JOB EVALUATION


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Job evaluation is an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be.
The process of determining how much a job should be paid, balancing two goals:
Internal Equity: Paying different jobs differently, based on what the job entails
External Competitiveness: Paying satisfactory performers what the market is paying.


OBJECTIVES OF JOB EVALUATION


To systematically establish the relative value of jobs within an organization
Impose a structured approach to determining job value that is objective (to the extent possible) and documented
Provide a basis for pay determination
To ensure utmost job satisfaction to all the employees
To know the worth of each job.



PRINCIPLES


Rate the job not the man.
Elements selected for rating purpose should be easily explainable and should not over lapped.
Any job rating programme must be told to foremen and employees.
Too many occupational wages should not established.


METHODS OF JOB EVALUATION


Ranking Method : all jobs are ranked in order of their importance from simplest to the hardest order.
Steps :
1. Preparation of job description
2. Selection of Raters.
3. Selection of Rates and Key jobs
4. Ranking of All Jobs.

ADVANTAGES


It is very easy to understand and easy to explain to employees
This method is economical in operation as compared to other methods
It can be installed without any delay as it requires much less time



DISADVANTAGES


Not based on standard criterion so human bias cannot be ruled out
Since factors like skill,responsibility,effort etc. are not analysed
There remain some chances of inaccurate ranking
The employees may resent arbitary ranking of jobs