Job Design and Job Evaluation Unit 4

UNIT 4 : JOB DESIGN AND JOB EVALUATION

UNIT STRUCTURE
4.1 Learning Objectives
4.2 Introduction
4.3 Concept of Job Design
4.4 Definitions of Job Design
4.5 Importance of Job Design
4.6 Factors influencing Job Design
4.7 Approaches to Job Design
4.8 Concept of Job Evaluation
4.9 Definitions of Job Evaluation
4.10 Objectivers of Job Evaluation
4.11 Importance of Job Evaluation
4.12 Process of Job Evaluation
4.13 Methods of Job Evaluation
4.14 Let Us Sum Up
4.15 Further Readings
4.16 Answers To Check Your Progress
4.17 Model Questions

4.1 LEARNING OBJECTIVES

After going through this unit, you will be able to-

l explain the concept and importance of Job Design.
l discuss the factors affecting Job Design.
l discuss the various approaches to Job Design.
l describe the concept and objectives of Job Evaluation.
l discuss the process of Job Evaluation.
l discuss the various methods of Job Evaluation.

4.2 INTRODUCTION

It is the most common confusion in the process of Job analysis and

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Job Design. Job analysis is the study of jobs as currently performed by

employees. It identifies job duties and the requirements needed to perform
the specified work successfully. Job Design, which is an outgrowth of job
analysis, is concerned with structuring jobs in order to improve organisational
efficiency and employee job satisfaction. Job Design is particularly concerned
or engaged with changing, modifying and enriching jobs in order to capture
the talents of employees while improving organisational performance.
In order to achieve optional level of performance, the most fundamental
idea of management is the system and method of improvement, by which it
can expects to make optimum use of labour and specialisation and to achieve
order and balance in the performance of work. The most general statement
in this regard is that workers do not like to be ‘engineered; in process of
improvisation. They perceive that improvement is measured in technical terms
and that the human dissatisfaction caused by the ‘improvement’ are generally
underestimated. The goal of methods improvement with respect to Job
Design is greater productivity, but sometimes it brings human complications
which reduces the effectiveness and offset the technical advantages gained.
Let us take the example of companies like– Harley Davidson, Lucent
Technologies and Page Net; they are regularly engaged in continuous
improvement or process of re-engineering, to eliminate unproductive or
unneccessary job or find better ways of performing work. Job Design
facilitates the achievement of organisational objectives. At the same time,
the design should recognise the capabilities and needs of those who are to
perform the specific job.
Again, Job evaluation is the output provided by job analysis. As
mentioned earlier, job analysis describes the duties of a job, authority
relationship, skill required, conditions of work and additional relevant
information. Job evaluation, on the other hand, uses the information of job to
evaluate each job– valuing its components and ascertaining relative job worth.
It involves, in other words, a formal and systemtic comparision of jobs in
order to determine the worth of one job relative to another, so that a wage or
salary hierarchy results.

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This unit will help you in understanding the concept of Job Design
with its importance, the various important approaches of Job Design.
In our discussion, we will also take into account the concept of Job
evaluation; the meaning and concept of Job evaluation, its objectives,
importance, process of job evaluation and the various methods of job
evaluation.

4.3 CONCEPT OF JOB DESIGN

Job Design is the division of total task to be performed into the

manageable and efficient units – positions, departments and divisions; and
to provide for their proper integration. In simple words, it is the logical
sequence of job analysis. Job analysis provides job related data as well as
the skill and knowledge expected of the incumbent to disharge the job. In this
connection, Job Design involves conscious efforts to organise tasks, duties
and responsibilities into a unit of work to achieve certain objectives. In other
words, Job Design involves specifying the content of a job, the work methods
used in its performence and how the job relates to other jobs in the
organisation.

4.4 DEFINITIONS OF JOB DESIGN

In the words of Michael Armstrong, ‘Job Design is the process of

deciding on the content of a job in terms of its duties and responsibilities, on
the methods to be used in carrying out the job, in terms of techniques,
system and procedure and on the relationships that should exist between
the job holder and his superiors, subordinates and colleagues.’
In the words of Mathis and Jackson, ‘Job Design is a process that
integrates work content (task, functions, relationships), the rewards (extrinsic
and intrinsic) and the qualifications required (skills, knowledge, abilities) for
each job in a way that meets the needs of employees and organisations.’
Observing the above definitions, it can be described as the intentional
attempt made to structure both technical and social aspects of the job to
attain a balance between the job holder and the job. The intention of

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undertaking the idea of job design is that job should be designed in such a
way so that it enables employees to control over the aspects of their work.
The objective in this regard is to enhance the quality of the work life,
harnesses the potential of the workers in a more effective manner and
thereby improves employee performance.

