Question

A large number of potential uses of job evaluations were discussed in your text in Human resources management in Organizational Rewards & Wages vs. Salaries

List five of the potential uses.

In your own opinion, do you feel evaluations truly assess employees' abilities and talents? Why or why not?

Answer 1

Job evaluation is a process to analyse and assess various jobs in relation to other jobs to understand their worth.

Uses of job evaluation in an organisation –

1. To provide a standard procedure for determining the relative worth of each job.

2. To justify an existing pay rate structure or to develop one that provides for internal equity.

3. To form a basis for fixing incentives and bonus

4. To assist in setting pay rates that are comparable to similar jobs in other organizations.

5. To provide a rational basis for negotiating pay rates when bargaining collectively with a recognized union.

6. To identify a ladder of progression for future movement to all employees interested in improving their compensation.

Yes, evaluations do assess employees' abilities and talents, the reason why every organisation look forward to have an effective evaluation system. It is important to analyse and evaluate employees as it helps in setting wages and incentives, track performance of employees, develop training program and promote growth of the employees. Job evaluation begins from analysing a job to determine its characteristics and requirements and the duties and responsibilities are evaluated against a evaluation method selected by the organisation.

A candidate selected for a role must be compensated for his work according to his performance and in competitive wage rate. Different employees have different set of skills and work differently. Evaluation helps in differentiating the performance and compensate accordingly. It helps in avoiding issues in the organisation regarding wage differences. A right evaluation system for compensation will help motivate and retain employees in an organisation.