Job evaluation is a step by step process which is completed after the successful completion of following phases:
1. Job Analysis
It is a process through which required information about various aspects of jobs can be obtained. Job analysis involves two dimensions:
i. Job description
Under job description, a profile of job information is prepared indicating the duties, responsibilities and working condition of work. It explains about what the job entails.
ii. Job specification
Job specification indicates preparation of a specification statement which explains the necessary skills, knowledge and abilities required to perform the job.
2. Job Rating
Job rating includes the process of using same methods to study job descriptions and specifications in order to assign a relative worth for each job. Some of job rating methods are: ranking, point rating factor comparison, and so on.
3. Money Allocation
After rating the worthiness of each job, a pay structure is determined and the money for each job is allocated. It means, it is the arrangement of paying rewards/compensation for each job according to its worth or value.
4. Job Classification
Job classification is the last step of job evaluation which is concerned with the categorization of jobs according to their pay scale. For example, high paying jobs are represented at the top of the hierarchy.
