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“To ascertain the relative worth of each job through an objective
evaluation so that relative remuneration may be fixed for different jobs.”
NOTE:- Job evaluation rates the job and not the job-holder. Job Evaluation According to Bureau of Labour Statistics of USA,
“Job evaluation is the evaluation or rating of jobs to determine their position in the job hierarchy. The evaluation may be achieved through the assignment of points or use of some other systematic rating method for essential job requirements such as skill, experience and responsibility. Job evaluation is widely used in the establishment of wage rate structures and in the elimination of wage inequities . It is always applied to jobs rather than the qualities of individuals on the jobs.” Dumb ltd. is a textile industry which produces clothes for its consumer market.
The following are its employees and their respective salaries:- Dumb Ltd. Corporation The executive appointed does the evaluation and ranking of various jobs in the
organization is as follows:- Evaluation of jobs Under the new system of remuneration, each employee is paid as per the value of his
job title as follows :- Remuneration of employees