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In any existing organization, various jobs require different and valued duties, different levels of skills and a diverse working condition. The different jobs in the workplace also have different market values. These facts are the basis of hierarchical placement of different categories of jobs, and it is the real meaning of a job evaluation. Through job evaluation processes the relative worth of a job in any organization is clearly defined. It helps the organization to determine the necessary characteristics of a job leading to a job specification. It is through job evaluation that the basic salary of employees is determined. Individual job positions are put into job groups. Specific jobs are classified according to duties and importance. Realistic wage structures are determined and the possibility of pay discrimination is greatly reduced. It should barely be understood that the employees of any company are the most valued asset and the same time they are the greatest expense. Through job evaluation it is possible to integrate the internal fairness with the external competitiveness (White and Drunker, 2000))
The statement is correct only in cases of relatively small business. For example, an organization with the relatively small number of employees such as below 50 does not require job evaluation. However, with significantly large numbers of employees, the statement becomes wrong. A well-implemented job evaluation is a tool for driving changes and also helps achieve equal pay for equal value (Thrope and Homan, 2000). Any organization has the distinct business strategy, people strategy and cultural difference that require specific need (Armstrong, 2001). Job evaluation should, therefore, be internal to the company and a universal job evaluation system has never been in place (Armstrong, Murlis, 2004)). This is an ongoing process since changes may occur in the organization. Therefore it should be reviewed time to time so that the needs of the business are always met.
Job evaluation is necessary when the organization intends to achieve the following objectives:-make a determination for respective employees payments based on their output to the company. The payment should be fair and the system of equivalent jobs should have equal pay. The evaluation helps the organization decide on the issue of bonuses and benefits to the employees. Different ranks of employees are entitled to different bonuses and benefits. It is also through job evaluation that the internal payment rates of a specific company are compared to external market rates. The other area requiring job evaluation is the development of the organization during the time of change (Jones 1991). Also to undertake a career management in the organization requires job evaluation just as planning for a succession. In a situation where the roles in a company have changed, job evaluation becomes important to review all the jobs. The motivation of staff has always played a very crucial aspect in the workplace. Job evaluation plays a very significant role in staff motivation; the determination of the role of each employee is the guiding factor towards the level of motivation I needed (Owens, Warren, Evans, 1977)
An effective job evaluation in any existing organization helps to establish the job relativities inside the company through the evaluation of the job description. This method establishes the true value of each job. The human resources managers have a mandatory requirement for a job evaluation. This is especially so when a new position is created or there have been significant changes in any organization. Another area that requires a job evaluation is when an existing position is being duplicated, or being uplifted and when a position requires being classified (William, Gephart, and Carroll 1998)
The value of every position in the workplace is a product of responsibilities required, the extent of problem solution, the level of technical and professional skills and expertise required and the working conditions the job requires. Each of these facts needs to be critically analyzed and the value of each well qualified. To achieve a working job evaluation an organization needs a panel of experts to make arguments on these facts and come up with a good job evaluation system.
It is the role rather than the person that is involved in job evaluation. For it to qualify, it must be transparent, regularly reviewed and properly communicated to the employees. Job evaluation enhances the relationship between employees and the departments within the organization. It is influential to remove anomalies under normal circumstances if is illogical for manual workers to earn a higher pay than managers. Job evaluations is an efficient tool to come up with a logical payment scale. The process of accumulation of knowledge, skills and experience require investments by the individual both in terms of money and time. Therefore the person who has undergone this process can handle difficult issues comfortably than an ordinary layman. This is the first reason for remuneration in a magnitude that correlates with the capability of the individual. Secondly, the skills and experiences need to be compensated. This is a resource like any other resource required for production in any organization.
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