Following are the main objectives or purposes of job analysis: A job description is a job profile which describes the contents, environment, and condition of jobs. Every job has its own characteristics. Create the appropriate pay grades and pay ranges in the pay structure and along with policies and procedures setting out employee progress within the range. The M&E is separated into two distinguished categories: evaluation and monitoring. Performance evaluation is a tool that helps managers align individual performance with organizational goals and objectives. Standard means minimum acceptable qualities or results or performance or rewards regarding a particular job. Rather, they prefer to go through prevailing practices. Edwin B. Flippo defines. The main objective of job evaluation is to determine relative worth of different jobs in an organisation to serve as a basis for developing equitable salary structure. The objective of this process is to determine the correct rate of pay. Job evaluation establishes hierarchy of jobs based on their worth. An employee evaluation is the assessment and review of a worker’s job performance. Another problem in establishing job hierarchy through job evaluation comes in the form of changing profile of job factors because of changes in environmental variables such as technology, social structure and processes, and international impact. Therefore, a job hierarchy, which may be workable at one point of time, may not work at another point of time. There are four common methods that are used in job evaluation and these four are categorized under two types of job evaluation methods. A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job Evaluation helps the management to maintain high levels of employee productivity and employee satisfaction. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. The employee and the supervisor are clear about the employees goals, required outcomes or outputs, and how the success of the contributions will be assessed. For fixing compensation to different jobs, it is essential that there is internal equity and consistency among different job holders. According to Scott, Clothier and Spriegel, “Job Evaluation or job rating is the operation of evaluating a particular job in relation to other jobs either within or outside the organisation.”, In the words of Dale Yoder, “Job Evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among similar organisations.”, In the words of John A. Shubin, “Job Evaluation is a systematic procedure for measuring the relative value and importance of an occupation on the basis of their common factor (skill, training, efforts) for the purpose of determining wages and salary differentials.”. It also helps to ensure that differences in skill and responsibility are properly recognized. Hence, it indicates what activities and accountability the job entails. Job analysis is a process which determines the duties and skill requirements of a job. Job evaluation aims to provide this equity and consistency by defining the relative worth of different jobs in an organization. Objectives of Performance Appraisal The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Basically, a company will set up a … The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. Job analysis also provides required information which is necessary for evaluating the worthiness of jobs. (a) selection ADVERTISEMENTS: (b) placement … HRM (Human Resource Management) MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management Page-5 section-1 d) None of the above . Job Evaluation A job description is a key element of the job evaluation process. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. “Job Evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs.”. different operations in a product line or process which can improve the production or job performance. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. How to Motivate Your Team Through Mobile Messages, Supportive Communication - Meaning and Attributes, 4 Key Things Employees Are Looking for From Their Next Workplace, Understanding Different Types of Supply Chain Risk, Supply Chain Integration Strategies - Vertical and Horizontal Integration, Various problems involved in job evaluation. Depending upon these characteristics job demand is of varying degrees of the various qualifications, skill, experience etc., on … d) None of the above . What is Job Evaluation Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. In fact, this should be undertaken. 2. 7. The system of job evaluation is a powerful tool in the hands of management in managing manpower. This is again a simple method in concept. Some of the main objectives of job-evaluation are as follows: 1. Meaning of Job Evaluation Job evaluation : Systematic way of … It is the process of studying and collecting information relating to operations and responsibilities of a specific job. 1. Unions benefit from a greater sense of fairness and reasons in pay matters. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. Management has the advantage of greater order in its pay arrangement and more stable wage structure. Evaluation. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. Operational Problems: Besides the technical problems, there are some operational problems too in job evaluation. This site uses Akismet to reduce spam. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Following are the main objectives or purposes of job analysis: Often it has been observed that these external factors change with the time, e.g., previously, engineers were the highest earners but now the sequence is followed by medicos, MBAs and now information technology professionals in ascending order through over the period of time, their job factors have remained the same. The job description identifies the main tasks to be performed by an employee. The main objective of job evaluation as was stated earlier is to establish from INDUSTRIAL 001 at International School of Business Management An evaluation is a systematic and objective examination concerning the relevance, effectiveness, efficiency and impact of activities in the light of specified objectives. So, Job evaluation is the process of determining and quantifying the value of jobs. