The job classification method of job evaluation is also called job grading.

Job analysis describes a job. Job evaluation develops a plan for comparing jobs in terms of those things the organization considers important determinants of job worth. This process involves a number of steps that will be briefly stated here and then discussed more fully.

a) Job Analysis.

The first step is a study of the jobs in the organization. Through job analysis, information on job content is obtained, together with an appreciation of worker requirements for successful performance of the job. This information is recorded in the precise, consistent language of a job description.

b) Compensable Factors.

The next step is deciding what the organization "is paying for" -- that is, what factor or factors place one job at a higher level in the job hierarchy than another. These compensable factors are the yardsticks used to determine the relative position of jobs. In a sense, choosing compensable factors is the heart of job evaluation. Not only do these factors place jobs in the organization's job hierarchy, but they also serve to inform job incumbents which contributions are rewarded.

What are Compensable factors?

1. Experience level- How much work experience is needed to perform a job or the prior experience of the employee, whether he has worked in similar industry previously or some other.

2. Educational qualifications- what are all the educational qualifications that are required for the job.

3. Working Condition- the working condition of the job in which the employee would be working (overall environmental factors such as location, hazards and any extreme factors).

4. Confidential Data- the extent to which the employee is exposed to the confidential data.

5. Consequences of mistakes and errors- consequences of the mistake or error occurrence by the employees, effects of those errors or mistake.

6. Complexity of duties- the difficulty level of the duties and task, whether too much decision making is involved in job or not and judgement skills are required or not.

7. Responsibility- the extent of the responsibility the employee entitled to.

8. Mental and physical demands- the degree of concentration and the environment accordingly and level and frequency of physical effort.

c) Developing the Method.

The third step in job evaluation is to select a method of appraising the organization's jobs according to the factor(s) chosen. The method should permit consistent placement of the organization's jobs containing more of the factors higher in the job hierarchy, than those jobs lower in the hierarchy.

d) Job Structure.

The fourth step is comparing jobs to develop a job structure. This involves choosing and assigning decision makers, job category, level, and setting up the job hierarchy.

• Simple.
• The grade/category structure exists independent of the jobs. Therefore, new jobs can be classified more easily than the Ranking Method.

• Classification judgments are subjective.
• The standard used for comparison (the grade/category structure) 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.

Which method of job evaluation is also known as grading?

What is job classification in job analysis?

What are the 4 methods of job evaluation?

What are the 5 types of job evaluation methods?