Market Driven vs. Job Worth
In general, job evaluation can be regarded as part of an organization 's human resource planning process which relies on the job description and qualifications. According to Chaneta (2014), job evaluation is the process of analyzing and assessing the relative worth of various jobs in an organization for the purpose of comparison and pay grading, and based on qualifications and skills required for a range of jobs. In other words, it forms the basis for pay and benefits negotiation. It ...
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...t years, the Nestle Company has been relying largely on job value to reward its employees. Every worker is aware that the jobs have been graded from line production workers (ICM 1), line leaders (ICM 2), department supervisors, department managers, factory manager, other top management positions. Besides, each employee knows that the pay for each job or position is based on job description and qualification.
Both the market-driven and job-worth systems can be affected by significant changes that occur in the external labor market. Whilst the market-driven system is mostly controlled by existing conditions in the external labor market, job-worth system of job evaluation is greatly influenced by internal equity among the various jobs within an organization. The availability of qualified potential employees would determine the type of system to apply mostly.
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