Unit 2 HRM
Unit 2 HRM
Job Evaluation
Job evaluation is a systematic process of assessing the
value of jobs in an organization in order to determine
the worth of individual jobs and the compensation to
be paid to employees who hold those jobs. The
purpose of job evaluation is to ensure that employees
are paid fairly for the work they do.
Importance of Job Evaluation
1. Comparisons: Job evaluation techniques allow for a
systematic comparison of roles within an
organization. This can help in identifying overlaps,
gaps, and inconsistencies in roles and
responsibilities. It can also aid in understanding the
relative importance and complexity of different jobs,
thereby promoting fairness and transparency.
2. Compensation: By assessing the value and
complexity of jobs, job evaluation can help in
determining fair and competitive compensation
packages. It can ensure that employees are rewarded
appropriately for their skills, efforts, responsibilities,
and working conditions.
3. Specifications: Job evaluation can provide a clear and
detailed understanding of what a job entails. This can
be used to develop comprehensive job descriptions,
identify necessary skills and competencies, set
performance standards, and design effective
performance evaluation systems.
4.
Planning: By providing a cle ar picture of the job
hierarchy and career paths within the organization,
job evaluation can aid in succession planning. It can
help employees understand their potential career
progression and the skills and experiences they need
to advance.
5. Recruitment Process: A well-conducted job
evaluation can provide valuable insights for the
recruitment process. It can help in identifying the
skills and competencies required for a job, thereby
aiding in the selection of suitable candidates. It can
also ensure that the compensation offered is
competitive and commensurate with the job's
requirements.