Everything you need to know about the difference between job evaluation and performance appraisal.

Job evaluation and performance appraisal are vital aspects of performance of employees. A person’s performance is the ultimate outcome of the tasks assigned to him/her to achieve a fraction of the business goals.

Performance is also termed as demonstration of work behaviour. The sum of performances of all the people of a group is the group’s performance, whereas that of a department is departmental performance and an organization is called organizational performance.

Thus, monitoring individual performances is vital to achieve organizational performance, which is the business goal.

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Job evaluation is the analysis of various jobs to know the demands which the normal performance of particular jobs make on average employees. It does not take into account the individual abilities of the job-holder.

Performance appraisal is concerned with the differences among the employees in terms of their performance. It is also termed as merit rating as it is concerned with the comparative merit of individuals.


Difference between Job Evaluation and Performance Appraisal

Difference between Job Evaluation and Performance Appraisal

Difference # Job Evaluation:

1. Nature – It makes a systematic analysis and assessment of jobs in terms of such factors as responsibility, qualification, experience, and working conditions required for performance of jobs.

2. Purpose – Its purpose is to rank jobs in order of importance and establish satisfactory pay differentials among them.

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3. Option and Coverage – It is not compulsory and many organizations do without it; where it is done, it is mainly for lower-level jobs.

4. Responsibility – Responsibility is generally entrusted to a committee, which may have internal and/or external experts on it.

5. Timing – Job evaluation takes place before an individual is hired by the organization.

Difference # Performance Appraisal:

1. Nature – It makes a systematic analysis and assessment of the performance of the job holder.

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2. Purpose – Its purpose is to effect promotions/ transfers, offer rewards, assess training needs, and decide about layoffs.

3. Option and Coverage – It is compulsory and is done for all categories of employees on a regular basis.

4. Responsibility – These days, it is done collectively by superiors, peers, employees, and even outsiders dealing with the organization like customers.

5. Timing – Performance appraisal takes place only after an individual has been hired and he/she has performed on the job.


Difference between Job Evaluation and Performance Appraisal

(1) Job evaluation should not be misunderstanding as performance appraisal. No doubt in both the processes evaluation is required to be made. Job is a task to be undertaken. If this job is properly evaluated by its analysis, technology required, time that may be required to complete it and type of personnel required, it helps the administration to depute proper person to it. This proper person is identified on the basis of his performance and further assessed on the basis of his performance on the so evaluated job. Job evaluation gives the way it is to be performed whereas performance as to how appraisal gives as to how it is performed.

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(2) Job evaluation is required to be made before the job is entrusted to perform. Thus job evaluation comes first and later comes performance appraisal.

(3) Job evaluation decides the comparative worth of the job where as performance appraisal decides the comparative worth of those who perform that job.

(4) Purpose of job evaluation is to estimate the cost and labour. On the other hand performance appraisal has so many purposes like Human development, promotion placement etc.


Difference between Job Evaluation and Performance Appraisal

Sometimes, a misplaced perception arises in which job evaluation is equated with performance appraisal. This happens because of the contribution of both in wage/salary determination. However, both are quite different concepts, use different methods and have different objectives.

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The difference between job evaluation and performance appraisal are studied here:

Difference # Job Evaluation:

1. It evaluates the job and not the job holder.

2. The job is evaluated before the job holder is appointed to perform the job.

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3. The basic objective is to measure the relative worth of a job in comparison to other jobs.

4. Once job evaluation is done, it is applicable over a number of years.

5. Evaluation is done by a committee consisting of specialists in the relevant areas.

6. Job evaluation is not adopted by all organisations, even the large ones. They may follow the generally accepted prevailing practices.

Difference # Performance Appraisal:

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1. It evaluates the job holder on the basis of his job performance.

2. Evaluation is done after the employee has performed the job.

3. There are many objectives of appraisal – wage/salary increase, promotion/demotion, transfer, assessing training needs.

4. Appraisal is a continuous process and is undertaken every year.

5. It is conducted by the concerned superiors who know about the employees concerned.

6. Appraisal is undertaken by all organisations on regular basis, either formally or informally.


Difference between Job Evaluation and Performance Appraisal

1. Under job evaluation, Job is rated, keeping in view such factors as responsibility, qualifications, experience, working conditions etc. required to perform that job. But under performance appraisal, the job holder is evaluated on the basis of his performance of work.

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2. Under job evaluation, a job is rated before the job is filled up by an employee. But under performance, evaluation takes place after the employee has been appointed on that job.

