PSYCH-105 Industrial Psychology

Chapter 14: Job Analysis

Unit 1

Unit 2

Unit 3

Unit 4

Appendix

Methods of Job Evaluation

RANKING METHOD

According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also 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.

Jobs are compared to each other based on the overall worth of the job of the organization. The worth of a job is usually based on judgment of skills, efforts, responsibility and working conditions. A summary method based on ranking of job post hardest to easiest. 

Advantages of Ranking Method

  1. Simple.
  2. Easily understood by the employees
  3. Very effective when there are less than 30 jobs 

Disadvantages of Ranking Method

  1. Difficult to administer as the number of jobs increases
  2. Rank judgments are subjective
  3. Ranking process needs to be repeated each time a new job is added to the organization

CLASSIFICATION METHOD

A summary method based on grouping job posts into homogenous classes (categories) then compared to any model.

The classification of the positions is decided by comparing the whole job with the appropriate job grading standards. The standards identify and describe those key characteristics of occupation which are significant for distinguishing different levels of work. 

Advantages of Classification Method

  1. Simple
  2. Grade / category structure are independent to the job therefore new job can be classified more easily.

Disadvantages of Classification Method

  1. Classification judgments are subjective
  2. Standards may include biases that may affect certain groups of employees (female or minorities).
  3. Some jobs may appear to fit in more than one job category.

FACTORS COMPARISON METHOD

An analytical method based on determining the right hierarchy of job posts regardless of level of difficulty. 

A set of compensable factors are identified for determining the worth of jobs. Factors are skill, responsibilities efforts working conditions.

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, responsibility, supervisory responsibility, working conditions and other such factors.

Advantages of Factors Comparison Method

  1. Value of job is expressed in monitory term
  2. Can be applied to wide range of jobs
  3. Universal – it can be used in different organizations
  4. Can be applied to newly created jobs

Disadvantages of Factors Comparison Method

  1. Pay is based on judgments that are subjective
  2. Difficult in appropriate selection of key job posts
  3. Standards may include biases that may affect certain groups of employees (female or minorities)

POINT METHOD

A set of compensable factors are identified as determining the worth of jobs. The point method is an extension of the factor comparison method. Typically, the compensable factors include the major categories of:

  1. Skill
  2. Responsibilities
  3. Effort
  4. Working Conditions

These factors can then be further defined.

1. Skill

       1. Experience

       2. Education

       3. Ability (initiative and ingenuity)

2. Responsibilities

     1. Fiscal

     2. Supervisory

3. Effort

     1. Mental and psychological demands

     2. Physical

4. Working Conditions

     1. Location

     2. Hazards

     3. Extremes in Environment

Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job. Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.

Advantages of Point Method

  1. Value of job is expressed in monitory term
  2. Can be applied to wide range of jobs
  3. Can be applied to newly created jobs

Disadvantages of Point Method

  1. Pay is based on judgment s that are subjective
  2. Standards may include biases that may affect certain groups of employees (female or minorities)

Author – Dr. Niyati Garg

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