“JOB EVALUATION & HUMAN RESOURCE DEVELOPMENT”

FINAL DRAFT SUBMITTED IN THE FULFILMENT OF THE COURSE TITLED –

HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL BEHAVIOUR

SUBMITTED TO:
Dr. S.C.ROY

SUBMITTED BY:
NAME: MANDIRA PRIYA
COURSE: B.B.A., LL.B (Hons.)
ROLL NO: 1832
SEMESTER: 1st

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR,

MITHAPUR, PATNA – 800001

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 DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B.B.A., LL.B (Hons.) Project Report entitled

“Job evaluation and human resource development” submitted at Chanakya National Law

University is an authentic record of my work carried out under the supervision of Dr. S.C

.Roy I have not submitted this work elsewhere for any other degree or diploma. I am fully

responsible for the contents of my Project Report.

SIGNATURE OF CANDIDATE
NAME OF CANDIDATE: MANDIRA PRIYA
CHANKYA NATIONAL LAW UNIVERSITY , PATNA

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 ACKNOWLEDGEMENT

I would like to thank my faculty Dr. S.C .Roy whose guidance helped me a lot with

structuring my project.

I owe the present accomplishment of my project to my friends, who helped me immensely

with materials throughout the project and without whom I couldn’t have completed it in the

present way.

I would also like to extend my gratitude to my parents and all those unseen hands that helped

me out at every stage of my project.

THANK YOU,
NAME: Mandira Priya
COURSE: B.B.A., LL.B. (Hons.)
ROLL NO: 1832
SEMESTER – 1st

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INDEX
INTRODUCTION …………………………………………………………………pg. 5
* AIMS AND OBJECTIVES
* HYPOTHESIS
* RESEARCH METHODOLOGY
* SOURCES OF DATA

1. HUMAN RESOURCE AND HUMAN RESOURCE MANAGEMENT…...….pg.7

2. CONCEPT OF JOB AND JOB EVALUATION……………………………….pg10
3. JOB ANALYSIS………………………………………………………………..pg.13
4. CASE STUDY ON JOB EVALUTION……………..…………………….……pg19
5. ANALYSIS……………………………….…………………………………….pg 22
6. CONCLUSION…………………………………………………………………pg 23

BIBLIOGRAPHY………………………………………………………………………pg24

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INTRODUCTION:

Human resource means a learned , skilled human being who is kind, intelligent , honest . He

must have inclination towards work. Human resource management means managing the

power of the organization. It is the process of managing people in organization in a structured

and thorough manager. It manages the people in the form of a collective relationship between

management and employees.

Job means bundle of task. It can be defined as group of homogenous tasks related by

similarity of functions Job evaluation , job analysis, job design and job description all are

important for knowing the worth of a job, what type of qualification or skill a job requires ,

how much employees should be paid for the particular job.

Job evaluation is a process of determining the worth of the job. Job analysis is process of

collecting job-related data. Job analysis involves both job description and job specification ,

which includes assessment of the nature of job as well as the knowledge , skill and attitude of

the jobholder.

AIMS AND OBJECTIVES:

1. The researcher tends to find the about the concept of job.

2. The researcher tends to find about job evaluation and its importance.

HYPOTHESIS:

The researcher tends to presume that job evaluation and job analysis is very important

important for an organization and employee.

RESEARCH METHODOLOGY:

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The researcher has relied upon Doctrinal method of research to complete the project.

SOURCES OF DATA:

The researcher has relied on both primary and secondary sources to complete the project.

1. Primary Sources: Books

2. Secondary Sources: Articles and websites.

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1. HUMAN RESOURCE AND HUMAN RESOURCE MANAGEMENT

The human being who is skilled , dedicated , have inclination towards work , honest , kind ,

hard working is a human resource for an organization. A person who is intelligent i.e, takes

right decision at the required moment , have attitude & aptitude is termed as human resource.

Human resource not refers to only man power it refers to skilled and learned individual who

have patience knows to forgive others, cooperative and helpful. Human resource is an assest

for the organization whereas a person who is not an human resource is liability for an

organization.

