Concept of Job Evaluation
Job evaluation is concerned with a process of establishing the value of different jobs. It is the process of establishing the value of jobs in a job hierarchy. Job values may be determined by negotiation or fixed on the basis of broad assumptions about market rates and internal relativities. It provides a basis for ranking or grading different jobs and developing a pay structure for them. It is the process of describing the duties, authority relationships, skills, the condition of work, and other relevant information related to jobs. It supplies useful data and information to develop job description and specification documents. Job evaluation is an important task of an HR manager which is performed in order to determine the value or worth of each job within the organization.
In short, job evaluation concerns itself with pricing a job in relation to other jobs on the basis of consistent, fair, logical, and equitable criteria and not on the basis of arbitrary; variable judgments dictated by short-term expediency or arrived at through rule of thumb methods.
Job evaluation is the rating of job in an organization which attempts to compare the relative intrinsic value of each job and forms a job hierarchy. It is ranking of the job, not the job holder- as the job holders are rated through performance appraisal. Under the job evaluation process, wages and salary differentials are established on the basis of job ranking process. The basic procedure in job evaluation is to compare the contents of jobs in relation to one another which form a job hierarchy.
Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned
Therefore, job evaluation may be defined as a process of assigning a value for each job in a job hierarchy so as to ascertain and determine a relative remuneration for different jobs. It takes into account the demands of the job in terms of efforts and abilities.