Job evaluation is concerned with a process of establishing value of different jobs. job evaluation provides a basis for ranking or grading different jobs and developing a pay structure for them. It is the process of describing the duties, authority relationships, skills, condition of work and other relevant information related to jobs. It supplies useful data and information to develop job description and specification documents. Job evaluation is an important task of a HR manager which is performed in order to determine the value or worth of each job within the organization.
Job evaluation is the rating of job in an organization which attempts to compare the relative intrinsic value of each job and forms a job hierarchy. It is ranking of job not the job holder- as the job holders are rated through performance appraisal. Under the job evaluation process, wages and salary differentials are established on the basis of job ranking process. The basic procedure in job evaluation is to compare the contents of jobs in relation to one another which form a job hierarchy.
Therefore, job evaluation may be defined as a process of assigning value for each job in a job hierarchy so as to ascertain and determine a relative remuneration for different jobs. It takes into account the demands of the job in terms of efforts and abilities.
