Why job evaluation is carried out in any organization?

Why job evaluation is carried out in any organization?

Every organization need to do job evaluation as it provide equitability of wage structure within the firm and consistency of firm’s overall wage structure with that of the industry in which a operates. It serves as a basis for negotiation with the union. It also helps in establishment of sound wages foundation for incentive and bonus programs. Its helps in maintaining consistent wage policies. It enables management to gauge and control its payroll costs more accurately and provide a framework for periodic review of salaries and wage.