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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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10

The Purpose and Nature of Job Evaluation

MICHAEL ARMSTRONG

E-reward.co.uk

PAUL THOMPSON

E-reward.co.uk

This chapter is about the nature and use of job evaluation as a means of establishing how much jobs are worth. The main learning points are

•   The purpose and nature of job evaluation

•   The pros and cons of job evaluation

•   How job evaluation works

•   The main types of job evaluations

•   The use of computer-aided job evaluation

•   The criteria for choice

The Purpose and Nature of Job Evaluation

Job evaluation is a systematic process for deciding on the relative worth or size of jobs within an organization. Gupta and Jenkins1 stated that the basic premise of job evaluation is that certain jobs “contribute more to organizational effectiveness ...

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