Introduction Job Evaluation, its role in salary administration Wage Curve Salary Structure & fixation Conclusion

Job evaluation is the output provided by job analysis. As known, job analysis describes the duties of a job, authority relationships, skills required, conditions of work and additional relevant information. Job evaluation, on the other hand uses the information in job analysis to evaluate each job- valuing its components and ascertaining relative job worth. It involves, in other words, a formal and systematic comparison of jobs in order to determine the worth of a ones job relative to another, so that a wage or salary hierarchy results. So, it is a process by which jobs in an organization are appraised.

Definition: As the word itself says job evaluation, i.e. evaluation of job. When the jobs are evaluated, the relative worth of a given collection of duties and responsibilities to the organization is assessed. This process is adopted to help a management to maintain high levels of employee productivity and employee satisfaction. Some important definitions are as follows: ³an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned´ - International Labour Organization

Some more definitions«. ³an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be.´ - Kimball & Kimball ³job evaluation is the process of determining the relative worth of the various jobs within the organization so that differential wages may be paid to jobs of different worth.´ - Wendell French

Objectives of Job Evaluation: The principle upon which all job evaluation schemes are based is that of describing and assessing the values of job in firms in terms of number of factors, the relative importance of which varies from job to job. Secure and maintain complete, accurate and impersonal descriptions of each distinct job. Provide standard procedure for determining the relative worth of each job. Determine the rate of pay for each job. Ensure that like wages are paid to all qualified employees for like work.

Promote a fair and accurate consideration of all employees for advancement and transfers. Provide factual basis for consideration of wage rates for similar jobs in communities and in an industry Provide information for work organization. the primary purpose of job evaluation is to set wages and salary on the basis of relative work or jobs in the organization. It does this by providing a ground for the following matters: a) Equity and objectivity of salary administration. b) Effective wage and salary control. c) Union- Management negotiations on wages. d) Comparison of wage and salary rates with those of other employees.

Principles of Job Evaluation Programme: 
Rate the job and not the man.  Precise and self explanatory without any overlapping.  Elements should be clearly defined and properly selected.  All job rating plan must be so that it can be sold to foremen and employees.  Participation and discussions from employees must be welcomed.  Too many occupational wages should not be established.

Analyze & prepare job description

Select & Prepare a job evaluation programme

Classify jobs

Install the programme

Maintain the programme

µWAGE & SALARY ADMINISTRATION¶ refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis or relevant organizational problems, development and maintenance of wage structure, establishing rules for administering wages, wage payments, incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items.

Job Analysis Wa islation

Job D scription & Sp cification

Job Evaluation

P rformanc Standards

Wa Surv ys & Analysis of R l vant Or anizational Probl ms

Wa Structur

Rul s of Administra tion Diff r ntial Employ Appraisal

Wa Paym nts

Job Evaluation & Pay Structure i) Establishing a pay structure Wage & Salary Surveys Wage Curves Wage Structure ii) Establishing a Pay Rate Price of each pay grade can be ascertained through Job Evaluation

WAGE CURVE: This curve shows the relationship between: the ³value´ of the job; and the ³average wage rates´ of these grades (or jobs). Steps involved in drawing a wage curve: 
Finding out the average pay rate for each pay grade.  Plotting the wage rate for each pay grade..  Drawing ³Wage Lines´ through the points plotted. These lines may be straight or curve.  Pricing jobs. Wages along the ³Wage Lines´ are target wages or salary rates for the jobs in each pay grade.

Wage Structure While determining the pay ranges the following considerations should be attended to: ¼ Keep in mind that there is an adequate difference between superiors and subordinates. ¼ Equal attention must be given to the pay level of each group. ¼ Considerable attention must be given to handling upward changes in wage structure. ¼ The existing pay structure should be regularly reviewed and revised. ¼ Regional differences in wages must be invariably be maintained.

Factors influencing Wage and Salary Structure and Administration The organization¶s ability to pay. Supply and demand of labour. The prevailing market rate. The Cost of living, Living wage. Productivity Trade Union¶s Bargaining power. Job Requirements. Managerial attitudes; and Psychological and Sociological factors.

Wage and Salary Administration is the most important aspect of human resource management. It establishes and maintain an equitable wage and salary structure. It also establishes and maintain equitable labour cost structure. It therefore leads to talent retention in an organization plus it also leads to enhancing corporate image of the organization that practices Systematic and scientific wage & salary administration System.