Limitations of Job Evaluation

Limitations of Job Evaluation

Job Evaluation Limitations

(i) Though many ways of applying the job evaluation techniques are available, rapid changes in technology and in the supply and demand of particular skills have given rise to problems of adjustment. These need to be probed.Image result for Job Evaluation Limitations
(ii) Substantial differences exist between job factors and the factors emphasised in the market. These differences are wider in cases in which the average pay offered by a company is lower than that prevalent in other companies in the same industry or in the same geographical area.
(iii) A job evaluation frequently favours groups different from those, which are favoured by the market. This is evident from the observations of Kerr and Fisher. They observe, “the jobs which tend to rate high as compared with the market are those of janitor, nurse and typist, while craft rates are relatively low. Weaker groups are better served by an evaluation plan than by the market; the former places the emphasis not on force but on equity.
(iv) Job factors fluctuate because of changes in production technology, information system, and division of labour and such other factors. Therefore, the evaluation of a job today is made on the basis of job factors, and does not reflect the time job value in future. In other words, continuing attention and frequent evaluation of a job are essential.
(v) Higher rates of pay for some jobs at the earlier stages than other jobs or the evaluation of a higher job higher in the organisational hierarchy at a lower rate than another job relatively lower in the organisational hierarchy often give rise to human relations problems and lead to grievances among those holding these jobs.
(vi) When job evaluation is applied for the first time in any organisation, it creates doubts and often fears in the minds of those whose jobs are being evaluated. It may also disrupt the existing social and psychological relationships.
(vii) A large number of jobs are called red circle jobs. Some of these may be getting more and others less than the rate determined by job evaluation.
(viii) Job evaluation takes a long time to install, requires specialised technical personnel, and may be costly.
(ix) When job evaluation results in substantial changes in the existing wage structure, the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate.
Implementation of the Evaluated Job Structure The evaluated job structure has to be translated into a structure of wage rates. This depends upon:
(i) The range of wages to be paid, i.e., what should be the maximum and minimum wages for the grade.
(ii) Should there be any overlapping between pay ranges for adjacent pay grades? If so, by how much?
(iii) How many grades should be used?
(iv) On what basis will an individual employee be advanced in wages through the established pay range for the grade?
These issues are inter-related, and a change in any of these calls for a change in at least one or the other issue. As far as the first issue is concerned, it may be noted that the difference between the maximum and the minimum is referred to as the ‘wage range’ or ‘wage differential.
While evaluating a wage structure, it should be seen that the range is not too high and that the job evaluated wage curve does not have too many deviations from the existing industry wage line. This should be done to prevent the turnover of workers and avoid dissatisfaction amongst them.