Job Evaluation

PSYCH-105 Industrial Psychology

Chapter 14: Job Analysis

Unit 1

Unit 2

Unit 3

Unit 4



A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

Job evaluation is the combination of methods and practices to ordering jobs or positions with respect to their value or worth to the organization. 

This process helps the management to maintain high levels of employee productivity and employee satisfaction. 

According to ILO (international labour organization) “job evaluation may be defined as an attempt to determine and compare the demands which the normal performance of particular jobs make a normal worker, without taking account of the individual abilities or performance of the workers concern.

Need and Significance

1. By the help of job evaluation more rational and consistent wage and salary structure can be evolved. 

2. Helps in bringing and maintaining harmonious relations between labor and management.

3. Tends to eliminate wage inequality within the organization and industry. 

4. Precisely defines the jobs and fix wages accordingly. 

5. Helps in recruiting new employees as it involves job analysis and appraisal. 

Advantages of job evaluation

  1. Logical and to some extent an objective method of ranking job 
  2. Helps in removing inequality in existing salary structure 
  3. Facilitates new jobs fitting into the existing wage and salary structure 
  4. Helps in removing grievances 
  5. Helps in maintain better labour management relation
  6. Brings uniformity to organization in terms of wages

Disadvantages of job evaluation

  1. Although various job evaluation methods are available rapid change in technology and job requirements make it difficult to adjust
  2. Job evaluation software take long time to install and is costly
  3. Job factors fluctuate due to change in production, technology information system and division of labour.

Author – Dr. Niyati Garg

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