This document discusses job evaluation, which is an assessment of the relative worth of various jobs based on factors like qualifications, skills, responsibilities, and complexity of tasks. It aims to determine which jobs should receive higher pay and to create a defensible pay structure. The document outlines several common job evaluation methods, including ranking, classification, point evaluation, factor comparison, and market comparison. It also lists typical factors considered in job evaluation and the steps involved in conducting an evaluation.

1. Job Evaluation
Submitted to:
Sir Talha Asim Ghazi

2. GROUP MEMBERS
 Ambreena Basharat 54515
 Haris Iqbal Qureshi 5038
 Laiqa Ahmed 5143
 Syed Umer Ali 5087

3. JOB EVALUATION:
An assessment of the relative worth of
various jobs on the basis of a consistent set of
job and personal factors, such
as qualifications and skills required.
According to Kimball and Kimball,
“Job evaluation represents an effort to
determine the relative value of every job in a
plant and to determine what the fair basic
wage for such a job should be.”

4. Objective of Job
Evaluation
The objective of job evaluation is to determine
which jobs should get more pay than others.
Several methods such as job ranking, job
grading, and factor comparison are used in job
evaluation.
Thus, job evaluation is different from
performance appraisal. In job evaluation, worth
of a job is calculated while in performance
appraisal, the worth of employee is rated.

5. Goal of Job Evaluation
Define
defensible
Retain high ranking system
potential based on
employees rational and
acceptable pay
structure.
Attracting
Clarification of
desirable job
job structures
candidates

6. FACTORS IN JOB EVALUATION
Job evaluators often assess jobs based on these
factors:
Training level or qualification requirements
Knowledge or skill requirement
Complexity of tasks
Interaction with various levels of org.
Problem solving and independent judgment
Accountability and responsibility
Decision making authority

7. Steps in job evaluation
Introduce the concept of job evaluation.
Obtain management approval for the evaluation.
Train the job evaluation selection team.
Review and select the job evaluation method.
Gather information on all internal jobs.
Use information to fully expand job descriptions.
Use the selected job evaluation method to rank jobs hierarchically or in groups.
Link the ranked jobs with your compensation system or develop a new system.
Implement the job evaluation and compensation systems.
Periodically review your job evaluation system and the resulting compensation decisions.

8. Analyze job evaluation methods
 Five job evaluation systems are most
commonly used:
 Ranking
 Classification
 Point evaluation
 Factor comparison
 Market comparison

9. RANKING
 Ranking jobs is the easiest, fastest, and least expensive
approach to job evaluation.
 Jobs are arranged in order form from highest to lowest
based on their relative value to your organization.
 The process of job ranking typically gives more value to jobs
that require managerial or technical competencies
 Advantages Simplicity is the main advantage in using a
ranking system. It is also easy to communicate the results to
employees, and it is easy to understand.
 Disadvantages Ranking jobs is subjective. Jobs are
evaluated, and their value and complexity are often assessed
on the basis of opinion. Also, when creating a new
job, existing jobs must be reranked to accommodate the new
position.

10. CLASSIFICATION
 The general purpose of job classification is to create and maintain
pay grades for comparable work across your organization.
 To classify jobs ,write descriptions for a category of jobs;
next, develop standards for each job category by describing the key
characteristics of those jobs in the category; finally, match all jobs
to the categories based on the similarity of tasks, the decision-
making exercised, and the job's contribution to the organization's
overall goals.
 Universities, government employers and agencies, and other large
organizations with limited resources typically use job classification
systems.
 Advantage Job classification is simple once you establish your
categories. You can assign new jobs and jobs with changing
responsibilities within the existing system.
 Disadvantages Job classification is subjective, so jobs might
fall into several categories. Decisions rely on the judgment of the
job evaluator. Job evaluators must evaluate jobs carefully because
similar titles might describe different jobs from different work
sites.

11. POINT EVALUATION
 Point evaluation is the most widely used job evaluation method. In
a point evaluation system, you express the value of a particular job
in monetary terms. You first identify compensable factors that a
group of jobs possess. Based on these factors, you assign points
that numerically represent the description and range of the job.
 Examples of compensable factors are skills required, level of
decision-making authority, number of reporting staff
members, and working conditions.
 Advantage This method is often viewed as less biased than
other methods because the job evaluator assigns each job's total
points before the compensable factors become part of the
equation.
 Disadvantages Subjective decisions about compensable
factors and the associated points assigned might be dominate. The
job evaluator must be aware of biases and ensure that they are not
represented in points assigned to jobs that are traditionally held by
minority and female employees.

12. FACTOR COMPARISON
 Job evaluators rank jobs that have similar
responsibilities and tasks .
 The evaluators then analyze jobs in the external
labor market .
 Jobs across the organization are then compared
to the benchmark jobs according to the market
rate of each job's compensable factors to
determine job salaries.
 Advantage This method results in customized
job-ranking.
 Disadvantage Compensable factor
comparison is a time-consuming and subjective
process.

13. MARKET COMPARISON
 Job evaluators compare compensation for
your organization's jobs to the market rate for
similar jobs. This method requires accurate
market-pricing surveys.

14. Reasons for Job Evaluation
1. To determine what positions and job responsibilities are similar.
2. To determine appropriate pay or salary grades and decide
other compensation issues.
3. To help with the development of job descriptions, job
specifications, performance standards, competencies, and
the performance appraisal system.
4. To assist with employee career paths, career planning or career
pathing and succession planning.
5. To assist the employee recruiting process by having in place job
responsibilities that assist in the development of job postings, the
assessment of applicant qualifications, suitable compensation
and salary negotiation, and other factors related to recruiting
employees

15. Compensation and benefit
specialist
 Is responsible for developing:
 A fair compensation plan.
 A successful job evaluation system which can help
in making the organization's pay system
equitable, understandable, legally
defensible, approachable, and externally
competitive.