Question

Identify and summarize the basic methods of job evaluation.

Answer 1

Methods of job evaluation:

The basic three methods of evaluation that are done do rank specific job titles and their relative worth within the company are:

1. Ranking method: As the name suggests, the ranking method of job evaluation is the process of ranking the jobs in an order based on its duties and power. The top hierarchy is considered important because of its higher responsibilities and salaries. The ranking method is best suited for smaller companies having around 40 to 50 employees.
2. Point method: The point method is similar to the ranking method but instead of ranks, points are given based on the importance, knowledge, expertise and the demand for each and every job. The point system is best suited for large organizations and it is easier to implement.
3. Classification method: In the classification method, the jobs are classified and grouped into clusters which are generally called grades. The classification method is best suited when the job positions are generic. Once they are classified, each cluster would be broken down into different levels like level one, level two and level three depending on the education and experience.