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 were
questionnaire 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.
