Page 149 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes 9.3 Advantages of Job Evaluation

An ILO publication claims the following advantages for job evaluation:
1. In case of new jobs, the method often facilities fitting them into the existing wage structure.

2. Job evaluation is a logical and it may help in removing inequalities in existing wage
structures and in maintaining sound and consistent wage differentials in a plant or industry.
3. The method helps in improving grievances arising out of relative wages and it improves
labour-management relations and workers' morale.
4. The method replaces the many accidental factors, occurring in less systematic procedures,
of wage bargaining by more impersonal and objective standards, thus establishing a clear
basis for negotiations.
5. The method may lead to greater uniformity in wage rates, thus simplifying wage
administration.
6. The information collected in the process of job description and analysis may also be used
for the improvement of selection, transfer and promotion procedures on the basis of
comparative job requirement.
7. Such information also reveals that workers are engaged in jobs requiring less skill and
other qualities than they possess, thereby pointing to the possibility of a making efficient
use of the plant's labour.

Self Assessment

Fill in the blanks:

1. Job evaluation is the output provided by ........................ .
2. ........................ describes the duties of a job, authority relationships, skills, required,
conditions of work and additional relevant information.

3. Job evaluation uses the ........................ in job analysis to evaluate each job- valuing its
components and ascertaining relative job worth.
4. The information collected in the process of job description and analysis may also be used
for the improvement of selection, transfer and promotion procedures on the basis of
........................ .

5. Too many occupational wages ........................ be established.

Notes Limitations of Job Evaluation
1. Though many ways of applying the job evaluation technique are available, rapid
changes in technology and in the supply and demand of particular skills have given
rise to problems of adjustment. These need to be probed.
2. Substantial differences exist between job factors and the factors emphasized in the
market.
3. A job evaluation frequently favours groups different from those which are favoured
by the market.

Contd...

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