Human resource management is the framework for helping employees develop their personal

and organizational skills , knowledge and abilities . Human resource management includes

such opportunities as employee training , employee career development , performance

management and development , coaching , succession planning , key employee identification,

tuition assistance and organization development.

Akio morito , the founder of sony corporation , once said 1“ The secret of the success is

simply the way they treat their employees”. Hence how we manage and treat our employees

determines our chances of success and human resource management deals about that .

Human resource development encompasses management of people in organizations from a

macro perspective i.e. managing people in the form of a collective relationship between

management and empoyees. A HR manager has to observe employees behavior and analyse

them . He find out the weakness of the employees and help them to improve it . He tends to

bring synergy in the organization . Human resource management covers the field of staffing ,
1
Biswajeet Pattanayak,Human resource management(3rd ed, 2012).

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retension of people , pay and perks setting and management , performance management ,

change management and taking care of exits from the company to round off the activities.

Human resource management encompasses those activities designed to provide , motivate

and coordinate the human resource of the organization2. The human resource of an

organization represents its largest investment. In fact , government report shows that

approximately 73 percent of a national income is used to compensate its employees3. In

addition to wages and salaries, an organization often make sizeable investment in their human

resource by way of recruiting , hiring , and training people to fulfill its need for well trained

and experienced staff.

The overall purpose of hrm is to ensure that the organization is able to achieve success

through people. Hrm has been defined as a strategic and coherent approach to the

management of an organization’s most valued assets – the people working there who

individually and collectively to the achievement of its goals4.

Human resource functions are the tasks performed in an organization to provide for and

coordinate human resource . It is aims at:

 Ensuring that the organization fulfils all of its equal employment opportunities and

other government obligations.

 Carrying out job analysis to establish the specific requirement for individual jobs

within an organization.

 Forecasting the human resource requirements necessary for the organization to

achieve its objective – both in terms of number of employees and skills.

2
Biswajeet Pattanayak,Human resource management(3rd ed, 2012).
3
Biswajeet Pattanayak,Human resource management(3rd ed, 2012).
4
Biswajeet Pattanayak,Human resource management(3rd ed, 2012).

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  Developing and implementing a plan to meet these requirements .

 Recruiting and selecting personnel to fill specific jobs within an organization

 Orienting and training employees.

 Designing and implementing management and organizational development

programmes.

 Designing systems for appraising the performance of individual.

 Assisting employees in developing career plans.

 Designing and implementing compensation system for all employees.

2. CONCEPT OF JOB AND JOB EVALUATION

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Job means bundle of tasks. It is a group of homogeneous tasks related by similarity of

functions. When performed by an employee in an exchange for pay, a job consists of duties,

responsibilities, and tasks (performance elements) that are defined and specific, and can be

accomplished, quantified, measured, and rated. From a wider perspective, a job is

synonymous with a role and includes the physical and social aspects of a work environment.

Often, individuals identify themselves with their job or role (manager, supervisor, engineer,

etc.) and derive motivation from its uniqueness or usefulness.

To perform a job efficiently and effectively one should have the desired skill and knowledge

for proper execution of the task and one should be very clear that what is required to be done

done in the particular job , for this job evalution , job analysis , job designing and job

description is very important.

Job evaluation is a process of determining the relative worth of a job . It is a process which is

helpul even for framing compensation plans by the personnel manager.

Job evaluation is a systematic and orderly process of determining the worth of a job in

relation to other jobs.5 Another definition is "Job evaluation as a personal term has both a

specific and genetic meaning specifically, it means job rating or the grading of occupations in

terms of duties ; generally it means the entire field of wages and salary administration along

modern lines"6

FEATURES OF JOB EVALUATION:

5
Edwin B. flippo, Job Evaluation, Business Dictionary (29 September , 9:00 AM),
http://www.businessdictionary.com/definition/job-evaluation.html
6
Bethel, Atwater and Smith et at,  Job Evaluation, Business Dictionary (29 September , 10:00 AM)
http://www.businessdictionary.com/definition/job-evaluation.html

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The primary objective of job evaluation is to find out the value of work, but this is a value

which varies from time to time and from place to place under the influence of certain

economic pressure, not least of which is the worth of money itself. The main features of job

evaluations are: 

 To supply bases for wage negotiation founded on facts rather than on vague

intermediate ideas.

