Job Evaluation

Job evaluation is an important part of Human Resource Management. It evaluates each job and determines it's relative value.

In an organization, different employees perform different jobs and their salary is also not the same. But how does companies decide the importance and hierarchy of jobs. The answer is job evaluation. Job evaluation means determining the relative worth of a job by comparing it with other jobs. Job evaluation is done on the basis of the value of the particular job and how important it is to the organization. After evaluation, they are placed in order of their importance and a job hierarchy is formed. Wages are decided based on job evaluation and job hierarchy. Systematic job evaluation is the responsibility of every employer.

Definitions of Job Evaluation

According to the British Institute Of Management, "Job evaluation is the process of analysis and assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis for a balanced wage structure."

According to Edwin B. Flippo, "Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs."

Principles of Job Evaluation

Rate The Job And Not The Man:

Job evaluation should be done only to rate the job and not the employees performing them. The evaluator should understand that the job requirement is fixed and definite.

Easily Explainable Elements Of Rating:

The elements selected for rating purpose should be easily explainable. The elements selected should be few and should cover the essential requisite of every job.
Exposure Of Plan To Employees:

The process of job evaluation should be told to employees. Employees should be given clear-cut explanation and maximum co-operation should be garnered from them.
Employee Participation In Rating:

Employee should participate in the rating of jobs of their own departments. Their feedback would be very helpful for the HR department in properly evaluating the job.

Objectives of Job Evaluation

To establish impartial judgement
To establish satisfactory wage and salary
To select employees more accurately
To promote employee goodwill
To provide management with a basis for proper control
To determine the rate of pay for each job

Advantages Of Job Evaluation:

Indicates the relative worth of different jobs
Establishes a hierarchy of jobs
Useful for introducing a satisfactory, rational and balanced wage structure
Provides scientific base for promotions and transfers
Avoids injustice to employees
Removes grievances and disputes among employees

Process of Job Evaluation

The process of job evaluation is lengthy and has to be taken in a systematic manner. The process of job evaluation involves the following steps:

Securing Acceptance From Employees:

Before starting the process of job evaluation, the management must explain the purpose and uses of the job evaluation programme to the employees. The acceptance of the job evaluation programme by the employees will also avoid possible opposition from them in the future.
Forming Job Evaluation Committee:

A single person should not be entrusted with the responsibility to evaluate all the key jobs in an organization. A committee of experienced employees and HR experts should be created for this purpose.
Deciding The Jobs To Be Evaluated:

Evaluating every job in the organization is time consuming and costly. So, only important jobs are evaluated. For this, certain key jobs in each department are identified and evaluated.
Analyzing And Preparing Job Description:

In this step, the job selected for evaluation is analyzed in great detail. This is necessary for the preparation of job description and it's successful performance.
Selecting The Method Of Evaluation:

In this step, the method of job evaluation is selected. The method is selected keeping the job factors and organizational demands in mind. The benefits of job evaluation is available only when the method selected is appropriate.
Classifying Jobs:

In this step, the relative worth of various jobs is found out and arranged in order of importance. This classification of jobs on the basis of weightage is a major step in the process of job evaluation.
Executing The Programme:

Once the job evaluation process is over, the management must explain it to the employees and solve their doubts. After this, the action plan is put into execution.
Periodical Review:

Job evaluation is a ever changing process and it requires periodical review. In the absence of periodical review all the relevant job factors will not be evaluated properly.