Job Evaluation: A Tool For Wage / Salary Determination (A Case Study Of Nigerian Bottling Company Plc Aba)

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Job Evaluation: A Tool For Wage / Salary Determination (A Case Study Of Nigerian Bottling Company Plc Aba)


This research work is defined to study job Evaluation a tool for wage/salary determination using Nigeria Bottling Company Aba as a case study organizations.

In collecting data for the research, well structured questions were used. This questionnaire enabled the collection of primary data form 526 and 431 respondents for Nigerian bottling company respectively.

The table show that job evaluation/remains the major and indispensable tool for the determination of wage/salary structured of worker in case study organization.

The findings revealed that the concept of value added refers to the wealth created by the combined efforts of capital and how this wealth is proportioned among the various segments.

More so, job evaluation harmonizes the study structure by anchoring the disparity inherent in a wide range of different professions and skills.

It was recommended that job evaluation should be given equal attention as performance appraisals since workers performance are some time dependent on how well the job are enumerated.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgements
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Preamble/overview
  • 1.2 About the case study organization
  • 1.3 Statement of the problem
  • 1.4 Research questions
  • 1.5 Aim/purpose of the study
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitations of the study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Job Evaluation Techniques
  • 2.3 Limitation of Job Evaluation
  • 2.4 Reasons for using job Evaluation
  • 2.5 Benefits of job Evaluation

Chapter Three

3.0 Research Design

  • 3.1 Research method used
  • 3.2 Definitions and description of population of study
  • 3.3 Sources and methods of data collection
  • 3.4 Sampling procedure and reason for using it
  • 3.5 Determination of sample size
  • 3.6 Validity and reliability of methods investigation
  • 3.7 Methods of statistical Analysis

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Data presentation
  • 4.2 Data Analysis

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusions
  • 5.3 Recommendation
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

1.1 Overview

In Nigeria and all over the globe, wage classification forms an essential part of the general condition of service that employers of labor make available to their employees. Employers sometimes fix wage artificially or negotiate with prospective emp0loyees individually and then strive hand to convince employees to accept that their salary are both fair and equitable.

Job evaluation seeks to determine the value of a job relative to other job within the same organization. The importance of that job to the organization as a whole can whereby be established so as to be placed in the appropriate position within an overall job grade structure. Job evaluation is not done in isolation.

Employee’s salaries should primarily be determined by the grade of job, followed by the worth of each job, and also considering the individuals worth. It is recognized that the three most important factors used in determining rates of job payments are

  1. What the firm can afford
  2. Existing market rates payable for similar work and
  3. The worth of the job in relation to corporate objectives.

In some business organization in Nigeria, relative worth of jobs are usually determined by the application of objective criteria or systematic principles, They are more often than not, determined by a host of extraneous and sometimes subjective factors such as kinship relationship, the impressions of top manager or the appearance or personalities of their prospect employees, the organizing power of trade unions, the bargaining skill of prospect employees, the impressions of management about the prevailing wage structure in the economy and so on. These approaches to the determination of wage rate may generate intense dissatisfaction among employees and invariably a fall in morale.

Job evaluation is an attempt to ascertain the worth of a job in order to attach monetary value to it.
This research is therefore intended to expose the instability inherent in firms who do not apply the job evaluation techniques in ascertaining or rather establishing their wage/salary structure and also recommend ways of ensuring proper wage/salary administration for effective performance.

In assessing the value of any job, management generally considers the general factors of skill, responsibility efforts and working conditions. But in addition to the above, the worker would add, the type of supervision received the congeniality of the work, the steadiness of the work, the amount of overtime etc.

Although job evaluation spurs grievance concerning wages, it covers serves to provide a definite frame work of wage structure.

This is why job evaluation should be handled with caution, it could either increase or damage workers moral.
This study will attempt to address issues relating to job evaluation likewise wage/salary determination. As a matter of fact, effort will be made in this study to provide answer to the following question.

