The general purpose of jobs evaluation may include a number of more specific goals:
1. To provide a basis for a simpler, more rational wage structure;
2. To provide an agreed-upon means of classifying new or changed jobs;
3. To provide a base for individual performance measurements;
4. To reduce pay grievances by reducing their scope and providing an agreed-upon means of resolving disputes;
5. To provide incentives for employees to strive for higher-level jobs;
6. To provide information for wage negotiations;
7. To provide data on job relationships for use in internal and external selection, personnel planning, career management, and other personnel functions.
Also, says an I.L.O. Report, “the aim of the majority of systems of jobs evaluation is to establish, on agreed logical basis, the relative values of different jobs in a given plant or machinery, i.e., it aims at determining the relative worth of a job.
The principle upon I all job evaluation schemes are based is that of describing and assessing the value jobs in the firms in terms of a number of factors, the relative importance of which varies from job to job:
(i) To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant;
(ii)To provide a standard procedure for determining the relative worth of each job in a plant;
(iii)To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry;
(iv)To ensure that like wages are paid to all qualified employees for like work;
(v)To promote a fair. and accurate consideration of all employees for advancement and transfer;
(vi)To provide a factual basis for the consideration of wage rates for similar jobs in a community and in an industry; and
(vii) To provide information for ‘work organisation, employees’ selection, placement, training and numerous other similar problems.
In fact, the primary purpose of job evaluation is to set wages and salary on the basis the relative work or jobs in the organisation. It goes this by providing a ground for the following matters:
(a) Equity and objective of salary administration, i.e., paying the people whose work is alike the same wages, and establishing appropriate wage differentials between jobs calling for different skills and responsibilities;
(b) Effective wage and salary control;
(c) Union-management negotiations on wages; and
(d) Comparison of wage and vary rates with those of other employees. Besides setting wages, job evaluation also helps in:
(a) Providing standardisation of, and improvement in, working conditions;
(b) Clarifying the functions, authority and responsibility of employees;
(c) Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union on internal wage structure and differentials;
(d) Developing machinery for a systematic reviewing of job rates as job contents change; and
(e) Developing personnel statistics.