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NATIONAL PRODUCTIVITY COUNCIL Correspondence Programme National Certificate in Supervision  ______________ ____ PERSONNEL MANAGEMENT AND BEHAVIOURAL SCIENCE – PAPER II  ______________ ____ JOB EVALUATION PM 3.2  ______________ ____________ ____ BY PROGRAMME LEADER S.V.NATARAJAN M.M. JACOB Assistant Manager Formerly Director Ashok Leyland Ltd., Supervisory Development Ennore, National Productivity Council Chennai 600 011. Chennai 600 098.  ___________ ___________ _____ Instructional Objectives After going through this lesson, the learner should be able to :- a) explain the need for Job Evaluation and its objectives b) define Job Evaluation, Job Analysis c) explain the technique of Job An alysis d) list the forms us ed for Job De scription e) specify the four systems used for Job Evaluation f) explain the point method in detail g) draw a wage curve Teaching Points : 1) Objectives of Job Evaluation 2) Job Ana lysis, Job Evaluation, Job Description 3) Interview and questionnaire methods of data collection 4) Four major systems of Job Evaluation 5) Point method details 6) Wage curve 7) Precautions necessary in Job E valuation

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NATIONAL PRODUCTIVITY COUNCIL

Correspondence ProgrammeNational Certificate in Supervision ______________________________________________________________________________________ 

PERSONNEL MANAGEMENT AND BEHAVIOURAL SCIENCE – PAPER II ______________________________________________________________________________________ 

JOB EVALUATION PM 3.2 ______________________________________________________________________________________ 

BY PROGRAMME LEADERS.V.NATARAJAN  M.M. JACOBAssistant Manager Formerly Director

Ashok Leyland Ltd., Supervisory DevelopmentEnnore, National Productivity CouncilChennai – 600 011. Chennai – 600 098. ______________________________________________________________________________ 

Instructional Objectives

After going through this lesson, the learner should be able to :-

a) explain the need for Job Evaluation and its objectives

b) define Job Evaluation, Job Analysis

c) explain the technique of Job Analysis

d) list the forms used for Job Description

e) specify the four systems used for Job Evaluation

f) explain the point method in detail

g) draw a wage curve

Teaching Points :

1) Objectives of Job Evaluation

2) Job Analysis, Job Evaluation, Job Description

3) Interview and questionnaire methods of data collection

4) Four major systems of Job Evaluation

5) Point method details

6) Wage curve

7) Precautions necessary in Job Evaluation

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 ______________________________________________________________________________ 

T.P. 1 INTRODUCTION AND OBJECTIVES OF JOB EVALUATION ______________________________________________________________________________ 

1. You may be familiar with an office set-up. In an office there are several employees designatedas Office Manager, Head Clerk, Clerks, Stenographers, Typists, Peons etc

Will it be correct if we pay the same salary to the Head Clerk and a Clerk ? Yes / No  ______________________________________________________________________________ 

* no

2. This is because the types of job being carried out by Head Clerk and the Clerk are of differentnature and skills and so, they have to be paid differently.

Again, we do not pay the stenographer and the typist the same salary because they do ______________ type of jobs.

 ______________________________________________________________________________ 

* different 

3. This is obvious because the stenographer can take dictation and can also type, whereas thetypist can only type. You will easily agree that a stenographer should be paid _________________ salary than that of a typist.

 ______________________________________________________________________________ 

* more

4. You now understand that the _______________ paid to the employees in an office havesome relation to the _________________ they perform.

 ______________________________________________________________________________ 

* salary * jobs 

5. If you analyse the reasons as to why a peon should get much less payment than a manageryou will come to the conclusion that the work of the job of a Manager is ________________ than that of the peon.

 ______________________________________________________________________________ 

* more

6. This process of determining the work of a job in relation to other jobs in an organisation iscalled Job Evaluation.

The technique used to identify the relative ___________ of a job is called ____________   ___________ .

 ______________________________________________________________________________ 

* worth * Job Evaluation 

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7. The main objectives are :

a) to establish wage differentials between jobs.b) to collect job facts to aid in selection, promotion, transfer, training and safety.c) to create a strong foundation for wage administration.

