Classification Method of Job Evaluation

The information derived from a job analysis is vital for establishing the relative worth of the jobs within the company through a systematic process called job evaluation. The four most common job evaluation approaches are job ranking, job classification, point factor, and factor comparison. The first two approaches, job ranking and job classification, are qualitative approaches. Point factor and factor comparison are quantitative approaches to job evaluation. Next we give a brief overview of the ranking method.

The job classification approach involves developing broad descriptions for groups of jobs that are similar in terms of their tasks, duties, responsibilities, and qualifications. The job description for a particular job is then compared with the classification descriptions, and a decision is made about which description best fits the job.

A wage range is attached to each classification, reflecting the relative worth of the jobs slotted into that classification. One criticism of the job classification system is that parts of the job being evaluated might fit into one job grade in the system, whereas other parts might fit into another grade. A decision then has to be made about which classification is the most appropriate.

Because the pay range will differ depending on the decision, the outcome of the evaluation process is extremely important.