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JOB EVALUATION WORKBOOK: A Practical Guide to Job Evaluaion

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 JOB EVALUATION WORKBOOK: STUDENT EDITION NMM PRINTERS

PREFACE
Human resource management is an important area in an organization yet is is very complex due
to the fact that it involves human beings who are intelligent to think, react and act according to
their thoughts. Therefore managing human beings requires skills and expertise so they can fulfill
their jobs. In order for employees to fulfill their job efficiently and effectively, job evaluation is
an important human resource practice to determine the value or worth of a particular job in
comparison with other jobs.

Job evaluation is one the simplest however critical in nature. One of the basic approaches in job
evaluation is ranking. Ranking involves comparing jobs to each other based on the overall worth
of a job to an organization. The worth of a job is normally in accordance on judgment of
knowledge, effort and accountability, and working conditions involved in the job execution.
Some the advantage of ranking includes simplicity in application of job evaluation and it is very
effective for few jobs to be evaluated. Specifically, It is normally most suitable for less than 30
jobs in the organization. On the other hand, the shortcoming involves difficulty to administer to a
large number of jobs. In case the job increases, then it would be difficult to evaluate. In addition,
the ranking system is subjective in nature. This is due to the fact that there is no standard used for
comparison. It means new jobs would have to be compared with the existing jobs to determine
the appropriate ranks.

From a practical point of view, ranking involves ordering, weighing and paired comparison.
Ordering involves placing job titles in an index card and then arrange the order of the job titles
according to their relative importance and contribution toward achieving organizational
performance. Weighing involves assigning weights depending on several characteristics of the
job. Paired comparison is a deliberate comparison of similar job titles. After ranking or grouping
has been completed, then determine the appropriate salary for each group or rank. Sometimes, it
is easier to use interactive ranking programs to provide appropriate ranking system for the
organization.

Job evaluation involves classifying jobs into an existing grade or category structure or hierarchy.
At each level, a grade or category structure has a description and related title of the job. At this
stage, each job is allocated to the grade or category providing a close match to the job. The
classification of a position is decided by comparing the whole job with the appropriate job
grading standard. As a way to ensure fairness in job grading and wage rates, a common set of job
grading standards and instruction are applied. In addition, due to variances in duties, skills and
knowledge and aspects of each job, job grading standards are formulated based on occupational
lines.

On the issue of standards, the standards do not try to explain every work assignment of every
position in the occupation covered. Instead, the standards determine and describe those main

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characteristics of an occupation which are significant and differentiating various levels of work.
In other words, they provide a definition to those main characteristics in such a way to provide a
strong basis for assigning the appropriate grade level to all positions in the occupation to which
the standards apply.

To further illustrate job classification, it is advisable to use well defined grades or categories.
This involves the attempt to define the grades or categories so jobs might not overlap with one
another. In essence, overlap in the descriptions and factors are normally applied to determine the
grades which might cause a problem in the activity of assigning jobs to grades in a situation
where there is overlap between them.

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About the author

Dr. Ndalahwa Musa Masanja is an expert in Accounting, Management and Higher education
administration. He possesses good interpersonal and communication skills. He is also
experienced in the academic research and business writing. This knowledge is attributed by
serving in different capacities as an Accountant, business manager and entrepreneur in Tanzania
and United States of America. He holds a BBA in Accounting and Management, and MBA in
Accounting from the University of Eastern Africa Baraton in Kenya. He also has a PhD from
Andrews University in USA. Currently, He is a lecturer at the University of Arusha.
Furthermore, he is an Adjunct lecturer at Jomo Kenyatta University of Science of Technology at
Arusha Campus and a part-time lecturer at MS-TCDC. He has been teaching graduate and
undergraduate programs at Institute of Accountancy Arusha and Dar-es-salaam.

He has been supervising students pursuing research methods in business and projects.
Furthermore, he has been supervising students writing their dissertations and thesis. At the same
time, he has participated as an external examiner for students pursuing their postgraduate studies.
He is a published author in several publications in international journals. He also has participated
in international seminars and workshops on business research. He is committed and
hardworking.