State whether the following statements are ‘true’ or ‘false’

a) The technique of job evaluation does not help in wages structure fixation.b) The data collected while conducting job evaluation can be used for recruitment and trainingc) The job evaluation does not help in providing the rationale for wage differences

 ______________________________________________________________________________ 

* false * true * false  ______________________________________________________________________________ 

T.P. 2 JOB ANALYSIS, JOB DESCRIPTION AND JOB EVALUATION ______________________________________________________________________________ 

8. It is necessary to obtain and determine pertinent information relating to the nature of a specific job. This process is called Job Analysis. For instance, the Job Analysis of a typist’s job wouldreveal,

a) Skill required : Typing 80 words per minute

b) Responsibilities : Type correspondence, statements, etc. as directed; keeping thefiles and records, etc.

c) Working conditions : works in a clean and silent environment

9. There are 3 parts in Job Analysis

- Job Identification- Job Description- Job Specification

In order to complete job _____________ we must identify, describe and specify the elementsof a job.

 ______________________________________________________________________________ 

* analysis

10. In job identification, the job has to be completely and accurately identified. In typist’s job, the job identification would specify whether the typist types using a manual typewriter or electronic

typewriter. (agree/disagree) ______________________________________________________________________________ 

* agree 

11. It is essential to identify

What the worker does -How he does it -

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Why he does it – in job identification. Thus, all facts concerning the job, namely, details ofequipment; skill and knowledge required, type and frequency of his activities, workingconditions, responsibilities, etc. are all necessary to be identified. In an office, a peon isasked to go daily twice to the Post Office on a bicycle. Should this be considered in jobidentification ? (Yes / No)The first step in job analysis is the ___________ .

 ______________________________________________________________________________ 

* yes * job identification 

12. Job Description and Job Specification are written down so as to record the informationcollected about a job in a systematic manner. The ___________ should give a detailed pictureof the duties and responsibilities.

Please refer panel A for sample Job Description. ______________________________________________________________________________ 

* job description 

PANEL ‘A’

JOB DESCRIPTION

Job Title : Helper - (Material Handling)

Employees Interviewed : T.No. 67,87

Date : 24 - 4 – 87

Job Summary :

Carries materials from stores to Production Shops in Hand Trolleys as per requirements.

Regular Activities :

- Removes materials from bins, as per Stores Requisition Slips

- Loads them in Hand Trolleys

- Pushes loaded Trolley to Production Shops

- Unloads the materials in shops at places, shown by Shop Foreman

- Receives signature of Shop Foreman in stores with empty trolley

Occasional activities

- Removes broken wooden cases from stores to scrapyard

- Carries paper/files as needed, by Stores Manager

Equipment used : Hand Trolley

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Working Condition :

Partly inside and partly open conditions. Chances of getting minor injuries due to carelessness

13. A job title is given in the Job Description, e.g. Typist, Clerk-cum-typist, Watchman, HeadWatchman, Peon, Driver etc. are all typical job titles. The job title given in the panel ‘A’ is ________ ( ________ _________ ).

 ______________________________________________________________________________ 

* helper * (Material Handling)

14. A job summary is usually made as part of job description. The __________ gives the reader,and overall concept of the purposes, nature and extent of the duties carried out.

 ______________________________________________________________________________ 

* job summary 

15. In the job description given in the panel ‘A’ there are four more sub-headings other than jobsummary to give the details of the job. They are i) _______________ ________________ 

ii) ______________ ________________ iii) ________________ _______________ iv) ______________ ________________  ______________________________________________________________________________ 

i) regular activities ii) occasional activities iii) equipments usediv) working conditions 

16. By knowing the details of a job through job description we can specify the job requirements.Job ________ provides the basis for job specification.

 ______________________________________________________________________________ 

•  description ______________________________________________________________________________ 

T.P. 3 METHODS OFCOMPLETING JOB DESCRIPTION ______________________________________________________________________________ 

17. The purpose of Job Description is to describe all facts relevant to a job in order to evaluate the job. There are two methods of preparing Job Description :1) Interview method and 2) Questionnaire method. One method of preparing the Job

Description is interview method, the other is ________________ ______________ . ______________________________________________________________________________ 

* Questionnaire method

18. In the interview method, the Job Analysts, goes to the employee who performs the job, and

spends a couple of hours with him. He observes the job being performed by him and talks tothe employee whenever any clarification is required. If we collect the job description of amachine operator’s job, by the interview method, we should ____________ his job and ______________ to him also.