 It attempts to assess jobs, not people.

 Job evaluation is the output provided by job analysis.

 Job evaluation does not design wage structure, it helps in rationalising the system by

reducing number of separate and different rates.

 Job evaluation is not made by individuals rather it is done by group of experts.

 Job evaluation determines the value of job. Further the value of each of the aspects

such as skill and responsibility levels are also related and studied in connection with the

job.

 Job evaluation helps the management to maintain high levels of employee

productivity and employee satisfaction.

ADVANTAGES OF JOB EVALUATION:

Job evaluation is a process of determining the relative worth of a job. It is a process which is

helpful even for framing compensation plans by the personnel manager. Job evaluation as a

process is advantageous to a company in many ways:

1. Reduction in inequalities in salary structure - It is found that people and their

motivation is dependent upon how well they are being paid. Therefore the main

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 objective of job evaluation is to have external and internal consistency in salary

structure so that inequalities in salaries are reduced.

2. Specialization - Because of division of labour and thereby specialization, a large

number of enterprises have got hundred jobs and many employees to perform them.

Therefore, an attempt should be made to define a job and thereby fix salaries for it. This

is possible only through job evaluation.

3. Helps in selection of employees - The job evaluation information can be helpful at the

time of selection of candidates. The factors that are determined for job evaluation can

be taken into account while selecting the employees.

4. Harmonious relationship between employees and manager - Through job evaluation,

harmonious and congenial relations can be maintained between employees and

management, so that all kinds of salaries controversies can be minimized.

5. Standardization - The process of determining the salary differentials for different jobs

become standardized through job evaluation. This helps in bringing uniformity into

salary structure.

6. Relevance of new jobs - Through job evaluation, one can understand the relative value

of new jobs in a concern.

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 3. JOB ANALYSIS:

Job analysis is the process of identifying and determining in detail contents of a particular

job, thereby, clearly defining duties, responsibilities, accountabilities, and skills associated

with the job. An important aspect of job analysis is that the analysis is conducted of the job,

and not of the person. The process of job analysis results in two sets of data:

 Job description - It is a written statement containing complete information about

what all a job involves including job title, duties, tasks and responsibilities related to

job, working conditions and hazards, reporting relationships, tools, machines and

equipments to be used, and relationships with other positions.

 Job specification - It provides particulars about capabilities that an individual should

posses to perform the job efficiently. This includes educational qualification,

experience, training, appropriate skills, knowledge, and abilities required to perform the

job. What traits and qualities in the individual are related to successful performance of

the job

Job evaluation, on the other hand, specifies the relative value or worth of each job in an

organization.

An organization undertakes the task of job analysis and evaluation for one or many of the

following purposes:

 Designing new organization and roles/jobs

 Changing the organizational design or roles

 Aligning roles and pay to organizational changes

 Designing an effective organization

 Defining interdependencies among different jobs

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  Clarifying accountabilities of jobs

 Managing succession in organization

 Reviewing the existing pay structure

 Auditing legal compliance of pay policies

 Implementing benchmark pay structures

 Setting value-based pay policies

An organization can appoint internal HR Specialists or take service of an HR Consulting

Firm to carry out the project of job analysis and evaluation with the aim of meeting the pre-

determined purposes as mentioned above. However, external HR Consultants are beneficial

for their expertise and independent views.

The systematic process of job analysis and evaluation followed by the firm includes:

 Identifying concerned job.

 Selecting/appointing a team or an individual to conduct project.

 Defining main outcomes required.

 Identifying main participants in the work process, including the ones in the job/role as

well as reporting authorities.

 Prepare a list of the participants, by name and position, in work analysis chart.

 Keep track of work process, documents and other related information present with

participants.

 Information can also be gathered from previous job analysis and evaluation reports.

 When job/role is new in organization, then information for the same may be obtained

from other similar organizations having such job/role, and by understanding the reasons

for creating that job/role from the concerned authority in the organization.

 Analyze the collected information.

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  Make proposals regarding the new or changed job, role or pay structure.

The various methods by which an HR Consultant can obtain the information for job

description and job specification are:

 Observing the employee.

 Carrying out individual/group interviews.

 Having brainstorming sessions between groups of employees.

