Objectives of Job Evaluation: 11 Objectives of Job Evaluation

Everything you need to know about the objectives of job evaluation. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation.

It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure.

According to ILO Report, the aim and objective of job evaluation system is to establish an agreeable logical basis, the relative values of different jobs in a particular plant or machinery. For example, it aims at determining the relation worth of a job.

The basic objectives of job evaluation is to determine the relative contributions that the performance of different jobs makes towards organisational objectives.

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Fore mostly, the job evaluation serves a number of purposes which may be grouped into three categories – wage and salary fixation, restructuring job hierarchy and overcoming anomalies. It also aims to provide the information about what is the worth of a job in terms of its contributions to the achievement of organisational effectiveness.

Some of the objectives of job evaluation are:-

1. To Analyse the Job Factors and Requirement 2. To Facilitate Comparison and Survey 3. To Facilitate Comparison and Survey 4. To Eliminate Inequalities 5. Determination of Wage Structure 6. Objectivity and Rationality in Wage Structure

7. To Solve Wage Controversies of Job Evaluation 8. To Eliminate Personal Prejudices 9. To Adopt a Definite and Clear Plan for Wage and Salary Administration 10. Standardization of Wage and Salary Rate and 11. Simplification of Rate Structure.

Objectives of Job Evaluation – Analyse the Job Factors & Requirement, Standardization of Wage & Salary Rate and a Few Others

Objectives of Job Evaluation – What are the Objectives for Evaluating a Job?

Job evaluation specifies the relative value of each job in an organization. It basically serves the purpose of compensation procedures. Job evaluation is a useful tool for making decisions about the compensation to be attached with a particular position.

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The various objectives are:

1. To determine the hierarchy and place the worth of each job of the organization.

2. To ensure fair and equitable wage-structure on the basis of relative worth or value of jobs.

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3. To determine upon a standard for performance appraisal for determining relative worth of each job in a plant.

4. To form a basis for fixing incentive and different bonus plans.

5. To provide information for work organization, employee’s selection, placement training, career development, etc.

6. To provide a framework for periodic review of wages.

7. To ensure the competitiveness of the organization in the labour market.

8. To justify the existing pay structure to employees.

9. To identify a ladder of progression for employees by providing benchmark for career planning.

10. To strengthen compliance with equal pay legislation and regulations that encourages basic pay on difference in job contents.

11. To produce pay structure that reconciles the conflicting demands of internal and external equity.

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12. To provide a sound basis for merit or pay-for-performance systems.

13. To undergo organizational development in times of change.

Objectives of Job Evaluation – Top 7 Objectives Provided by International Labour Organisation (ILO)

Job evaluation means, it is a methodical way of confirming the value of job in relation to other jobs in an organisation. It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure.

International Labour Organisation (ILO) has defined job evaluation as follows:

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“Job evaluation is an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual performance of the workers concerned”.

The main principle based on all the job evaluation is that of describing and assessing the value of all jobs, in terms of number of factors, the relative importance of which varies from job to job as the narration given below –

1. Secure and maintain correct and impersonal description of each job or occupation in the entire plant.

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2. Providing pattern and standard procedure for determining the relative worth of each job in the plant.

3. Understand the rate of pay for each job which is fair and equitable with relation to other jobs in the plant and work places.

4. To make sure that like wages are paid to all qualified employees for same type of job.

5. Promote a dispassionate and fair consideration for all employees for advancement in job efficiency.

6. Ensure a factual information for consideration of wage rates for similar jobs in a community and industry.

7. Impart adequate information for work organisation, employees, selection, placement, training and similar activities.

Objectives of Job Evaluation – Some Major Objectives Sought to be Achieved through Job Evaluation

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Job evaluation is another important issue in staffing function in context of performance appraisal through it is not undertaken frequently. Job evaluation is the process of determining the relative worth of different categories of jobs by analysing their responsibilities and consequently, fixation of their remuneration.

