JOB EVALUATION

MEANING:

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

DEFINITION:
According to Edwin B. Flippo- “The systematic and orderly process of measuring the worth of job
within an organisation is called job evaluation.

SCOPE & BENEFITS:

1. Helps in Mitigating Grievances: Job evaluation is an objective technique of ranking jobs. It
helps in removing disparities (inequalities) in wage structures. The process involved in job
evaluation programme removes the disputes or grievances of workers’ wages as it involves a
logical sequence of different steps.

2. Helps in Mitigating Grievances: It helps in fixing new jobs in existing wage structure.

3. Improves Labour-Management Relations: Since the job evaluation eliminates the inequalities
in wages, the helps in improving & maintaining management employee relations.

4. Helps in Wage & Salary Fixation: It provides greater uniformity in wage rates, thus simplifying
wage administration.

5. Ensures Fair Distribution of Rewards: The data collected for job evaluation also helps in
improving selection, transfer, promotion procedures on the basis of comparative job
requirements.

6. Assists in Wage & Salary Negotiations: Any dispute regarding wages can be settled by referring
it to job evaluating committee, such as during the discussion with the trade unions at the time
of wage and salary negotiations.

7. Helps in Recruitment & Selection: During the process of recruitment, since the exact
requirement of each job is known, the personnel department can select only those worker who
satisfy the requirements of the specific job. Likewise, promotions, transfers and son on can be
made on a rational basis for different employees in the organisation.

8. Helps in Analysis of Company: Job evaluation can be valuable tool in the analysis of a company
and can help to identify any gaps or overlaps in responsibility.