ABSTRACT
The study examines job evaluation as a tool to wage/salary determination in organizations. The study was undertaken in three organizations namely-Nigerian Breweries, Diamond Bank Plc and Power Holding Company of Nigeria, all located within Enugu Metropolis. The objectives of this study are; to identify job evaluation methods used in determining wages/salaries of employees in organizations; to ascertain the objectives of job evaluation to organizations; to identify the limitations of job evaluation in organizations; and to suggest measures that can help in conducting an effective job evaluation programme. The research method employed the use of primary and secondary data. The population of the study was 1150, from which the sample size of 298 was determined using Taro Yamani’s formula. The research instruments used werequestionnaire and oral interview. The reliability of the research instrument was tested using Pearson Product Moment Correlation Coefficient; the result gave a reliability index of 0.91 indicating a high degree of consistency. Chi-square and correlation coefficient were the data analysis statistical tools employed. The findings from the study reveals that; ranking, grading, point-rating and factor comparison are job evaluation methods used in determining wages/salaries of employees in organizations; job evaluation ensures that like wages are paid to all qualified employees for the same work; job evaluation is susceptible to human error and subjective judgment; finally, use of expert personnel, employee participation and comprehensive job analysis are measures that can help in conducting a successful job evaluation. The conclusion drawn from the study is that job evaluation is a technique used in determining the value of each job in relation to all other jobs within the organization. Its main aim is to establish a basis for developing rational wage/salary structure of differential rates of pay within an organization. Based on the findings, the researcher recommends that; job evaluation programme should be computerized as to speed up its process and ensure high level of accuracy; all the relevant internal and external factors should be taken into account by various organizations before assigning pay to different jobs; efforts should be made constantly by trade/labour unions to ensure maximum transparency in preparation and implementation of the wage/salary structure reached as a result of job evaluation; finally labour unions should enter into wage/salary negotiations and collective bargaining from time to time to enable workers meet up with the economic and financial challenges in the country.
CHAPTER ONE INTRODUCTION
1.10 BACKGROUND OF THE STUDY
In any organization once a right candidate is placed on a right job, the person needs to be duly compensated for the job he/she performs. To ensure that this is adequately done, there should be an established consistent and systematic relationship among compensation rates for all the jobs within the organization. The process of carrying out such activity is termed “Job evaluation”.
In carrying out job evaluation, analysis of different jobs are done in order to match the duties of job with the required skill, knowledge, competence, talent potential, education, work environment, responsibilities, etc.
Different jobs need to be evaluated comparatively to determine their relative worth so as to fix wages, salaries and benefits for each job.
In job evaluation the information provided by the job analysts is utilized to evaluate each job. Under job evaluation, the relative worth of different jobs are studied and compared. In other words job evaluation is determining the comparative worth of various jobs. British Management Institute (1951).
After determining the relative worth of jobs, they are priced, that is, wages and salaries are fixed. This enables organizations to minimize inequalities. Job evaluation plays a prime role in establishing the pay structure. It rates the job alone and establishes internal equality.
After job evaluation, all wage and salary earners are to receive pay. The total pay received are made up in quite a number of different ways by considering some elements in the pay structure such as basic rate, premium rate (over time), bonuses, share of profit, allowances and fringe benefits.
An effective job evaluation can help to identify the number of people employed within different categories and how the salary budget is apportioned.
Job evaluation is necessary for sustaining cordial relations within and between employee and employer. Employees that are satisfied with the relative worth of their job
tend to put more effort in their work, this can directly boost the organizations performance and also give them an edge over their counterparts.
1.11 STATEMENT OF THE PROBLEM
Job evaluation is necessary to boost the morale of workers and to enhance productivity.
Employees will seek for job in other establishments if they are not satisfied with their pay package. Improper evaluation and remuneration of employees’ job performance will lead to poor attitude to work, absenteeism, lateness, poor management which will therefore reduce productivity, profitability and growth of organizations and lead to high labour turnover, incessant strike, industrial conflicts and disputes.
