Introduction
Job evaluation is all about the relative ranking of an individual job in relation to other jobs that exist within the group. This also refers to a technique used in the ranking of jobs in an organization. This is normally carried out on the basis of various responsibilities and duties that are assigned to the specific job or task. The results of the job evaluation process include the job being assigned a specific range of payments [1].
The range normally includes a maximum pay rate that the specific job can attract and also the minimum rate of payment that can be given to a person holding such a position. Job evaluation as a management tool has been used by employers and managers for approximately more than seventy-five years. This management tool has been used both in private and in the public sector. Basing on some generic factors, the value of each job is well defined in the job evaluation process. This paper is explaining why job evaluation is a management tool that refuses to go out of fashion. This paper explains the importance of job evaluation to employers or managers. It also shows an alternative method of designing pay grades.
Main Body
Job evaluation is very important to employers and managers. The reason why job evaluation as a management tool never goes out of fashion is because it plays a big role in reducing employee turnover. One of the steps involved in job evaluation is benchmarking the jobs. This is done in relation to the jobs that have been evaluated before.
In this case, the benchmark jobs are those that are commonly included in salary surveys found in most organizations. In this process, the benchmark jobs of internal pay structures are related to the external structures existing in the labor market.
This greatly helps in reducing employee turnover in various organizations. This is because job evaluation carried out will enable the organization’s pay grades to be at par with competitor organizations. In this case, employees will not see the need to look for greener pastures since their pay grades will be similar to what their colleagues in the same positions are paid in other organizations. This is really important to employers and managers because they will not be worried about losing employees to better-paying organizations. This generally plays a big role in stability in the organization.
The job valuation process as a management tool is very important to employers. This is because; research shows that job evaluation helps in minimizing conflicts in the organization. The job evaluation process results in the various jobs in an organization being given a pay rate. This is normally clear to employees in the organization. When job evaluation is carried out in an organization, it results in fairness in terms of payment rates given to various jobs in the organization [2].
In organizations where job evaluation is not practiced, there are normally many conflicts that result between employees and employers in terms of salary rates. Employees will always claim that the management is not fair in their payment rates. Job evaluations help employers and managers to easily explain the reason why some employees earn more and others less. Job evaluation helps in the lessening of employee grievances over relative wages. Managers and employees find it easier to solve any problems that arise concerning relative wages [3]. This plays a big role in minimizing conflicts related to salary payment in the organization. This is because it plays a big role in establishing a grading and a basic pay structure that all employees will regard as fair. This explains why job evaluation as a management tool refuses to go out of fashion.
The job evaluation process as a management tool refuses to go out of fashion for so many reasons. According to research carried out in the private and public sector, employers say that this tool is very fundamental in management. This is because it helps them to come up with pay structures that are simple and very easy to understand. This is because most organizations have diverse classes of employees. Some are professionals, while others are not. It makes it easy for employees who are not so learned to understand the different pay rates. It is less stressful to come up with pay rates for specific jobs using the job evaluation method than if other means are used.
According to employers and managers in both the private and public sectors, job structures have made their work far much simpler. This is because, once an organization has carried out job evaluation, it becomes simpler to fit new jobs into the previously set pay structures. It is understood that in every organization, new posts and vacancies always come up which were not existing in the organization. In this case, employers just use the existing structures to slot in the new pay rate for the created post.
Job evaluation also helps in encouraging healthy competition within organizations. That is why this management tool is still in practice since it was initiated. When job evaluation is being carried out by employers and managers, there are various factors that they normally consider. For instance, the level of education of the employees is a factor that is really put into consideration. The experience one has in performing the task is also considered. These factors are normally well spelled out to employees in the organization. This normally acts as a motivation structure for employees in the organization. Research shows that in organizations where job evaluation is carried out, it resulted in employees striving to further their studies.
Employees strived to gain more experience in their specific jobs. This helps managers and employers to accrue qualified personnel in the organization. This is because job evaluation normally goes hand in hand with employee appraisal [4] .That is why employees strive to climb up the ladder in the organization. They desire to outdoor have a pay rate like that of their colleagues. This explains why job evaluation as a management tool refuses to go out of fashion despite the period that it has existed in the business sector.
One of the steps that are encompassed in the job evaluation process is determining the relative worthiness of the job in the organization. In this case, various jobs in the organization are evaluated to determine how important they are to the organization. This is important because it helps employers and managers to do away with positions that are not very fundamental in the organization. This includes positions that the organization can do without. This is very important to many business organizations because many of them lose large lump sums of money paying employees that they do not actually need in the first place. This helps organizations to save large sums of money that are normally paid to these employees. This also helps employers to create posts in the organization that are fundamental or those that are needed most. This results in the general success of the organization [5].
Job evaluation as a method of determining pay grades is very effective—the entire process bases on various factors like education and experience of the employees. Pay grades can also be designed based on the general performance of the employees. This, however, is very subjective since there are some jobs that performance cannot be measured. In jobs like sales, the performance of the employee can be measured basing on the number of sales. In this case, pay grades can be determined in relation to the employees’ general performance.
Conclusion
Job evaluation encompasses ranking jobs in an organization. This management tool refuses to go out of fashion for various reasons. This is because job evaluation greatly helps in reducing employee turnover in organizations. Job evaluation helps organizations to reduce grievances that are wage-related. This process helps managers to come up with simple pay structures that are easily understood by all employees. Job evaluation also helps in creating healthy competition among employees.
References
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- Perry, J. and Debra J. (1997): Strategic Human Resource Management; Public Personnel Management: Current Concerns; Future Challenges; New York; Longman; pp. 21-34
- Torrington, D. and Hall, L. (2004): Human Resource Management; 6th Ed; FT Prentice Hall
- Yeung, A. (1997): Adding Value Through Human Resources; Reorienting Human Resource Measurement to Drive Business Performance; Human Resource Management; pp. 321-335
- Dworaczek, M. (1991): Job Evaluation at Work; New York; Longman