 Performing desk audit by carefully examining documents used and tasks executed by

employee.

 Using questionnaires.

 Asking employees to jot down all their tasks and duties as and when they perform

them.

 Interviewing employees for any critical incidents that may have occurred.

 Keeping a video recording of employee on duty.

 Reviewing all the necessary documents present in organization.

 Referring to previous job analysis and evaluations done in organization.

Job evaluation is done by any of the following methods:

 Points rating - Different levels are accorded to the various elements of jobs and then

the points allocated to different levels are totaled to get point score of the jobs which

forms the basis of pay structure.

 Factor comparison - A comparison of various independent factors of jobs is done

and points are given to each factor rank of individual job. These points are then totaled

to rank the jobs.

 Job ranking - Job is not broken into factors or elements, rather it is evaluated as a

whole and is compared with other jobs to be ranked accordingly.

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  Paired comparison - Jobs are compared with each other and allocated points

depending on being ‘greater, lesser or equal’. These points are added to create rank

order of jobs.

The outputs of job analysis and evaluation are then aligned to the purpose of the project. This

requires the HR Consultants to interpret the changes required in the existing job/pay and

suggesting the improvements, as required. HR Consultants also advice on smooth

incorporation of these changes to enhance efficiency and effectiveness of the organization.

Benefits of job analysis:

 Organizational structure and design :- Job analysis helps the organization to make

suitable changes in the organizational structure, so that it matches the needs and

requirements of the organization. Duties are either added or deleted from the job.

 Recruitment and selection :-Job analysis provides information about what the job

entails and what human characteristics are required to perform these activities. This

information, in the form of job descriptions and specifications, helps management

decide what sort of people to recruit and hire.

 Performance appraisal and training/development :- Based on the job requirements

identified in the job analysis, the company decides a training program. Training is

given in those areas which will help to improve the performance on the job. Similarly

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 when appraisal is conducted we check whether the employee is able to work in a

manner in which we require him to do the job.

 Job evaluation :- Job evaluation refers to studying in detail the job performance by

all individual. The difficulty level, skills required and on that basis the salary is fixed.

Information regarding qualities required, skilled levels, difficulty levels are obtained

from job analysis.

 Promotions and transfer :- When we give a promotion to an employee we need to

promote him on the basis of the skill and talent required for the future job. Similarly

when we transfer an employee to another branch the job must be very similar to what

he has done before. To take these decisions we collect information from job analysis.

 Career path planning :- Many companies have not taken up career planning for their

employees. This is done to prevent the employee from leaving the company. When we

plan the future career of the employee, information will be collected from job

analysis. Hence job analysis becomes important or advantageous.

 Labour relations :- When companies plan to add extra duties or delete certain duties

from a job, they require the help of job analysis, when this activity is systematically

done using job analysis the number of problems with union members reduce and

labour relations will improve.

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 Health and safety :- Most companies prepare their own health and safety, plans and

programs based on job analysis. From the job analysis company identifies the risk

factor on the job and based on the risk factor safety equipments are provided.

 Acceptance of job offer :- When a person is given an offer/appointment letter the

duties to be performed by him are clearly mentioned in it, this information is collected

from job analysis, which is why job analysis becomes important.

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CASE STUDY ON JOB EVALUATION:

Salary inequities at Acme Manufacturing

 Joe Black was trying to figure out what to do about a problem salary situation he had in

his plant. Black recently took over as president of Acme Manufacturing. The founder and

former president, Bill George, had been president for 35 years. The company was family

owned and located in a small eastern Arkansas town. It had approximately 250 employees

and was the largest employer in the community. Black was the member of the family that

owned Acme, but he had never worked for the company prior to becoming the president. He

had an MBA and a law degree, plus five years of management experience with a large

manufacturing organization, where he was senior vice president for human resources before

making his move to Acme .

A short time after joining Acme, Black started to notice that there was considerable inequity

in the pay structure for salaried employees. A discussion with the human resources director

led him to believe that salaried employees pay was very much a matter of individual

bargaining with the past president. Hourly paid factory employees were not part of this

problem because they were unionized and their wages were set by collective bargaining. An

examination of the salaried payroll showed that there were 25 employees, ranging in pay

from that of the president to that of the receptionist. A closer examination showed that 14 of

the salaried employees were female. Three of these were front-line factory supervisors and

one was the human resources director. The other 10 were non management .