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TABLE OF CONTENT
PREFACE………………………………………………………… i
ABOUT THE AUTHOR………………………………………… ii

1 FACTOR COMPARISON METHOD…………………………. 1

A. Description……………………………………………….. 1
B. Factor Comparison……………………………………….. 2

2 POINT RATING METHOD 3

Major and Minor Factors in Job Evaluation……………………… 3
I. Knowledge …………………………………………………….. 3
A. Education…………………………………………………. 4
B. Experience…………………….………………………….. 4
II. Responsibility…………………………………………………. 4
A. Supervisory……………………………………………….. 4
B. Money/Material/Equipment/Records…. 5
C. Contacts
III. Effort………………………………………………………….. 6
A. Mental…………………………………………………….. 6
B. Physical……………………………………………………. 6
IV. Working Conditions…………………………………………… 7

3 JOB EVALUATION WORKSHEET……………………………. 8

A. Administrative …………………………………………….. 8
B. Non-Administrative………………………………………… 148

4 RATING MANUAL……………………………………………….. 150

5 SUMMARY OF JOB RATING…………………………………… 155

6 BUTT TO BUTT RANGES……………………………………….. 160

7 OVERLAPPING SALARY SCALE………………………………. 164

8 GAP SALARY SCALE.................................................................... 170

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INTRODUCTION
There are several methods to conduct job evaluation. Some of the common method is Factor
comparison and point method

Factor Comparison Method

Factor comparison refers to a set of compensable factors which identify and determine the
worth or value of a job. Specifically, the number of compensable factor is small. These
factors normally include the following

1. Skills
2. Responsibilities
3. Effort
4. Working conditions
The following step is to benchmark the determined jobs. This activity of benchmarking
should involve certain attributes

1. Fair or equitable pay: this should not be under or overcompensated.

2. Range of the factors: this requires that each factor where by some jobs would be at the
lowest end or point of the factor and at the same time other jobs would be at the
higher end of the factor.
The next step is to price the jobs and the sum total pay for each job is divided into pay for
each factor. For example.

Job Evaluation: Factor Comparison

The hourly rate is divided into pay for each of the following
factors:
Job Hourly Rate Pay for Skill Pay for Pay for Pay for
Effort Responsibility working
condition
Janitor Tshs. 1000 Tshs. 450 Tshs. 200 Tshs. 100 Tshs. 250
Receptionist Tshs. 4100 Tshs. 2000 Tshs. 1000 Tshs. 1000 Tshs. 100
Supervisor Tshs. 12500 Tshs. 6000 Tshs. 2000 Tshs. 4000 Tshs. 500
Manager Tshs. 35100 Tshs. 15400 Tshs. 13600 Tshs. 6000 Tshs. 100

Normally, this process determines the rate of pay for each factor for each benchmark job.
Occasional adjustment will be made in the matrix to determine equitable shillings weighting
of the factors.

At the time other jobs in the organizations should be compared to the benchmark jobs and
rates of pay for every factor will be summed to identify the rates of pay for each of the other
jobs.

The benefit of this method is that the worth of the job is described in monetary terms.
Furthermore, this method can be applied to various types of job. Ultimately, this method can

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 JOB EVALUATION WORKBOOK: STUDENT EDITION NMM PRINTERS

be used to newly created jobs. On the contrary, the disadvantages include the pay for each
factor is in accordance to the judgment and opinion of pay evaluators which might be
subjective. In connection to this, the standard applied for determining the pay for every factor
might be biased. The biasness might affect a specific group of employees.

Point Method

Point method refers to a set of compensable factors which determine the value or worth of
jobs. Specifically the compensable factor include the major categories

1. skills
2. responsibilities
3. effort
4. working conditions
These factors can be further divided into the following sub-categories

1. Skills
a. Education
b. Experience
c. Ability

2. Responsibilities
a. Fiscal
b. Supervisory

3. Effort
a. Mental
b. Physical

4. Working conditions
a. Locations
b. Hazards
c. Extremes in working environment
The point method is a further development of the factor comparison method. For this method,
each factor is categorized into levels or degrees which are then assigned points. Each job is
rated according the job evaluation instrument. The points for every factor are added to form a
total point score for the job. Jobs are then categorized by total points score and assigned to
wage/salary grades in order to ensure similar rated jobs can be grouped into similar wage
grades.

