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Why is Job Evaluation important?
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The importance of job evaluation may be judged from the following advantages:
Rational wage structure—Job evaluation eliminates wage inequalities in the organisation and facilitates the formation of a rational wage structure. With its help wage structure is designed on the basis of weights allotted to different factors viz. skill, responsibility, supervision required etc.
Removal of Inequalities—Job evaluation evolves standard rates for similar or comparable job in the organisation and thus eliminates wage inequalities. It removes internal as well as external inconsistency wages paid in similar firms and social costs are also taken into consideration while fixing the value for the job.
Good Industrial Relations—It is a common experience of all concerned that the biggest single factor contributing to industrial disputes and dissatisfaction is inequalities in wage rates. Job evaluation evaluates the job and the job holder. It helps in settling the disputes and grievances regarding wage rate etc. It leaves no chance of favouritism to anyone. The method simplifies discussion of wage demands and enables differences in wages justified.
Proper Emphasis on Job Factors-Job evaluation gives proper emphasis on job factors. It is made after proper scrutiny of the various factors determined by the job analysis and presented by the job description and the job specification. Thus job values are established only after taking various job factors into consideration.
Scientific Selection and Recruitment—It helps in a scientific recruitment and selection of employees because jobs are properly described and specified. Job evaluation involves job analysis and appraisal which are of great use while recruiting personnel selection and placement can be made objectively by matching the qualifications of the candidate with job specification. Job evaluation helps in keeping down the cost of recruitment.
Performance Appraisal—Job evaluation helps in performance appraisal. It helps in the evolution of uniform standards for all the jobs in the organisation. It becomes very easy to review job rates.
Training and Development —In a proper job evaluation system, the position of job is fixed. Every worker knows the job description and job specifications of each job. He tries to develop his personality so as to occupy higher position. Job evaluation helps in training the supervisors in the function of judging and helping his personnel.
Multifarious Use—Job evaluation facilitates control over labour, proper selection, training incentives to workers, simplification of job, overall improvement in working conditions.
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