Importance Of Job Evaluation

Job evaluation is the process of analyzing and assessing the content, worth or size of jobs within and organization, in order to rank and group them as a basis for an equitable remuneration system (Riley, 2011).
Job evaluation is aimed at determining a job’s relative worth. It is a formal and systematic comparison of jobs to determine the worth of one job relative to another and eventually results in a wage or salary hierarchy. The basic principle is this: jobs that require greater qualifications, more responsibilities, and more complex job duties should be paid more highly than the jobs with lesser requirement. The basic procedure is to compare the jobs in relation to one another, for example, in terms of required effort, responsibilities,

(Armstrong (2009) suggest that effective factors should:
• Apply equally well to different types of work (including specialists and generalists, lower level and higher level jobs, and performed by men and women)
• Refer to relevent and important differences between jobs, in order to allow comparison for ranking purposes.
• Be understandable by, and acceptable to all those who will be covered by the scheme.
Examples of compensable factors include: knowledge and skills, judgement and decision-making, freedom to act and responsibility for financial resources.
Step 2: Gather Data and Jobs
Some information for evaluation may already be available in the form of job descriptions, or may have to be gathered by job analysis.
Step 3: Evaluate Jobs
There are two basic types of job evaluation scheme,
• Non-analytical schemes: make largely subjective judgements about the whole job, its difficulty, and its importance to the organization relative to other jobs.
• Analytical schemes: systematically analyse how far compensable factors are present in each job, in order to arrive at appropriate weightings and rankings.
These methods will be discussed further