The definition for Job evaluation is "any method ranking the relative worth of jobs, which can then be used as a basis for a remuneration system". It is the systematic process of establishing the relative worth of jobs within an organization. The exercise involves placing jobs at their appropriate level in the company hierarchy and structure, and is part of a larger Work Study exercise that includes Job Analysis and Merit Rating besides Job Evaluation.A major characteristic of Job evaluation is its comparative nature. Job Evaluation deals with relationships or the relative worth of jobs, and it is not possible to do a Job Evaluation exercise with only one job.
Tags: Analysis and classification of cost, Price analysis and classification, Cost analysis and classification of costs
[...] Internal Benchmarking Job evaluation by internal benchmarking simply means comparing the job under review with any job already graded and placing the new job at an appropriate level relative to that job The comparison is made on the whole job and not on critical job factors. Benchmark jobs are representative of the range of jobs considered. They may initially serve as the basis for the design or modification of a job evaluation scheme, and once perfected, functions as a reference point for internal assessment or job relatives the external process of matching jobs with jobs in other organizations to determine the pay scale. [...]
[...] (1995) Using multisource assessment to pay people not jobs. ACA Journal, 4-17 Summer Emerson, S. M. (1991) Job Evaluation: a barrier to excellence? Compensation and Benefits Review 39-51, January-February Grayson, D. (1987) Job Evaluation in Transition, Work Research Unit, ACAS London. H.R. Guide to the Internet: Job Evaluation: Methods: Point Method. Retrieved from http://www.hr-guide.com/data/G414.htm. retrieved 2009-04-28. Hay Job Evaluation. Brikbeck University of London. Retrieved from http://www.bbk.ac.uk/jobevaluation/evaluation. Retrieved 2009-04-28. Hillage, J. (1994) The Role of Job Evaluation, Institute of Manpower Studies, Brighton. Job Evaluation, CIPD [...]
[...] Job Evaluation emphasizes on doing the job as described rather than doing the right thing, and creatively written job descriptions could lead to pay increases. Rigid job descriptions need not remain relevant in a fast moving and constantly changing external environment. Moreover, constantly updating and writing new jobs and roles that crop up frequently in the environment of rapid change, together with the time required to administer the job evaluation schemes may becomes too cumbersome and not worth the time in terms of the benefits reaped from the scheme. [...]
[...] The first step in the process is a panel of role analysts analyzing the job description and information to assess the role under evaluation against the Hay Guide Chart Profile. This profile has a list of many factors that are common to all jobs worldwide, in some form or the other. There are a number of levels for each factor, and the panel suits the most appropriate level for the evaluated job. The outcome of the evaluation shows the total size of the job, which can then be placed in order with other roles within the organization. [...]
[...] It is also important to document the job evaluation process. This would not only help future evaluators, but also provide a ready reference to clear any doubts or misgivings about the system. Finally, the Job Evaluation results should undergo regular reviews in the context of fast changing external environment that affects the business needs. CONCLUSION A major fallacy is that job evaluation would solve all problems of internal relatives. Job evaluation is a process towards and end rather than a system. [...]
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