Job evaluation

Definition
Job evaluation is a systematic way of determining
the value/worth of a job in relation to other jobs
in an organisation.
The purpose of job evaluation is to find the
relative worth of a job and determine what a fair
wage for such a job should be. Job evaluation, it
should be noted, begins with job analysis (a
systematic way of gathering information about a
job) and ends at that point where the worth of a
job is ascertained for achieving pay equity
between jobs

Features of job evaluation

It tries to assess jobs
The standards of job evaluation are relative, not
absolute
It gets the basic information through job analysis
It is generally carried out by groups, not
individuals
Some amount of subjectivity is always present in
job evaluation
It does not fix pay scales but offers a sound basis
for determining a rational wage structure

The Process Of Job Evaluation

Gaining acceptance from employees and trade
unions
Creating a job evaluation committee
Finding the jobs to be evaluated
Analyzing and preparing job descriptions
Selecting the method of job evaluation
Classifying jobs
Installing the programme
Reviewing the process periodically

Benefits

It tries to link pay with the requirements of the job.
It offers a systematic procedure for determining the relative worth
of jobs.
An equitable wage structure is a natural outcome of job evaluation.
Job evaluation, when conducted properly and with care, helps in
the evaluation of new jobs.
It points out possibilities of more appropriate use of the plants
labour force by indicating jobs.

Methods of Job Evaluation
Ranking method: The job ranking method
arranges jobs in numerical order on the basis
of the importance of the job, duties and
responsibilities to the organization. This
method, though easy to understand, is highly
subjective in nature.
Classification method
Classification method: The job classification
method slots jobs into pre established grades.
Higher-rated grades demand more
responsibilities, tougher working conditions and
varied job duties. This method is easy to
understand and takes care of all relevant factors
affecting the performance of a job. However, it is
not easy to write all inclusive descriptions of a
grade. Further, the method oversimplifies sharp
differences between different jobs and different
grades
Factor comparison method
Factor comparison method: In this method,
jobs are ranked according to a series of factors
such as mental effort, physical effort, skill
needed, responsibility, supervisory
responsibility, working conditions, etc. pay will
be assigned in this method by comparing the
weights of the factors required for each job.

Limitations of Job Evaluation

Job evaluation is not exactly scientific.
The modus operandi of most of the techniques is difficult to
understand, even for the supervisors.
The factors taken by the programme are not exhaustive.
There may be wide fluctuations in compensable factors in view of
changes in technology, values and aspirations of employers, etc.
Employees, trade union leaders, management and the programme
operators may assign different weightage to different factors, thus
creating grounds for dispute.