1.Job evaluation is a valuable technique in the hands of management by which a more rational and consistent (internal and external). Wage and salary structure can be evolved. Internal consistency is concerned with the maintenance of relative wages within the firm and external consistency refers to a desired relativity of a firm’s structure to that of the industry or region.
2.Job evaluation helps in bringing or maintaining harmonious relations between labour and management since it tends to eliminate wage inequalities within the organisation and the industry.
3.Because of increasing mechanization and automation in industry, it has become unrealistic to pay workers primarily on the basis of their output. In many cases, it is the machine that determines the rate of production, so job evaluation will be of much use in fixing the wages.
4.Job evaluation standardizes the process of determining the wages differentials for various jobs. It means uniform standards will be applied to all jobs in the organization to know their relative worth.
5. Job evaluation provides a rate for the job and not for the man.
6. Job evaluation helps in keeping down the costs of recruitment and selection of workers.
7. It also helps to redesign the jobs by reallocating the easy and difficult tasks equally among various jobs.
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