Effects of job evaluation on decisions involving pay equity

Abstract

Job evaluation's purpose is to compare all the jobs in the organisation, one with another, with the aim of producing a rank order. This rank order may be then be subdivided into groups of jobs of the same size which can, if desired, be placed within pay ranges or grades. While this approach is clearly more appropriate to large organisations, even in small organisations judgements have to be made about how one job compares with another, otherwise no decision can be made about relative pay and status. So, in effect, even where there is no formal method of job evaluation, jobs are evaluated in any case. It is really a question of how analytical the organisation wants to be.