 ______________________________________________________________________________ 

* observe * talk

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19. The interview usually carries with him a check – list of information to be collected during theinterview. The _____________ would include details of daily activities, periodic activities, skilldetails, responsibilities, hazards, etc. of the job.

 ______________________________________________________________________________ 

* check – list

20. After collecting the details from the employee, the interview shows the details to the supervisorof the employee. This is necessary to make sure that the details collected are factualdependable. When the job, descriptions are prepared in an office by the interview method, theOffice Manager (should be / should not be) shown the details collected.

 ______________________________________________________________________________ 

* should be 

21. In the questionnaire method, a questionnaire is prepared and given to the employeeconcerned. They are asked to fill up the questionnaire, get them approved by their supervisors,or departmental head and then pass on to the job evaluation committee. The purpose ofadopting an _____________ or ___________ method is to ensure that all relevant facts with

regard to the ___________ are recorded for analysis. ______________________________________________________________________________ 

* interview questionnaire jobs

22. In either method, the job Analyst should consider only the job and not the person doing the job.For instance, if an M.A. Degree holder is doing typist’s job, the job analyst should not recordthat the basic qualification needed for typist is M.A.

In other words, Job Evaluation aims to rate the _________ and not the _____________ doingthe job.

 ______________________________________________________________________________ 

* job * person

23. With the help of data collected from either interview method or questionnaire method, the JobAnalyst completes the ________________ 

 ______________________________________________________________________________ 

* job description

24. The purpose of either method is to ensure that all relevant _____________ concerning the ___________ are recorded.

 ______________________________________________________________________________ 

* data * job

We will now proceed to consider actual systems of Job Evaluation. ______________________________________________________________________________ 

T.P. 4 JOB EVALUATION SYSTEMS ______________________________________________________________________________ 

25. There are four major systems for evaluating the jobs. They are :

Ranking System

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Job Classification System (or Grading System)Point SystemFactor Comparison System

We will now consider briefly each of these ____________ systems. ______________________________________________________________________________ 

* four

26. In ranking system, the job evaluation committee ranks all the jobs from the most important toleast important. The job ________________ provides the basic data for the purpose ofranking.

 ______________________________________________________________________________ 

* description

27. For instance, if there are 3 jobs to be ranked, say stenographer, typist and peon.

Rank 1 will go to ________________ 

Rank 2 will go to ________________ 

Rank 3 will go to ________________ 

 ______________________________________________________________________________ 

* stenographer * typist * peon

28. In this way, all the jobs are ranked, and kept ready for wage fixation.The ____________ method is difficult to adopt if there are large number of jobs as Prevalentin large organisations.

 ______________________________________________________________________________ 

* ranking

29. Job classification system : Here, all jobs are sorted into different grades, which are arranged inorder of importance, using grade specifications.

For this purpose, ____________ specifications are prepared in advance, as shown below :

Grade : Simple job

Can be learnt in a week; unskilled in nature etc. (helper category) ______________________________________________________________________________ 

* grade

30. This system is more easily acceptable to employees than Ranking System, they have someconcept of classification and structure of jobsHowever, this is not a quantitative method, but a comparison method as the ______________ system.

 ______________________________________________________________________________ 

* ranking

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31. The remaining 2 systems are quantitative in nature. We will now deal with the point system indetail.

Point System :

Suppose you want to buy a television for your house, you will collect details about severalmodels and analyse the various aspects about each model. You will consider the price, qualityof product, durability and serviceability.Do you agree with this ? (Yes / No)

 ______________________________________________________________________________ 

* yes

32. Obviously so. But, in this analysis, you will give more weightage to certain aspects such asquality and price and less importance to other factors such as serviceability. If somebody cangive a guideline about the quantum of importance in the form of points, such as 40% for price,40% for quality, 20% for service facilities, etc. Is it not easy to analyse the relative merit of eachmodel of television ? (Yes / No)

 ______________________________________________________________________________ 

* yes

33. In the sameway, the Point System of job evaluation has been developed to evaluate the job bythe various factors with which it is specified. In the point system, jobs are specified by 4 majorfactors; skills, responsibility effort and working conditions. They are also called as jobrequirements.

Thus the four major factors which form the components for job requirement are(i) ________________ (ii) ________________ (iii) _________________ (iv) ____________________.

