In contrast to job specification, job evaluation specifies the relative value or worth of each job in a company by examining the task and ranking the jobs accordingly.
Job evaluation cab be done by any of the following methods −
● Points rating − Different levels are allotted to the various elements of jobs and then the points allocated to different levels are summarized to get the point score of the jobs. It forms the basis of pay structure.
● Factor comparison − A comparison of different independent factors of jobs is done and points are given to each factor scale of individual job. These points are then aggregated to rank the jobs.
● Job ranking − A job is not broken into factors or elements; instead, it is evaluated as a complete process and is compared with other jobs. After proper evaluation, jobs are scaled accordingly.
● Paired comparison − Jobs are compared with each other and points are allocated depending on being ‘higher, lesser or equal’. These points are added to prioritize the order of jobs. The jobs with higher priorities are given more attention as compared to others.