Job Evaluation: Meaning and Method of Job Evaluation

Job evaluation is the process of assessing and determining the relative value or worth of different jobs within an organization. Job evaluation is an essential tool for ensuring that jobs are compensated fairly and equitably, based on their relative importance and complexity.

There are several methods of job evaluation, including:

Ranking Method: This is the simplest and most intuitive method of job evaluation, where jobs are ranked in order of their importance, based on a predefined set of criteria such as skills, knowledge, responsibility, and complexity.

Job Classification Method: This method involves grouping similar jobs into categories or classes based on the skills, knowledge, and responsibilities required to perform the job.

Factor Comparison Method: This method involves identifying a set of compensable factors, such as skill, effort, responsibility, and working conditions, and comparing the relative value of each job based on these factors.

Point Method: This method involves assigning a numerical value to different compensable factors, such as skill, knowledge, and responsibility, and calculating the total point score for each job.

Each method has its strengths and weaknesses, and organizations typically choose the method that best aligns with their compensation philosophy and objectives.

Effective job evaluation requires clear communication of job expectations, objective and consistent evaluation criteria, and a transparent and fair process for determining job worth and compensation. Job evaluation helps organizations to establish a fair and equitable compensation system, attract and retain talented employees, and motivate and engage their workforce.