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INTRODUCTION JOB EVALUATION In the early 1880s when Frederick Taylor was working upon the ways to improve productivity of Midvale Steel Company, he formulated a systemic study of assigning pay to jobs. The result of this study came to be known as job evaluation. Definition: Method, which helps to establish a justified rank order of jobs. It is one of the starting points for establishing the relative differentiation of wage rates. REASONS FOR JOB EVALUATION  To establish an orderly, rational, systemic structure of jobs based on their worth to the organization.  To justify an existing pay structure or to develop one that provides for internal equity.  To assist in setting pay rates those are comparable with similar jobs in other organizations, to enable the organization to compete for the best talent.  To provide a rational basis for negotiating pay rates when bargaining collectively with a recognized union.  To identify future movement for all employees interested in improving compensation opportunities.  To comply with legislations, which demand, pay differences to be in accordance with the job content.  To develop a base for a merit or pay-for-performance