Job Evaluation

Meaning and Concept

Process of determining the worth of one job in relation to that of another without regard to the personalities.

Reasons for using Job Evaluation

- To reduce wage and salary anomalies
- To reduce the complaints regarding wages
- To reduce loss of time due to wage negotiation and disputes
- To increase output

Steps in job Evaluation

- Through examination
- Preparation of job description
- Preparation of job analysis to set out the job under various factor headings
- Comparison of one job with another
- Arrangement of jobs to a money scale

Types of Job Evaluation Schemes

- Ranking: relative difficulty or value to the company
- Classification: jobs allocated to each group.
- Points Rating: Job is broken down into its component factors and then evaluated separately. Factors are allocated points
- Factors comparison: 5 factors are used (mental requirements, skill requirements, physical requirements, responsibility and working conditions)