JOB EVALUATION

Job Evaluation
a process of determining the relative worth of a job. process of analyzing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements.

Principles of Job Evaluation

are not the same as performance evaluations. Performance evaluations are directly for evaluating the performance of an employee for incentive purposes, whereas job evaluation determines the pay rate for a job. It tries to assess jobs, not people.

Principles of Job Evaluation

The basic information on which job evaluations are made is obtained from job analysis. are carried out by groups, not by individuals.

Advantages of Job Evaluation

1.) Reduction in inequalities in salary structure - It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.

Advantages of Job Evaluation

2.) Specialization - Because of division of labor and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation.

Advantages of Job Evaluation

3.) Helps in selection of employees - The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees.

Advantages of Job Evaluation

4.) Harmonious relationship between employees and manager - Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized.

Advantages of Job Evaluation

5.) Standardization - The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure. 6.) Relevance of new jobs - Through job evaluation, one can understand the relative value of new jobs in a concern.

Steps to install Job Evaluation program

1.) Job Analysis This leads to preparation of Job description and provides information about job duties, responsibilities and employee requirements for successful performance of the job.

Steps to install Job Evaluation program

2.) Selecting compensable factors Job has to be broken down into component parts to determine the factors required for performance as well as evaluation of the job for which money is paid. As these factors are like yardsticks used to measure the relative importance of the jobs they are known as compensable factors and the value of these are to be determined.

The factors chosen should: Represent all major aspects of job content for which organization is willing to pay; skill, effort, responsibility, working conditions etc Avoid overlapping or duplication They should be definable and measurable Should be easily understood by employees Should not cause excessive installation or administrative costs

Steps to install Job Evaluation program

3.) Selecting a system for evaluating jobs according to the selected compensable factors. The method used for evaluation of the job maybe adapted according to the organization needs.

Methods of Job Evaluation

(A) Non quantitative methods
Job Ranking Job Classification

(B) Quantified Methods

Point Rating Factor Comparison