Job evaluation is a process of determining the relative values and weightage of the various jobs within the organisation, so that differential wages may be paid to jobs of different values. The variables which are assumed to be related to value produced are such factors as responsibilities, skills, efforts and working conditions.

The basic objectives of job evaluation is to determine the relative contributions that the performance of different jobs makes towards organisational objectives. Fore mostly, the job evaluation serves a number of purposes which may be grouped into three categories – wage and salary fixation, restructuring job hierarchy and overcoming anomalies. It also aims to provide the information about what is the worth of a job in terms of its contributions to the achievement of organisational effectiveness.

Some of the major objectives sought to be achieved through job evaluation include the following:

(1) To determine rational wage differentials among different jobs in the organization.

(2) To bring new jobs to their proper hierarchical position in the organization.

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(3) To help establish perceptions of internal equity among employees. Internal equity implies that employees should feel that they are paid fairly compared to others in the same organization, given the contributions that they and others make to the organization.

(4) To establish a rational basis for incentives and bonus schemes.

(5) To provide a framework for periodic review and revision of wage rates.

(6) To provide a basis for wage negotiations with trade unions.

(7) To enable management to keep the payroll cost under effective control.

Objectives of Job Evaluation – 8 Main Objectives: Analyse the Job Factors and Requirement, Facilitate Comparison and Survey, Eliminate Inequalities and Others

The reasons for growing interest in job evaluation in recent times are discussed below:

Objective # 1. To Analyse the Job Factors and Requirement:

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The process of job evaluation rest on job analysis in which two aspects of a job such as job description and job specification is studied.

Objective # 2. To Facilitate Comparison and Survey:

Job evaluation involves compares of one job to other job within the organization or to similar jobs in other organizations. Moreover it provides information to the community also.

Objective # 3. To Eliminate Inequalities:

For the job dissatisfaction or disputes, one of the reasons behind it is inequalities in base rates. Job evaluation evolves standard rates for similar or comparable jobs, so inequalities in base compensation are removed by this technique. Moreover wages paid in similar organization are also considered. Job evaluation establishes the relative values, therefore automatically inequalities of base rate can be eliminated.

Objective # 4. To Solve Wage Controversies of Job Evaluation:

Job evaluation provides a relative objective basis to resolving wage controversies involving comparative rates. It is a process by which management would be in position to adopt more rational and consistent wage and salary structure for their employees.

Objective # 5. To Eliminate Personal Prejudices:

Job evaluation technique “rates the job and not the man” which balances the job and the employee. It helps in the elimination of personal prejudices in establishing rates by putting the rate structure on an objective basis. Moreover employee rating is done by the merits rating technique therefore there is no scope for personal prejudice.

Objective # 6. To Adopt a Definite and Clear Plan for Wage and Salary Administration:

In this technique rates are established for the various jobs in an organization and it is a continuous process. Whenever the new job are designed or the old ones are redesigned, the existing wage and salary structure needs changes in it, by considering the internal and external environmental forces. This job is done by this technique and organizations would be in position to adopt a definite and clear plan for wage and salary administration.

Objective # 7. Standardization of Wage and Salary Rate:

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Job evaluation technique enables an organization to bring standardization in wage levels, despite wage differentials.

Objective # 8. Simplification of Rate Structure:

Job evaluation assists the management in simplification of rates of various jobs. Due to the job gradation or classification minimum and maximum rate ranges are established within each job class and the management periodically reviewed wage and salary structure, all this simplify the wage and salary administration and its implementation will also become easier.

Objectives of Job Evaluation

According to an ILO report, “the aim of the majority of systems of job evaluation is to establish on agreed logical basis, the relative values of different jobs in a given plant or machinery, i.e., it aims at determining the relative worth of a job. The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the relative importance of which varies from job-to-job.”

The following are the objectives of job evaluation:

(a) To obtain and keep complete, accurate and impersonal descriptions of each individual job or occupation in the whole organisation.

