Job Evaluation – Meaning, Definitions, Objectives, Process, Methods, Advantages and Limitations 

Job Evaluation

Meaning, Definitions, Objectives, Process, Methods, Advantages and Limitations


Job evaluation is a systematic way of determining the value and worth of a job in relation to other jobs in an organization. It tries to make systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

job evaluation


According to International Labour Organisation

 “Job evaluation is an attempt to determine and compare methods which the normal performance of a particular job makes on normal workers without taking into account the individual performance of the workers concerned.”

According to Wendell French

“ Job evaluation is a process of determining the relative worth of various jobs within the organization so that differential wages may be paid to jobs of different worth.”

Objectives of Job Evaluation

1. To determine equitable wage differential between different jobs in the organization.
2. To eliminate wage inequities.
3. To develop a consistent wage policy.
4. To establish a rational basis for incentive and bonus schemes.
5. To provide a framework for periodic review and revision of wage rates.
6. To provide a basis  for wage negotiations with trade  unions;
7. To minimize wage discrimination on the  basis  of age.  sex,  caste,  region, religion.
8. To enable management to gauge and  control  the payroll


Difference between Job Evaluation and Performance Appraisal


Job Evaluation Performance Appraisal
It is the  assessment   of various  jobs  to find  out  their   relative   worth. It is the assessment  of performance  of different  employees  performing  the  same  job.
It  takes      into     consideration      the requirements   of different jobs. It takes  into  consideration  the performance of different  individuals.
Its  purpose  is to identify the basis   for fixing  wages,   salary   for  various   jobs. Its   purpose     is  to  identify   the   basis    for decisions concerning  pay raise,  promotion. training   and  transfer.  etc.
It rates   the jobholder   and  not  the job. It rates   the job  and  not ‘the jobholder.
It is  done  before   an  employee. It  is  done    after   an   employee  joins   and performs  the job.


Process of Job Evaluation

The process  of job  evaluation involves the following steps:

1. Gaining Acceptance

First of all the cooperation and support  of top management,employees and  the trade  union  should  be obtained through  communication and participation.  For this  purpose   conferences, letters  and  booklets can be used explaining the aims  and  benefits  of job evaluation.

2. Constituting Job   Evaluation  Committee

It is very  difficult  for  a single person   to  evaluate   all  jobs   objectively. Therefore,  a  committee  consisting  of experienced and respected representatives of a management and workers  and outside experts should be constituted. Participation of employees in job evaluation will reduce their doubts  and  suspicion about  the programme.

3. Selecting Jobs to be  Evaluated

Due to constraints  of time  and  money  it may not be possible  to evaluate  each and every job. Therefore. some key jobs  may be selected in each department. The key jobs are evaluated in detail and the other jobs are compared with the key jobs. The key jobs  should  be representative of the type of work performed.

4. Describing the  Jobs

A detailed written description of every job is prepared to indicate  the  duties   and  responsibilities involved in it.  The job  description  is thoroughly checked  to ensure  that  there  are no omission and duplication in it. The acceptance of the employee performing the job is also obtained to the job description.

5. Selecting the Method of Evaluation

There  are several  methods available for evaluating jobs. The method  most  appropriate to the job and the organisation is choosen. If possible  more  than one method  may be used  to increase  the accuracy of evaluation.

6. Weighting Job

A job  is  compared with  other  jobs  in  terms   of Significant  factors which  may be as follows:

(a) Skill-mental   and manual

(b)    Experience

(c)  Efforts  and  initiative

(d)    Working conditions

(e)   Responsibilities to be undertaken

(f)  Supervision required

Weights are assigned to each job  factor and  total weights  for a job  indicate  its relative value.  Different jobs  are  arranged in a sequence in terms  of their  relative worth  to the company.

7. Assigning Money Values

Each job is priced  in terms  of its worth.  In other words, the sequences of jobs  in terms of their relative worth is related to a money scale.

8. Periodic  Review

A periodic  review and revision of job descriptions  will help to assuage  the feelings of employees  who believe that  their  work  was not properly evaluated. Moreover, it will enable management  to update job description  in the light of technological and other changes. For example, automation  of a job reduces physical effort, but  increases  responsibility.

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