Human Resource Management

HUMAN RESOURCE
MANAGEMENT
NAME~ANKUSH DALAL
COURSE~B.COM(HONS.)
ROLL.NO~22/51011
TOPIC
JOB EVALUATION
~WHY WE NEED?
~MEANING
~OBJECTIVE
~LIMITATONS
~SIGNIFICANCE
WHY WE NEED JOB EVALUATION IN HRM?
• Job evaluation is one of the most basic and perhaps very

significant functions of Human resource management. Like
any other organization, each organization consists of a
number of jobs, and all jobs are important for an
organization, but all are not equally important. Therefore,
the relative worth of each job is more than other jobs.
• Job evaluation is a systematic and well-organized process
that helps in determining the value/worth of a job with
other jobs in an organization.
MEANING OF JOB EVALUATION
• Job evaluation is a process that is concerned with

determining the relative worth of each job in relation to
other jobs in an organization. It is intended to provide a
rational, orderly hierarchy of jobs based on their worth to
the company by analyzing the difficulty of the work
performed and the importance of the work to the
organization. The factors used to assess a job’s worth are
identified, defined, and weighted in the company’s job
evaluation plan.
MEANING
• Management uses the job evaluation method to achieve

equity in pay and formulate a formal wage and salary
program that is accepted by all employees and
compensates all employee effort and hard work they put
into their service.
DEFINATION OF JOB EVALUATION
• According to the International Labour Organization

(ILO),
• “Job Evaluation is an attempt to determine and compare
the demands which the normal performance of a particular
job makes on normal workers, without taking into account
the individual abilities or performance of the workers
concerned”
• Job Evaluation can be defined as “a systematic and orderly
process of determining the worth of a job in relation to
other jobs”. – Edwin B.Flippo
DEFINATION
• Date Yoder, “Job Evaluation is a practice which seeks to provide a

degree objectivity in measuring the organization value of jobs within
organization and among similar organizations. It is essentially a job
rating process, not like the ratings of employees.”
• According to Yoder, job evaluation is a technique of finding out the

comparative worth of various jobs not only is the organization but
also among jobs in different organizations. It helps in fixing fair and
comparative wage structures.
► OBJECTIVES OF JOB EVALUATION
• To compare the duties, responsibilities, and required

technical or conceptual skills of a job with other jobs.
• To collect the data or information for the preparation of job
descriptions and job specifications of various jobs.
• To minimize wage discrimination based on sex, age, caste,
and religion.
• To determine the proper hierarchy of jobs in the
organization structure.
OBJECTIVIES OF JOB EVALUATION
• To rank the various jobs according to their relative worth.
• It simplifies the wage structure.
• To improve employee-management relations.

► Significance of Job Evaluation
• It helps in standardizing and fixation of salary and wage.
• It provides a basis for grading and the pay structure of the

organization.
• It helps in reducing the inequalities in the wage structure.
• It resolves all kinds of controversies related to salary and wages.
• It helps in recruiting and selection.

Significance
• It helps in wage in salary negotiation.
• It increases employee job satisfaction because of fair and

transparent wage norms.
• It enhances the company’s brand image and the

organization earns a lot of goodwill.
LIMITATIONS OF JOB EVALUATION
• Human bias cannot be eliminated completely from any job evaluation

method even if efforts are made to make it systematic. The element of
human judgement is present in all the methods of job evaluation.
• The factors considered for job evaluation sometimes overlap. The

weightage given to them and their reliability becomes questionable.
• Job evaluation will have to be done regularly because the factors

considered for it today may not remain valid tomorrow because of
technological changes.
• There are apprehensions among workmen when job evaluation is
introduced for the first time. It may create doubts in the minds of
those whose jobs are evaluated.
• Job evaluation programme requires lot of time and specialized
technical personnel.
• The introduction of job evaluation scheme may require substantial
changes in the existing set up. This change may involve appreciable
costs and the concern may not be able to bear this financial burden.
• This system is suitable to big concerns only because it is very
expensive.
• The trade unions consider it as an encroachment on their right to
negotiate for wage structure.
• This system causes inflexibility. The demand and supply of labour is

the main cause for wage differentials.
• There may be a conflict about the factors to be chosen for job

evaluation. Workers insist on the inclusion of some factors which
they feel favourable to them.
THANKS MAM
DATA USE IN THIS PPT FROM-
~Your Article Library.com
~VSP RAO(Author)(hrm)

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HUMAN RESOURCE

• Job evaluation is one of the most basic and perhaps very

• Job evaluation is a process that is concerned with

• Management uses the job evaluation method to achieve

• According to the International Labour Organization

• Date Yoder, “Job Evaluation is a practice which seeks to provide a

• According to Yoder, job evaluation is a technique of finding out the

• To compare the duties, responsibilities, and required

• To rank the various jobs according to their relative worth.

• It simplifies the wage structure.

• To improve employee-management relations.

• It helps in standardizing and fixation of salary and wage.

• It provides a basis for grading and the pay structure of the

• It helps in reducing the inequalities in the wage structure.

• It resolves all kinds of controversies related to salary and wages.

• It helps in recruiting and selection.

• It helps in wage in salary negotiation.

• It increases employee job satisfaction because of fair and

• It enhances the company’s brand image and the

• Human bias cannot be eliminated completely from any job evaluation

• The factors considered for job evaluation sometimes overlap. The

• Job evaluation will have to be done regularly because the factors

• This system causes inflexibility. The demand and supply of labour is

• There may be a conflict about the factors to be chosen for job

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