QS Study

The concept of Job Evaluation with specifying one method to evaluate

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

“Job evaluation is a process of determining the worth of various jobs within the organization so that different wage may be paid” – Wendell French.

“Performance appraisal is the process by which organization evaluates individual job performance”, Keith Davis and William B. Werther.

Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs.

Factor Comparison Method: A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method; instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, the skill needed, supervisory responsibility, working conditions and other relevant factors (for instance, know-how, problem-solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the nights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor.