Job evaluation is a process of comparing a job with another or other jobs from within or out of an organization so as to set a pay rate for employee(s) in that job. It is done by assessing how job is important and how it contributes to the organizational prosperity. The aim of job evaluation is to make sure that employees are fairly paid according to their jobs or positions.
There are different methods for conducting job evaluation in an organization including point factor, factor comparison, job ranking and job classification.
1. Point factor: This is a method which involves assigning points to each of the factors that are used to evaluate a job, such as skill level, responsibility, and working conditions.
2. Job classification: In this method jobs are assigned to a specific class according to their level of responsibility and pay.
3. Job ranking: Is a method which involves listing the jobs and ranking them according to their significance to the organization. Jobs are usually ranked by considering their titles. The higher the rank, the higher the salary is involved in that job.
4. Factor comparison: This is a method which use both job ranking and points factor method.
5. Marketing pricing: This method involves using information from external resources or from other organization to determine pay rate.
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