Job Evaluation Methods
Factor Comparison Method - Advantages
- The value of the job is expressed in monetary terms. - Can be applied to a wide range of jobs. - Can be applied to newly created jobs.
Classification Method - Disadvantages
- Classification judgments are subjective. - The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees (females or minorities). - Some jobs may appear to fit within more than one grade/category
Ranking Methods
1. Ordering 2. Weighting 3. Paired Comparison
Factor Comparison Method
A set of compensable factors are identified as determining the worth of jobs
Point Method
A set of compensable factors are identified as determining the worth of jobs
Skill
Experience Education Ability
Responsibilities
Fiscal Supervisor
Examples of compensable factors are:
Skill Responsibilities Effort Working Conditions
Classification Method
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job
Working Conditions
Location Hazards Extremes in Environment
Effort
Mental Physical
Ranking Method
Ranking This method is one of the simplest to administer. Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.
Ranking Method - Disadvantages
- Difficult to administer as the number of jobs increases. - Rank judgements are subjective. - Since there is no standard used for comparison, new jobs would have to be compared with the existing jobs to determine its appropriate rank.
Classification Method - Advantages
- Simple. - The grade/category structure exists independent of the jobs. Therefore, new jobs can be classified more easily than the Ranking Method.
Ranking Method - Advantages
- Simple. - Very effective when there are relatively few jobs to be evaluated (less than 30)
Factor Comparison Method - Disadvantages
- The pay for each factor is based on judgements that are subjective. - The standard used for determining the pay for each factor may have build in biases that would affect certain groups of employees (females or minorities).
Point Method - Disadvantages
- The pay for each factor is based on judgments that are subjective. - The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities)
Point Method - Advantages
- The value of the job is expressed in monetary terms. - Can be applied to a wide range of jobs. - Can be applied to newly created jobs
Typically the compensable factors include the major categories of:
Skill Responsibilities Effort Working Conditions