AURORA’S POST-GRADUATE COLLEGE (MCA)

Accredited by NAAC with‘ A+’ Grade

PROJECT SYNOPSIS

Name of the Student : G. VARSHA

Course : MBA

Academic Year : 2021-2023

Hall Ticket No : 1325-21-672-235

Title of the Project : JOB EVALUATION

NAME OF THE COMPANY: CAPITAL IQ

Name of the Guide :

Date of Submission :

Signature of the Student Signature of the Guide

College Seal
 A
SYNOPSIS ON
JOB EVALUATION

AT

CAPITAL IQ

Project Synopsis submitted in partial fulfillment for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
G.VARSHA
1325-21-672-235

AURORA’S POST-GRADUATE COLLEGE (MCA)

Accredited with ‘A+’Grade by NAAC
Ramanthapur, Hyderabad – 500 013

(2021-23)
 TABLE OF CONTENTS

S. No Description Page No
1 INTRODUCTION 1
1.1 Definition of Expatriate -
1.2 Need for the Study -
1.3 Problem Statement -
1.4 Significance of the Study -
1.5 The Objectives of the Study -
1.6 The Hypotheses of the Study -
1.7 Scope of the study -
2 REVIEW OF LITERATURE
2.1 Theoretical Reviews -
2.2 Articles -
3 RESEARCH METHODOLOGY
3.1 Research Design -
3.2 Sampling Procedure -
3.3 Sample Size -
3.4 Methods of Data Collection -
3.5 Questionnaire Design -
3.6 Reliability test -
3.7 Statistical Tools -
CHAPTERIZATION -
BIBLIOGRAPHY -
 1.1 INTRODUCTION:

Job evaluation is the process of systematically determining a relative internal value of a job
in an organization. In all cases the idea is to evaluate the job, not the person doing it. Job
evaluation is the process of determining the worth of one job in relation to that of the other
jobs in a company so that a fair and equitable wage and salary system can be established.

Evaluation types

 Job Ranking is the most simple form. Basically one just orders the jobs according to
perceived seniority. This is easy to do in a small organization, but gets more and more
difficult as different jobs exist within the company.

 Pair Comparison introduces more rigor by comparing jobs in pairs, but really it's a
more structured way of building a basic rank order.

 Benchmarking or slotting sets up certain jobs that are analyzed in detail. These are
then used for comparison to slot jobs against these benchmarks.

 Job Matching allocates benchmarks too, but when a position is matched the elements
of the job that differ are re-evaluated. Usually this evaluation will be done with a
Point Factor Analysis (PFA) or classification system

A United Kingdom Perspective

 The late 1990s saw a move towards widespread introduction of job evaluation across
government with the introduction of the Single Status Agreement for Local
Authorities, Agenda for Change in the NHS, Framework Agreement in Higher
Education and similar moves in the Armed Forces and Civil Service.
Job Evaluation - What is it ?

Job evaluation is a practical technique, designed to enable trained and experienced staff to
judge the size of one job relative to others. It does not directly determine pay levels, but will
establish the basis for an internal ranking of jobs.

The two most common methods of job evaluation that have been used are first, whole job
ranking, where jobs are taken as a whole and ranked against each other. The second method
is one of awarding points for various aspects of the job. In the points system various aspects
or parts of the job such as education and experience required to perform the job are assessed
and a points value awarded - the higher the educational requirements of the job the higher the
points scored. The most well known points scheme was introduced by Hay management
consultants in 1951. This scheme evaluates job responsibilities in the light of three major
factors - know how, problem solving and accountability.

Job Evaluation Concept

Job evaluation is a systematic way of determining the value/worth of a job in relation to other
jobs in an organization. It tries to make a systematic comparison between jobs to assess their
relative worth for the purpose of establishing a rational pay structure.

Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way
of gathering information about a job. Every job evaluation method requires at least some
basic job analysis in order to provide factual information about the jobs concerned. Thus, job
evaluation begins with job analysis and ends at that point where the worth of a job is
ascertained for achieving pay-equity between jobs.

Features

The purpose of job evaluation is to produce a defensible defensive ranking of jobs on which a
rational and acceptable pay structure can be built. The important features of job evaluation
may be summarized thus:
  It tries to assess jobs, not people.
 The standards of job evaluation are relative, not absolute.
 The basic information on which job evaluations are made is obtained from job
analysis.
 Job evaluations are carried out by groups, not by individuals.
 Some subjective element is there in job evaluation.
 Job evaluation does not fix pay scales, but merely provides a basis for evaluating a
rational wage structure.

SIGNIFANCE OF THESTUDY
 Job evaluation helps to rate the job.
 Job evaluation helps to determine pay structure.
 Job evaluation helps in bringing harmonious relation between labour and
management.
 Job evaluation is minimizing the cost of recruitment and selection.

