Job Classification – A Method Of
Job Evaluation
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Outline
Brief introduction to Job Evaluation
Job classification Meaning & Definition
Different ways to classify Jobs
Job Classification : Purpose ,Goals
Data collection Process
Factors affecting Job Classification Method
Advantages & Disadvantages
Format examples & company example
Job Evaluation
• Process of systematically determining the relative worth of jobs
to create a job structure for the organization.
• The evaluation is based on a combination of job content, skills
required, value to the organization, organizational culture, and
the external market.
• This potential to blend internal forces and external market
forces is both a strength and a challenge to job evaluation.
Job Evaluation Methods
• Job Ranking
– Raters examine job description and arrange jobs according
to value to company
• Job Classification
– Classes or grades are defined to describe a group of jobs.
• Point Method
– Numerical values are assigned to specific job components;
sum of values provides quantitative assessment of job’s
worth (Hay Guide Chart-Profile Method)
Job classification-
Definition
• Job classification is a systemic method of assigning value to
individual positions to develop a job worth hierarchy.
Job Classification-
Meaning
• Simple
• Raters categorize jobs into groups
• All the jobs in each group are almost of the same value for
pay purposes.
• Groups- classes {same job}
• Groups –grades {similar in difficulty but otherwise
different}
Ways to categorize Jobs
There are several ways to actually categorize jobs
• 1: write class or grade job descriptions and place jobs into
classes or grades or grades based on how well they fit
these descriptions
• 2. Write a set of compensable factor base rules for each
class (skill, physical effort)
• The most popular method is to choose compensable
factors and then develop class or grade descriptions for
each class or grade of job .
Job classification - Purpose
• Its purpose is to determine a position’s relative size within the
hierarchy.
• It is a formal and systematic comparison of jobs to determine
the size of one job relative to another.
• The basic procedure is to compare the job content of each job
in relation to one another by determining the amount of skill,
effort, and responsibilities that is inherent within each job.
Job Classification - Goals
• Ensures that all positions are classified within the
established job evaluation plan.
• One classification program for the entire organisation;
• Standardize classification criteria;
• Consistent evaluation of jobs.
Job Classification –Data
Collection Process
Step 1: A job classification review is to be initiated:
Step 2: The hiring manager, completes the Position Analysis
Booklet (PAB) and acquires department head approval.
Section I.docx
Step 3: Position Analysis Booklet is sent to the HR-DEPT
Process
• Jobs are classified into an existing grades GRADES.docx
• Each job is assigned to the grade providing the closest match
to the job
• Each level in the grade structure has a description and
associated job titles GRADE_EXPLAIN.docx GRADE_EG.docx
• Separate classes may include office, clerical, managerial,
personnel, etc
E.g.. Following is a brief description of
classification in an office
(a) Class I - Executives: Further classification under this category :
Office manager, Deputy office manager, Office superintendent,
Departmental supervisor, etc.
(b) Class II -Skilled workers: Under this category : the Purchasing
assistant, Cashier, Receipts clerk, etc.
(c) Class III - Semiskilled workers: Under this category: Steno
typists, Machine-operators, Switchboard operators, etc.
(d) Class IV - Semiskilled workers: This category comprises: File
clerks, Office boys, etc.
Factors Affecting : Job
Classification Method
• Know-How:
• Problem-Solving:
• Accountability:
• Job Title:
• Job Family:
• Pay Grade:
Advantages
• Simple
• The system is very easy to understand and acceptable to
almost all employees without hesitation
• It takes into account all the factors that a job comprises
• Can be effectively used for a variety of jobs.
Disadvantages
• The standard used for comparison (the grade) 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
• It is difficult to write all-inclusive descriptions of a grade
Company e.g.
• Federal Government pay grade system
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