The advantages of the point method are the value of the job is described in monetary terms.
In addition, point method can be used to a wide range jobs but also newly created jobs. The
disadvantages of this method are the pay for each factor might be based on judgment and
therefore it is subjective in nature. Furthermore, the standard applied in determining the pay
for each factor might be biased and as a result affects certain groups of employees.

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Requirements for Job Evaluation

1. Rating manual with points allocation

2. Summary of job rating from least complex to the most complex
3. Butt to butt ranges
4. Overlapping salary scale
5. Gap salary scale
Key assumption is that the organizations have surveyed and the results of the survey
indicated a median rate per job grade of pay class as follows:

Pay Class Median

1 Tshs. 245,000
2 Tshs. 255,000
3 Tshs. 265,000
4 Tshs. 286,000
5 Tshs. 321,000
6 Tshs. 332,000
7 Tshs. 412,000
8 Tshs. 423,000
9 Tshs. 445,000
10 Tshs. 450,000

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NM MANUFACTURING COMPANY LIMITED

ARUSHA TANZANIA

MAJOR AND MINOR FACTORS USED IN THE JOB EVALUATION PROJECT

USING THE POINT RATING METHOD

I. KNOWLEDGE: this is the familiarity or skills that can be either acquired or possessed by
an employee so as to execute their duties of the job.

A. Education: amount of formal training necessary to prepare a prospective employee for the
job

Degree Points Definition

1 Primary Graduate
2 Secondary Graduate
3 High School Graduate
4 Certificate Graduate
5 Diploma Graduate
6 Under Graduate (Bachelors)
7 Post Graduate (Masters)
8 Doctoral Graduate
9 Post- Doctoral

B: Experience: the amount of time required for an employee having acquired certain formal
training or education to learn the specific job so gain adequate knowledge to execute the
organizational activities.

Degree Points Definition

1 Less than one year of
experience
2 1 to 2 years of experience
3 2 to 5 years of experience
4 5 to 10 years of experience
5 Beyond 10 years of
experience

II. RESPONSIBILITY duties for which the employee is accountable.

A. Supervisory

The responsibility for leadership in relation to role of directing the efforts of other employees
in the organization. It is measured by the number of employees supervised and the
diversification of the work. This factor is only applied when supervision is involved.

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Degree Points Definition

1 Supervision of 1-3 employees executing routine work
2 Supervision of 4-8 employees doing routine work or employees
executing various kinds of work
3 Supervision of 9-12 employees doing routine work or employees
doing diversified work
4 Supervision of 13-15 employees doing routine work or employees
doing diversified work
5 Supervision of more than 15 employees doing routine work or
employees doing diversified work

B. Money/ Materials/Equipment/Records

The responsibility and accountability for cash, negotiable instruments, materials, equipment
and confidential records measured in terms of possible loss to the business.

Degree Points Definition

1 Job where money handling is incidental regardless of amount or
job with incidentals responsibilities for business equipment
2 Job involving care, precision, accuracy, an oversight of which will
result in loss to business regardless of amount
3 Jobs with cash accountability in small amounts and/or
securities/property and materials worth Tshs. 5,00,000 and below
4 Jobs which involve handling cash and/or securities worth Tshs.
500,000 to Tshs. 5,000,000.
5 Jobs which involves handling cash, materials, equipment and
records worth above Tshs. 5,000,000

C. Contacts

Responsibility for personal contacts that is essential to the job. Contacts with both employees
(other than supervisor-subordinate relationship) and the public are concerned.

Degree Points Definition

1 Job having regular general contact with others in the same group
and with employees of other departments.
2 Job having regular general employee contact and incidental public
contact.
3 Jobs having regular employees contact and routine public contact
4 Jobs necessitating regular public and employees contact
necessitating effective communication. Personality and ability to
get along with people are primary qualification
5 Jobs necessitating extensive public contact involving intensive
selling and public relations for the company. Personality and
ability to get along with people are primary qualifications.

