Job Evaluation Method

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Job Evaluation Methods: Ranking
• Ranking each job relative to all other jobs,
usually based on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.

© 2008 Prentice Hall, Inc. All rights reserved.

11–1

TABLE 11–3

Job Ranking by Olympia Health Care

Ranking Order
1. Office manager

Annual Pay Scale
$43,000

2. Chief nurse

42,500

3. Bookkeeper

34,000

4. Nurse

32,500

5. Cook

31,000

6. Nurse’s aide

28,500

7. Orderly

25,500

© 2008 Prentice Hall, Inc. All rights reserved.

11–2

Job Evaluation Methods:
Job Classification
• Raters categorize jobs into groups or classes of
jobs that are of roughly the same value for pay
purposes.
 Classes contain similar jobs.


Administrative assistants

 Grades are jobs similar in difficulty but otherwise

different.


Mechanics, welders, electricians, and machinists

 Jobs are classed by the amount or level of

compensable factors they contain.

© 2008 Prentice Hall, Inc. All rights reserved.

11–3

Job Evaluation Methods: Point Method
• A quantitative technique that involves:
 Identifying the degree to which each compensable

factor is present in the job.
 Awarding points for each degree of each factor.
 Calculating a total point value for the job by adding

up the corresponding points for each factor.

© 2008 Prentice Hall, Inc. All rights reserved.

11–4

Quantitative Job Evaluation Methods
• Factor Comparison Job Evaluation Method
Step 1. Obtain job information
Step 2. Select key benchmark jobs

Step 3. Rank key jobs by factor
Step 4. Distribute wage rates by factors
Step 5. Rank key jobs according to wages
assigned to each factor
Step 6. Compare the two sets of rankings to
screen out unusable key jobs
Step 7. Construct the job-comparison scale
Step 8. Use the job-comparison scale
© 2008 Prentice Hall, Inc. All rights reserved.

11–5

The Point Method of Job Evaluation
Step 1. Determine clusters of jobs to be
evaluated
Step 2. Collect job information
Step 3. Select compensable factors
Step 4. Define compensable factors

Step 5. Define factor degrees
Step 6. Determine relative values of factors

© 2008 Prentice Hall, Inc. All rights reserved.

11–6

TABLE 11–A5

Evaluation Points Assigned to Factors and Degrees

FirstDegree
Points

SecondDegree
Points

ThirdDegree
Points

FourthDegree
Points

FifthDegree
Points

Decision making

41

82

123

164

204

Problem solving

35

70

105

140

174

Knowledge

24

48

72

96

123

© 2008 Prentice Hall, Inc. All rights reserved.

11–7

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