Presented By

Name: Tajma Rahman

Id: 22H10004
Batch: 11TH
Department: Business Administration
Program: MBA
 Presentation On

Chapter 7: Introduction To Nature and Objectives of Job Evaluation

 Definition of Job Evaluation

According to Wendell French, "job evaluation is a process of determining the worth of the
various jobs within the organisation, so that differential wages may to jobs of different
worth." The relative worth of a job means value produced factors as responsibilities skill,
effort and working conditions.
We may define job evaluation as. a process of analyzing and describing positions, g them and
determining their relative value by comparing the duties of different s in terms of their
different responsibilities and other requirements.
 Why to do Job evaluation?
Organizations usually begin the process of designing a wave structure by determining their job
structure. Two often-cited principles of compensation are
(1) equal pay for equal work and
(2) more pay for more important work.
Both imply that organizations pay employees for contributions required by jobs.
 Objectives of Job Evaluation
1. To provide a basis for a simpler, more rational wage structure;

2. To provide an agreed-upon means of classifying new or changed jobs;

3. To provide a base for individual performance measurements;

4. To reduce pay grievances by reducing their scope and providing an agreed-upon

means of resolving disputes;

5. To provide incentives for employees to strive for higher-level jobs;

6. To provide information for wage negotiations;

7. To provide data on job relationships for use in internal and external selection, personnel planning, career management, and other
personnel functions.
 Prevalence of Job Evaluation
Job evaluation is used throughout the world. Although recent evidence is not available, it
appears that job evaluation is more prevalent in the United States than elsewhere.
However, a 1982 International Labor Office publication states that in centrally controlled
economies or in economies where wage or income controls exist, job evaluation is frequently
used Holland has had a national job evaluation plan since 1948 as a basis for its national wages
and incomes policy. Sweden and Germany have a number of industry-wide plans.
 Responsibility for Job Evaluation

One or more committees may be selected,

a department may be set up or
an existing one assigned,
or a consulting organization may be brought in.
These possibilities are not mutually exclusive. Support for the program is essential because
installation of it involves commitments of time, effort, and money. Such support is usually
obtained by securing top management approval and the collaboration of other managers and
organization members.
various bodies involved with the responsibility of
Job evaluation:

(1) The Committee

Approach Consultants

(2) Compensation
Department Involvement

(3) Union Involvement in

Job Evaluation
Unions have criticized job evaluation on several
grounds:
(1) that it restricts collective bargaining on wages,
(2) that wages shouldn't be based solely on job content,
(3) that supervisors do not or cannot explain the plan to employees,
(4) that management doesn't administer the plan the way it explained it, and
(5) that it is subjective.
 Employee Acceptance of Job Evaluation

Job evaluation is usually judged successful when employees, unions, and organizations report
satisfaction with it. Most surveys report organization satisfaction levels at 90 percent or
better. Employee acceptance is the primary criterion organizations use in determining the
success of a job evaluation plan.
 Relationship between Job Evaluation and Job Analysis

Job evaluation is the output provided by job analysis. As seen earlier, Job analysis describes the duties of
a job, authority relationships, skills required, conditions of work, and additional relevant information.
Job evaluation on the other hand, uses the information in job analysis to evaluate each job valuing its
components and ascertaining relative job worth. It involves, in other words, a formal and systematic
comparison of jobs in order to determine the worth of one job relative to another, so that a wage or
salary hierarchy results. So it is a process by which jobs in an organisation are evaluated.