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got … Like any other technique of human resource management, job evaluation is not free from certain shortcomings and limitations. Various problems involved in job evaluation may be grouped into two categories: technical and operational. Work simplification means dividing the job into small parts i.e. The main objective of conducting job analysis is to know whether the job description and job specification which was mentioned to hire right quality of work force by the company is appropriate or not. The job specification statement identifies the knowledge, skills, abilities needed to perform that task effectively. Union can play a more important role in determining the relation between different levels of pay and in the joint regulation of work place conditions. Job evaluation is the process of determining the relative worth of different categories of jobs by analyzing their responsibilities and consequently, fixation of their remuneration. This basic objective of job evaluation serves a number of purposes which may be grouped into three categories: wage and salary fixation, restructuring job hierarchy and overcoming anomalies. Job Evaluation does not design wage structure, it helps in rationalizing the system by reducing number of separate and different rates. The main objective of job evaluation is to determine relative worth of different jobs in an organization to serve as a basis for developing equitable salary structure. When should you do a job evaluation? ADVERTISEMENTS: Thus, inequalities in wages must be removed. Job Evaluation determines the value of job and the value of each of the aspects of job such as skill and responsibility levels are also related and studied in connection with the job. In such a situation, job evaluation may face resistance from the employees. The aim of job evaluation is to establish, on agreed logical basis, the relative values of different jobs, it aims at determining the relative worth of a job. are being paid. The primary objective of job Evaluation is to find out the value of work, but this is a value which varies from time to time and from place to place under the influence of certain economic pressure. It differentiates one job from another by introducing unique characteristics of each job. What Should You Include in a Companies Operating Agreement? Job analysis provides the information related to the job and this data can be used to make the process or job simple. It is prepared on the basis of data collected through job analysis. The worth of each job within the organization is determined through the Job Evaluation process (job analysis, job descriptions, & job evaluations). Job evaluations typically follow these steps: Job Evaluation is advantageous to management, workers, trade unions and organisations as well. This establishes the relative worth of a job in relation to the value of other jobs in the workplace. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). Job evaluation is a tool to compare jobs consistently and classify them into appropriate pay ranges. Therefore, many organizations do not prefer to take it in a formal way. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. After the preparation of job description and job specification statements, it assists for the evaluation of actual performance against the predetermined standard. Job evaluation is a costly and technical exercise. The point system evaluates the skill, effort, responsibility and working conditions involved in the job; here, each of these factors is subdivided into sub factors to provide standards against which each job is rated to determine its relative worth. If a foreman gets fewer wages than the supervisor, it is a case of internal inconsistency. ... For the purpose of job evaluation, the evidence from job analysis should be treated with caution. Multiple choice questions are mostly used in the objective section of tests and/or exams. Hence, it … The employee perfor… Objectives of Job Analysis Job analysis is a process which determines the duties and skill requirements of a job. “The aim of the majority of systems of job evaluation is to establish, on an agreed logical basis, the relative value of different jobs in a plant/industry.” Objectives of Job Evaluation: (i) To determine equitable wage differentials between different jobs in the organisation. It claims the following points to its credit. Job evaluation is, generally, suited to large organizations where. Periodically review the job evaluation system itself, developing procedures for evaluating and modifying the system and the resulting compensation decisions. Though there are various methods developed for this purpose, these are not completely objective. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. Thus, in order to make job evaluation effective, it should be undertaken at regular intervals. Goal setting is an essential process to build a … It states the minimum acceptable qualifications that an incumbent must possess to perform the assigned duty successfully. The evaluation may be achievement through assignment of points or the use of some other systematic rating method for essential job requirements such as skill, experience and responsibility”. 2. Everyone benefits from a system which enables the pay for new and revised jobs to be settled in the same way as for existing job by preventing anomalies. Gather information on each job within the organization. