Job evaluation is the process to determine systematically and analytically, the relative worth of job with an organization. The quality of the job is determined by other jobs regarding the skill needed, responsibility involved, efforts required and the surroundings in which it is performed. Job evaluation attempts to measure these requirements for individual jobs and arrive at their worth and place them in their relative order.
In other words, wage inequality to a great extent affects industrial relations. As has been stated earlier, it is because of this and other considerations that personnel administrators are so much concerned with wage administration. But the basic of any sound pay structure depends on a correct determination of the worth of jobs. What is the job worth and how can this be determined? Job evaluation provides answers to these questions. It must, however, be borne in mind that job evaluation is only concerned with the assessment of employment and not of people performing them. This point is particularly stressed here because it is very often found that confusion exists in the minds of many in this respect. Job evaluation is not exactly a science as one understands the term, but its merit lies in its systematic and analytical approach. Further, job evaluation is not directly concerned with the quantitative and qualitative aspects of output or at the speed at which the operations or workers perform a job. They are subject matters of other techniques like merit rating and work study.
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The benefits which are likely to occur from a job evaluation program are many. Amongst them, the first and foremost is that it lays down the foundation for a rational wage structure. A properly developed structure based on job evaluation will tend to reduce grievances relating to wages and improve industrial relations. Other advantages are job descriptions which are prepared as part of the process which can be used for writing job specifications which then can be used for recruitment, training, promotion, transfer and job evaluation.
This is a systematic process of evaluating, collecting, and analyzing information about a job. Job analysis is a precious source of information for human resource planning and development. Job analysis, which is a step in the job evaluation process, consists of analyzing the situation in details. The idea of that is to find out all relevant facts in respect of the position through either interviews or questionnaires. Information is collected through a survey wherein the workers fill the particulars about their jobs. On the other hand, where workers are illiterate or unable to express themselves in written languages, pertinent job information is collected through interviews.
The nature of information gathered through analysis is the requirement of skill in performing the job, responsibilities involved, and the surroundings in which it is performed. The situation is studied and watched when conducted to give a clear picture of tasks involved, the skills, abilities, and knowledge required as well as the surroundings in which it is performed. Verification with supervision is necessary for the accuracy of the job facts. The data obtained through analysis are recorded on what is known as job analysis sheet. The data recorded can be used for many other purposes apart from job evaluation, such as training, recruitment, promotion, transfer, etc. One can prepare from the data what is known as job specification, which lays down specific qualifications necessary for performing the job. This can make selection and recruitment more efficient.
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The next step in the process is the writing of job description from the analysis data for the purpose of evaluation. It is the presentation of employment facts in a form, which facilitates evaluation. Job analysis provides information on the following:
a) Training, Educational qualifications, skills, traits, experience, attitudes required to perform the job: Through the process of analysis, all activities needed to complete a task are identified. This list of events provides guidelines for the kind of educational qualifications, experience, and training necessary to perform the job. Analysis also provides job specifications, which indicate beside educational qualifications and experience, the skills, abilities, traits, aptitude, and attitude necessary for performing the job.
b) Structure and design of job to make it meaningful and enhance the jobholder’s performance: To ensure that a job is useful as the whole, all tasks required for its production need to be grouped together. Job analysis provides this information, which helps in designing the job logically.
C) Plans for future human resource requirements and career planning: Job analysis indicates skills, the human resources in the organization possess. When the organization plans for expansion, growth or diversification, power requirements change. Analysis also provides information on future jobs. With this information, it would be possible to assess long-term human resource needs and determine if people would have to be recruited from outside or promoted from within. This information forms the basis for recruitment from outside and career planning for employees with potential within the organization.
d) Placement of the right person for the right job to utilize skills optimally: Since job analysis indicates the skills required for a job, it facilitates identification of the right people within the organization to perform the job. Therefore, it is possible to match available skills with job requirements and utilize human resources optimally.
e) Setting up performance standards: Analysis indicates the activities required to perform a job and achieve its objectives. These activities, when performed, enable accomplishment of measurable goals and targets. The proficiency with which an employee meets his goals and objectives determines his performance standards.
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Applications of Job Analysis
The information obtained through analysis may be utilized for the following purposes:
a) Preparation of job descriptions, which include the job objective and the principal activities required to perform the job. This data is useful for the new entrant to a job as well as for drafting an advertisement for recruitment to the position.
B) Preparation of job specifications, which provide the educational qualifications, experience, critical skills, special knowledge, abilities and aptitudes required to perform the job. This data is useful for recruitment and selection.
c) Development of key result areas (KRAs) which state clear goals and targets the jobholder has to achieve in a specified time. KRAs are developed using the principal activities stated in the job description. KRAs are a critical component of the performance appraisal system.
d) Design of training programmers based on the knowledge and skills essential for a job. Analysis also provides information on inputs required for an employee to progress from one stage to another. This data can be utilized to design management development programs to prepare an employee for promotion and higher responsibilities.
e) Development of compensation structure since compensation is commensurate with duties and responsibilities of a job. For compensation to be the equitable accurate assessment of the job requirements has to be made. Analysis can be utilized for job evaluation which in turn is used to classify jobs. Salary structures may then be developed for each job class.
f) Job analysis can help in strategic planning by identifying jobs that need to be changed, eliminated or restructured to meet the demands of a changing environment.