What is Job Evaluation Technique and its Objectives?
Job evaluation is a technique which is designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for it. Job evaluation is the process of methodically establishing a structure of jobs within an organization based on a systematic consideration of job content and requirements. The purpose of the job structure or hierarchy is to provide a basis for the pay structure. It is concerned with jobs, not people. A job is a grouping of work tasks. It is an arbitrary concept requiring careful definition in the organization. Job evaluation determines the relative position of the job in the organization hierarchy.
It is assumed that as long as job content remains unchanged, it may be performed by individuals of varying ability and proficiency. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. The second method is one of awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded the higher the educational requirements of the job the higher the points scored.
There are about five steps to follow in order to evaluate the job. The first step is a study of the jobs in the organization. Through job analysis, information on job content is obtained, together with an appreciation of worker requirements for successful performance of the job. This information is recorded in the precise, consistent language of a job description. The second step is to decide as to what the organization “is paying for” that is, what factor or factors place one job at a higher level in the job hierarchy than another. The third step in job evaluation is to select a method of appraising the organization’s jobs according to the factor chosen. The fourth step is comparing jobs to develop a job structure. This involves choosing and assigning decision-makers, reaching and recording decisions and setting up the job hierarchy. The final step is pricing the job structure to arrive at a wage structure.
There are some principles of job evaluation which should be followed i.e. only jobs which are clearly defined and identified should exist. All jobs in an organization should be evaluated using an agreed job evaluation scheme. Yob evaluators need to gain a thorough understanding of the job. Job evaluation is concerned with jobs, not people. It is not the person that is being evaluated.
OBJECTIVES OF JOB EVALUATION.
- It firms the basis for a simpler, more rational wage structure.
- It helps in classifying new or changed jobs.
- Forms the means of comparing jobs and pay rates with those of other organizations.
- Also forms the base for individual performance measurement.
- It acts as a way to reduce pay grievances by reducing ,their scope and providing an agreed upon means of resolving disputes.
- Provides incentive for employees to strive for higher level jobs.
- Kind of source of information for wage negotiations.