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.
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
(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.