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:

Non-Analytical

• Ranking Method
• Job Grading Method

Analytical

• Factor Comparision Method
• Point-Ranking Method