 ______________________________________________________________________________ 

* skill * responsibility * effort * working conditions

34. Depending upon the type of industry or the organisation, the importance of these factors will bedifferent. For instance if we consider office jobs, the relative importance of the factors can be :

Skill 50%

Responsibility 30%

Effort 10%

Working Conditions 10%

Can we apply the same proportion to factory type jobs also ? (Yes / No) ______________________________________________________________________________ 

* no 

35. This is because the _______________ of factory type of jobs are entirely different, from thoseof office jobs. Skill is developed through education, training, experience etc. Therefore ______________ is assessed by the job requirements of education, experience etc.

 ______________________________________________________________________________ 

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* Job requirements * skill 

PANEL ‘B’

JOB SPECIFICATION

Department : Stores

Title : Material handling Helper

Job Specification :

1. Education :

Ability to read and write fluently in local language and to read and write simple words andsentence in English. Equivalent to eighth standard

2. Experience :

A job experience of 15 days enables him to perform his duty effectively.

3. Mental and Visual Effort :

None in particular required.

4. Physical Effort :

Lifts weights upto 15 kg intermittently, with another helper, pushes trolleys – about 10trips / day.

5. Responsibility for Supervision:

None

6. Responsibility for Materials :

Should ensure that no damage occurs to materials moved.

7. Responsibility for Equipment:

Uses Hand Trolley.

8. Responsibility for safety of others :

To be careful that people working along with are not hurt by mishandling of materials.

9. Hazards :

Chances of getting finger / limb injury.

10.Working Condition :

Inside / outside closed roof.

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36. Job requirements are given in a form of job specifications. Panel ‘B’ gives a specimen jobspecification for a job titled _____________ _____________ ___________ 

 ______________________________________________________________________________ 

* material handling helper 

37. In the job specification given for the Material handling Helper there are _________ factorsspecified. The first factor given in the job specification in ‘Education’. The fifth factor given is __________ ___________ _______________ and the last factor is __________  ____________ .

 ______________________________________________________________________________ 

* ten  * responsibility for supervision * working condition

38. In the job specification for ‘Material Handling Helper’ What is the mental skill specified ? _________ ___________ What is the responsibility for supervision specified ?

 __________  ______________________________________________________________________________ 

* none in particular * none 

39. A job Evaluation Rating Manual is prepared which serves as a guideline for the evaluation ofvarious jobs under each factor, as the requirement varies with type of job.

For instance, under the factor ‘Education’ there can be the following five degrees. Each jobcan be rated to the appropriate degree based upon the education requirement.

Nature of job and the Education Requirement Degree

Simple job – read and write 1

More difficult job – should follow simple instructions from a book ofrules – Matriculates suitable 2

Job requires follow up of close instructions, involves simple arithmeticalCalculations and taking simple decisions, higher secondary level ofEducation / ITI suitable 3

More complex decisions, to be taken involving skilled work of technicalnature. National apprentice level technicians suitable 4

Highly complex technical job – diploma in Engineering level 5

In the above rating scale a job requiring highly complex technical skill will be rated as the ____________ degree education. ______________________________________________________________________________ 

*  fifth

40. According to the rating scale for education given in the frame 39 the education required for the job of the material handling helper will be rated as __________ degree skill.

 ______________________________________________________________________________ 

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 * first

41. The rating scale not only gives the degree for each level of the factor but also the point valuesfor each degree of the factors. The Panel-C gives the various point values for each factorsaccording to its importance. According to the rating plan given in the Panel-C each factor isdivided into ________ degrees. The degree – I for education is given a point value of 10.The degree V for education is given the point value ________ which is five times the pointvalue given for degree I

 ______________________________________________________________________________ 

* five * 50

PANEL – C

JOB RATING PLAN FOR FACTORY WORKERS

S.No. Factors

Degrees & Point Values

I II III IV V

1. Education 10 20 30 40 50

2. Experience 15 30 45 60 75

3. Mental & Visual Effort 8 16 24 32 40

4. Physical Effort 8 16 24 32 40

5. Responsibility for Supervision and work of others 12 24 36 48 60

6. Responsibility for materials 8 16 24 32 40

7. Responsibility for equipment 8 16 24 32 40

8. Responsibility for safety of others 8 16 24 32 40

9. Hazards 8 16 24 32 40

10. Working Conditions 5 10 15 20 25

42. Give it a point, values from the Panel-C for the following factors for the degrees indicated

Factor Degree Point Value

Experience 2 _______ 

Physical Effort 4 _______ 

Hazards 5 _______ 

 ______________________________________________________________________________ 

* 30 * 32 * 40 

43. Now we have the job description. Based upon the job description we can draw up the job ________. The job specification specifies the job requirements. Based upon the Jobrequirements we evaluate the job according to a given job rating ____________________ .

