What Is a Business Evaluation?

The so-called job evaluation is based on the results of job analysis and according to certain standards, the comprehensive evaluation of the nature of the job, intensity, responsibility, complexity, and the degree of difference in the required qualifications and other factors. Job evaluation is a formal, systematic comparison and evaluation of a position relative to other positions in the organization, and the results of the evaluation will be strong evidence for determining compensation. Job evaluation is the measurement of the relative value of a task or job to an organization.

Job evaluation

The so-called job evaluation is based on the results of job analysis and according to certain standards, the comprehensive evaluation of the nature of the job, intensity, responsibility, complexity, and the degree of difference in the required qualifications and other factors. Job evaluation is to determine a

Although different organizations use different standards for job evaluation, in general, the standards for job evaluation are generally based on the following assumptions, and the elements and standards for evaluation are designed around these assumptions:

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There are four main job evaluation methods: job ranking method, job classification method, factor comparison method, and factor counting method.

Job ranking method : Traditional method, non-quantitative method, and comparatively subjective. The appraisal staff will use their own judgments to rank the jobs according to their relative value. This is the simplest but inaccurate method, and the purpose is to judge each position as a whole.

Job taxonomies : The taxonomy of job evaluation is to describe each type of job, and then put each job of the organization into the job category that matches it. The biggest difficulty with this method is that it requires subjective judgment of the job level description and corresponds precisely to the job category.

Job classification steps :

1. Form an assessment team to collect all kinds of relevant information.

2. According to the roles and characteristics of various positions in the production and management process, the entire position of the enterprise is divided into several large systems.

3. Divide each position in each system into several levels, at least 5 to 6 levels, and at most 15-20 levels.

4. Clearly define the work content, responsibilities and authority of each grade of position.

5. Clarify the qualification requirements for each grade (level) position in each system.

6. Assess the relative value and relationship between different positions in different systems.

Factor comparison method : first select the main influencing factors for the position, then reasonably decompose the salary amount to match each influencing factor, and finally determine the level of the position according to the amount of salary.

Element point method (point-valued element method): Also called point method. This method is the main influencing factor of the selected position, and uses a certain number of points (scores) to represent each factor, and then evaluates and evaluates each factor of the existing position one by one according to a predetermined measurement standard. Weighted summation to get the total points of each position. The method is to identify some elements that are ubiquitous in all positions. At the same time, these position elements are considered to be directly related to evaluating the relative value of each position in the organization. This method also believes that the difference between the levels of different levels of an element can distinguish the difference between positions. Commonly used elements include knowledge and skills, management complexity, problem solving, and accountability.