JOB EVALUATION
 Definition: A formal and systematic comparison of jobs to determine the worth of one job relative to another. This eventually results in wage or salary structure- what various jobs or groups of jobs will earn.
 Standards for conducting job evaluation:
 Consistency
 Freedom from bias
 Correctness
 Representativeness
 Basic principle: Jobs that require greater qualifications, more responsibilities and more complex job duties should be paid higher than those with fewer requirements.
 Job evaluation process: It requires the cooperation between the supervisor, HR specialist, employee and union representative, if any. The following steps are undertaken:
1. Identifying the need for job evaluation which is usually done when the company has:
a. High turnover which reflects dissatisfaction.
b. Work stoppage.
c. Arguments about pay rates differences among employees performing similar jobs.
2. Getting employees to cooperate: This involves systematic evaluation of jobs that might create a feeling that employee pay rates might be reduced. Thus, it is essential to:
a. Explain to the employees the reasons behind conducting job evaluation
b. Provide a mechanism for considering complaints about pay rates.
c. Ensure that employee rates will not be affected at the present time.
3. Choose job evaluation committee : The role of the committee should be as follows:
a. Committee members will provide different perspective regarding the nature of the job.
b. It is recommended that employees should be part of the committee in order to insure acceptance of job evaluation results.
c. It identifies 10 – 15 key benchmark jobs that will be the first jobs to be evaluated and later other jobs will be related to them according to their relative worth.