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Thus for the job of the Material Handling Helper, the various job requirements, (factors) degreerating are given below. Find out their point values for each factor according to the job ratingplan given in panel C and the total points obtained for the job.

JOB RATING OF MATERIAL HANDLING HELPER

S,No Factor Degree Point Values

1. Education 1

2. Experience 1

3. Mental and Visual Effort 1

4. Physical Effort 2

5. Responsibility for Supervision 1

6. Responsibility for materials 2

7. Responsibility for equipments 1

8. Responsibility for Safety of others 2

9. Hazards 3

10. Working Conditions 2

Total Point Value

 ______________________________________________________________________________ 

* specification * plan

10, 15, 8, 16, 12, 16, 8, 16, 24, 10, 135

44. Thus the job of this Material Shifting Helper gets a point value of 135. Now for a range of

point values a grade is arrived at by the job evaluation committee. For example the grades areallotted by a committee for the point value ranges as given below :

Point range  Grade

Up to 150 I151 – 220 II221 – 300 III301 – 400 IVAbove 400 V

In this case a job which gets a point value 230 will be fixed in the grade ________. Accordingto this plan the job for the Material Handling Helper which got 135 points will be fixed in

the _________ __________ . ______________________________________________________________________________ 

* III  * grade I

45. The above is only illustration. The actual table can be prepared using evaluated points of 4 or5 distinctly different jobs, which can be easily identified as belonging to different grades.These jobs are some times called as “Key jobs” in the context of job evaluation. Peon, Typist,Stenographer, Head Clerk etc. may be considered as ___________ ___________ in anoffice. Compare the jobs given below :

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 A typist’s job is inferior / superior to a stenographer’s jobA stenographer’s job is inferior / superior to a Head Clerk’s job, andA Head Clerk’s job is inferior / superior to an Office Manager’s job, etc.

 ______________________________________________________________________________ 

* Key jobs * inferior  * inferior * inferior 

46. Let us examine now your understanding of the point system, before going to the next topic :

a) Point system is a quantitative / qualitative evaluation system.b) It is the common practice to use a single point system to cover different groups of

employees like factory workers, office employees, and supervisory jobs. (YES/NO)c) Factors chosen for job evaluation should be such that they are relevant to the nature of

 jobs. (YES/NO)d) Factors selected must be _________ to workers and management.e) Degree should be precisely __________ .f) Examples should be used in definitions of degrees. (YES/NO)g) A few distinctly identifiable jobs belonging to different grades must be evaluated, to arrive

at grades and corresponding point rates. These jobs are known as ________ ________ . ______________________________________________________________________________ 

* a) quantitative  * b) no  * c) yes * d) acceptable  * e) defined or specified  * f) yes  * g) key jobs 

47. Factor Comparison System :

Like point method, this also is a quantitative system of Job Evaluation.The two quantitative systems of job evaluation are __________ and ______________ system.

 ______________________________________________________________________________ 

* point system * factor comparison 

48. In the Factor Comparison System, a few key jobs are selected. The ___________ are sochosen that they represent the given grades.

 ______________________________________________________________________________ 

* key jobs

49. Factors relevant to the _______ jobs are then analysed, and a monetary value is attached toeach factor.

 ______________________________________________________________________________ 

* key 

50. Let us now select a peon’s job as a key jobFactors relevant are :

- Education upto VIII std.

- Following simple instructions.

- Physical movement within and outside office, almost frequently.

- Working conditions – both inside and outside office.

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 If the peon gets Rs. 500/- as monthly salary, the factors are allocated suitable monetary valuesdepending on their relative importance.

