Job Evaluation

What is Job Evaluation?

Job evaluation quantifies the worth or value of a particular job in an organization by comparing it to similar roles within or outside the organization.

Edwin B Flippo defines job evaluation as “systematic and orderly process of determining the worth of a job in relation to other jobs.”

What is the importance of job evaluation?

Job evaluation serves the following purposes:

  • Aids in developing equitable, rational, and consistent salary structures organization wide.
  • Simplifies the job complexities by providing a realistic viewpoint of work conditions.
  • It helps reduce conflicts regarding wage structures as employees have the entire information.
  • Generates crucial data that streamlines employees’ selection, placement, and training.
  • It helps in job classification, work simplification, and workforce management.

What are the features of job evaluation?

The main features of job evaluation are as follows:

  • Estimate the accurate salaries for the output generated.
  • Reduce wage imbalance across firms and industries.
  • Resolve wage conflicts and trade union disputes.
  • Help in standardizing processes and daily activities.
  • Help create a career trajectory for all employees.

What are some methods of job evaluation?

The most common methods of job evaluation in HRM are classified under the following:

1. Non-Analytical

  • Ranking Method
  • Job Grading Method

2. Analytical

  • Factor Comparision Method
  • Point-Ranking Method
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