This is one of the simplest method to administer. Jobs are compared with each other base on the overall worth of the job organization. The worth of a job is usually based on compensable factors of skill, effort, responsibility and working conditions. After ranking, the jobs are grouped to determine appropriate salary levels. The following are the steps involved in job ranking method:
1. Obtain job information. Job descriptions for each job are prepared and are usually the basis on which rankings are made. 2. Select raters and jobs to be rated. A committee composed of different key persons maybe set up, depending on the jobs evaluated. 3. Select compensable factors.
4. Rank jobs. There are several techniques in job ranking. The simplest way is to give each rater a set of index card, each of which contains a brief description of a job. 5. Compare ratings. Raters rank the job independently. Then the rating committee can simply average the rankings. Once the ranking is done, the jobs can then be grouped into pay grades. The approach in doing simple ranking can vary from simple ordering in a list and discussing the positions, to applying some weighing criteria and using paired comparison by writing down the job title and short description on a card and comparing all permutations of a pair of cards according to the most valued and the least valued.
In job grading, jobs are categorized into groups. Generally, the groups are called classes if they contain similar jobs, and grades if they contain jobs that are similar in difficulty but otherwise different. The classification of the position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions is used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are develop mainly along occupational lines.
The standards identify and describe those key characteristics of occupations that are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis on assigning the appropriate grade level to all positions in the occupation to which all standards apply.
Classification methods customarily employ a number of compensable factors. Developing a job classification system requires these steps:
1. Obtain job information.
2. Select compensation factor.
3. Determine the number of cause. The number of classes selected trends upon tradition, job diversity and the promotion of the policies of the organizations. 4. Develop class descriptions. This is a matter of defining classes in sufficient detail to permit raters to readily slot jobs. Usually this is done by describing levels of compensable factors that apply to the — in a class. 5. Classify jobs. This involves comparing job descriptions with — description.
The jobs in each class are considered to be sufficiently similar to have same pay. Jobs in another classes are considered dissimilar enough to have different pay.
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