What Is Job Evaluation In HRM?

What Is Job Evaluation?

The comparative process of establishing values of difference by using certain criteria is known as Job evaluation.

It enables the gradation of different jobs and develops a suitable play structure in the job. Generally it uses various techniques like ranking, job classification, point rating etc to determine the relative value of every job.

Objectives Of Job Evaluation

  • To provide a standard procedure for determination relating worth of its job.
  • To eleminate wages inequalities.
  • To provide a bench mark for making career planning.
  • To form a basic for fixing incentives and bonus plans.
  • To solve as a useful reference for setting individual grivances.

Importance Of Job Evaluation

Fixing Job Rates

Job evaluation helps to rate the job in terms of completion and it’s usefulness. It enables to determine wages of each job accordingly.

Determine Pay Structure

Job evaluation helps in fixing wages and salary structure for various lable job through internal and external analysis. It also helps in satisfaction of employees regarding their remuniration.

Develop harmonious relationship

Job evaluation also brings good labour through eleminating wage in equlities. It helps to maintain a healthy relation between labour and management for betterment of organisation.

Minimise Cost

Job evaluation helps in the enhancement of job productivity that increases rate of production. It indirectly reduces cost of production and cost per unit.

Determine the requirements

Job evaluation helps to know the merits and drawbacks of each job. It enables them to identify training and fulfill all requirment for smooth functioning of this job.

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