4.3 JOB EVALUATION METHODSThe syste

4.3 JOB EVALUATION METHODSThe systematic approach of determining the relative worth or value of each job in an organization is referred to as job evaluation. The basic purpose of job evaluation eliminate pay inequities and create a wage structure that identifies appropriate pay ranges for different jobs. The relative worth of each job is established by identifying factors that define "worth" and by comparing the requirements of each job with these factors.Determining how much each job should be paid relative to other jobs in the organization is called the wage-structure decision Here the amount of money is based on the job demands and not on how well the job holder performs(although the wage structure must allow for individual variances based on performance, experience, and seniority). All jobs in an organization are not worth the same rate of pay. Some jobs require greater skill and mental ability than others, some require greater physical effort, and some entail considerably more responsibility the e major objective of the wage-structure decision is to provide equal pay for jobs of equal worth and an acceptable set of pay differentials for jobs of unequal worth.