Advantages of job evaluation

Job evaluation can be defined as a structured and organised method of assessing jobs and classifying them according to their utility in the organisation. It also helps in designing compensation plans. It generally depends upon compensation variables (skills required for job performance, working conditions and job responsibilities) instead of employees.

The advantages of Job Evaluation are as follows:

Advantages and Disadvantages of Job Evaluation

1) Helps in Wage and Salary Fixation: It assists the top management in developing a logical and consistent structure of wage and salary by facilitating a criterion to determine the wages and salaries Wage incentive plans are also prepared based on the job evaluation process.

2) Helps in Reducing Grievances: An organisation can make use of job evaluation programmes to reduce the disputes and grievances of workers through a systematic procedure.

3) Helps in Recruitment and Selection: Job evaluation helps in determining the need for new employees. When demand is identified, the HR department can easily match the job requirement with new employees. Hence, it makes recruitment and selection easier. It also helps in deciding the promotion and transfer of employees.

4) Enhances Labour-Management Relations: As job evaluation helps to remove inequalities in wages in the organisation, it facilitates maintaining cordial relations among employees and employers.

5) Guarantees Equitable Rewards Distribution: Every employee needs fair and reasonable payment of rewards and job evaluation helps in ensuring equitable distribution of rewards.

6) Helps in Analysis of Company: It acts as an important technique for organisational analysis and recognising the gaps or overlaps in the duties and responsibilities. 

7) Helps in Wage and Salary Negotiations: A logical base is provided by job evaluation to negotiate the wage and salary with trade unions.

8) Evaluates Hierarchy of Job: Job evaluation helps in determining the exact utility and hierarchy of the job in the organisation. For example, if there are three job profiles, job evaluation will determine their exact position depending on the type of organisation and relevance of each position.

Disadvantages of Job Evaluation

Disadvantages of job evaluation are as follows:

Advantages and Disadvantages of Job Evaluation

1) Non-Scientific Technique: It is not a scientific but a systematic method of rewarding the job. It does not produce results with scientific precision because it is very difficult to assess each and every factor accurately.

2) Adjustment Problems: Although different ways are available to apply the techniques of job evaluation, rapid technological changes and supply and demand of some spills have resulted in adjustment problems.

3) Unrealistic: There are considerable variations between the job factors and the factors being focused on in the market. These variations are wider in such cases where the average pay given by the organisation is lower than the current pay in other organisations for the same position in the same industry, or in the same geographical region.

4) Organisational Limitations: It is time-consuming to install the job evaluation in any organisation. In addition, it needs to be installed by experts and is expensive too.

5) Opposition by Workers: It is supposed to be a suspicious tool by the trade unions of the organisations because it relies upon some set of principles and usually, it ignores the outcomes. Certain methods of job evaluation are not easy to understand. Thus, workers usually fear that the job evaluation method will eliminate collective bargaining.

6) Subjective: Several factors are used in evaluating jobs but there is no standard list of factors to be considered. The definition of factors varies from company to company. Various types of research depict that factors utilised in job evaluation are not given due consideration or individual importance. There is more dependency on internal standards and assessment of wage rate fixation.

7) Limitations of Evaluator: In case, if the methods and principles of job evaluation are not well-known to the evaluator, job evaluation is supposed to produce inconsistent outcomes. In addition, if the evaluator is biased toward any specific job, he will give more weight to that job.

8) Nature of Job: It is a presumption that jobs which hold equal value are equally pleasing it is not true. If a job offers to all workers, but good future prospects, it will succeed in attracting more people.

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