3. Under job evaluation, the purpose is to establish satisfactory wage differentials. But under performance appraisal, the purpose is to effect promotions offer reward, award punishments, assess training needs, resort to layoffs, transfers etc.

4. Job evaluation, is not compulsory for an organisation. It can curry on without such evaluation. If at all it is followed, it is mainly meant for lower level jobs. But performance appraisal is compulsory in every organisation is done regularly for all jobs.

5. A committee, called Job evaluation committee is constituted for the purpose of evaluation. But Performance appraisal is done by the employees themselves, peers, supervisors, group of people or combinations or these.


Difference between Job Evaluation and Performance Appraisal

Job evaluation and performance appraisal are vital aspects of performance of employees. A person’s performance is the ultimate outcome of the tasks assigned to him/her to achieve a fraction of the business goals. Performance is also termed as demonstration of work behaviour.

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The sum of performances of all the people of a group is the group’s performance, whereas that of a department is departmental performance and an organization is called organizational performance. Thus, monitoring individual performances is vital to achieve organizational performance, which is the business goal.

It is organizational and moral responsibility of the very organizational stalwarts to create a work environment in which people can contribute their maximum, both in quantitative and qualitative terms.

Performance has various dimensions like output or result dimension, input dimensions, time dimension, quality dimension, cost dimension, and focus dimension (i.e., for a sales director it can be profit, market share, and new areas).

These dimensions of performance are many depending on the nature of the company, functional area, position in the organizational hierarchy, quality, and so forth.

The various dimensions are interrelated and interdependent. Concentration on one dimension affects other dimensions. For example- quality of output depends on inputs, time utilized in processing, and technology employed associated with cost dimension.

Apart from these dimensions, it is required to consider the business environment affecting performance and be familiar with the system theory.

Difference # Job Evaluation:

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1. It is the assessments of various jobs do find out their relative worth.

2. Its purpose is to identify the basis for fixing wages, salary for various jobs.

3. It rates the job not the jobholder.

4. It is done before an employee joins.

Difference # Performance Appraisal:

1. It is assessment of performance of difference employees performing the same job.

2. Its purpose is to identify the basis for decisions regarding promotion, transfer, salary raise etc.

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3. It rates the job jobholder not the job.

4. It is done after the employee joins and performs the job.


Difference between Job Evaluation and Performance Appraisal

Distinction # Job Evaluation:

1. Job Evaluation is the analysis of various jobs to know the demands which the normal performance of particular jobs make on average performance of the employees concerned.

2. The purpose of Job Evaluation is very limited i.e. to determine the worth of the job on the basis of demands made by it on the average workers.

3. Job Evaluation rates the jobs in the organization that will be fair and equitable. It is used as a basis of wage structure in the organization.

Distinction # Performance Appraisal:

1. Performance Appraisal identifies the differences among the employees in terms of their performance.  

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2. The chief purpose of PA is to appraise the performance of individuals to take decisions like increase in pay, transfer, promotion, training etc. It also provides the employees with information regarding their strong and weak points.  

3. Performance Appraisal rates the man and not the job as it is concerned with assessing the abilities of the individuals.


Difference between Job Evaluation and Performance Appraisal

Difference # Job Evaluation:

1. Job evaluation is the analysis of various jobs to know the demands which the normal performance of particular jobs make on average employees. It does not take into account the individual abilities of the job-holder.

2. It considers the requirements of various jobs in terms of job descriptions and job specifications.

3. The purpose of job evaluation is limited, i.e., to determine the worth of the job on the basis of demands made by a particular job on the average worker. This facilitates fixation of wages for various jobs.

4. Job evaluation analyses the jobs to determine their relative worth and fix their wage levels that are fair and equitable.

5. Job evaluation is used to shape the wage policy of the organisation.

Difference # Performance Appraisal:

1. Performance appraisal is concerned with the differences among the employees in terms of their performance. It is also termed as merit rating as it is concerned with the comparative merit of individuals.

2. It considers the abilities and performance of individuals.

3. The purpose of merit rating is to appraise the performance of individuals to take decisions like increase in pay, transfer, promotion, etc. It also serves as the guideline for the management to consider the type of training which should be imparted to the employees.

4. Performance appraisal rates the man and not the job as it is concerned with assessing of the abilities of the individuals. As a matter of fact, it measures the worth of different employees to the organisation.

5. Performance appraisal is used as a basis of personnel policies as regards transfer and promotion.

References

1. Wikipedia – https://en.wikipedia.org/wiki/Performance_appraisal