Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs.
The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. The second method is one of awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded - the higher the educational requirements of the job the higher the points scored. The most well known points scheme was introduced by Hay management consultants in 1951. This scheme evaluates job responsibilities in the light of three major factors - know how, problem solving and accountability.
Job Evaluation; the methods and practices of ordering jobs or positions with respect to their value or worth to the organization.
"Job Evaluation is a method which help to establish a justified rank order of jobs as a whole being a foundation for the setting of wages.Job Evaluation is the only one of the starting points for establishing the relative differentiation of base wage rate"
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