(b) To fix up a standard procedure for ascertaining the comparative worth of each job in the organisation.

(d) To fix up the hierarchy and position of different jobs in an organisation.

(e) To reduce to the minimum the wage differentiates based on sex, age, caste, region, religion, etc.

(f) To ensure that all qualified employees are paid like wages for like work.

(g) To promote a fair, objective and accurate consideration of all employees for the purpose of advancement and transfer.

(h) To provide facts and figures as a basis to consider wage rates for similar jobs in a community and in industry.

(i) To provide the necessary data for ‘work organisation, employees’ selection, placement, training and such other related aspects.

Objectives of Job Evaluation – 4 Main Objectives: Determination of Wage Structure, Minimising Conflict, Objectivity and Rationality & Determining the Monetary Worth of Job

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. 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. The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the relative importance of which varies from job to job.

Objectives of Job Evaluation:

1. Determination of wage structure – Job evaluation being a logical process and objective technique helps in developing an equitable and consistent wage and salary structure based on the relative worth of jobs in an organisation.

2. Minimising conflict – By eliminating wage differentials within the organisation, job evaluation helps in minimizing conflict between labour unions and management and, in turn, helps in promoting harmonious relations between them.

3. Objectivity and rationality in wage structure – Job evaluation process follows a standard procedure for ascertaining the value of the job. The jobs are evaluated on objective basis and thus introduce objectivity and rationality in wage structure. It helps to remove wage differentials.

4. Determining the monetary worth of job – Job evaluation process aims at determining the amount of remuneration to be paid for each job the organisation.

Objectives of Job Evaluation

The objectives of job evaluation are as follows:

i. Ascertaining the worth of each job in the organization.

ii. Determining the equitable wage structure in the organization.

iii. Ensuring utmost satisfaction to employee thanks to equitable wages.

iv. Providing a sound base for determining the wage structure.

v. Furnishing information for devising good method of recruitment, selection and training.

vi. Introducing standardization in wage differentials.

vii. Evaluating and contributing wage cost.

viii. Minimising wage discrimination in terms of age, gender, region, religion, etc.

ix. Providing a framework for periodical wage revision.

x. Establishing a rational basis for bonus or incentive schemes.

xi. Developing consistent wage policy.

Some other objectives of job evaluation are:

i. It seeks to evaluate jobs not people.

ii. The standards of job evaluation are relative and not absolute.

iii. All vital information necessary for job evaluation is obtained from job analysis.

iv. It is the process of evaluation of each job to ascertain the relative worth of each job.

v. It takes into account the demands of the job and not individual efforts and capabilities required for the job.

vi. It does not recommend pay scales, but provides a basis for evaluation of a rational wage structure.

vii. Job evaluation is done by a group of people. Hence some amount objectivity is sure to enter the evaluation process.

Objectives of Job Evaluation – Some Significant Aims and Objectives

Job evaluation is a systematic and rational technique of determining the grading of jobs according to the duties and responsibilities associated with each job. It also provides measures for settling questions of controversial grading.

Although the chief aim of job evaluation is to determine the relative worth of each job, it also serves other significant objectives, which are as follows:

i. Sets a foundation for simpler and rational compensation plan

ii. Determines the wage rates for different jobs independent of the characteristics of employees

iii. Develops a standard procedure for establishing the relative worth of each job

iv. Materializes a basis for setting up incentives and various bonus plans for employees to strive for higher-level jobs

v. Abolishes the pay inequalities by adhering to the law of equal pay for equal work

vi. Establishes benchmarks for conducting career planning for employees

vii. Helps as a standard for reference of grievance issues related to wage rates

viii. Provides the fair and unbiased remuneration to employees as compared to their duties

ix. Develops a framework of procedures to establish the grade levels and the subsequent pay ranges for jobs

x. Ensures the equity in wages for jobs characterized by similar skills, expertise, competencies, responsibilities, and working environment by developing a system that accurately and rationally evaluates the differences in relative worth of the jobs

xi. Determines the stipulatory methods of classifying new or modified jobs

xii. Presents a base for assessing the individual performance of employees

xiii. Establishes coherent relationships among various jobs that can be used in internal and external selection of candidates

xiv. Helps in conducting wage surveys by defining key responsibilities and skills of jobs.

