Advantages of Job Evaluation
1. Sound Wage Policy
Job evaluation is basically an attempt to measure the real worth of each job by a process of expert judgement. Therefore, any wage policy based on a scientific job evaluation is bound to be systematic and sound.
2. Settlement of Wage Disputes
The chances for disputes and grievances regarding the individual rates of wages are very rare. Even if there arises any disputes, it can be conveniently settled by referring to the job evaluation machinery.
3. Better Control over Labour Costs
Job evaluation enables the management to exercise effective control over the labour costs, because they can give appropriate pays for the each job.
4. Building up of Employee Morale
Since this system aims to reward employees’ suitability, it will help to build up employee morale and bring job satisfaction.
5. Proper Placement of Personnel
It helps in selecting the right man for the right job. Besides, this system facilitates to form a logical basis for designing training programmes for the worker.
6. Elimination of Personal Bias
The evils of personal bias, favoritism, and arbitrary judgement on the part of the management in fixing wage differential etc. are avoided, because wage rates are set by experts other than the management and that too after a careful job evaluation programme.
7. Reliable in All
This system provides well-defined methods for measuring various jobs. Besides, it also helps to justify the existence of different scales for different jobs. For these reasons, it is accepted by both workers and the management without any hesitation.
Disadvantages of Job Evaluation
In spite of the various advantages cited above, it will not be wise for management to place too much reliance on it. There are several limitations to this technique. The important demerits of this system are as follows:
1. Lack of Complete Accuracy
The accuracy claimed by it is not in fact accurate. The system considers the key factors independent of others which is not so in reality. Consequently, the weights assigned to the factors are also less accurate. This is particularly so if the factors are of highly technical in nature.
2. Unrealistic Assumptions
Job evaluation is based on the assumption that wage rates can be related to the work of a given job. It completely ignores the fact that conditions in the labour market exercise greater influence in the determination of wage rates.
3. Formation of the Committee
The formation of the job evaluation committee itself creates a serious problem. Only persons who are capable of evaluating the jobs should be appointed as committee members. Besides, there is also difference of opinion regarding the number of members. Authorities suggest 5 to 20 members. All these factors make the installation of a job evaluation programme more costly.
4. Selection of a Suitable Method
The selection of a suitable method also posses a serious problem to the management. There are four methods and each method has its own merits and demerits.
5. Number of Factors
There is no clear-cut opinion amongst the scholars as to how many factors should be used and what weightage should be assigned to each factor. In many cases, 100 factors are used. This multiplicity of factors creates confusion and so precise results cannot be obtained.
6. Equal Pay for Equal Job
This system presumes that job of equal content will be equally attractive to the employees. But this presumption is unreal. For instance, a job offers little or no prospects for a rise or promotion; while another job rated similar to it, has better prospects for the workers; the latter will attract more than the former. Under such circumstances, the business firm has to pay more wages for the former job so as to make it more attractive.
7. Unsuitable for Small Concerns
Installing and operating a job evaluation programme requires much time and money. Hence, it is very difficult to introduce it in smaller concerns.
In conclusion, it may be remarked that job evaluation consisting of only a few factors can give good results and hence a shortened system is more reliable. However, job values must be constantly watched.
Similarly, the job requirements may also change in course of time. Unless the job values and contents are rechecked so as to include the changes, they will not represent the true position.
It is also highly necessary to adjust the job rating to changed situation and so it can be kept up-to-date at all times. Thus, job evaluation system, in spite of the limitations, can produce reliable results.