaluator.
  2. The management has to rely upon the technical exports as evaluation is made by experts.
  3. It is very difficult to allot due weightage to each factor.

Point Method:

       The point method is based on the assumption that it is possible to point the different factors and that the sum total of these points will give an index of the relative value of jobs. The most commonly used point system is developed by the National Metal Traders Association of U.S.A. The factors used in these patterns are grouped under four main heads:

(1) Skill:

  1. Education
  2. Experience
  3. Initiative

(2) Effort:

  1. Physical
  2. Mental

(3) Responsibility:

  1. Equipment
  2. Material
  3. Safety
  4. Work of others

(4) Job Condition:

  1. Working Conditions
  2. Unavoidable hazards.


  1. The method is more effective as the major factors are sub-divided for evaluation.
  2. The system is more suitable for large enterprises.


  1. The award of point value results in developing a ceiling for each job.
  2. The point value may be arbitrary and some of the job may be over as under value.

II. Non- Quantitative method:

       These methods are based on job descriptions. They are of following two types:

(1) Ranking method:

       This method arranges job within the organisation in some order from the hardest to the simplest form or the most hazardous to the least hazardous. It does not measure the value of jobs but establishes the rank only. This is the oldest and simplest method of job evaluation.


  1. It is suitable for small organisation.
  2. It is suitable to install because of its simplicity.
  3. Less time is consumed for evaluation of job.


  1. It has no scientific approach in determining the rank of job.
  2. The system decides ranks without specifying reasons as a result dispute may arise.
Classification Method:

       It involves the establishment of job classes or grades. Thus, each job is assigned a class or grade with a pre- determined rate of wages for each class According to the method, the so called managers are put answerable to senior officer in higher class or executive officer and administrative officer in top class.

       The method is used by large govt. services and is rarely used by industries.


  1. It is easy to install and is not difficult to explain about the system to the employees.
  2. If a new job is to be introduced in the organisation, it is sufficient to associate it with a class or grade.
Advantages Or Benefits of Job Evaluation:

       Shortly after World War I, job evaluation was adopted in advanced western countries. But after world war II, it has been practically accepted by the employer and employee as a satisfactory method of determining wage structure.

       The main advantages of job evaluation are:

(1) Elimination of Inequalities:

       Job evaluation involves standard rates for similar or comparable jobs in organisation. Thus, inequalities are removed by this technique.

(2) No Favoritism:

       Job evaluation evaluates the job and not its holder. The workers gets wages fixed for their job. Hence, it leaves no chance of favoritism to any worker.

(3) Harmonious industrial relations:

       Job evaluation promotes harmonious industrial relations in the organisation by eliminating the inequalities of wage rates which is the biggest single factor for labour disputes.

(4) Basis of Comparison:

       Job evaluation provides the basis for comparison of job within the organisation and similar jobs in other organisation. This helps in wage and salary survey.

(5) Lower cost of recruitment and selection:

       Job evaluation helps in keeping down the cost of recruitment and selection of workers and rate of labour turn over.

Essentials of Job Evaluation:

       The following conditions are necessary for successful operation of job evaluation programme:

  1. It must be established by ensuring:
  2. That management aims are cleared to all concerned and all level of workers should understand them clearly.
  3. That all relevant internal and external factors have been taken into account in arriving at the final form of the programme.
  4. It must have full approval and continued backing of top management.
  5. The trade union acceptance of the programme must be obtained.
  6. Adequate administrative control must be set up to ensure:
  7. coordination of the programme.
  8. the evaluation of new and changed job.
  9. the conduct of wage surveys to provide the necessary information about intra- plant wages.
  10. The importance of factors other than job context in wage rate determination must be recognized.
  11. Statistics collected for job evaluation are used in other areas of personal mgt. Such as merit rating, training of worker, determines working condition promotion and transfer of workers.
  12. Job evolution eliminates the inequalities of wage rates and promotes harmonious industrial relations.