Job Evaluation

Job evaluation is defined as a systematic process of determining the relative worth of jobs in relation to other job in order to establish which jobs should be paid more than others within an organization (Snell & Bohlander, 2010). The goal of job evaluation is to achieve internal equity during the salary system formation. In other word, job evaluation means the process of objectively determining the relative worth of jobs within an organization. It involves a systematic study and analysis of job duties and requirements. The evaluation is based on a number of compensable factors. Job evaluation can measure the value of all jobs within an organization and produces a rank order ranging from entry level positions to the most senior positions within an organization. It provides a framework to administer pay. The purpose of job evaluation is to helps established internal equity between various jobs in which wage paid is equal to the value of the job. When establishing the worth of a position, issues of internal equity are considered. Internal equity is defined as fairness in the relationship of a job’s salary range when compared with the salary ranges of similar jobs within the organization. The salary range for a job is considered internally equitable if the salary is commensurate with responsibility level of the position. It is important that a job evaluation is felt to be fair by everyone in the organisation. Effective communication, ongoing consultation and transparency are critical to the success of any scheme. Making a success of any job evaluation scheme will involve commitment by senior managers, transparency and cost as organisations will need to be able to pay for any grading structure. There are numbers benefits of job evaluation such as know exactly what duties each job holder carries out, understand training needs for individual jobs, improve job design, identify health and safety hazards, and encourage dialogue between managers and employees and...