Job analysis explains about a particular job. Job evaluation develops a plan for comparing considering important determinants of job worth. Job evaluation uses the information in job analysis to evaluate worth of each job by evaluating its components. It involves a formal and orderly comparison of jobs in order to define the worth of one job relative to another, so that the wage or salary can be fixed. So it is a procedure by which jobs in an organization are appraised.
Relative worth is fixed mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to assign wages and salary grades for all jobs. Employees need to be paid depending on the grades of jobs they perform. Compensation must be in context with relative worth of each job. Jobs are evaluated on the basis of tasks involved and are put in the order of importance. The major motive of job evaluation is to set up internal equality between different jobs.
Definition of Job Evaluation:
Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs.” Edwin B. Flippo
Job evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among similar organizations.- Dale Yoder
Objectives of Job Evaluation:
The main aim of job evaluation is to establish, the relative values of various kind of jobs in a given workplace that is, it aims at decide the relative worth of a job. Various objectives of Job Evaluation are summarized as:
- To state a standard procedure for finding the relative worth of each job in organisation.
- To guarantee equity in wages for jobs that require similar skill, responsibility and working conditions by using a method that is always assesses accurately differences in relative worth among jobs.
- To ensure that standard wages band is fixed and paid to all eligible employees for advancement and transfer.
- Determining wage rates for similar jobs in a community and in an industry on the basis of factual information.
- To decide the rate of wage for each job that is fair and unbiased with relation to other jobs in the organisation
- To establish a base of merit or pay-for-performance.