4.5 IMPORTANCE OF JOB DESIGN

Job design is important for an organisation to perform the
organisational activities in the most efficient and effective manner. It provides
the required information about the incumbent and also specifies the way of
performing the tasks. Therefore, job design is very important for the
organisation due to its benefits as follows :
1. Organisational Design : The job design specifies the content and
procedures of performing the task in the organisation. Hence, it helps in
designing organisational structure. The organisational structure is determined
by the job design process. It plays a key role in assessing the need and
requirement of organisational structure. Job design also specifies
organisational culture, norms and values that its members need to follow to
achieve organisational goals.
2. Structure of Competent Employee : Job design is a systematic approach
of providing job related data and information on skills. knowledge and ability
of the incumbent to perform the task. On the basis of the information provided
by it, the job description and job specification schedule are prepared, which
helps to the best suited candidate for the job. It provides a milestone to
select the competent employee who is capable of performing the task well
in the organisation.
3. Motivation and Commitment of Employees : Job design makes the
work more interesting and challenging, which motivates the employees for
higher level of performance. Along with motivation job design also brings
high degree of commitment in them towards organisational objectives. This
helps to increase organisational productivity and employee satisfaction at
work.

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4. Environmental Adaptation : An organisation is operated in a dynamic

environment. Hence, any change in the environmental forces can have direct
impact upon organisational performance. Therefore, a systematic job design
process tries to address the change that has occured in the organisational
environment. The process of job design and job re-design is prepared in
such a way that it helps and manage the organisation in the adaptation
process with the environmental forces.
5. Labour Relation : A well prepared job design brings a harmonious relation
between employees and management. On the other hand, poorly prepared
job design creates employee grievances, indiscipline, greater employee
turnover, greater absenteeism and conflict.
6. Quality of Work Life : A quality of work life is understood as an efficient
relationship between employees and organisational working environment.
A properly prepared job design leads to improvement in quality of work life.
With a good design of work schedules, people see a growing future in
organisation which ultimately leads to high motivation at work and a positive
change in their thoughts and beliefs. Finally, these changes will have a
direct impact upon the quality of work life.
7. Organisational Productivity : The job design specifies the contents and
working procedures and how the task is performed. This leads to a positive
change in job performance and job analysis. An a result of which, the
organisational productivity will be enhanced through efficient work
performance.

CHECK YOUR PROGRESS

Q 1: Explain the meaning of job design.

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4.6 FACTORS INFLUENCING JOB DESIGN

Job design is influenced by organisational, environmental and

behavioural factors. All these factors that influence job design are described
below.
Organisational Factors
Organisational factors include characteristics of task, work flow,
ergonomics and work practices. Characteristics of task------ Job design
requires the assembly of a number of tasks into a job or a group of jobs. An
individual may carry out one main task which consists of a number of
interrelated elements or functions. On the other hand, task functions may be
split between a team working closely together or stand along an assembly
line. Complexity in a job be a reflection of the number and variety of tasks to
be carried out.
The internal structure of each task consists of three elements :
(a) Planning - deciding the course of action, time and the resources required.
(b) Executing - carrying out the plan.
(c) Controlling - monitoring performance and taking corrective action when
required.
A completely integrated job will include all these elements for each
of the tasks involved. The worker having been given objectives in terms of
output, quality and cost targets, decides on how the work is to be done,
assembles the resources, performes the work and monitors output, quality
and cost standards. Responsibility in a job is measured by the amount of
authority someone has to put to do all these things. The ideal job design is
to integrate all the three elements.
Work Flow : The flow of work in a form is strongly influenced by the nature
of the product or service. The product or service usually suggests the
sequence and balance between jobs if the work is to be done efficiently.
For example, the frame of a car must be built before the fender and the doors
can be added later. After the sequence of jobs is determined, the balance
between job is established.

