Job evaluation is defined as the systematic process of assessing the value of each job in relation to other jobs in an organisation. It is intended to provide a rational, orderly hierarchy of jobs based on their worth to the company by analysing the difficulty of the work performed and the importance of the work to the organisation. The factors used to assess a job’s worth are identified, defined, and weighted in the company’s job evaluation plan.
Basic assumptions in job evaluation
If one has been told that his employer is carrying out a Job Evaluation Scheme this does not mean that his performance in his job is going to be evaluated. Instead, an evaluation looks at each job role, compares them and decides which roles need more skill than others. If different jobs are found to require the same level of skill, then those employees should all be receiving the same salary.
It gets very easy to evaluate job roles in the same sector. Anyone can see that a head clerk is more skilled and has more responsibility than an assistant clerk. But it is much harder across job types. Who should be ranked higher- a clerk or a cook? Or should they be the same? This is where job evaluation is particularly useful.
It is right to pay for the jobs which add to the overall upliftment of an organization.
The goals of an organization are looked after well by installing and maintaining a job-cum-pay structure on the basis of job worth.
The basic unit of a job is the performance of specific tasks and duties. Information to be collected about these items may include frequency, duration, effort, skill, complexity, equipment, standards, etc.
Some duties and tasks are performed using specific equipment and tools. Equipment may include protective clothing. These items need to be specified in a Job Analysis.
The Knowledge, Skills, and Abilities (KSAs) required performing the job. While an incumbent may have higher KSA’s than those required for the job, a Job Analysis typically only states the minimum requirements to perform the job.
This may have a significant impact on the physical requirements to be able to perform a job. The work environment may include unpleasant conditions such as offensive odors and temperature extremes. There may also be definite risks to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
Supervision given and received. Relationships with internal or external people.
Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand-supply analysis, recruitment’s, compensation management, and training need assessment and performance appraisal.
Job worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. Job description is used to analyze the job worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how much the job is worth, it becomes easy to define the compensation strategy for the position.
Advantages of Job Evaluation
1. Sound Wage Policy
Job evaluation is basically an attempt to measure the real worth of each job by a process of expert judgement. Therefore, any wage policy based on a scientific job evaluation is bound to be systematic and sound.
2. Settlement of Wage Disputes
The chances for disputes and grievances regarding the individual rates of wages are very rare. Even if there arises any disputes, it can be conveniently settled by referring to the job evaluation machinery.
3. Better Control over Labour Costs
Job evaluation enables the management to exercise effective control over the labour costs, because they can give appropriate pays for the each job.
4. Building up of Employee Morale
Since this system aims to reward employees’ suitability, it will help to build up employee morale and bring job satisfaction.
5. Proper Placement of Personnel
It helps in selecting the right man for the right job. Besides, this system facilitates to form a logical basis for designing training programmes for the worker.
6. Elimination of Personal Bias
The evils of personal bias, favoritism, and arbitrary judgement on the part of the management in fixing wage differential etc. are avoided, because wage rates are set by experts other than the management and that too after a careful job evaluation programme.
7. Reliable in All
This system provides well-defined methods for measuring various jobs. Besides, it also helps to justify the existence of different scales for different jobs. For these reasons, it is accepted by both workers and the management without any hesitation.