Job evaluation means valuing the job according to the standards set up by the organisation and determining the pay of each job. This is done by analytical method and non-analytical method. In the analytical method, the job is analysed as a whole whereas in non-analytical methods that determine the requirements and specifications of the particular job.
The job evaluation is done as a whole by ranking method and job grading method. As the name suggests the jobs are ranked by their specifications and skills possessed by the employees. These types of evaluations are suitable for small organisations. For larger organisations point factor comparison or factor comparison is undertaken. Point factor means the jobs are broken down and the factor analysis is the combination of point factor and rank.
The ranking method is the most convenient method of job evaluation as it is easy to understand and apply in both large and small organisations. In small organisations, jobs are identified and directly ranked whereas in larger organisations they are broken into simple components with similar interests and they have ranked accordingly. In every method whether the small or large organisation, it is important to understand the characteristics of the job along with their position in the firm.
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