Every organization needs to ensure that there is a fair, equitable assessment and determination of job worth for the purpose of compensation through a comprehensive job evaluation system. The job evaluation process helps to establish the grade level for a particular job. The end result of the job evaluation process is a ranking of the jobs in the organization in which the more complex, responsible and skilled jobs are grouped at the higher end of the hierarchy, while the less complex fall at the lower end of the organization's hierarchy.
2. Definition
Job evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization. Job is evaluated on the basis of their content and is placed in the order of importance. It should be noted that in a job evaluation program, the jobs are ranked and not the jobholders. Jobholders are rated through performance appraisal. Job evaluation is a process of finding out the relative worth of a job as compared to other jobs.
3. Objectives of job evaluation
One on the main objectives of job evaluation is to gather data and information relating to job description, job specification and employee specifications for various jobs in an organization. This will facilitates and make the valuation of job easier to calculate and administer.
Another objective is to compare the duties, responsibilities and demands of a job with that of other jobs as to determine the hierarchy and place of various jobs in an organization. To determine the ranks or grades of various job. The ranks and grades of job will base on the job values. The CEO of an organization would usually be the highest ranked job. Then the GM being the next lower rank and so on. Through this process, unnecessary job rates of pay are eliminated.
Finally, it ensure fair and equitable wages on the basis of relative worth or value of jobs, it minimizes wage discrimination based on sex, age, caste,