Job Evaluation Meaning:Objectives and Importance

Meaning and Definition of Job Evaluation

Job Evaluation is a formal and systematic approach to analyzing jobs and categorizing them in regard to their relative worth in an organization. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation are usually based on compensation factors rather than on the employee.

According to Edwin B. Flippo___” The systematic and orderly process of measuring the worth of job within an organization is called job evaluation”.

According to Kimball___” job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wages for such a job should be”.

According to the International Labour Office (ILO)___ “Job evaluation is an attempt to determine and compare the demands which the normal performance of a particular job makes on normal workers, without taking into account the individual abilities or performance of the workers concerned”.

Job Evaluation

Objectives of Job Evaluation

  1. To determine the “intrinsic” worth of jobs, based on systematic assessment of the degree of complexity of job content and requirements, and to do this independently of any pre-conceived standards of remuneration and without regard to the qualities and performance of the actual incumbents who perform the jobs.
  2. Determine equitable wage differentials between different jobs in the organisation.
  3. Eliminate wage inequalities.
  4. Ensure that like wages are paid to all qualified employees for like work.
  5. Form a basis for fixing incentives and different bonus plans.
  6. Serve as a useful reference for setting individual grievances regarding wage rates.
  7. Provide information for work organisation, employees’ selection, placement, training and numerous other similar problems.
  8. To Provide a benchmark for making career planning for the employees in the organisation.

Importance/Advantages of Job Evaluation

  • Helps in wage and salary fixation.
  • Helps in mitigating grievances.
  • helps in recruitment and selection.
  • It useful to improve labour management relations.
  • Ensure fair distribution of rewards.
  • To helps in analysis of company.
  • Assists in wage and salary negotiations.
  • Determines the hierarchy.

Limitations/Disadvantages of Job Evaluation

  • Not a scientific technique.
  • Problems of adjustment.
  • unrealistic.
  • Organizational limitations.
  • Opposition by workers.
  • Limitations of evaluator.
  • Nature of job.