Objectives of Job Evaluation

Job evaluation helps in analysing the relative worth of a job in terms of pay, skills, educational qualifications, or risk involved in it. It is a systematic approach to find out the relative importance of one job as compared to another.

A job evaluation aims at fulfilling the following objectives:

i. Building a robust foundation for incentives and bonus programs

ii. Achieving internal wage equity

iii. Achieving external wage equity

iv. Facilitating timely review of wages

v. Helping the management in controlling its payroll cost

vi. Ensuring consistency in the wage policy

vii. Negotiating between the union and the management.

viii. To provide a standard procedure for determining the relative worth of each job in a plant.

ix. To determine equitable wage differentials between different jobs in the organization.

x. To Eliminate wage inequalities.

xi. To ensure that like wages are paid to all qualified employees for like work.

Process of job evaluation involves the following steps:

1. Gaining acceptance – Before undertaking job evaluation, top management must explain the aims and uses of the programme to the employees and unions.

2. Organizing workshops/knowledge programs – To elaborate the program further, oral presentations could be made. Letters, booklets could be used to classify all relevant aspects of the job evaluation programme.

3. Creating job evaluation committee – It is not possible for a single person to evaluate all the key jobs in an organization. Usually a job evaluation committee consisting of experienced employees, union representatives and HR experts is created to set the ball rolling.

4. Identifying the jobs to be evaluated – Every job need not be evaluated. This may be too taxing and costly. Certain key jobs in each department may be identified. While picking up the jobs, care must be taken to ensure that they represent the type of work performed in that department.

5. Analysing and preparing job description – This requires the preparation of a job description and also an analysis of job needs for successful performance.

6. Selecting the method of evaluation – The most important method of evaluating the jobs must be identified, keeping the job factors as well as organizational demands in mind.

7. Classifying jobs – The relative worth of various jobs in an organization may be found out after arranging jobs in order of importance using criteria such as skill requirements, experience needed, under which conditions job is performed, type of responsibilities to be shouldered, degree of supervision needed, the amount of stress caused by the job, etc. Weights can be assigned to each such factor. When all weights are added, the worth of a job is determined. The points may then be converted into monetary values.

Objectives of Job Evaluation – 7 Major Objectives: Sound Wage Foundation, Consistent Wage Policy, Periodic Review, Reduce Grievances & Labour Turnover and Others

Kimball and Kimball- “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.” Helps in removing inequalities. Wendell French- “Job Evaluation is a process of determining the relative worth of the various jobs within the organization so that differential wages may be paid to jobs of different worth.”

It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization. To be objective, job evaluation should “rate the job not the man.” Should be clear, easily understood, and sold to employees. Should not result in salary decrease/demotions for existing employees.

Job evaluation is the process that establishes every position’s internal relative worth to a company by measuring a position’s potential fulfillment of duties against the amount of value being given by the present employee. Job evaluation measures job worth in an internal sense, as well as in an economic one.

The major objectives of job evaluation are as follows:

(i) Establishment of sound wage foundation for incentive and bonus programs.

(ii) Maintenance of consistent wage policy.

(iii) Enable management to gauge and control its payroll costs more accurately.

(iv) Provide a framework for periodic review of wages and salaries.

(v) Classify functions, authority and responsibility which in turn aids in work simplification and elimination of duplicate operations.

(vi) Reduce grievances and labour turnover and, thereby, increase employee morale and improve management-employee relationships.

(vii) Serve as a basis for negotiation with the employees union.