Question

Discuss why an organization might prefer job evaluation or market pricing.

Answer 1

Market Pricing
In market pricing the pay scale of a particular job is usually determined on the basis of external sources.
The job value and the job pay is decided as per what different companies are paying to their employees of similar job.

Job Evaluation
In job evaluation the pay of the employees is decided on the basis of job's appraised internal value. The job is usually compared with the skills, responsibility and the efforts.
Job evaluation helps in determining value of the job according to your company alone.

The organization might prefer job evaluation as-
-In job evaluation the value of the job is determined to the company alone and not according to the market.
-It promotes more rational and the consistent salary structure in the organization.
-It helps in eliminating wage inequalities
-Good relations between the labor and the management is seen.
-Job evaluation helps in building the employee morale.