Job evaluation is a process that determines the relative worth of jobs in order to establish a fair and consistent salary structure. It aims to reduce inequalities, allow specialization of roles, and help in employee selection, evaluation, and retention. The key objectives of job evaluation are to establish equitable pay differentials, eliminate wage inequalities, ensure equal pay for equal work, and provide information for career planning and management of employee issues. The job evaluation process involves preliminary planning, job analysis, internal and external evaluation of jobs, design of a salary structure, grading jobs within the structure, and developing procedures to maintain the system over time.

1. JOB EVALUATION
Job evaluation is a process of determining the relative worth of a job. It is a process
which is helpfuleven for framing compensation plans by the personnelmanager. Job
evaluation as a process is advantageous to a company in many ways:
 Reductionininequalities insalary structure - Itis found that people and their
motivation is dependent upon how well they are being paid. Therefore the
main objective of job evaluation is to haveexternal and internal consistency in
salary structure so that inequalities in salaries are reduced.
 Specialization-Becauseof divisionof labour andthereby specialization, a large
number of enterprises havegothundred jobsand many employees to perform
them. Therefore, an attempt should be made to define a job and thereby fix
salaries for it. This is possible only through job evaluation.
 Helps in selection of employees - The job evaluation information can be
helpful at the time of selection of candidates. The factors that are determined
for job evaluation can be taken into account while selecting the employees.
 Harmonious relationship between employees and manager - Through job
evaluation, harmonious and congenial relations can be maintained between
employees and management, so that all kinds of salaries controversies can be
minimized.
 Standardization - The process of determining the salary differentials for
different jobs become standardized through job evaluation. This helps in
bringing uniformity into salary structure.
 Relevance of new jobs - Through job evaluation, one can understand the
relative value of new jobs in a concern.

2. THE OBJECTIVES OF JOB EVALUATION
 Providea standard procedurefor determining the relative worth of each job in
a plant.
 Determine equitable wage differentials between different jobs in the
organisation.
 Eliminate wage inequalities.
 Ensure that like wages are paid to all qualified employees for like work.
 Form a basis for fixing incentives and different bonus plans.
 Serve as a useful reference for setting individual grievances regarding wage
rates.
 Provide information for work organisation, employees’ selection, placement,
training and numerous other similar problems.
 Provide a benchmark for making career planning for the employees in the
organisation.
Procedure of job evaluation:
1. Preliminary Stage: Thisisthe stage setting for job evaluation programme.
In this stage, the required information’s obtained about present
arrangements, decisions are made on the need for a new programme or
revision of an existing one and a clear cut choice is made of the type of
programme is to be used by the organisation.

3. 2. Planning Stage: In this stage, the evaluation programmeis drawn up and the
job holders to be affected are informed. Due arrangements are made for
setting up joint working parties and the sample of jobs to be evaluated is
selected.
3. AnalysisStage: This is the stagewhen required informationaboutthe sample
of jobs is collected. This information serves as a basis for the internal and
external evaluation of jobs.
4. Internal Evaluation Stage: Next to analysis stage is internal evaluation
stage. In the internal evaluation stage, the sample of bench-mark jobs are
rankedby means of the chosen evaluation schemeas drawnup at the planning
stage. Jobs are then graded on the basis of data pending the collection of
market rate data. Relative worth of jobs is ascertained by comparing grades
between the jobs.
5. External Evaluation Stage: In this stage, information is collected on market
rates at that time.
6. DesignStage: Having ascertained grades for jobs, salary structureis designed
in this stage.

4. 7. Grading Stage: This is the stage in which different jobs are slotted into the
salary structure as designed in the preceding stage 6.
8. Developing and Maintaining Stage: This is the final stage in a job evaluation
programme. In this stage, procedures for maintaining the salary structureare
developed with a view to accommodate inflationary pressures in the salary
levels, grading new jobs into the structure and regarding the existing jobs in
the light of changes in their responsibilities and market rates.