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Ergonomics : Ergonomics is concerned with designing and shaping jobs to

fit the physical abilities and characteristics of individuals so that they can
perform their job effiectively. Ergonomics helps employees to design jobs in
such a way that worker’s physical abilities and job demands are balanced.
Ergonomics does not alter the nature of job, tasks but the location of tools,
switches and other facilities, keeping in view that handling the job is the
primary consideration.
Work Practices : Work practices are set ways of performing works. These
methods may arise from tradition or the collective wishes of employees.
Either way, the HR department’s flexibility to design job is limited, especially
when such practices are part of a union-management relationship. Failure
to consider work practices can have undesirable outcomes. Work practices
were, till now, determined by time and motion study which determined the
standard time needed to complete a given job.
Environmental Factors : Environmental elements effect all activities of
Human Resource Management, and job design is no exception. The external
factors that have a bearing on job design are employee abilities and availability,
and social and cultural expectations – Efficiency consideration must be
balanced against the abilities and availability of people who are to do the
work. Every organisation should be aware and awake about the potentialities
of available worker when they are to be engaged to perform a specific task.
Proper estimation regarding the abilities and availability minimises the load
of training to be given to the workers. Therefore considerable thought must
be given as to who will actually do the work.
Social and Cultural Expectations : There were days when getting a job
was the primary considerations. The worker was prepared to work on any
job and under any working conditions.
Now a days, knowledge and awareness among workers have improved
considerably, so also their expectations from the jobs. Hence, jobs must be
designed to meet the expectations of workers.
Behavioural Factors :
Behavioural Factors have to do with human needs and the necessity

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to satisfy them. Higher level needs are more significant in this context. The
behavioural factors to be discussed are as follows –
Feedback – Individuals need to receive meaningful feedback about
their performences, preferably by evaluating their own performance and
defining the feedback. This implise that they need to ideally work on a complete
product or on a significant part of it.
Autonomy – Autonomy is being responsible for what one does. It is
the freedom to control one’s responses to the environment. Jobs that give
workers authority to make decisions will provide added responsibilities, which
tend to increase the employee’s sense of recognition and self- esteem.
Use of abilities – The job must be perceived by individuals as requiring
them to use abilities they value in order to perform the job effectively.
Variety – Lack of variety may cause boredom. Boredom, in turn leads
to job dis-satisfaction. By introducing variety into jobs, the errors can be
minimised.

CHECK YOUR PROGRESS

Q.2. State whether the following statements are true
or false.
(i) Job Design merely means the procedure of a single task of a job.
(ii) The internal structure of each task consist of 3 elements viz planning,
executing and controlling.
(iii) Ergonomics is concerned with designing and shaping the jobs to fit
the physical abilities and characteristics of individual.
Q.3. State the organisational factors affecting the job design of an
organisation.

4.7 APPROACHES TO JOB DESIGN

Job design approaches has two dimensions. i.e Impact and

complexity. The impact dimension, on the vertical axis, is the degree to which
a job design approach is linked with factors beyond the immediate job, such
as reward system, performance apprisal method, leadership, customer
needs, organisational design, working condition and team composition and
norms. The complexity dimension, on the horizontal axis, is the degree to
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which a job design approach requires – (i) the involvement of individuals with
diverse competencies at various organisational levels; (ii) high level at decision
making competency for successful implementation.
In this regard the most popular approaches to job design are
discussed below –
(a) Job Rotation : Job rotation implise the moving of employees from job to
job without any change in the job to add variety and reduce boredom by
allowing them to perform a variety of tasks. In case of Job Rotation, an
employee performs different jobs, but of the same nature. The advantages
of job rotation are – (i) It removes boredom,
(ii) It enhances employee’s knowledge and skills.
(iii) Employee become competent in several jobs rather than only one.
However, Job Rotation has its own disadvantages also.–
(i) Frequent shifting of employees across the jobs causes interruption in the
job schedule.
(ii) Employees may feel alienated when they are rotated from job to job.
(iii) Training cost are increased in case of job rotation. According to Herzberg,
‘Job rotation is merely ‘Substituting on zero for another zero’.
(b) Job Engineering : Job engineering focuses on the task to be performed,
methods to be used, workflows among employees, layout of the workers,
performance standards and interdependence among people and machines.
It is often observed, there job design factors by means of time and motion
studies, determining the time required to do each task and the movement
needed to perform it efficiently.
Specialisation of labour is the ingrediant of job engineering. High level
of specialisation is needed to –
(a) allow employees to term a task rapidly,
(b) permit short work cycles so that performance can be almost automatic
and involve little or no mental effort.
(c) make hiring easier, because low skilled people can be easily trained and
paid relatively low wages.