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III. EFFORT Exertion of power either physical or mental in performance of a job

A. Mental

The type of thought processes necessary to perform a person job. Normally, it is measured by
the degree of routine, amount of supervision received or by the diversification of the
complexity of the job.

Degree Points Definition

1 Work is routine. Questions which do not follow standard practice
or procedure are referred to higher authority for decisions
2 Work is diversified. All operations which do not follow standard
practice or procedures are referred to a higher authority for
decisions
3 Work is diversified. The job requires making decisions when
general instructions and procedures indicate actions to be taken.
Unusual problems are referred to higher authority for decision
4 Work is diversified and the job requires making decisions when
general instructions and procedures indicate actions to be taken.
Occasionally unusual problems are solved.
5 Diversified work is performed independently with little or no direct
supervision and the job requires the use of independent judgment

B. Physical

Physical effort is required to execute the job at hand. It also refers to the intensity and degree
of physical effort to perform the duties and responsibilities of a certain job.
Degree Points Definition
1 Work is light, non-continuous and involves a minimum of fatigue.
The job is not restricted to on work position. However, activities
combine intermittent standard and walking.
2 Work is light and continuous and the job is non restrictive to one
position. However, activities combine intermittent sitting, standing
and walking.
3 Tasks are light however the work is tiresome due to the fact the
work is restricted to one place. Normally, a small amount of light
lifting and/or carrying.
4 Work is relatively heavy. The work requires almost continuous
standing and/or walking. The work might involve either lifting,
carrying, pulling/pushing but occasionally.
5 Work is heavy and requires constant standing and/or walking. It
also involves either carrying, lifting, pushing and pulling.

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IV. WORKING CONDITIONS Physical environment and conditions under which the job
is performed.

Degree Points Definition

1 Work area is clean, well-lighted and comfortable
2 Work are is relatively clean, well-lighted and comfortable however
with occasional exposure to disagreeable factors such as poor
ventilation, undesirable work location, noise which may affect the
well being of employees.
3 Work requires continuous exposure to disagreeable factors such as
poor ventilation, undesirable work location, noise which may
affect the well being of employees.
4 Work is primarily outside the organization where employees is
subjected to hazards.
5 Work condition in the organizations is relatively hazardous with
the exposure to high voltage, extreme temperatures, inflammable
materials, obnoxious odors, sharp objects and any similar
conditions.

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 JOB EVALUATION WORKBOOK: STUDENT EDITION NMM PRINTERS

1.0 JOB EVALUATION WORK SHEET

JOB DESCRIPTION WORKSHEET

Job Title: Cashier Report to: Treasurer
Section: Finance Department: Accounting and Finance
DUTIES AND RESPONSIBILITIES:
1. Post client ledger and inform the finance department
2. Cross check and validate payments for customers and suppliers
3. Receive cash payments, verifies cash received, issues official receipts
4. Operates the computing automated machine and the computer accounting software
5. Approves safety deposits lock key and outlet keys to the incoming shift cashier
6. Manages the petty cash book and disburse petty cash vouchers for different payments
7. Maintain stock of accountable sheets, office supplies and forms for cashiers
8. Performs banquet cashiering
9. Arranges old files and used forms
QUALIFICATION GUIDELINES:
Education: Two year college Education
Experience: On the job training
Job number: Date:
Job Title:

Section:

Department:

Report to:

JOB EVALUATION RATING SHEET

POINT RAING
FACTORS DEGREES POINTS
MAJOR MINOR
KNOWLEDGE a) Education
b) Experience
a) Supervision
b) Money/Material
RESPONSIBILITY Equipment and
Record
c) Contacts
EFFORT a) Mental
b) Physical
Working Conditions Surroundings
TOTAL

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 JOB EVALUATION WORKBOOK: STUDENT EDITION NMM PRINTERS

JOB DESCRIPTION WORKSHEET

Job Title: Accountant 1 Report to: Treasurer
Section: Accounting Department: Accounting and Finance
DUTIES AND RESPONSIBILITIES:

