Definition: Job evaluation is described as the process of systematically studying and evaluating various jobs in an organization, in order to determine the value of a job with respect to other jobs. It rates the job prior to the appointment of the employee so that a satisfactory wage differential is established.
Process of Job Evaluation
- Job Evaluation process begins with the establishment of objectives, which is to fix an acceptable salary differential.
- Next, Job Analysis is performed in order to gather information regarding the job, i.e. its nature and requirements. It helps in the preparation of job description and job specification.
- After that, the job evaluation programme takes place in which jobs which require evaluation are identified, and evaluator is selected. Further, training is provided to the evaluator if necessary, criteria for the evaluation of jobs is determined, time involved in it is identified, and the method to be used for this purpose is decided.
- Once the job evaluation is complete, the organizational hierarchy is created through an evaluation method and after that salary differential is established. For this purpose, the wage rate is identified and the survey is performed.
- Employee Classification is the final step in the process of job evaluation, wherein job title is assigned to all the employees working in the organization.
The assessment of the jobs is based on the job content, i.e. duties and responsibilities involved, qualification, skills and experience required, intricacy involved in operations and working conditions. It is used to compare different jobs and place them as per their need and priority.
This results in the establishment of job hierarchy, which serves as a guide in the fixation of a rational pay structure.
- Ranking Method: In this method, the evaluator identifies the value of each job considering its title and content, and a comparison is made among various jobs and ranked accordingly.
- Job-Grading Method: Otherwise called as a Job-classification method, there are certain parameters called job classes or grades.First of all, the sequence of grades is decided, and the factors on which the grades are based are ascertained. After that, job-related information is obtained, and they are matched with the grades created.
- Point Ranking Method: In this method, a job is broken down into a number of elements or factors. And for each job factor degrees are established and then points are allocated to each degree.
- Factor Comparison Method: In the factor-comparison method, various factors are selected, in terms of requirements. Factors are the same for all the jobs, and it covers mental ability, physical ability, skills needed, expertise, working conditions and responsibilities. On the basis of these factors, each job is ranked in the organization, by making a comparison between them.
Job evaluation is a process of ranking jobs and not the job holders, as job holders are ranked through the process of performance appraisal.
Scope of Job Evaluation
Job Evaluation is versatile, in the sense that its principles apply to all types of jobs and the organizations as well. The organizations in which job evaluation technique is not practised, usually establish salary and wage differentials as per the demand for and supply of the manpower, collective bargaining, ability to pay, industrial parity and so forth.