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Job evaluation can be described as a systematic way which determines the value of a job in relation to other jobs in an organization. Job evaluation tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job evaluation is different 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 job 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. Job evaluation can be done by three methods:

  • Ranking.
  • Classification.
  • Factor comparison.

The ranking method is the simplest method of :fob evaluation. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. According to classification method a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Factor Comparison Method is a more systematic and scientific method of job evaluation. Though it is the most complex method of all, it is consistent and appreciable.


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March 14, 2019