Job Evaluation: Definition, Objectives and Steps

In this article we will discuss about Job Evaluation:- 1. Definition of Job Evaluation 2. Objectives of Job Evaluation 3. Steps for Job Evaluation 4. Advantages of Job Evaluation.

Definition of Job Evaluation:

Job evaluation is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. It is the process of close scrutiny and assessment of the relative value of jobs in an organization to ascertain their relative labour worth. Job evaluation is the first step towards formulation of a proper wage structure.

Objectives of Job Evaluation:


Following are the objectives of Job Evaluation:

(i) It aims at developing a systematic and rational wage structure.

(ii) It aims at establishing consistency between the wage and salary structure adopted within the firm and that of the other firms.

(iii) Proper job evaluation helps to settle disputes relating to salaries between the employers and employees and thus helps promoting industrial peace and harmony.

(iv) It discloses characteristics and conditions relating to different jobs which are very helpful at the time of recruitment.

(v) Wage and salary structure established on the basis of job evaluation tends to be logical, rational and fair. In determining wage rate on the basis of job evaluation worker’s competence, skill and education are properly reckoned with.


(vi) It also helps in eliminating discrepancies among employees of a group of organisa­tion in any particular industry.

Steps for Job Evaluation:

The following steps are suggested for Job Evaluation:

1. Identify and isolate component tasks in a job.

2. Identify the main duties involved.


3. Identify the main areas of responsibility.

4. Identify the personal demands which a job makes on an individual.

5. Examine how tasks are performed.

6. Examine why tasks are performed as they are.

Advantages of Job Evaluation:


The following advantages can be derived from Job Evaluation:

1. It analyses human input brought to a job.

2. Comparative decisions can be made between two jobs since job evaluation seeks to assemble the information in a logical manner.

3. It facilitates cost control. Its use avoids anomalies, confusion and unrest.

4. It helps to develop an equitable wage structure.

5. It leads to simplification.

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