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(d) Reduce the need for supervision, using simplified jobs and standardisation.
Job engineering may create boring jobs, but it remains an important job design
approach since the resulting cost sharing can be measured immediately
and easily.
Job engineering may be used successfully, subject to the following
rules–
(i) Clear definition of the end product/output.
(ii) Proper communication of the steps/task to be performed to achieve
the goal.
(iii) Proper understanding of the responsibilities associated with the job.
(iv) Availability of the tools, facilities and information needed to perform
the task.
(v) Availability of employee participation.
(c) Job Enlargement : Job enlargement involves adding more tasks to a
given job. This is a horizontal expansion in a job. By additional task, job
enlargement expands job scope and gives variety of tasks to the job holder.
For example, a car washer’s job may be enlarged to lubricate the joints or a
mail sorter’s job could be enlarged to physically delivering the mail. Job
enlargment reduces boredom and monotony by providing the employee more
variety of task in the job. Study shows that job enlargment gives benefits to
the workers in the sense of more satisfaction, enhanced customer service
and less errors.
(d) Job Enrichment : Another approach to job designing is motivating job
enrichment. Reasons for job enrichment being installed are varied. Excessive
job specialisation through job rotation have been dehumanising the work
by making the worker’s job routine, repetitive and removing all challanges
from it. As such, human capabilities are not being fully utlised under such
conditions and it is creating frustration among the workers and alienating
them from their jobs. Moreover, workers today are better educated and well
paid.
Job enrichment involves adding motivating factors to job. Thus job
enrichment is a vertical expansion of a job by adding more responsibility and

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freedom to do it. Fredrick Herzberg describe job enrichment as that type of

improvement in the context of job which may give a worker more of a challenge,
more of a complete task, more responsibility, more opportunity for growth
and more chance to contribute his ideas. Job enrichment increases job depth,
which refers to the degree of control employees have over their work. Job
enrichment can improve the quality of work output, employee motivation and
satisfaction.

CHECK YOUR PROGRESS

Q.4. State the following statements, whether true or
false.
(i) Job Design approaches has 3 dimentions.
(ii) Job Rotation implise moving of employees from one work to a
completely different work.
(iii) Job Rotation reduces the cost of training.
(iv) Specialisation of worker is the key ingredient of Job engineering.
(v) Job enlargment involves the horizontal expansion of the task of a given
Job.

4.8 CONCEPT OF JOB EVALUATION

Wage and Salary are the most important factors in maintaining and
developing good employer-employee relations. It is in the interest of the
organisation to have a sound wage structure so as to attract the talent in an
organisation and, on the other hand, to have a satisfied work group. It is one
of the most difficult functions of the management to determine the rates of
monetary base compensation. Determining the best compensation is again
equally important for the employees because it determines the status of
employee in the society in the sense of life style and standard of living. The
primary objective of a sound wage and salary administration programme is
that each employee should be equitable in terms of compensation for the
services rendered by the individual to the employer on the basis of –

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(a) The nature of the Job.

(b) The present relative worth of the Job.
(c) The effectiveness with which the individual performs the job.
The first two factors are closely related to Job evaluation and the
third to the performence apprisal.
The most important decision on compensation for a job usually involves
the comparision of the job to other jobs either within the organisation or to
similar jobs in other organisation. This comparison is basically done with the
help of Job evaluation.
This is important to note that Job evaluation while identifying the
value of a job, evaluates the job not the job holder. Job evaluation assumes
normal performance of the job by the worker. Thus the process of job
evaluation ignores individual abilities of the job holder.
Job evaluation provides basis for developing job hierarchy and fixes
proper wage and salary structure.
Job evaluation is an attempt to determine and compare demands,
which the normal performance of a particular job makes by normal workers
without taking into account the individual abilities or performance of the
workers concerned.
The evaluation may be achieved through the assignment of points
or the use of some other systematic methods for essential job requirements,
such as skills, experience and responsibility. It does not set the price of a
job; it merely fixes its relative worth. It presents 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. It is not evaluating the merit of the worker
who is doing the work. It rates the job and not the qualities of the individual
worker on the job.

4.9 DEFINITIONS OF JOB EVALUATION

Some of the important definitions of job evaluation. –

In the words of Edwin B. Flippo, ‘Job evaluation is a systematic and
orderly process of determining the worth of a job in relation to other jobs.’

