Principles Of Job Evaluation

JOB EVALUATION AND COMPENSATION MANAGEMENT

Job evaluation is the process of systematically determining the relative worth of jobs to create job structure for the organization. The evaluation is based on a combination of the job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend the organizational forces and external market forces is both the strength and a challenge of job evaluation (Milkovich & Newman, 2005). It is essentially a comparative process. Job evaluation is the most effective way of determining internal pay relationships. It is used as an instrument for affecting the company 's basic pay policies. Job evaluation serves as a foundation for incentive or bonus

• Determining the grading structure after evaluation.

• Setting up an appeals procedure for employees who dispute their grading.

• Making provision for monitoring the scheme and keeping it up-to-date.

Principles of Job Evaluation

Some principles guiding job evaluation may be -

• Clearly defined and identifiable jobs must exist. These jobs will be accurately described in an agreed job description.

• All jobs in an organization will be evaluated using an agreed job evaluation scheme.

• Job evaluators will need to gain a thorough understanding of the job.

• Job evaluation is concerned with jobs, not people. It is not the person that is being evaluated.

• The job is assessed as if it were being carried out in a fully competent and acceptable manner.

• Job evaluation is based on judgment and is not scientific. However, if applied correctly, it can enable objective judgments to be made.

• It is possible to make a judgment about a job 's contribution relative to other jobs in an organization.

• The real test of the evaluation results is their acceptability to all participants.

• Job evaluation can aid organizational problem-solving as it highlights duplication of tasks and gaps between jobs and

Job evaluation evaluates the selected job factors, which are regarded as important for the effective performance of the job, according to one of several alternative methods. The resulting numerical grading can form the basis of an equitable structure of job grading. The job grades may or may not be used for status or payment purposes, i.e., Job evaluation is concerned with measuring the demands, the job extends on its holder. Most factors that contribute to this job pressure, e.g., physical strength required, knowledge of mathematics required, are assessed and the result is a numerical estimate of the total job