Improper job evaluation and remuneration has resulted to continual round of negotiations to meet up with inflationary trend and constant demand for increase in minimum wage of employees to ensure adequate income and pay commensurate to a particular job. Thus the study focuses on job evaluation; a tool to wage/salary determination in organizations.
1.12 OBJECTIVES OF THE STUDY
The specific objectives of this study are as follows:
1. To identify the job evaluation methods used in determining wages/salaries of employees in organizations
2. To ascertain the objectives of job evaluation to organizations
3. To identify the limitations of job evaluation to organizations
4. To suggest measures that can help in conducting an effective job evaluation programme.
1.13 RESEARCH QUESTIONS
To achieve the above objectives, the following research questions were raised:
1. What are the job evaluation methods used in determining wages/salaries of employees in organizations?
2. What are the objectives of job evaluation in organizations?
3. What are the limitations of job evaluation to organizations?
4. What measures can help in conducting an effective job evaluation programme?
1.14 RESEARCH HYPOTHESES
For the purpose of this study, the following hypotheses were formulated.
| 1) | Ho: | Ranking, grading, point rating and factor comparison are not job evaluation methods used in determining wages/salaries of employees in |
| organizations. | ||
| Hi: | Ranking, grading, point rating and factor comparison are job evaluation methods used in determining wages/salaries of employees in | |
| organizations. | ||
| 2) | Ho: | Job evaluation do not ensures that like wages are paid to all qualified employees for the same work. |
| Hi: | Job evaluation ensures that like wages are paid to all qualified employees for the same work. | |
| 3) | Ho: | Job evaluation is not susceptible to human error and subjective in judgment. |
| 4) | Hi: Ho: | Job evaluation is susceptible to human error and subjective in judgment. Use of expert personnel, employee participation and comprehensive job |
| analysis are not measures that can help in conducting a successful job | ||
| evaluation. | ||
| Hi: | Use of expert personnel, employee participation and comprehensive job analysis are measures that can help in conducting a successful job | |
| evaluation. |
1.15 SIGNIFICANCE OF THE STUDY
The study will assist in broadening understanding and scope of knowledge of policy makers and regulators of wages/salaries in various industries and government establishment. This study will assist them in enacting policies that will impact positively on the employees to ensure that they are satisfied on their job and contribute their quota effectively to their organizations.
1.16 SCOPE OF THE STUDY
This study covers such areas as different types of job evaluation methods used in determining wages/salaries of employees in organizations, objectives of job evaluation, limitations of job evaluation and measures that can facilitate an effective job evaluation programme.
1.8 LIMITATIONS OF THE STUDY
The constraints encountered while carrying out this study are:
Time Constraint: The researcher was faced with insufficient time to carry out the study. Due to time constraint, the researcher could not visit places where information relevant to the study could be obtained.
Financial Constraint: The researcher faced a lot of financial challenges during the course of sourcing materials for the study, also included was the cost of printing and reprinting of the work for a better result.
Attitude of the Respondents: Some of the respondents were unwilling to corporate with the researcher, they felt that they would not benefit financially from the study and equally have the mind set that the secret of the organization will be explored.
1.17 DEFINITION OF TERMS Job
Job is a work for which you receive regular payment. (Oxford Advance Learner’s
Dictionary).
Job Analysis
It is the process of studying and collecting information relating to the operations and responsibilities of a specific job. (Arthur, 1983).
Job Specification
It is a statement of the minimum acceptable human qualities necessary to perform a job properly. (Micheal, 1990).
Job Description
It is an organized factual statement of duties and responsibilities of a specific job. (Wigley, 1988).
Job Evaluation
Job evaluation is a systematic and orderly process of determining the relative worth of different jobs in the organization so that jobs of greater value can be rewarded by greater pay. (Wendell, 1990)
This material content is developed to serve as a GUIDE for students to conduct academic research
JOB EVALUATION A TOOL FOR WAGE/SALARY DETERMINATION IN ORGARNIZATIONS
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