Job Evaluation

Meaning of Job Evaluation:

Job evaluation is a systematic technique to evaluate the relative worth of an individual job. In other words, it is the process of review, analysis and systematic classification of a job in accordance with its nature, i.e., the varying factors it demands from its workers/operators.

In short, job evaluation assesses all the jobs as per their nature/features in such a manner so that the relative merit of each job may be determined as per their value of work. Needless to say that each and every job factor is assigned a relative weight which contains some points for assessment.

Accordingly, a job contains number of points which depend on its nature and some various factors for its performance/assessment. During the process of job evaluation the job which requires a large number of factors will be given higher rank as compared to a job which requires a small number factors.

It is interesting to note that sometimes two dissimilar jobs contain the same gradation when each of the job bears the same number of points.

Job evaluation helps us to know the correct grade of labour for each individual job relating to training, skill, physical and mental efforts, working conditions, and risk involved while performing a job. It helps the management to ascertain the internal wage and salary structure for various job with a sound basis.

It supplies a rational basis for various wages and salaries for different groups of workers/ employees bearing in mind that these differentials are quite consistent, and equitable and justified. As a result, there will be no dissatisfaction among the employees about their individual earnings.

Methods of Job Evaluation:

The following methods of job evaluations are usually used:

(a) Ranking Method:

As per the requirements, skill, efforts, needed etc., various job are ranked from the lowest to highest, or from highest to lowest. Naturally, job description and analysis of the job should first be computed before introducing the rank for each job. Thereafter, each individual job is valued as compared to other jobs and a rate is given depending on the market basis of the previous one.

(b) Classification/Grading Method:

Under this method, all jobs are grouped under various levels viz., skilled, unskilled, highly skilled, etc. — after considering the nature of work, job description, degree of supervision needed, etc. When the grade is ascertained, each individual job is placed in the appropriate grade. Considering the job, placing the same, pay scale is determined by an expert committee.

(c) Point Rating Method:

Under this method, each job is compared with a common job and points are given for each of the factors as per the relative weightage. Jobs are ranked as per scoring of total points and they are transferred to a number of predetermined grades. Pay scales are fixed for each of the grades. The method is very simple to understand and easy to operate.

Advantages of Job Evaluation:

The advantages of job evaluations are:

(a) It helps to fix proper wages/salaries for the proper job among the workers/employees;

(b) It develops an equitable wage structure and, as such, helps to control cost;

(c) It simplifies wage structure after maintaining uniformity in the rate of wages;

(d) It eliminates anomalies of placement and, as such, labour turnover is minimised;

(e) It facilitates merit rating;

(f) It helps personnel department in promotions, training, placement, transfer etc.;

(g) The workers/employees are satisfied as there is proper placement and right allocation of job;

(h) Employees are satisfied as there is scientific wage structure and incentive payment;

(i) It helps the management to place right person in right places.