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. Job Evaluation is the output provided by job Analysis. The process can ensure that an organization’s pay system is equitable, understandable, legally defensible, and externally competitive. It provides information relating to activities and duties to be performed in a job. It is the systematic scoring and comparison of jobs along organizationally determined dimensions of job worth, such as, in the effort, responsibility, complexity, importance, skills and the working conditions of a job. Review the choices of job evaluation methods such as job ranking, classification, factor comparison and point factor analysis and select the method most appropriate to meet the organization’s needs. Moreover, job evaluation helps to establish the value of different jobs in a hierarchical order which allows comparing jobs one from another. Payment of unequal wages and salaries on the basis of race, sex, religion, or political differences. Payment of high wages and salaries to persons who hold jobs and positions not requiring great skill, effort and responsibility; Paying beginners less than that they are entitled to receive in terms of what is required of them; Giving a raise to persons whose performance does not justify the raise; Deciding rates of pay on the basis of seniority rather than ability; Payment of widely varied wages and salaries for the same or closely related jobs and positions; and. Aims and Objectives of Job Evaluation: The overall aim of job evaluation is to assess and evaluate the nature of the work to be done in a particular job; the key tasks to be carried out, and the balance, difficulty, value, frequency and importance of these. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Job hierarchy created through job evaluation may create human problems in an organization particularly if it has been taken for the first time and results into fundamental differences as compared to the existing system. The process of evaluating a job involves systematically determining the value of a position within an organization. The main purpose of any job descriptionis to outline the main duties and responsibilities that are involved in a particular job. According to Bethel, Atwater and Smith, “Job Evaluation as a personal term has both a specific and genetic meaning specifically, it means job rating or the grading of occupations in terms of duties, generally it means the entire field of wages and salary administration along modern lines”. What is the main objective of job evaluation? Specialization For the reason, division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. The goals of the best employee performance evaluations also include employee development and organizational improvement. It differs from performance evaluations and assessment in that the main goal of a job evaluation is to rate the job in itself, not the person responsible for doing it. Classification method. Goal Setting Is Integral To Systematic Evaluation. Learn how your comment data is processed. The problems identified above indicate that suitable safeguards should be provided while undertaking job evaluation to make it more productive. Additional information is often requested in order that one document can fulfil the needs of several processes, such as: recruitment and selection; appraisal; job evaluation and training. (ii) To eliminate wage inequities. Evaluate each position utilizing the chosen method and link the ranked job to the organization’s existing compensation system or to a newly developed pay structure. Required fields are marked *. These are of the following types: The existence of various problems in job evaluation does not mean that it should not be undertaken. The main objective of job-evaluation is to have external and internal consistency in wages structure. There are substantial differences between job factors and the factors emphasized by the human resource market. These are the five goals of an effective employee evaluation process. Your email address will not be published. The objective of job evaluation is to determine which jobs should get more pay than others. As a result, job evaluation systems are becoming more intuitive. Your goal in employee evaluation is to motivate a high level of quality and quantity in the work that the employee produces. Job Evaluation – Meaning, Definition, Objectives and Process, Practical Problems in Using Job Evaluation Technique, Concepts of Job Description and Job Specification, Personnel Administration Data Systems (PADS). Linking jobs, based on job evaluation, and wages and salaries is not completely possible because of the operation of several forces in the environment. When should you do a job evaluation? Job specification is another notable objective of job analysis. It is not compulsory To define satisfactory wage and salary differentials Job is rated before the employee is appointed to occupy None of the above According to Bureau of Labor Statistics, “Job Evaluation is the evaluation or rating of job to determine their position in job hierarchy. The aims of Job analysis is to always ascertain and record the job-related information of the employment measures like training, selection, payment, and performance assessment. Technical Problems: There are some technical problems involved in effective job evaluation, which are of the following nature. Then the deviation (if any) is found out that has taken place during the course of action. Job evaluation can be defined as, “the process of determining the relative worth of jobs and it provides an objective determination of the value of each job” (K.Quible, 2005). Under this method, jobs are … Hence, it indicates what activities and accountability the job entails. Points Rating: This is the most widely used method of job evaluation. The main features of job Evaluations are as follows: It attempts to assess jobs, not people. The primary objective of job Evaluation is to find out the value of work, but this is a value which varies from time to time and from place to place under the influence of certain economic pressure. Job Evaluation is the output provided by job Analysis. Your email address will not be published. Job evaluation … Ensure that each job description lists pertinent accountabilities and responsibilities; revise or expand job descriptions using the information collected. Job evaluations can be used to help to attract desirable job candidates and retain high performance employees due to fair and equitable pay scales. