•Job Evaluation deals with money and work. It determines the relative worth or money value of jobs. Job evaluation is a systematic procedure for determining the relative worth of job. Once the worth of jobs in determined, it becomes easier to fix the wage structure that will be fair and equitable. Thus, it is an important tool in fixing the scales of wages for different grades of jobs.
•Objectives of Job Evaluation :
1.Equitability of wage structure within the firm for example internal consistency.
2.Consistency of firm’s overall wage structure with that of the industry in which the firm operates.
3.Establishment of sound wage foundation for incentive and bonus programmes.
4. Maintenance of consistent wage policy.
5. Provide a framework for periodic review of wages and salaries.
6. Reduce grievances and labour turnover and, thereby, increase employee morale and improve management employee relationships.
7. Serve as a basis for negotiation with the union.
8. To minimise wage discrimination based on sex, caste, region,religion etc.