Job Evaluation: Importance And Processes

JOB EVALUATION

 

 

 

 

 

 

 

 

 

Introduction

Job evaluation is the process of establishing values of different jobs. Job evaluation provides a basis for ranking different jobs and developing a pay structure for them. Evaluation of job is the process of describing the duties, authority relationships, skills, condition of work and other relevant information related to jobs. It supplies useful data and information to develop job description and specification documents.


Job evaluation is an important task of a HR manager which is performed in order to determine the value or worth of each job within the organization.

Job evaluation is the rating of job in an organization which attempts to compare the relative intrinsic value of each job and forms a job hierarchy. It is ranking of job not the job holder- as the job holders are rated through performance appraisal.

Under the job evaluation process, wages and salary differentials are established on the basis of job ranking process. The basic procedure in job evaluation is to compare the contents of jobs in relation to one another which form a job hierarchy.

Therefore, job evaluation may be defined as a process of assigning value for each job in a job hierarchy so as to ascertain and determine a relative remuneration for different jobs. It takes into account the demands of the job in terms of efforts and abilities.

Job evaluation has some importance and features as follows:

1.Job evaluation helps to rate the job

Job evaluation is a technique which helps to rate the job in terms of complexities and importance. It rates the job but the job holder. This helps determining and fixing wages accordingly.

2. Job evaluation helps to determine pay structure

Job evaluation is a consistent and rational process of determining wages and salary structure for various level of jobs. Internal and external consistencies are analyzed in order to determine wage levels.

3. Job evaluation helps in bringing harmonious relation between labor and management

Job evaluation brings harmony and good labor relation through eliminating wage inequalities within the organization.

4. Job evaluation helps to minimize the cost of recruitment and selection

Job evaluation helps in keeping down the recruitment and selection costs as it assists in retaining employees. It means, job evaluation inspires for keeping down the labor turnover, as a result of which there will be less need of new recruitment. Moreover, due to systematic analysis of various aspects of jobs, recruitment and selection can be made by matching the qualification and candidate.

5. Job evaluation helps to differ job other than skills

Job evaluation considers risks and other factors of  job rather than skills in order to determine the worth of jobs. Hence, jobs are no longer differentiated with skills.

6. Job evaluation helps to determine the cost and rate of production

Job evaluation determines an efficient wage structure according to workload, hence, worker's productivity will be increased thereby increasing the rate of production.

7. Job evaluation helps to determine the requirement of training and development

Job evaluation identifies training and development requirements by comparing the complexity and importance between various jobs. Highly complex and critical job exposes training need.

8. Job evaluation helps to minimize cost

Through the productivity enhancement and increasing the rate of production, the per unit cost of an output is minimized or reduced.

Processes Of Job Evaluation

Job evaluation is a step by step process which is completed after the successful completion of following phases:

1. Job Analysis

It is a process through which required information about various aspects of jobs can be obtained. Job analysis involves two dimensions:

i. Job description

Under job description, a profile of job information is prepared indicating the duties, responsibilities and working condition of work. It explains about what the job entails.

ii. Job specification

Job specification indicates preparation of a specification statement which explains the necessary skills, knowledge and abilities required to perform the job.

2. Job Rating

Job rating includes the process of using same methods to study job descriptions and specifications in order to assign a relative worth for each job. Some of job rating methods are: ranking, point rating factor comparison, and so on.

3. Money Allocation

After rating the worthiness of each job, a pay structure is determined and the money for each job is allocated. It means, it is the arrangement of paying rewards/compensation for each job according to its worth or value.

4. Job Classification

Job classification is the last step of job evaluation which is concerned with the categorization of jobs according to their pay scale. For example, high paying jobs are represented at the top of the hierarchy.