Job evaluation is the output given by job analysis. Job analysis illustrates the duties of a job, skills required, authority relationship, conditions of work, and extra pertinent information. Job evaluation in contrast, makes use of information in job analysis to assess each job, determining the relative job value and valuing its components.

In other words, it involves an organized and formal assessment of jobs so as to ascertain the value of one job in relation to another, consequently a wage or salary hierarchy results. It is a procedure by which jobs in an organization are assessed.

When jobs are evaluated, the relative importance of a given set of duties and responsibilities to the organization is assessed. This process is implemented to assist a management to uphold high levels of employee efficiency and employee contentment. If job values are not accurately studied, it is expected that jobs would not be correctly priced. When employees recognize that this is happening, they become discontented. They may leave the organization, or trim down their efforts. Thus, in present world, a huge attention is paid to the worth of the job.

Objectives of Job Evaluation

•    To secure and preserve complete, precise and impersonal descriptions of each distant occupation or job in the entire organization.
•    To offer a standard procedure for ascertaining the relative value of each job in the organization.
•    To decide the rate of pay for each job that is just and reasonable with relation to other jobs.
•    To make certain that like salary are paid to all competent employees for similar work.
•    To encourage an accurate and fair consideration of all employees for transfer and development.
•    To provide information for works organization, employees selection, placement, training and other problems.
•    To provide an accurate basis for the consideration of wage rates for alike jobs in an industry.

Procedure for Job Evaluation

•    Examine and plan a job description,
•    Choose and prepare a job evaluation plan,
•    Categorize job,
•    Install the program,
•    Retain the program.

Job Evaluation Methods

There are 4 basic and traditional systems of job evaluation:

The Ranking System, Job Classification or Grading system, the Factor Comparison System, and the Point System.