Job evaluation is a systematic technique for determining the relative worth of jobs within an organization. It compares jobs based on their intrinsic characteristics in order to establish an equitable wage structure. The process involves describing jobs, selecting evaluation criteria like skills and qualifications, assigning scores or rankings to jobs based on those factors, and using those evaluations to set appropriate wage rates. The goal is to eliminate pay inequities and provide a rational framework for wage negotiations.

1. JOB
EVALUATION

2.  Job Evaluation is an systematic technique of determining
the relative worth of the various jobs within the
organization so as to develop an equitable wage and
salary structure.
 In simple words, job evaluation is the rating of jobs in
the organization. This is the process of establishing the
value or worth of jobs in a job hierarchy. It attempts to
compare the relative intrinsic value or worth of jobs
within an organization. Thus, job evaluation is a
comparative process.

3.  Job Evaluation is a systematic technique or orderly
process which is used to determine the worth of job in
relation to other job. This technique is used for
determining the relative worth of various jobs within an
organization and for establishing an adequate wage
structure.
 Every job has its own characteristics. Depending upon
these characteristics job demand is of varying degree of
the various qualifications, skills, experience etc., on the
part of operators performing the jobs.

4.  According to the International Labor Officer (I.L.O.),
“Job Evaluation is an attempt to determine and compare
the demand which the normal performance of a
particular job makes on normal workers, without taking
into account the individual abilities or performance of
the workers concerned.”
 According to Edwin B. Flippo , “Job Evaluation is a
systematic technique or orderly process of determining
the worth of job in relation to other jobs.”

5.  To determine equitable wage differentials between jobs in the
organization.
 To eliminate wage inequities.
 To develop a consistent wage policy.
 To establish a rational basis for incentive & bonus schemes.
 To provide a basis for wages negotiations with trade unions.
 To provide a framework for periodic review and revision of
wage rates.
 To provide information for devising good methods of
recruitment, selection and training.

6.  Gaining Acceptance
 Constituting Job Evaluation Committee.
 Selecting Jobs to be Evaluated.
 Describing the Jobs.
 Selecting the Method of Evaluation.
 Weighting Job Factors.
 Assigning Money Values.
 Periodic Review.

7.  Job evaluation is a Longer and Objective technique of ranking
jobs and it helps in removing disparities in wage structure.
 It helps in fixing new jobs in existing wage structure.
 It is provide greater uniformity in wage rates, thus simplifying
wage administration.
 It helps in job classification as well as work simplification.
 It also provide good criteria for bonus schemes.
 It helps to improve industrial relations by reducing employee
doubts and grievances arising out of wages.
 It increase employee satisfaction on wage differentials.

8.  Job evaluation is not fully objective and scientific. There is
considerable scope for subjective judgment and human errors.
 It is a time consuming and expensive process.
 It is not well suited to determining the relative worth of
managerial jobs.
 There is a variation between wages fixed through job
evaluation and market forces.
 It leads to frequent and substantial changes in wage and salary
structure. This is creates financial burden on organization.
 Some methods of job evaluation are difficult to understand.

9.  Non-quantitative Methods
(a) Ranking or Job Comparison
(b) Grading or Job Classification
 Quantitative Methods
(a) Point Rating
(b) Factor Comparison