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According to International Labour Organisation : ‘Job evaluation may

be defined as an attempt to determine and compare the demands which the
normal performence of particular job makes by normal workers without taking
account of the individual abilities or performance of the workers concerned.
According Dale Yoder, ‘Job evaluation is a practice which seeks to
provide a degree of objectivity in measuring the comparative value of jobs
within an organisation and among similar organisations.’
According to Bureau of Labour Statistics, ‘Job evaluation is the
evaluation or rating of job to determine their position in job hierachy. The
evaluation may be achievement through assignment of points or the use of
some other systematic rating method for essential job requirements such
as skill, experience and responsibility.’

4.10 OBJECTIVES OF JOB EVALUATION

(a) To secure and maintain complete, accurate and impersonal

descriptions of each distinct job or occupation in the entire plant.
(b) To provide a standard procedure for determining the relative worth
of each job in a plant.
(c) To determine the rate of pay for each job which is fair and equitable
with relation to other jobs in the plant, community or industry.
(d) To ensure that, wages are paid to all qualified employees for
advancement and transfer.
(e) To promote a fair and accurate consideration of all employees
for advancement and transfer.
(f) To provide a factual basis for the consideration of wage rates for
similar jobs in a community and in an industry.

4.11 IMPORTANCE OF JOB EVALUATION

The importance of Job Evaluation may be judged from the following

grounds –
1. Rational Wage Structure : Job evaluation eliminates wage inequalities in
the organisation and facilitates the formation of a rational wage structure.

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With its help wage structure is designed on the basis of weights alloted to
different factors like skill, responsibility, supervision required etc.

2. Removal of Inequalities : Job evaluation evolves standard rates for similar

or comparable job in the organisation and thus eliminates wage inequalities.
It removes internal as well as external inconsistencies in wages paid in similar
firms and social costs are also taken into consideration while fixing the value
for the job.

3. Good Industrial Relations : It is a common experience of all concerned

that the biggest single factor contributing to industrial disputes and
dissatisfaction is inequalities in wage rates. Job evaluation evaluates the job
and the job holder and hence it eliminates the said inequalities by fixing
accurate and fair wage to each job holder.

4. Proper Emphasis on Job Factors : Job evaluation gives proper emphasis

on job factors. It is made after proper scrutiny of the various factors determined
by the job analysis and presented by the job values are estabilshed only after
taking various job factors into consideration.

5. Scientific Selection and Recruitment : It helps in a scientific requirement

and selection of employees because jobs are properly described and depicted.
Job evaluation involves job analysis and appraisal which are of great use
while recruiting personnel. Selection and placement can be made objectively
by matching the qualifications of the candidates with job specification. Job
evaluation helps in keeping down the cost of recruitment.

6. Performance Apprisal : Job evaluation helps in performance appraisal. It

helps in the evolution of uniform standard for all the jobs in the organisation.
It becomes very easy to review job rates.

7. Training and Development : In a proper job evaluation system, the

position of job is fixed. Every worker knows the job description and job
specifications of each job. He tries to develope his personality so as to occupy
higher position. Job evaluation helps in training the supervisors in the function
of judging and helping the personnel.

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8. Multifarious Use : Job evaluation facilitates control over labour, proper

selection training, incentives to workers, simplification of job and overall
improvement of working conditions.

CHECK YOUR PROGRESS

Q:5 Explain two objectives of Job Evaluation.

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4.12 PROCESS OF JOB EVALUATION

Job evaluation is a procedure of comparing the content of jobs in

relation to one another, in terms of their skill and responsibilities. There is no
standardised procedure for planning, installing and operating a system of job
evaluation. Each scheme is tailored to meet the needs of the business
concerned. An outline of the basic and general procedure involved in job
evaluation is given below –
(1) Job Analysis – All necessary informations for job evaluation are collected
through job analysis. Job analysis defines the activities involved in job
requirement are collected through job analysis.

(2) Job Description – The next step is an analysis and proparation of job
description. Job description is very useful in job evaluation because it defines
the title of the job; analyses the job; states the responsibilities involved and
conditions of employment for each job.

(3) Selection and Preparation of Job Evaluation Plan : In this step, the
job is broken down into its component parts i.e. it should involve the selection
of factors, elements needed for the performence of all jobs for which money
is paid, determing their value and preparing written instruction for evaluation.

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(4) Job Grading or Classification : This requires groupting or arranging

jobs in a correct sequence in terms of value and preparing written instruction
for evaluation.

(5) Installation of programme : This involves explaining it to the employees

and putting into operation. The programme may be amended according to
changing requirements and situation.