1. Prepares asset, liability, and capital account entries by compiling and analyzing
account information.
2. Documents financial transactions by entering account information.
3. Recommends financial actions by analyzing accounting options.
4. Summarizes current financial status by collecting information; preparing balance
sheet, profit and loss statement, and other reports.
5. Substantiates financial transactions by auditing documents.
6. Maintains accounting controls by preparing and recommending policies and
procedures.
7. Guides accounting clerical staff by coordinating activities and answering
questions.
8. Reconciles financial discrepancies by collecting and analyzing account
information.
9. Secures financial information by completing data base backups.

QUALIFICATION GUIDELINES:
Education: Bachelor of Business Administration in Accounting
Certification: CPA, ACCA or Equivalent
Experience: 1 year Experience
Job number: Date:
Job Title:

Section:

Department:

Report to:

JOB EVALUATION RATING SHEET

POINT RAING
FACTORS DEGREES POINTS
MAJOR MINOR
KNOWLEDGE c) Education
d) Experience
d) Supervision
e) Money/Material
RESPONSIBILITY Equipment and
Record
f) Contacts
EFFORT c) Mental
d) Physical
Working Conditions Surroundings

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 JOB EVALUATION WORKBOOK: STUDENT EDITION NMM PRINTERS

TOTAL
JOB DESCRIPTION WORKSHEET
Job Title: General Accountant Report to: Treasurer
Section: Accounting Department: Accounting and Finance
DUTIES AND RESPONSIBILITIES:

1. Maintains financial security by following internal controls.

2. Prepares payments by verifying documentation, and requesting disbursements.
3. Answers accounting procedure questions by researching and interpreting accounting
policy and regulations.
4. Complies with federal, state, and local financial legal requirements by studying
existing and new legislation, enforcing adherence to requirements, and advising
management on needed actions.
5. Prepares special financial reports by collecting, analyzing, and summarizing account
information and trends.
6. Maintains customer confidence and protects operations by keeping financial
information confidential.
7. Contributes to team effort by accomplishing related results as needed.

QUALIFICATION GUIDELINES:
Education: Bachelor of Business Administration in Accounting
Certification: Certified Public Accountant (CPA) , ACCA or Equivalent
Experience: 2 years
Job number: Date:

Job Title:

Section:

Department:

Report to:

JOB EVALUATION RATING SHEET

POINT RAING
FACTORS DEGREES POINTS
MAJOR MINOR
KNOWLEDGE e) Education
f) Experience
g) Supervision
h) Money/Material
RESPONSIBILITY Equipment and
Record
i) Contacts
EFFORT e) Mental
f) Physical
Working Conditions Surroundings
TOTAL

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JOB DESCRIPTION WORKSHEET

Job Title: Chief Executive Officer Report to: Board of Directors
Section: Executive Department: Administration
DUTIES AND RESPONSIBILITIES:

1. Communicating, on behalf of the company, with shareholders, government entities,

and the public
2. Leading the development of the company’s short- and long-term strategy
3. Creating and implementing the company or organization’s vision and mission
4. Evaluating the work of other executive leaders within the company, including
directors, vice presidents, and presidents
5. Maintaining awareness of the competitive market landscape, expansion opportunities,
industry developments, etc.
6. Ensuring that the company maintains high social responsibility wherever it does
business
7. Assessing risks to the company and ensuring they are monitored and minimized
8. Setting strategic goals and making sure they are measurable and describable

QUALIFICATION GUIDELINES:
Education: Master of Business Administration (MBA)
Experience: 15 years
Job number: Date:
Job Title:

Section:

Department:

Report to:

JOB EVALUATION RATING SHEET

POINT RAING
FACTORS DEGREES POINTS
MAJOR MINOR
KNOWLEDGE g) Education
h) Experience
j) Supervision
k) Money/Material
RESPONSIBILITY Equipment and
Record
l) Contacts
EFFORT g) Mental
h) Physical
Working Conditions Surroundings
TOTAL

A Practical Guide to Job Evaluation Page 11

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