1. JOB EVALUATION
Job Evaluation is the process of systematically determining the relative worth of jobs to create a
job structure for the organization. The evaluation is based on a combination of job content,
skills required, value to the organization, organizational culture, and the external market. This
potential to blend organizational forces and external market forces is both a strength and a
challenge of job evaluation.
2. TYPES OF JOB EVALUATION
Job-based employee performance evaluations focus on the duties of the position and the tasks
required to perform them successfully. This is a standard type of evaluation you can use for all
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4. ASSUMPTIONS U NDERLYING DIFFERENT VIEWS OF JOB EVALUATION
Aspect of Job Evaluation
Assessment of job content
Content has intrinsic value outside external
Stakeholders can reach consensus on value.
Assessment of relative value
External market link
Value cannot be determined without external
Honing instruments will provide objective
Negotiating brings rationality to a social/political
process; establishes rules of the game and invites
EXHIBIT 2 : Assumptions Underlying Different views of job Evaluation
5. DETERMINING AN INTERNALLY A LIGNED JOB STRUCTURE
EXHIBIT 3: Determining an Internally Aligned Job Structure.
6. MAJOR DECISIONS IN JOB EVALUATION
Establish purpose of evaluation
Decide whether to use single or multiple plans.
Choose among alternative approaches.
Obtain involvement of relevant stakeholders.
Evaluate plan’s usefulness.
6.1. ESTABLISH PURPOSE OF EVALUATION
Job evaluation is part of the process for establishing an internally aligned pay structure. Recall
from Chapter 2 that a structure is aligned if it supports the organization strategy, fits the work
flow, is fair to employees, and motivates their behavior toward organization objectives.
• SUPPORTS ORGANIZATION STRATEGY
Job evaluation aligns with the organization’s strategy by including what it is about work that
adds value—that contributes to pursuing the organization’s strategy and achieving its
objectives. Job evaluation helps answer, How does this job add value?
• SUPPORTS WORK FLOW
Job evaluation supports work flow in two ways. It integrates each job’s pay with its relative
contributions to the organization, and it helps set pay for
new, unique, or changing jobs.
• IS FAIR TO EMPLOYEES
Job evaluation can reduce disputes and grievances over pay differences among jobs by
establishing a workable, agreed-upon structure that reduces
the role of chance, favoritism, and bias in setting pay.
• MOTIVATES BEHAVIOR TOWARD ORGANIZATION OBJECTIVES
Job evaluation calls out to employees what it is about their work that the organization values,
what supports the organization’s strategy and its success. It can also help employees adapt to
organization changes by improving their understanding of what is valued in their new
assignments and why that value may have changed. Thus, job evaluation helps create the
network of rewards (promotions, challenging work) that motivates employees.
If the purpose of the evaluation is not called out, it becomes too easy to get lost in
complex procedures, negotiations, and bureaucracy. The job evaluation process becomes the
end in itself instead of a way to achieve an objective. Establishing its purpose can help ensure
that the evaluation actually is a useful systematic...