An allocation may be as follows :

- Education Rs. 50/-

- Experience Rs. 50/-

- Judgement & Mental Effort Rs.100/-

- Physical Effort Rs.150/-

- Working condition Rs.150/-

If the educational qualification specified is VIIIth standard to have the knowledge of read and writeand simple arithmetic for the peon then such a qualification will have a monetary value of Rs. _________ . All other jobs needing such qualification will get a monetary value for that factor ofeducation only. ______________________________________________________________________________ 

* Rs. 50 ;

51. In a similar fashion, the different key jobs and their factors are analysed and monetary valueschosen. Any new job will now be analysed for the factors. Depending upon the factor’scomparison with factors of key jobs, monetary values will be allocated. In factor comparisonsystem, factors are allocated __________ _______________ and not ______________ .

 ______________________________________________________________________________ 

* monetary values; * points  ______________________________________________________________________________ 

T.P. 5 WAGE CURVE

 ______________________________________________________________________________ 

52. In the point system of job evaluation, relationship between money and point values areestablished through a wage curve.

The method of arriving at a wage curve is to plot a graph with money values on the Y axisand point values on X axis for the key jobs in each grade. The line joining the points iscalled _____________ 

 ______________________________________________________________________________ 

* wage curve 

53. Maximum and Minimum wage rates are negotiated and settled for each grade. These twoextreme points are plotted on a chart , as follows

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1500 -

1400 -

1300 -

1200 -

1100 -

1000 -

900 -

800 -

700 -

600 -

500 -

400 -

300 -

200 -

100 -

+ + + + +100 155 260 350 450

P O I N T S

The point ranges and monetary values are appropriately chosen using evaluated points. In thegiven wage curve above ___________ grades are shown. The grade V, the pay scale is fromRs.700/- to Rs. ______________ . The graphic relationship between the job points and thecorresponding wages paid to the job is given in a ____________ .

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 ______________________________________________________________________________ 

* five  1200  wage curve 

54. After various jobs are fitted to wage curves, any visible wage disparities are discussed andsettled. It must be remembered that job evaluation is not exact mathematics, but a scheme toanalyse and judge the jobs.

Wage curve and the graded determination should be agreed to both by __________ and __________ .

 ______________________________________________________________________________ 

* management * employees  ______________________________________________________________________________ 

T.P. 6 PRECAUTIONS ______________________________________________________________________________ 

55. Precautions necessary in implementing job evaluation :

- Employee fears should be removed at all stages

- Scheme must be simple to understand

- Both sides (Employees and management) should be willing for adjustments

- Bias and prejudices should be removed while evaluating jobs

- There should be a strong understanding that jobs are only evaluated and not the

employees

- Once implemented, scheme should not be tampered with

State any four precautions to be taken before attempting a job evaluation study in anorganisation.

a) ________________________________________________ 

b) ________________________________________________ 

c) ________________________________________________ 

d) ________________________________________________ 

 ______________________________________________________________________________ 

a) workers fears should be removed at all stages b) Employer and employees of the organisation should be willing for the study c) Only the jobs are studied and not the persons d) Scheme should not be tampered with, once implemented

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 C R I T E R I O N T E S T

1. Job Evaluation is an exact mathematical science. Yes/No

2. The purpose of Job Evaluation is to find out ___________ __________ of various jobs

3. Job Analysis is carried out to collect ____________ ________________ about different jobs4. Job description gives a clear picture of ___________ and ________________ involved in a

 job

5. Two methods of preparing job description are ______________ method and ___________ 

method

6. All information relevant to a job should be indicated in ____________ _______________ 

7. Non-quantitative methods of Job evaluation are _____________ system and ___________ 

system

8. In point system the jobs are evaluated for each __________ according to the __________ 

level of that requirement

9. In factor comparison system ________________ _______________ are allocated to each

factor of key jobs

10. After determining the point values for the jobs they are plotted as a wage ____________ 

11. The wage curves helps to determine the ___________ of the jobs

12. There should be perfect __________ of job evaluation system among the employees

13. According to wage curve if a job which got 100 points is fixed at a wage of Rs.600/- per month;

another job which has 300 points should get Rs. 1800 per month. Is it correct? (Yes/No) 

A N S W E R S

1) No 2) Relative Worth 3) Relevant Information 4) Duties Responsibilities5) Interview, Questionnaire 6) Job Description 7) Ranking, Classification8) Factor, Degree 9) Monetary Values 10) Curve11) 12) Understanding 13) No