There is considerable ambiguity among the terms job evaluation, job analysis, job description and job specification. Job analysis is the collection of data and the critical evaluation of the operations, duties and relationships. Job description is the written record of duties, responsibilities and requirements of a particular job. While job specification, is written statement showing the aptitude qualification, experience etc that would be necessary to perform a particular job. Another result of job analysis is job evaluation. The concept of job evaluation has altogether different meaning. Strictly speaking, job evaluation is the method of precisely fixing the relationships between jobs and wage rates. In the simplest words, job evaluation is the rating of jobs according to their worth.
Different authors have dealt with the definition of the term in their own way. To define it in a concise manner we can say job evaluation is the systematic, analytical scrutiny of all the jobs in the organization, with a view to compare all the jobs among themselves and to rate them according to the requirements. The main purpose of job evaluation is to maintain the consistency in wage rates, i.e. a senior foreman should be paid more than a shift foreman.
The rationale behind job evaluation is to reward employees fairly, which helps the organization to attract and retain them. On the part of employees it provides them the motivation for the betterment of performance and their effectiveness. Equitable compensation relates to the problem of attracting and retaining employees which motivation directly refers to the monetary and non-monetary incentives.
Equity and justice coincide according to natural law. It is clearly experienced that greater the feelings of equity, the more will be the equilibrium. When the employee receives compensation, his equity perception is affected by two factors (1) Effort output ratio i.e. what are the inputs given by employee in terms of physical and mental effort, training, education and how he works and furnishes task and how they are rewarded. Thus compensation to the work accomplished by employee has great impact in the future performance and it also shows an impact on the mental adjustment.
If the ratio is low, it leads to dissatisfaction which results in low performance, less effectiveness and low productivity. On the other hand, high ratio can also lead overall dissatisfaction arising out of over payment. Employee will feel guilty and try to work more to show that he actually deserves. So equity concept balances these extremes and accordingly gives a rational basis to work out the wages and salaries. (2) The comparison of above ratio with other person’s ratio with which he has direct contact.
Factor comparison method
The factor comparison method is actually a refinement of the ranking method. Either the ranking method, you generally look at each job as an entity and rank the jobs on some overall factor like job difficulty. With the factor comparison method, you classify each job several times – once for each of several compensable factors. For example, you might first rank jobs in terms of the compensable factor skill. Then rank them according to their mental requirements and so forth. Then combine the rankings for each job into an overall numerical rating for the job. This too is a widely used method also found in more detail in the appendix to this article.
Computerized Job Evaluation
Using quantitative job evaluation methods such as the point or factor comparison plans can be time consuming. Accumulating the information about how much of each compensable factor the job contains involves a tedious process in which evaluation committees debate the level of each compensable factor in a job. They then write down their consensus judgments and manually compute each job’s point values.
Computer aided job evaluation can streamline this process. Most of these computerized systems have two main components. There is, first a structured questionnaire. This contains items such as enter total number of employees report to this position. Second, all such systems use statistical models. These allows the computer program to price jobs more or less automatically by assigning points or factor comparison rankings to things like number of employees reporting to the positions, prices of benchmark jobs, and current pay.