Types of Job Evaluation


A job appraisal is a systematic process through which an organization can determine the monetary worth, importance and complexity of a job position relative to another. An effective job evaluation could essentially help an organization to realize the worth of a job position and also identify the potential shortcomings of the same. Job evaluations are conducted based on certain parameters, according to which it is being further classified into various categories as follows.

Job Evaluation Based on Ranking: The most common and simplest job evaluation technique is based on ranking which is exercised for ranking the jobs in an organization according to the difficulty and education required for performing the particular job. Based on these ranks the compensation for a particular position is decided i.e. the highest rank would get highest salary. This type of job evaluation is a common practice of small businesses with tight budget.

Point Method: This job evaluation method is considered as a complex yet dynamic process of appraising the worth of a job position. This method assigns points to various compensation factors based on responsibility, skill level, working conditions and effort needed. The jobs that receive highest points receive the highest pay through the evaluation of this popular job appraising technique.

Job Evaluation Based on Market Pricing: This job evaluation is done by comparing the worth of two similar kind of jobs position in the market. This is a way through which similar types of jobs in other companies within a geographical area could be determined along with its corresponding market value.

Whole Job Evaluation: This a job evaluation process that helps in determining all factors associated with a particular job position. This does not compare similar types of jobs instead it access the worth of a particular job position completely by its aspects and roles designated.

Category: Job Evaluation

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