Vskills Certified Payroll Manager Tutorial | Job Evaluation

Job Evaluation

• Job evaluation can be defined as “a systematic procedure designed to aid in establishing pay differentials among jobs.”
• Compensation: Milkovich, George T. and Jerry M. Newman; BPI/Irwin, 1990; p. 103.
• Process to determine and compare the demands which the normal performance of particular jobs makes on normal workers without taking into account of the individual abilities or performance of the workers concerned
• Process of analysis & assessment of jobs to ascertain reliably their relative worth using the assessment as a basis for a balanced wage structure
• Rating of the jobs to determine their position in a job hierarchy
• Widely used in the establishment of wage rate structures & elimination of wage inequities
• Applied to jobs rather than the qualities of individuals on the jobs
• Basic goal is to ascertain the relative worth of each job through an objective evaluation so that relative remuneration may be fixed for different jobs.
• A systematic procedure which enables wage structure to be fair & equitable
  

  Some Principles of Job Evaluation

• Clearly defined and identifiable jobs must exist. These jobs will be accurately described in an agreed job description.
• All jobs in an organization will be evaluated using an agreed job evaluation scheme.
• The evaluators will need to gain a thorough understanding of the job
• It evaluation is concerned with jobs, not people. It is not the person that is being evaluated.
• Thid assessed as if it were being carried out in a fully competent and acceptable manner.
• It is based on judgment and is not scientific. However if applied correctly it can noble objective judgments to be made.
• It is possible to make a judgment about a job’s contribution relative to other jobs in an organization.
• The real test of the evaluation results is their acceptability to all participants.

Job evaluation can aid organizational problem solving as it highlights duplication of tasks and gaps between jobs and functions.

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