Job Evaluation Process
Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. It involves a systematic study and analysis of job duties and requirements. The evaluation is based on a number of compensable factors. It aims to assess the job and not the particular jobholder and to offer a relatively objective method of determining and assessing the unique demands of a particular job.
Job evaluation is a step by step process which is completed after the successful completion of following phases:
- Job Analysis
It is a process through which required information about various aspects of jobs can be obtained. Written job descriptions are then prepared to contain this information. Job analysis involves two dimensions:
Job description – Under job description, a profile of job information is prepared to indicate the duties, responsibilities and working condition of work. It explains what the job entails.
Job specification – Job specification indicates preparation of a specification statement which explains the necessary skills, knowledge, and abilities required to perform the job.
Fig: Job Evaluation Process
- Job Rating
Job rating includes the process of using same methods to study job descriptions and specifications in order to assign a relative worth for each job. Some of the job rating methods are ranking, point rating factor comparison, and so on.
- Money Allocation
After rating the worthiness of each job, a pay structure is determined and the money for each job is allocated. It means, it is the arrangement of paying rewards/compensation for each job according to its worth or value.
- Job Classification
Job classification is the last step of job evaluation which is concerned with the categorization of jobs according to their pay scale. For example, high paying jobs are represented at the top of the hierarchy.
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