Job Evaluation (Nov’10)

Q. What is Job Evaluation (Nov’10)?

Job Evaluation: A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs.

Features of Job evaluation: The purpose of job evaluation is to produce a defensive ranking of jobs on which a rational and acceptable pay structure can be built. The important features of job evaluation may be summarized thus:

1.      It tries to assess jobs, not people.

2.      The standards of job evaluation are relative, not absolute.

3.      The basic information on which job evaluations are made is obtained from job analysis.

4.      Job evaluations are carried out by groups, not by individuals.

5.      Some degree of subjectivity is always present in job evaluation.

6.     Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.