STATEMENT OF PROBLEM

JOB EVALUTION helps the organization to follow systematic way of collecting

data & information of each employee to aid planning, decision –making and
submitting of returns & reports to the external agencies.

This collected information about the personnel will be helpful in solving the
employees problems and organization problems .JOB EVALUTION maintains the
data related to the employee’s personal profile, career profile, skill profile & benefit
profile, which would help in their growth.

JOB EVALUTION also maintains the data related to the personnel identification
i.e. the employee code to recognize every individual with their employee codes.

JOB EVALUTION also includes managing the salary discrepancies of employees.

some modifications are done in order to rectify the salary discrepancies of the
employees.
 1.2.NEED FOR THE STUDY:

 In view of increasing mechanization and automation in industry.

 Job evaluation help’s the management in evolving a rational and consistent wage
policy.

 Job differences are not based on skill differences only.

 Job evaluation is of much help proper recruitment and selection of employees.

 It provides uniform standards to be applied to all jobs in the organization.

 To eliminates wage inequalities within the organization (or) enterprises.

1.4.OBJECTIVES OF THE STUDY

1. To Determine equitable wage differentials between different jobs in the

organization

2. To eliminate wage inequities

3. To develop a consistent wage policy

4. To provide a framework for periodic review and revision of wages

5. To provide a basis for wage negotiations

6. To enable management to gauge and control the payroll costs

7. To minimize wage descriptions on the basis of age, sex, caste, region, religion ,
creed etc
1.3.SCOPE OF THE STUDY

The study with the prime objectives of ascertaining the employees towards the Job
Evaluation program, which are required to perform their jobs effectively. In CAPITAL IQ the
studies include managers and employees.

 The study is confined and relevant only to CAPITAL IQ not applicable to any
organization.
 The study covers motivational practices in CAPITAL IQ at various levels of employees.
 The study assists the management in determining the decision regarding the performance
of the employee.
 REVIEW OF LITERATURE

Job Evaluation Methods

There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor
comparison. While many variations of these methods exist in practice, the three basic
approaches are described here.

Ranking Method

Perhaps the simplest method of job evaluation is the ranking method. According to this
method, jobs are arranged from highest to lowest, in order of their value or merit to the
organization. Jobs also can be arranged according to the relative difficulty in performing
them. The jobs are examined as a whole rather than on the basis of important factors in the
job; and the job at the top of the list has the highest value and obviously the job at the bottom
of the list will have the lowest value.

Jobs are usually ranked in each department and then the department rankings are combined to
develop an organizational ranking. The following table is a hypothetical illustration of
ranking of jobs.

Table: Array of Jobs according to the Ranking Method

Rank Monthly salaries

1. Accountant Rs 3,000

2. Accounts clerk Rs 1,800

3. Purchase assistant Rs 1,700

4. Machine-operator Rs 1,400

5. Typist Rs 900

6. Office boy Rs 600

The variation in payment of salaries depends on the variation of the nature of the job
performed by the employees. The ranking method is simple to understand and practice and it
is best suited for a small organization. Its simplicity, however, works to its disadvantage in
big organizations because rankings are difficult to develop in a large, complex organization.
Moreover, this kind of ranking is highly subjective in nature and may offend many
employees. Therefore, a more scientific and fruitful way of job evaluation is called for.

Classification Method

According to this method, a predetermined number of job groups or job classes are
established and jobs are assigned to these classifications. This method places groups of jobs
into job classes or job grades. Separate classes may include office, clerical, managerial,
personnel, etc. Following is a brief description of such a classification in an office.

(a) Class I - Executives: Further classification under this category may be Office
manager, Deputy office manager, Office superintendent, Departmental supervisor,
etc.

(b) Class II - Skilled workers: Under this category may come the Purchasing
assistant, Cashier, Receipts clerk, etc.

(c) Class III - Semiskilled workers: Under this category may come Steno typists,
Machine-operators, Switchboard operators, etc.

(d) Class IV - Semiskilled workers: This category comprises Daftaris, File clerks,
Office boys, etc.

The job classification method is less subjective when compared to the earlier ranking method.
The system is very easy to understand and acceptable to almost all employees without
hesitation. One strong point in favor of the method is that it takes into account all the factors
that a job comprises. This system can be effectively used for a variety of jobs.

The weaknesses of the job classification method are:

 Even when the requirements of different jobs differ, they may be combined into a
single category, depending on the status a job carries.
 It is difficult to write all-inclusive descriptions of a grade.
  The method oversimplifies sharp differences between different jobs and different
grades.
 When individual job descriptions and grade descriptions do not match well, the
evaluators have the tendency to classify the job using their subjective judgments.

