Job Evaluation

Job Evaluation
Job evaluation is a process through which jobs are Described Analysed Weighted

The outcome,a total score in points expresses the weight of a particular job in relation to other jobs.

Job Evaluation
Job evaluation consists of the following elements : A clearly defined method Benchmark jobs Procedures describing the process Plain easy to understand communication on the method.

 The IPE System is a point system based on 7 factors. They are: Size of responsibility 1.Impact on Organisation 2.Supervision Scope of responsibility 3.Area of responsibility 4.Interaction Job Complexity 5.Qualification 6.Problem Solving 7.Environment Conditions

Job Evaluation International Position Evaluation System

Non-Analytical Method
Ranking Method Job-Grading Method

Point- Ranking Method

PRM is one of the most widely used JE Plan. It involves identifying number of factors ,sub factors and degree to which these factors are present in Job Points are assigned for each degree of each factor Grand Total of these points ,classify the Job Worth

Job Evaluation Two Point-Factor Methods

Factor Evaluation System
Developed in 1977 by the Office of Personnel Management for nonsupervisory general schedule employees. It incorporates many of the characteristics of the Lott, Benge, and NEMA methods.

Hay Method
Dates back to the early 50's and is one of the most popular methods in use today. It is particularly popular for evaluating executive, managerial, and professional positions as well as nonexempt clerical, blue collar, and technical jobs.

Universal Factors Popular Methods

Hay and Purves Know How Factor Evaluation System Knowledge Personal Contact Purpose of Contact Problem Solving Supv Control Physical Demands Work Environment Accountability Guidelines Complexity Scope & Effect

Factor Evaluation System

Primary Standards (9)
Factor-level Descriptions For The Series (60+) Benchmark Jobs That Cover The Full Range Of Pay For The Jobs In Each Occupation Or Series.

FES Factor Description Table

FACTOR LEVELS Knowledge Supv Control Guidelines Complexity Scope/effect Pers Contact Purp Of Contact Phys Demand Work Environment Total Points POINTS % TOTAL 50-1850 41.3 25-650 25-650 25-450 25-450 10-110 20-220 4.9 5-50 5-50 4480 9 14.5 14.5 10.0 10.0 2.5 4 5 5 6 6 4

1.1 1.1

3 3

Equity Perceptions
Outcomes Outcomes Inputs Inputs

Equity Theory
Description Pay should be based upon contributions made by the Employees. Higher effort should be rewarded with higher pay. Application to Compensation Pay should be tied to the performance level of individual Employee

Equity Theory Predictions

Person A

Outputs Inputs

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Person B
Outputs Inputs

Under-reward

Outputs Outputs Inputs Inputs Outputs Outputs Inputs Inputs

Equity
Overreward

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Balancing Internal and External Equity

Pay Equity
Pay Differentials Pay Compression

Market

Internal

External