What is the Classification Method of Job Evaluation

The Classification Method of Job Evaluation systematically evaluates jobs by comparing their duties, responsibilities, and skill requirements to a set of predetermined job classifications. These classifications are typically based on factors such as knowledge and skills, decision-making authority, scope of responsibility, and working conditions. By comparing jobs to these predefined classifications, employers can assign each job a grade or level, which is often used to determine compensation, promotions, and other employment decisions. This method is relatively straightforward and easy to implement, making it a popular choice for many organizations.

Job Ranking Method of Job Evaluation

Job ranking is a method of job evaluation that involves ranking jobs in order of their relative importance or value to the organization. This method is based on the assumption that jobs can be compared and ranked based on their overall contributions to the organization’s goals and objectives.

To conduct a job ranking, a committee of experts is typically formed. The committee members may include managers, supervisors, HR professionals, and employees from different departments.

The committee members are provided with a list of all the jobs in the organization. They then review each job and discuss its relative importance to the organization. The committee members may consider factors such as the job’s duties and responsibilities, the skills and knowledge required to perform the job, and the impact of the job on the organization’s overall success.

Once the committee members have discussed each job, they vote on the order in which the jobs should be ranked. The job with the highest total number of votes is ranked first, followed by the job with the second highest total number of votes, and so on.

The job ranking method is relatively simple to administer and can be used to evaluate a large number of jobs in a short period of time. However, the job ranking method can be subjective and may not always reflect the actual value of jobs to the organization.

Here are some steps involved in job ranking:

  • Identify the jobs to be ranked.
  • Form a committee of experts.
  • Provide the committee members with a list of all the jobs.
  • Have the committee members review each job and discuss its relative importance to the organization.
  • Have the committee members vote on the order in which the jobs should be ranked.
  • Tabulate the votes and rank the jobs accordingly.

Here is a table that summarizes the advantages and disadvantages of the job ranking method:

Simple to administerCan be subjective
Can be used to evaluate a large number of jobs in a short period of timeMay not always reflect the actual value of jobs to the organization

Factor Comparison Method

The Factor Comparison Method is a job evaluation technique that compares jobs based on factors that are relevant to the organization. These factors are typically identified through a job analysis and may include:

  • Skill
  • Effort
  • Responsibility
  • Working conditions

Once the factors have been identified, each job is rated on a scale for each factor. The ratings are then compared to determine the relative worth of each job.

The Factor Comparison Method is a relatively simple and straightforward job evaluation technique. However, it can be time-consuming to develop the factors and rate the jobs. Additionally, the method is subject to bias if the factors are not carefully selected or if the ratings are not done objectively.

  • Simple and straightforward
  • Can be used to evaluate a wide range of jobs
  • Relatively easy to implement
  • Time-consuming to develop the factors and rate the jobs
  • Subject to bias if the factors are not carefully selected or if the ratings are not done objectively

## Classification Method of Job Evaluation

The classification method of job evaluation groups jobs into a hierarchy of classes based on their similarity in content and complexity. It involves the following steps:

  • Identification of Job Characteristics: Key job characteristics are identified that are relevant to job evaluation, such as skills, responsibilities, working conditions, and intellectual demands.
  • Job Analysis: Each job is analyzed in detail to determine the level of each job characteristic present.
  • Job Description and Evaluation: The job analysis data is used to write job descriptions and evaluate each job based on the identified characteristics.
  • Job Classification: Jobs are grouped into classes based on their overall similarity. Jobs in the same class have similar levels of skill, responsibility, and complexity.
  • Rank Ordering: Classes are then ranked in order of their importance and value to the organization.

Point Method

The point method is a specific type of classification method that assigns numerical points to different job characteristics. The points are then summed to determine the overall job value. Jobs with higher point totals are considered more valuable and are placed in higher job classes.

The point method involves the following steps:

  1. Selection of Factors and Weighting: Job evaluation factors are selected and assigned weights based on their importance to the organization.
  2. Factor Definitions and Degrees: Each factor is defined and divided into degrees, which represent different levels of responsibility or skill required.
  3. Point Allocation: Points are assigned to each degree of each factor.
  4. Job Evaluation: Each job is evaluated by comparing it to the factor definitions and degrees.
  5. Point Summation: The points assigned to each factor are summed to determine the overall job value.
ResponsibilityThe degree of individual accountability and authority5-15
SkillThe level of technical or specialized knowledge required10-20
Working ConditionsThe physical and environmental challenges of the job0-5
Intellectual DemandsThe level of cognitive ability and problem-solving required10-15

Classification Method of Job Evaluation

Job evaluation is a systematic process of determining the relative worth of different jobs based on their duties, responsibilities, and skills required. It enables organizations to establish a fair and equitable pay structure that reflects the value each job contributes to the company.

The classification method is a widely used job evaluation technique that involves grouping jobs into predefined classes based on their similarities and differences. The Hay Method is a well-known classification method that has gained popularity globally.

Hay Method

The Hay Method, developed by Edward Hay in the 1950s, is a comprehensive job evaluation system that evaluates jobs based on three key factors:

  • Know-how: The knowledge, skills, and experience required to perform the job
  • Problem Solving: The level of complexity and decision-making involved
  • Accountability: The scope and impact of the job’s responsibilities and outcomes

Each factor is further divided into sub-factors and assigned points. The total points for all factors determine the job’s level within the organization’s hierarchy.

The Hay Method provides a structured and objective approach to job evaluation, making it suitable for large and complex organizations with diverse job roles.

Know-HowBasic KnowledgeRequired50
Extensive Knowledge150
Skill/AbilityEssential Skill50
Complex Skill100

Thanks for sticking with us through this quick dive into the classification method of job evaluation. We hope you found it helpful and that it gives you a better understanding of how this method works. If you have any more questions, feel free to drop us a line. And be sure to check back in with us later for more HR-related insights and tips. See you soon!