Most companies use some sort of job evaluation system. This is more so for larger companies with many employees. A job evaluation system is defined as the methods and practices of ordering jobs or positions with respect to their value or worth to the organization; this is done in order to determine pay scales (Ivancevich, 2007). Every company with a reliable human resources department must have a reliable job evaluation system in place. A reliable evaluation system can do wonders for the company and the employees.
Many things are considered when a job evaluation system is used. These systems vary and have been designed in order to assist a company with calculating how jobs should be arranged according to their value to the company. This is an internal system that companies use to gauge where jobs fall according to what they offer the company and what sort of qualifications are required in order to accomplish or qualify for that job. These things have an impact on wages for specific jobs, but that is not the only function of job evaluation systems.
I could not ask anyone about this at my current company about job evaluation systems because I am the only employee and for that reason, my job is the most important and best paid. I have done some reading on job evaluation systems though and discovered that there are a couple of common systems that are used today. The first is whole job ranking and this weighs jobs against each other as a whole. The other uses a points system that analyzes each job individually and awards points for certain things like the amount of education needed for that position (“Job Evaluation,” 2008). Most companies use this system, but some use less common job evaluation systems.
I visited a local company in my town and asked about their job evaluation system. The human resources manager explained that this company uses a less common method. This company specialized in manufacturing and this may have something to...