Meaning and Definition of Job Evaluation
Job evaluation is a generic term covering the systematic methods of determining the relative worth of a job. In other words, Job Evaluation measures the worth of each job in terms of money. Job evaluation system came into common use during the World War II.
Every business enterprise should establish a wage policy, which could adequately compensate the workman in relation to the nature of the job handled by him. That is wages are to be based on the relative role of each job. The relative role of each job should be assessed on a scientific basis.
Thus, job evaluation is a method, which aims to provide the basis for ascertaining the relative worth of each job with reference to the amount of skill and effort required, the extent of training and experience necessary. This involves the assignment of currency value to each job.
The expression Job Evaluation has been precisely defined by various authors on management science. Some of the important definitions are given below:
Definition of Job Evaluation
Definition of Kimbal and Kimbal
Job evaluation represents an effort to determine the relative value of every job in a plan and to determine what the fair wage for such a job should be.
Definition of Bethel and Others
Job evaluation as a personnel term has both a specific and generic meaning. Specifically it means job rating or the grading of occupations in terms of duties; generally, means the entire field of wage and salary administration along modern lines.
Definition of John A. Shubin
Job evaluation (or job rating) is a systematic procedure for measuring the relative value and importance of occupations on the basis of their common factors (skill, training, effort) for the purpose of determining wage differentials.
From these definitions, it is clear that job evaluation is a scientific approach to ascertain the labour worth of each job.
Principles of Job Evaluation
Job evaluation, as a scientific approach, is based upon certain sound principles. According to A.R. Kress, there are eight principles of job evaluation. They are:
1. Rate the Job and Not Man
Job evaluation deals with the job and not with the employee holding the position. Each job has certain definite and fixed elements. These elements should be rated on the basis of what job itself requires.
2. Elements of Job should be Definite
Each job, as stated already, should be divided into small elements. These elements should be fixed, definite and easily explainable. Besides, these elements should be very few in number. This will avoid any overlapping.
3. Uniformity in Understanding
Success in job rating is absolutely dependent on uniformity of understanding with regard to the definition of the elements and consistency in the selection of the degrees of those elements.
4. Explained to the Employees
Any job evaluation plan if implemented should be clearly explained to the foremen and employees. Clear-cut explanations and illustrations of the plan shall avoid misunderstanding and frustration.
5. Participation of the Foremen
The foremen should participate in the rating of the job in their own departments.
6. Co-operation from Employees
The co-operation from the employees is another condition precedent for the success of any job evaluation plan. The broad features can be discussed with the employees but the basic secrets should not be disclosed to them.
7. Talk only in Point Values
The purpose of discussion with the foremen and employees is to secure their confidence and to achieve this, avoid discussions of money value. Talk only point values and degree of each element. Discussion on money values will lead to juggling.
8. Avoid too many Occupational Wages
Too many occupational wages (or rate ranges for given labour grades) should not be established. It would be unwise to adopt an occupational wage for each in terms of point values.
Objectives of Job Evaluation
Job evaluation has certain broad objectives. They are as under:
1. Elimination of Evaluation
The foremost, perhaps the only factor which creates dissatisfaction in a job is the inequality of wage rates for comparable works. Job evaluation techniques aim to eliminate such inequalities by assuring fair and proper wages for the work done by each position throughout the organization.
2. Solving Wage Controversies
By reducing inequalities, job evaluation techniques provide a relatively objective basis for resolving wage controversies involving comparative rates.
3. Elimination of Personal Prejudices
Favoritism in respect of certain employees in wage rate setting creates personal prejudices and dissatisfaction in the minds of the employees. In job evaluation, only the job is rated and not the employees. Therefore, if the wage rate is established on the basis of job evaluation, there will be no ground for favoritism and personal prejudice.
4. Facility for Comparison and Survey
The job description, which provide the basis for job evaluation, provide the necessary data for comparison of wages and salaries for the same categories of jobs in other enterprises. Besides, necessary information needed for community wage surveys can be obtained.
5. Definite Plan for Wage Administration
When wage rates for various jobs are established on a scientific basis, they will constitute a valuable guide for the management to evaluate the performance of the employees in terms of the job. This helps in promotion and transfer of employees. All these factors help to manage the wage department properly.
Job evaluation enables the business enterprise to maintain a high degree of standardization in wage levels in all its plants. It is possible even if the plants are situated in different areas.
7. Simplification of Wage Structure
The job evaluation techniques divide each job into various elements. Then the job elements are graded and the wage rates are established. Maximum and minimum rate ranges are also established. Provision is also made for the periodical review of the wage structure. All these factors simplify the wage structure.