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This examination also showed that the human resources director appeared to be underpaid,

and that the three female supervisors were paid somewhat less than any of the male

supervisors. However, there were no similar supervisory  jobs in which there were both male

and female job incumbents. When asked, the Hr director said she thought the

female supervisors may have been paid at a lower rate mainly because they were women, and

perhaps George, the former president, did not think that women needed as much money

because they had working husbands. However, she added she personally thought that they

were paid less because they supervised less-skilled employees than did the male supervisors.

Black was not sure that this was true.

The company from which Black had moved had a good job evaluation system. Although he

was thoroughly familiar with and capable in this compensation tool, Black did not have time

to make a job evaluation study at Acme. Therefore, he decided to hire a compensation

consultant from a nearby university to help him. Together, they decided that all 25 salaried

jobs should be in the same job evaluation cluster, that a modified ranking method of job

evaluation should be used, and that the job descriptions recently completed by the HR

director were current, accurate, and usable in the study.

The job evaluation showed that the HR director and the three female supervisors were being

underpaid relative to comparable male salaried employees.

Black was not sure what to do. He knew that if the underpaid female supervisors took the

case to the local EEOC office, the company could be found guilty of sex discrimination and

then have to pay considerable back wages. He was afraid that if he gave these women an

immediate salary increase large enough to bring them up to where they should be, the male

supervisors would be upset and the female supervisors might comprehend the total situation

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and want back pay. The HR director told Black that the female supervisors had never

complained about pay differences.

The HR director agreed to take a sizable salary increase with no back pay, so this part of the

problem was solved. Black believed he had for choices relative to the female supervisors:

1. To do nothing.

2. To gradually increase the female supervisors salaries.

3. To increase their salaries immediately.

4. To call the three supervisors into his office, discuss the situation with them, and jointly

decide what to do.

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4. ANALYSIS:

In the above case study of Acme we found that there was inequity in salary of the employees.

The salary was decided by doing bargaining with the employer due to which people who are

good in negotiation were paid more salary than the people who were not irrespective of the

fact that they work in the same rank .

Another problem was that women employees were paid less salary than the male employees

as it was believed by the former head of the company that women employees have working

husband so they do not need much money irrespective of the fact that there work was of the

same amount and complication as of the male employees.

Black was had done M.B.A and had five years of management experience with an

organization knew the importance of job evaluation . He found that there was inequity in the

salary of employees , through his decision with HR manager he found about the salary

bargaining system. He did not had the time to do job evaluation so he hired a compensation

consultant to help him. Through the compensation consultant he get to know that three

female supervisors and HR director were underpaid.

In this case if Black didn’t have the knowledge about job evaluation and practised the same in

the organization it wont ever be found out about the underpaid employees . Even the HR

director was underpaid. Hence job evaluation help us to determine the worth of the job. It

helps management to maintain high level of employee productivity and employees

satisfaction.

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 CONCLUSION:

The job evaluation is a process of determining the relative worth of the job . It is a practical

technique to judge the size one job relative to others. It is the output provided by job analysis.

Job analysis is the process of identifying and determining in detail contents of a particular

job, thereby, clearly defining duties, responsibilities, accountabilities, and skills associated

with the job. An important aspect of job analysis is that the analysis is conducted of the job,

and not of the person. Job description and job specification comes under job analysis.

Job evaluation and job analysis together help in maintaining job satisfaction for of the

employees which will ultimately result into bringing success for the organization.

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BIBLIOGRAPHY
BOOKS
1. Biswajeet Pattanayak, Human resource management , New Delhi : PHI learning private
limited., 2012, 3rd edition

WEBSITES

1.https://www.managementstudyguide.com/job-analysis-and-job-evaluation.htm
2. http://www.whatishumanresource.com/job-evaluation

3. http://www.businessdictionary.com/definition/job.html
4. https://www.scribd.com/doc/90743847/Case-Study-Job-Evaluation

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CHANAKYA NATIONAL LAW UNIVERSITY, PATNA.

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