(6) Maintaining the programme : Jobs cannot continue without updating

new jobs and job changes in obedience to changing condition and situation.
Therefore, job evaluation programme requires regulare upgradation and
maintanance.

4.13 METHODS OF JOB EVALUATION

There are four basic, traditional systems of job evaluation, i.e (1)
The ranking system, (2) The grading or job classification system, (3) The
point system and (4) The factor comparison system.
The first two system are popularly known as the Non Analytical or
Non Quantitative or Summary systems because they utilise Non Quantitative
methods of listing jobs in order of difficulty. The last two methods are called
Analytical or Quantitative systems, because they uses Quantitative
techniques in listing the jobs. They are more complex and are time
consuming.
These four basic method of job-evaluation currently in use are
discussed below –
Ranking Method –
The ranking method is the simplest form of job-evaluation. In this
method, each job as a whole is compared with other and this comparison of
jobs goes on until all the jobs have been evaluated and ranked. All jobs, under
this method, are ranked in order of their importance from the simplest to the
hardest or from the highest to the lowest. The importance of order of job is
judged in terms of duties, responsibilities and demands on the job holder.
The jobs are ranked according to ‘the whole job’ rather than a number of

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compensable factors. The application of Ranking Method involves the

following procedure :
1. Analyse and describe jobs, bringing out those aspects which are
to be used for purpose of job comparison.
2. Identify benchmark jobs (10 to 20 jobs, which include all major
departments and functions). The jobs may be the most and least important
jobs, a job midway between the two extremes, and others at the higher or
lower intermediate points.
3. Rank all jobs in the organisation around the benchmark jobs until
all jobs are placed in their rank order of importance.
4. Finally, divide all the ranked jobs into appropriate groups or
classifications by considering the common features of jobs such as similar
duties, skills or training requirements. All the jobs within a particular group
or classification receive the same wage or range of rates.
Ranking Method is appropriate for small sized organisation where
jobs are simple and few. It is also suitable for evaluating managerial jobs
wherein job content cannot be measured in quantitative terms. Ranking
system being simple one can be used in the initial stages of job-evaluation in
an organisation.
Merits : (1) The Ranking system is simple, easily understood and
easy to explain to employees. Therefore, it is suitable for small organisation
with clearly defined jobs.
(2) It is far less expensive to put into effect than other systems, and requires
little effort for maintenance.
(3) It requires less time, fewer forms and less work, unless it is carried to a
detailed point used by company.
Demerits :
(1) As there is no standard for an analysis of the whole job position,
different bases of comparison between rates occur. The process is initially
based on judgment and, therefore, tends to be influenced by a variety of
personal biases.
(2) Specific job requirements (such as skill, effort and responsibility)

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are not normally analysed separately. Often a rater’s judgement is strongly

influenced by present wage rates.
(3) The system merely produces a job order and does not indicate to
what extent it is more important than the one below it. It only gives us its
rank or tells us that it is higher or more difficult than another; but doesnot
indicate how much higher or more difficult.
Grading or Job Classification Method
Under this system, a number of pre-determined grades or
classifications are first established by a committee and then the various
jobs are assigned within each grade or class. Grade descriptions are the
result of the basic job information which is usually derived from a job analysis.
After formulating and studying job descriptions and job specifications, jobs
are grouped into classes or grades which represent different pay levels ranging
from low to high. Common tasks, responsibilities, knowledge and experience
can be identified by the process of job analysis. Certain jobs may then be
grouped together into a common grade or classification depending on their
similarities. General grade descriptions are written for each job classification,
and finally they are used an a standard for assigning all the other jobs to a
particular pay scale.
The following five steps are generally observed in the process of
Grading of jobs –
(1) The preparation of job descriptions, which gives the basic job
information, usually derived from a job analysis.
(2) The preparation of grade description, so that different levels or
grades of jobs may be identified. Each grade level must be distinct from the
grade level adjacent to it; at the same time, it should represent a typical step
in a continuous way and not a big jump or gap. After establishing the grade
level, each job is assigned to an appropriate grade level on the basis of the
complexity of duties, non supervisory responsibilities and supervisory
responsibilities.
(3) Selection of grades and key jobs. At this stage, abour 10 - 20 jobs
are selected, which include all the major departments and functions and

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cover all the grades.

