In Human Resource Management Job assessment explains the value of each job in the organization in relation to the total jobs in the organization and put them in a system of grades of status which will reflect the proportioned worth of each job. Job assessment in human resource management plans use skill, effort, responsibility and working conditions as major priniciple. The following methods are used for job evaluation:
a) Grading or Ranking Method
This requires a committee composed of management and employees representatives to arrange jobs in a simple rank order from heightest to lowest. They compare two jobs and judge which one is more important or difficult and then compare another job with first two jobs and so on until all the jobs have been assessed and ranked.
b) Factor Comparission Method
The evaluators select key jobs in the organization as standards. Those jobs chosen should well known with the established rates in the community and they should consist of a representative cross section of all jobs that are being evaluated from the lowest to highest paid job and cover the full range of requirements of each factor as agreed upon by the comitee. Typically 10 to 25 key jobs are selected. The factors in the key jobs with which other jobs compared are mental requirements, skill requirements, phisycal requirements, responsibility and working conditions. Once the key jobs are identified and the policy decided, committee ranks the key jobs. The committee agrees upon the base rate(hours basis generally) for each of the key jobs and then allocate this base rate among all the five criteareas. These amounts then become standards by which other jobs in the organization could be assessed. Then the committee compare its overall judgement and resolve any descrepancies. The system is in place and the allocation in the key jobs are clear and understood and high agreement has achieved in committee’s judgement about how much of each criterea every job has.
c) Classification Method
By identifying some common denominators - skills, knowledge, responsibility the classifications created with the desired goal being the creation of number of distinct classes or grades of jobs, for ex: clerical jobs, shop jobs,sales jobs etc., on the type of jobs the organization requires. Then they are ranked in an overall order of importance according to the priniciple choosen and each job is placed in its suitable classification.
d) Point Method
On various identificable criterea(such as skill, responsibility and effot) the jobs are break down and then allocates points to each of these criterea. Depending on the importance of each criterean for performing the job, appropriate waits are given, points are summed and jobs with similar point totals are placed in similar pay grades.
In human resource management once the job evaluation is over its data becomes the nuclues for improvement of organizations pay structure. Any of the four job assessment methods can provide the necessay input for developing overall pay structure of organization.