Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. The main objective of job-evaluation is to have external and internal consistency in wages structure.
Objectives of Job Evaluation:
- To determine equitable wage differentials between different jobs in the organization.
- It aims at developing a systematic and rational wage structure
- To eliminate wage inequities. It aims at establishing consistency between the wage and salary structure adopted by the firm and that of the other firms.
- To establish a rational basis for incentive and bonus schemes.
- Proper job evaluation helps to settle disputes relating to salaries between the employers and employees and thus helps to promote industrial peace and harmony.
- To provide a framework for periodic review and revision of wage rates.
- To provide a basis for wage negotiation with Trade Unions.
- To minimize wage discrimination on the basis of age, sex, caste, region etc.
- To enable management to gauge and control the payroll costs.
- It discloses characteristics and conditions relating to different jobs which are very helpful at the time of recruitment.
- It also helps in eliminating discrepancies among employees of a group of the organization in any particular industry.
- Maintenance of a consistent career and employee growth policy/ guidelines.