(4) Grading the key jobs. Key jobs are assigned an appropriate grade
level and their relationship to each other are studied.
(5) Classification of all jobs. Jobs are classified by grade definitions.
All the jobs in the same grade receive the same wage or range of rates. For
example - clerks and junior officers may be kept in two different classes as
lower and higher.
Merits :
(1) This method is simple to operate and understand, for it doesnot
take much time or require technical help.
(2) The use of fully described job classes meets the need for
employing systematic criteria in ordering jobs to their importance. Since many
workers think of jobs in, or related to clusters or groups, this method makes
it easier for them to understand rankings.
(3) The grouping of jobs into classifications makes pay determination
problem administratively easier to handle. Pay grades are determined for
and assigned to all the job classification.
(4) It is used in important government services and operates
efficiently; but it is rarely used in an industry.
Demerits
(1) Although it represents an advance in accuracy over the ranking
method, it still leaves much to be desired because personal evaluation by
executives (unskilled in such work) establish the major classes and determine
into which classes each job should be placed.
(2) Since no detailed analysis of a job is done, the judgment in respect
of a whole range of jobs may produce an incorrect classification.
(3) It is relatively difficult to write a grade description. The system
becomes difficult to operate as the number of jobs increases.
(4) It is difficult to know how much of a job’s ranks is influenced by the
man on the job.
Again this system is rather rigid and unsuitable for a large organisation
or for a varied work.

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Point Rating Method

This is the most widely used method of job evaluation. Under this
method, jobs are broke down, based on various identifiable factors such as
skill, effort, training, knowledge, hazards, responsibility, etc. Thereafter, points
are allocated to each of these factors. Weights are given to factors, depending
on their importance to perform the job. Points so allocated to various factors
of a job are then summed. Then, the jobs with similar total of points are
placed in similar pay grades. The sum of points gives an index of relative
significance to the jobs that are rated.
The procedure involved in determing job points are briefly discussed
below –
1. Determine the jobs to be evaluated. Jobs should cover all the major
occupational and levels of responsibility to be covered by the method.
2. Decide on the factors to be used in analysing and evaluating the jobs.
The number of factors need to be restricted because too many factors result
in an over-complex scheme with overlap and duplication between factors.
3. Define the factors clearly in written. This is necessary to ensure that different
job raters interpret a particular factor in the same sense.
4. Determine degrees of each factor and assign point value to each degree.
5. Point values are assigned to different degrees on the basis of arithmetic
progression.
6. Finally, money values are assigned to points. For this purpose, points are
added to give the total value of a job. Its value is then translated into money
terms with a pre-determined formula.
Merits :
1. It is the most comprehensive and accurate method of job evaluation.
2. Prejudice and human judgment are minimised, i.e. the system cannot be
easily manipulated.
3. Being the systematic method, workers of the organisation favour this
method.
4. The scales developed in this method can be used for long time.
5. Jobs can be easily placed in distinct catagories.

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Demerits :
1. It is both time consuming and expensive method.
2. It is difficult to understand for an average worker.
3. A lot of clerical work is involved in recording rating scale.
4. It is not suitable for managerial jobs wherein the work content is not
measurable in quantitative terms.
Factor comparison method
Thomas E. Hitten was the first to originate factor comparison method of
job-evaluation. This method determines the relation rank of the jobs to be
evaluated, like middle level or lower level jobs. It is essentially a combination
of the ranking and point systems. Like the rank order method, it rates jobs by
comparing one with another . Again, like the point system, it is more analytical
in the sense of sub-dividing jobs into compensable factors and find rating
one expressed in terms of numbers. These factors are not pre-determined
and chosen on the basis of Job Analysis. The most widoly used factors are –
(a) Mental Requirements, (b) Skill requirements, (c) Physical requirements,
(d) Responsibilities and (e) Working conditions.
The mechanism for evaluating jobs under this method involves the
following steps –
(1) First of all, the key or benchmark jobs are selected as per standards.
The key jobs selected should have standards contents, well accepted pay
rates in the community and should consist of a representative cross-section
of all jobs that are being evaluated from the lowest to the highest paid job,
from the most important to the least important – and cover the full range of
requirements of each factor, as agreed upon by a committee representing
workers and management.
(2) The factors common to all jobs are identified, selected and defined
precisely. The common factors to all jobs are usually five; viz; mental
requirements, physical requirements, skill requirements, working conditions
and responsibility.
(3) Once the key jobs are identified and also the common factors are chosen,
the key jobs are, then, ranked in terms of the selected common factors.

