Importance of Job Evaluation

 

Importance of Job Evaluation

 

Source :Business jargons (2015) slide share.net

Introduction

Job Evaluation is a systematic process of determining the worth of one job in relation to another job in the organization. During job evaluation, the relative worth of various jobs are assessed so that wages can be paid depending upon the worth of the job.

Objectives of Job Evaluation

1. Eliminates inequalities: Job evaluation aims at removing inequalities in wage rates within the organization. Differential in wages for comparable works is an important factor that causes dissatisfaction among employees and leads to various conflicts among management and labor unions.
2. Facilitates comparison: Approach of job evaluation facilitates comparison of job by providing all necessary information.
3. Solve wage controversies: This approach by collecting all necessary information related to job positions enables management in following a more rational and consistent salary and wages structure for people working in an organization.
4. Analyze job factors and requirements:  Analysis of job is done from two aspects: Job description and job specifications. Job description refers to what role or responsibilities need to be performed holding a job position.
5. Eliminates personal prejudices:  Job evaluation process rate only the job but not the employees which removes all grounds of favoritism and personal prejudice. 
6. Clear plan for wage administration: It establishes a wage rate for different job positions within the organization on scientific basis. Managers can more efficiently decide the promotion and transfer of employees.
7. Standardization of wage and salary rate:  A high degree of standardization is attained when wages rate for various job positions is decided on scientific basis.
8. Simplify wage structure:  Every job is divided into distinct elements which are graded for establishing the wage rates.

Source : Vedio GreggU. (2018) https://www.youtube.com/watch?v=IMNyyIO-85k

Importance of Job Evaluation

1. Assist in employee’s selection:  Employees are chosen on the basis of their qualification required in delivering the role effectively.
2. Specialization:  job evaluation technique does a clear division of labor by defining them their roles properly which results in specialization of labor. 
3. Develop harmonious relations among manager and employees:. Job evaluation works towards minimizing controversies among manager and employees by eliminating all wage differentials within the business enterprise.
4. Avoids inequalities in salary structure: Job evaluation approach focuses on avoiding inequalities in wage and salary structure of organization.
5. Prevents conflicts within organization:  All inequalities in wage rate and personal prejudices are eliminated by doing a standardization of salary and wage rate. Importance of Job Evaluation

Conclusion

Evaluations can help identify the high-achieving employees and help raise company productivity. By using the results of job evaluations, an executive team can determine where pay raises are necessary and where it may also be necessary to adjust pay downward based on employee performance.

References

businessjargons.(2015).Job evaluation its methods and advantages & disadvatages (online).

 Available at: https://businessjargons.com/job-evaluation-methods.html {Accessed 10 December 2021 }

George N. (2019). Advantages of Job Evaluation to an Organization (online).

 Available at: https://smallbusiness.chron.com/advantages-job-evaluation-organization-437.html

{Accessed 10 December 2021 }