Page 148 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 9: Job Evaluation

Job evaluation is the process of analyzing and assessing the various jobs systematically to Notes
ascertain their relative worth in an organization. Jobs are evaluated on the basis of their content
and are placed in the order of importance. Inn this way, a job hierarchy is established in the
organization, the purpose being fixation of satisfactory wage differential among various jobs.
It is the job that is ranked and not the holders.
It is the quantitative measurement of relative job worth for the purpose of establishing consistent
wage rate differential by objective means. The relative worth of a job means relative value
produced. The variables which are assumed to be related to value produced are such factors as
responsibility, skill, effort and working conditions.

Did u know? The major purpose of job evaluation is to establish internal equity between
various jobs.

9.1 Objectives of Job Evaluation

The main aim of majority of systems of job evaluation is to establish, the relative values of
different jobs in a given plant or machinery that is, it aims at determining the relative worth of
a job. Various objectives of Job Evaluation can be summarized as:
1. To provide a standard procedure for determining the relative worth of each job in a plant.

2. To secure and maintain complete, accurate and impersonal description of each distinct job
or occupation in the entire plant.
3. To ensure that like wages are paid to all qualified employees for advancement and transfer.

4. To promote a fair and accurate consideration of all employees for advancement and transfer.
5. To provide factual basis for consideration of wage rates for similar jobs in a community
and in an industry.

6. To provide information for work organization, employees selection, placement, training
and numerous other similar problems.
7. To determine the rate of pay for each job that is fair and equitable with relation to other
jobs in the plant, community or industry.

9.2 Principles of Job Evaluation Programme

According to Kress, these principles are:
1. Rate the job and not the man.

2. The elements selected for rating purposes should be rated on explainable in terms and as
few in number as will cover the requisites for every job without any overlapping.
3. The elements should be clearly defined and properly selected.

4. Foreman should participate in the rating of jobs in their own departments.
5. Maximum co-operation can be obtained from employees when they themselves have an
opportunity to discuss job rating.

6. Too many occupational wages should not be established. It would be unwise to adopt an
occupational wages for each total of point values.

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