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Unit 4 Job Design and Job Evaluation

(4) The next step is to determine a fair and equitable base rate (usually
expressed on an hourly basis) and, then, allocate this base rate among the
five common factors as mentioned earlier.
Following is a specimen of base rate and its allocation scheme :
Key Base Rate Mental Physical Skills Working Responsibility
Jobs (Daily) Require- Require- Condition
ment ment
Electri-
cian 60 13 12 5 12 18
Welder 50 10 19 5 4 12
Mecha-
nist 80 25 5 23 24 3

(5) The final step in factor comparison method is to compare and evaluate
the remaining jobs in the organisation. To illustrate, a ‘toolmaker’ job is to
be evaluated. After comparison, it is found that its skill is similar to electrician
(5), mental requirements to welder (10) physical requirements to again
electrician (12), working conditions to mechanist (24) and responsibility also
to mechanist (3). Thus, the wage rate for the job of toolmaker will be Rs. 54
(Rs. 5 + Rs. 10 + Rs. 12 + Rs. 24 + Rs. 3).
Merits :
(1) It is more objective method of job evaluation.
(2) This method is flexible as there is no upper limit on the rating of a factor.
(3) It is fairly easy method to explain to employees.
(4) The use of limited number of factors (usually five) ensures less chances
of overlapping and over weighting of factors.
(5) It facilitates determing the relative work of different jobs.
Demerits :
(1) It is expensive and time - consuming method.
(2) Using the same five factors for evalvating jobs may not always be
appropriate because jobs differ across and within organisation.
(3) It is difficult to understand and operate.

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CHECK YOUR PROGRESS

Q.no.6. Fill in the blanks –

(i) The ranking system is known as ..........................
(ii) Ranking method is suitable for ........................... size organisation.
(iii) Grading system is ................................ and unsuitable for
......................... organisation.
(iv) Point rating is most ........................... method of job evaluation.
(v) ......................... was the first person who initiate the factor
comparison method.

4.14 LET US SUM UP

In this unit, we have discussed the following aspects of Job
Design and job avaluation.
l Job Design is the study of the job that identifies job duties and the
requirements needed to perform the work successfully.

l The various importances of job designs are– it helps in organisational

designing; it builds the structure of competent employee; it motivates the
employee; it geates environmental adaptation; it brings harmonious labour
relation; it leads to improvement in quality of work life; and it enhances the
organisational productivity.

l The various factors that influence the Job Design are– organisational factors,
Environmental factors and behavional factors.

l The most popular job design epproaches are – Job Rotation, Job
angineering, Job engineering, Job enlargment and Job enrichment.

l Job evaluation is a systematic and orderly process of determining the

worth of a job in relation to other jobs.

l The importance of Job evaluation are– it brings Rational Wage structure,

Removal of inequalities, It builds Good Industrial Relations, it gives proper
emphasis on job factors, it is the scientific selection and recruitment, It helps

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Unit 4 Job Design and Job Evaluation

in performance apprisal and training and development.

l The steps in the process of job evaluation.

l The various methods of job evaluation are– ranking method, grading

method, point method and factor comparison method.

4.15 FURTHER READINGS

1) Human Resource Management by V. S. P. Rao.

2) Human Resource Management by C. B. Mamoria.
3) Human Resource Management by K. Aswathapa.

4.16 ANSWERS TO CHECK YOUR

PROGRESS

Ans. to Q. No. 1

Job design is the division of total task to be performed into the manageble
and efficient unit– positions, departments and divisions and to provide for
their proper integration.

Ans. to Q. No. 2

(i) False (ii) True (iii) True.

Ans. to Q. No. 3

Characteristic to task, work flow, ergonomies and work practiees.

Ans. to Q. No. 4

(i) False (ii) False (iii) False (iv) True (v) True.

Ans. to Q. No. 5

(i) To secure and maintain complete, accurate and impersonal descriptions

to each distinct job in the entire plant, (ii) To provide a standard procedure for
determining the relative worth of each job in a plant.

Ans. to Q.No. 6

(i) Non analytical/Non Quantitative method.

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(ii) Small

(iii) rigid, large

(iv) Comprehensive

(v) Thomas E. Hitlen.

4.17 MODEL QUESTIONS

Q.1. Define Job Design. Discuss its importance.

Q.2. Explain the factors that influence the Job Design of an organisation.

Q.3. Discuss the approaches to Job Design.

Q.4. Define Job Evaluation. Write briefly about its objectives and importance.

Q.5. Explain the Job Evaluation process.

Q.6. Discuss the different methods of job evaluation.

*** ***** ***

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