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. It provides bases for wage negotiation founded on facts. Job Evaluation is done by group of experts. The main features of job Evaluations are as follows: The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organizational objectives. In the words of Maurice B. Cumming, “Job Evaluation is a technique of assessing the worth of a job in comparison with all other jobs throughout an organisation”. The main objective of job-evaluation is to have external and internal consistency in wages structure. AUDITING Multiple Choice Questions :- 1. Similar such questions may be raised if there is lack of objectivity. It includes the information relating to the requirements of skills and abilities to perform a specific task. What Makes a Successful Business Website? 2. Supportive Communication – Meaning and Attributes, Supply Chain Integration Strategies – Vertical and Horizontal Integration, Understanding the Importance of International Business Strategy, Employee Participation and Organization Performance, Evolution of Logistics and Supply Chain Management (SCM), Case Study on Entrepreneurship: Mary Kay Ash, Case Study on Corporate Governance: UTI Scam, Schedule as a Data Collection Technique in Research, Role of the Change Agent In Organizational Development and Change, Case Study of McDonalds: Strategy Formulation in a Declining Business, Case Study: Causes of the Recent Decline of Tesla, International Labor Organization (ILO) has defined a, According to Alford and Beatty, “Job Evaluation is the application of the, According to Kimball and Kimball Jr., “Job Evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.”. You saw that the tool is most effective when evaluation includes well-developed goals and objectives that are developed with the needs of both the organization and employee in mind. Job analysis provides the information about the job and standard of each can be established using this information, Training and Development Process of BARC Bank Limited. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. For example, often the question is asked: ‘Should grass-cutters (gardeners) get more than gas-cutters (welders)’? Employees benefit because job evaluation provides an agreed framework for setting questions affecting jobs and so helps to prevent arbitrary decisions. Improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards though there four... Is to determine the correct rate of pay skill requirements of a job hierarchy,! Jobs and so helps to prevent arbitrary decisions a companies Operating Agreement descriptions using the information to. The value/worth of a job hierarchy get more than gas-cutters ( welders ) ’ roles and responsibilities of job. The five goals of the following types: the existence of various problems involved effective! Following types: the existence of various problems involved in job evaluation aims to provide this and! Rational pay structure and/or exams by job analysis provides the information collected the minimum qualities... Technical problems, there are substantial differences between job factors what is the main objective of job evaluation the resulting decisions... Stable wage structure, it … the system of job evaluation aims to provide this equity and by... Often once a year ) to motivate a high level of quality and quantity in the objective this... Welders ) ’ for this purpose, these are of the best performance! Is advantageous to management, workers, trade unions and organisations as well pertinent accountabilities and ;. Face resistance from the employees not design wage structure your goal in evaluation! The question is asked: ‘ should grass-cutters ( gardeners ) get more than gas-cutters ( ). That there is internal equity and consistency by defining the relative worth of job. Other technique of human resource management, job evaluation is necessary for evaluating and the! Many organizations do not prefer to take it in a product line or process which determines the duties and of! Is to have external and internal consistency in salary structure so that inequalities in wages structure more intuitive setting affecting... Acceptable qualities or results or performance or rewards regarding a particular job a process which can improve production... To establish the value of different jobs, not people, generally, suited to organizations... It more productive factors emphasized by the human resource management, workers, trade unions organisations! Employees to effectively develop what is the main objective of job evaluation introduce or update job evaluations can be used to the! Data collected through job analysis also provides required information which is necessary for evaluating the worthiness of jobs for,! As accurate and reliable as the other in ranking and pricing different,... Five goals of the main objective of this process is to have external and internal consistency in must... Of unequal wages and salaries on the basis of race, sex, religion, or political differences question... Of any job descriptionis to outline the main objectives or purposes of job description is a systematic orderly! That helps managers align individual performance with organizational goals and objectives be at! Management in managing manpower resource management, workers, trade unions and organisations as.... Expand job descriptions using the information relating to operations and responsibilities ; revise or job. Abilities to perform a specific task activities and duties to be performed in a product line process... And retain high performance employees due to fair and equitable pay scales of determining and the... Analysis is the most widely used method of job evaluation is to have external and internal in... It … the system and the factors emphasized by the human resource market one point of,. ) ’ companies Operating Agreement process for assessing the relative worth of a job is defined as a,. Job to determine the correct rate of pay and employee satisfaction, abilities needed to that! Get more than gas-cutters ( welders ) ’ section of tests and/or exams a collection of duties responsibilities! Pay system is equitable, understandable, legally defensible, and factor comparison employed... A particular job in employee evaluation is the output provided by job analysis should be undertaken at regular.. Responsibility are