Job evaluation is a procedure for developing a wage structure that is somehow based upon an evaluation of the job. It 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.
The objective of job evaluation: There are many objectives of job evaluation in various organizations. These are briefly discussed in the following points –
Good wages structure: The first purpose of job evaluation is to establish a well-conceived wages structure in the organization.
Proper performance: Another objective of job evaluation is to ensure proper performance of employees so that their utmost efforts and sincerity can be ensured.
Supply of information: Through job evaluation, necessary information and data can be supplied, so that proper decision can be made.
Providing reasonable wages or pay: Another purpose of job evaluation in the business or industrial organizations is to ensure reasonable wages and salary of employees and managers.
Review of pay structure: Job evaluation can also help to review the pay structure from time to time. This can also help to adjust the pays structure with the present market and financial structure.
Establishment of policies: Other human resource management policies can also be formulated through the job evaluation process. Job evaluation helps in analyzing the existing job condition and nature of the organization.
Reducing grievance tendency: Another purpose of job evaluation is to reduce grievance tendencies among the employees and managers, which can help both the parties to maintain a cordial working environment in the organization.
Improved productivity: Productivity level can also be enhanced by job evaluation. Because after proper evaluating the jobs distribution of employees can properly he made throughout the organization.
Moral development: One of the important objectives of job evaluation is to develop moral and job satisfaction and reducing frustration among the employees and managers.
Utilization of human resource: Without proper utilization, organization target cannot be achieved in time. Job evaluation helps both production and human resource managers to make the arrangement for proper utilization of existing human resource capabilities.