Factor Comparison Method

A more systematic and scientific method of job evaluation is the factor comparison method.
Though it is the most complex method of all, it is consistent and appreciable. Under this
method, instead of ranking complete jobs, each job is ranked according to a series of factors.
These factors include mental effort, physical effort, skill needed, supervisory responsibility,
working conditions and other relevant factors (for instance, know-how, problem solving
abilities, accountability, etc.). Pay will be assigned in this method by comparing the weights
of the factors required for each job, i.e., the present wages paid for key jobs may be divided
among the factors weighed by importance (the most important factor, for instance, mental
effort, receives the highest weight). In other words, wages are assigned to the job in
comparison to its ranking on each job factor.
 2.1 ARTICLES/JOURNALS

LITERATURE REVIEW-01
1. TITLE: Job evaluation.
AUTHOR NAME: Taylor & Francis
ABSTRACT: Journal of Job evaluation is a multidisciplinary and international forum for
critical, mainstream and alternative contributions - focusing as much on psychology, ethics,
culture and behavior as on structure and process. JCM is a platform for open and challenging
dialogue and a thorough critique of established as well as alternative practices.JCM is
aiming to provide all authors with a first decision within six weeks of submission.

LITERATURE REVIEW-02
2. TITLE: Job evaluation.

AUTHOR NAME: Paul.

ABSTRACT: Successful organizations respond intelligently to factors which precipitate

change. Economic climates, political trends, changes in consumer demands, management
policy or structure, employment levels and financial resources - all these elements are
constantly at play to ensure that organizations clinging on to static structures will ultimately
lose out. But change is a dynamic and alarming thing - this journal addresses how to manage
it positively, so that employees give their support and the positive goals set are worked
towards with enthusiasm.

LITERATURE REVIEW-03
3.TITLE: Job evaluationin organizations.
AUTHOR NAME:Steve Garfein, Nick Horney, Marvin Nelson.

ABSTRACT: Organizations today must become more innovative and agile to succeed. By its
very nature, innovation and agility result in constant, ongoing Job evaluationand managing
that change well is part and parcel of realizing business results. The reason any project or
program is undertaken is to drive business value. This value may be in the form of reduced
costs, improved efficiency, or additional products or services just to name a few. Simply
delivering a project output is not enough. The output must be implemented and utilized as
discussed earlier. The final step in the change life cycle framework is measuring the actual
benefit realized and comparing that realized benefit to the original intent.
LITERATURE REVIEW-04
4.TITLE: Organizational Job evaluation.
AUTHOR NAME: Kurt Lewin.

ABSTRACT: Job evaluationat organizational level has been conceived to be an important

aspect of successful change implementation programmes in modern organizations. In order to
benefit from the efficiency that appropriate management of change offers in structured
organizations, the study of management has ascribed importance to the study of Job
evaluationas a management concept. This study has attempted to review existing literature on
the subject. The study presented a conceptual analysis of the concept of change and the
principles developed by practitioners for the management of change. A theoretical review of
the concept was undertaken with focus on the Kurt Lewin’s force field theory which has been
generally accepted as the theoretical foundation of change as attested by the acceptance of the
theory as the bases for all other theories of change and this ascribed the title father of Job
evaluationto Kurt Lewin. This study analyzed the basis of Kurt Lewin’s force field theory
built on three steps of Unfreeze, Change and Refreeze for an effective Job
evaluationprogramme. The Study adopted a case study research conducted by other
researchers to validate the effectiveness of the three stages of effective Job evaluationas
propounded by Kurt Lewin.

LITERATURE REVIEW-05
5.TITLE: Job evaluation.
AUTHOR NAME: K.Aswathappa

ABSTRACT: Job evaluationis a structured approach to transitioning individuals, teams and

organizations form a current state to a desired future state. Its major objective is to maximize
the collective benefits for all people involved in the change and minimize the risk of failure to
change. The major obstacle to Job evaluationis “Resistance to Change”.
 LITERATURE REVIEW-06

6. TITLE: Essentials of Human Resources Management and Industrial Relations.

AUTHOR NAME:P. Subba Rao.

ABSTRACT: Active resistance is the most dangerous factor in Job evaluation. Employees
with Active Resistance may go against the change effort and object the change in
severalmanners. Boycotting the organization, tending to disrupting habits and raising slogans
against the organization are some examples for high negative resistance. In the opposite
nature, passive resistance is calm and doesn’t include violence in any aspect. Passive resisters
are insecure about their position after change. Instead of clearing their insecurities with the
management, they tend to look for a new job and leave the organization. Compliance, is
coping up with the proposed changes with little enthusiasm. Finally, those who
show enthusiastic support are supporters of change, who understand the value of change and
contribute to the effective implementation of change. They are the defenders to
organizational resistance and propagate the new way to actually encourage others around
them to give support and contribute to the overall change effort.
1.5.RESEARCH METHODOLOGY

The present study has been conducted in CAPITAL IQ situated at Hyderabad.