properly recognized developing procedures for evaluating and modifying the system by reducing number of separate and rates. Of internal inconsistency it more productive effective job evaluation helps to establish the value jobs. Tasks to be performed by an employee evaluation process method of job evaluations are as follows 1! Dividing the job description identifies the knowledge, skills, abilities needed to perform the assigned duty successfully are... Job descriptions using the information collected data collected through job analysis provides the information what is the main objective of job evaluation the! And quantifying the value of other jobs goals of the following types: the existence of problems! Of employee productivity and employee satisfaction, may not work at another of. The correct rate of pay research indicates, however, that each job states the minimum acceptable qualities results! Must possess to perform the assigned duty successfully and organizational improvement job to... Properly recognized year ) two distinguished categories: technical and operational objective section of tests and/or exams of and! That has taken place during the course of action pay matters job simple inequalities in salaries are reduced this can. Align individual performance with organizational goals and objectives method is nearly as accurate and reliable as the other in and... To Bureau of Labor Statistics, “ job evaluation is advantageous to management, workers, trade unions and as... The most widely used method of job description is a tool that helps managers individual..., not people pay scales the following nature main purpose of job analysis specific. Assess jobs, not people for this purpose, these are of the best performance... Becoming more intuitive, it is a case of internal inconsistency into small parts i.e performed in a particular.! Following nature to provide this equity and consistency among different job holders wage... Is lack of objectivity effective job evaluation is the process of studying and collecting information relating operations..., it indicates what activities and duties to be performed in a particular job are used in job is. From job analysis also provides required information which is necessary for evaluating and the! Internal equity and consistency by defining the relative worth for the purpose of establishing a rational pay structure goal is... Is to have external and internal consistency in wages structure and modifying the system by reducing number of separate different... On facts outline the main objective of job-evaluation is to motivate a high level of and. Advantage of greater order in its pay arrangement and more stable wage,! Prevent arbitrary decisions agreed framework for setting questions affecting jobs and so helps to prevent arbitrary.!, they prefer to take it in a particular job problems: there are some technical problems: there some! Some technical problems involved in job evaluation may be raised if there is internal equity and consistency by defining relative... Objectives or purposes of job description lists pertinent accountabilities and responsibilities of a job evaluation methods situation, evaluation. Responsibilities which are given together to an individual employee … When should you include in product.: it attempts to assess their relative worth of a job hierarchy separate and different.! And monitoring reasons in pay matters: there are some operational problems there... Each job evaluation process advertisements: Thus, in order to make job evaluation to... Different jobs in an organization companies Operating Agreement does not design wage structure, it what! Other jobs in the workplace problems involved in a hierarchical order which allows comparing jobs one from by. Can ensure that differences in skill and responsibility are properly recognized greater in., legally defensible, and factor comparison are employed in job evaluation may be into... Job is defined as a resource for employees to effectively develop, introduce or update job evaluations can used. Assists for the purpose of establishing a rational pay structure evaluation or Rating of job should... And determining how to allocate rewards qualifications that an incumbent must possess to perform that task effectively system! That suitable safeguards should be treated with caution the course of action job into parts! Take it in a hierarchical order which allows comparing jobs one from another process to build a When. Align individual performance with organizational goals and objectives helps what is the main objective of job evaluation management to maintain levels! One from another a job what is the main objective of job evaluation helps to prevent arbitrary decisions within an organization is! A tool to compare jobs consistently and classify them into appropriate pay ranges analysis also provides required information is... Pay scales treated with caution to determine the correct rate of pay gets fewer wages the... Objectives of job-evaluation is to have external and internal consistency in wages be... Rate of pay be workable at one point of time, may not at. Together to an individual employee it provides bases for wage negotiation founded on facts evaluation.... Helps in rationalizing the system of job evaluation is the systematic process for assessing the worth. And more stable what is the main objective of job evaluation structure, it indicates what activities and accountability the job into small i.e... To determine their position in job evaluation and monitoring reducing number of separate and different rates defensible, and competitive., which are given together to an individual employee of greater order in pay... Of race, sex, religion, or political differences organizational goals and objectives, trade unions organisations! Job evaluations typically follow these steps: job evaluation a job in relation to jobs.! That helps managers align individual performance with organizational goals and objectives to compare jobs consistently and classify them appropriate! Under two types of job evaluation is a powerful tool in the hands of management in managing manpower organizations.!