Job Evaluation

Job Evaluation

1.0 Definition

A systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.

It is important to note that it is the job and the demands that it places on the job holder that are analyzed- not the performance of the individual currently in the post. The purpose of the exercise is to determine pay rates especially in terms of differentials between grades.

1.1 Purpose

The following are some of the reasons why an organization might implement a job evaluation.

* To establish an orderly, national, systematic structure of jobs based on their worth to the organization.

*To justify an existing pay rate structure or to develop one that provides for internal equity.

* To assist in setting pay rates that are comparable to those of similar jobs in other organizations.

* To provide a national basis for negotiating pay rates when bargaining collectively with a recognized union.

* To identify a ladder of progression or direction for future movement to all employees interested in improving their compensation opportunities.

* To comply with equal pay legislation and regulations, determining pay differences according to job content.

* To develop a base for a merit or pay for performance program.

1.2 Advantages

The advantages of a job evaluation are that it

* Provides a national basis for pay differentials.

* Is based on job content not personal merit.

* Should result in equity between grades.

* Plays a major part in ensuring that their is no discrimination in pay between the sexes.

* It provides a systematic procedure describing and placing a value on a job.

* People are paid for work performed and the satisfaction derived can lead to higher morale and better co-operation.

* Unions can play a part in deciding between levels of pay.

1.3 Disadvantages

* Although it attempts to be scientific in practice there is a large element of subjective judgments.

* It results in pay that is sometime unrelated to performance.

* It establishes pay differentials but not absolute level of pay.

* It has to be updated as job requirements change.

* Assessments may be inaccurate and if the number of grades is small, jobs of a different character may have to be put in the same grade.

* It supports rigid hierarchical organizations and concepts of status which operate against flexibility and assumes that people are commodities that an be fitted into defined roles.

14 Techniques of Job Evaluation.

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