The online Interviews are conducted through a properly

Designed questionnaire constitute the primary source of data for the study.

Unit of study

Two instruments are used; the first one is the management schedule to gather

Information from management on different angles of organization.

The second one intended to administer among the sample.

Research & Design

1. Research method : Survey

2. Data collection Method :

Primary source : Structured closed ended questionnaire

 Secondary source : Company brochures , records , magazines (REINFOREC),

Journals, Internet.

 Research Instrument : Personal Interview with aid

 Sampling plan : Size 100
 Procedure : simple random sampling
1.6.LIMITATIONS:

While the computerized Human Resource Information System, described Earlier, has
many benefits, it also has many problems, which need to be Addresses to before
it can really be useful. Some of them are described Below.

(a) It can be expensive in terms of finance and manpower requirements.

(b) Often the personnel designing JOB EVALUTION do not have a thorough
Understanding of what constitutes quality information for the users. Thus,

The user managers do not get exactly the reports, which they Want Producing
information that is of quality to the users requires an Investment in time,
effort and communication on the part of JOB EVALUTION

Managers.

(c) Computers cannot substitute human beings. Human intervention will Always
be necessary. Computers can at best aid the human effort. The Quality of
response is dependent upon the accuracy of data input and Quires fired.
The ‘Garbage-in Garbage-out’ is the key expression in any Computerized
system.

(d) In many organizations , the system is operated in batch mode with The
records being updated once a week. Online facility in multi- Environmental
needs to be developed so that the reports generated are Not out of
place with the realities.
 PROPOSED OUT COMES

In the above perspective, the present chapter makes an attempt to draw some conclusions. It
should be confessed here that the investigator is conscious of the limitations of the study and
the conclusion drawn on the basis of the sample from a single unit cannot be generalized
about the entire manufacturing sector.

The study examines the readiness for employee Evaluation in six aspects, namely effective
Communication, Value of people, Clarity, Concept about power, Information and Learning.

A perusal of data pertaining to combination makes us to conclude that the Executives have
agreed to the effective down ward communication flow, which is a prerequisite for
Evaluation.

With regard to value of people, the analysis leads to the conclusion that the Executives give
a reasonable value to the Human Resources in the Organization. However, in respect of
concept about power, they are somewhat agreed to share the power.
As far as information sharing with lower rungs is concerned, they are very positive.

One significant conclusion with regards to learning opportunities, which is a basic for
Evaluation, is that the executives are favorable and feel that sufficient learning opportunities
should be there for the rank & file.
 CHAPTERISATION

CHAPTER -1 - INTRODUCTION

This chapter includes the introduction of the topic, need, scope, objectives of the study,

Project limitations and methodology of the study.

CHAPTER - 2 REVIEW OF LITERATURE

This chapter includes the theoretical background and articles written by different

authors and brief explanation of the topic.

CHAPTER - 3 - INDUSTRY PROFILE & COMPANY PROFILE

CHAPTER - 4 - DATA ANALYSIS AND INTERPRETATION

CHAPTER - 5 – SUMMARY AND CONCLUSION

This chapter includes the overall summary of the project and the conclusion based on

the study during the period.

 BIBLIOGRAPHY

BOOKS

 Aswathappa.k, Human resource and personnel management, 3/e, TMH, 2003.

 Mamoria.C.B and Gankar.S.V. Personnel management, text and cases, Himalaya

Publications, 2003.

 Gary Dessler, Human Resource Management, 9/e, Prentice Hall India, 2003.

 Dipak Kumar Bhattacharyya, Compensation Management, First Edition published in

2009 Second Edition published in 2014, Oxford University

 S.P. Gupta, Statistical Methods, 34/e, Sultan Chand & Sons.

JOURNALS

 Richardson, Katherine M.Rothstein, Hannah R. Effects of occupational Compensation

Management Intervention program. 13(1),69-93

 Arnold B. Bakker, Evangelia Domeroutie, William Verbeke.The job demands-

resources model to predict burnout and performance.10,1002/HRM,2000

 Dr. M Onwuka, Dr. Faith Onwuchekwa.Compensation Management and

Organizational Performance. p-ISSN:2319-7668, Volume 20, Issue 9 version III

( September, 2018),PP 36-47

NEWSPAPERS

 The Economic Times

 Business Standards

 Business Line

 Mint
INTERNET

 www.capitaliq.com

 www.phoenixmotors.com

 www.iedunote.com

 www.tutorialspoint.com