  1. Are the fringe benefits relative to the employees output?
  2. Is there any equity between the salaries the workers of Nigerian bottling company receive and their work output?
  3. Is the job evaluation technique in use suitable for workers welfare?

1.2 About The Case Study Organisation

Nigeria bottling company (NBC) is the producers of coca-cola soft drink. Coca-cola is world leading soft drink sold in more than 1-5 countries. Not less than 250 million bottles are consumed everyday in all parts of the world form Argentina and New Zealand in the south to Canada in the north and Mexico to Nigeria.

The company first came into Nigeria in 1953 with the establishment of its first plant in Lagos. This marked the beginning of an interesting story of growth and development especially during the past 10 years.

Today, Nigeria bottling company is Nigeria’s number one bottler of soft drink, selling more than 6 million bottles per day, a figure, which is still growing with the continuity expansion of the existing 16 plants and with the opening of brand new plants in various parts or Nigeria.

The popular coca-cola ranks top among all the cola brands in the oligopoly whereas fanta is by far the number one best seller in the orange segment and sprite, the most widely sold lemon drink in Nigeria.

Other products bottled are fanta tonic, fanta soda and krest bitter lemon.

The success of coca-cola has brought with it the development of a number of sisters industries all countries all contributing to the growth of the economy such as the Delta Glass company in Ughili which supplies the millions of bottles required to keep the lathe bottling company in operation and crown products factories in Ijebu-Ode and Kano which manufacture the metal crowns to seal the bottles.

It is interesting to maintain that Nigeria bottling company plc is the largest manufacturer of carbon dioxide used to carbonate the favorite soft drink.

The organization is made up of different departments. There is the marketing (distribution department, the production department, administrative as well as total quality unit. Each of this department is under a department manger who reports to the plant manger.

1.3 Statement Of The Problem

Workers morale and zeal for increased production exist when they know their efforts are responsible compensated or rather when they notice a relative relationship between permanence and rewards unfortunately, they often complain that there is no equity between their output and compensation.

1.4 Research Questions

This research is aimed at providing answers to the following central issues addressed by the research work.

  1. Is there any equity between the salaries received by Nigerian Bottling Company workers and their productivity?
  2. Is the job evaluation method in use suitable for determining the value of job?

1.5 Aim / Purpose Of The Study

Job evaluation schemes are valuable management tools that dare stood the test or time and gradually, but increasingly employed by different organizations throughout the globe. It is against this background that this projects work is conceived, this research is aimed primarily at addressing the under listed issues.

  1. To determine whether the fringe benefits received by the employees are commensurate to the output.
  2. To determine management values and workers values in application of job evaluations
  3. To determine whether the working environment is suitable and acceptable by the workers.

1.6 Significance Of The Study

Like every other research work, this study would be handed to organization intending to ascertain the work of their employee’s job with the aim of employing appropriate technique of doing this.

It is also pertinent to not that the outcome of this study would help the personnel departments to perform their job more effectively.

Infact, it would also serve as a guide in general administrative planning in both organizations.

Finally, this study is also important to students for further research work.

1.7 Scope And Coverage Of The Study

The activities of two organizations under study are multidimensional. This research work is neither intended to cover the entire plants of Nigeria bottling company operation but it is aimed at focusing on specific areas within Aba with particular emphasis on the role of job evaluation in determining the wage/salary structure or organization.

For the purpose of this work attention would be paid on how the various staff in every unit in the organization remunerations are based, particular attention would be given to the activities of the personnel units of these organizations since the burden of job evaluation falls on them.

This does not mean that the other units would not be looked into job evaluation is not the same responsibility of the personnel unit and as such as cannot be done in separate or other section in the organization.

1.8 Limitations Of The Study

In these limitations of the study, no research work can be carried out without certain constraints either in form of finance or logistics. This research is not an exception and as such so many factors served as constraints in the process of carrying out this research.

i. Information Constraints:

It is important that most organizations are sensitive about the use of information they give out.

ii. Time:

It gives the accurate time required for the submission of this research work.

iii. Finance:

Financial resources are not readily available to carryout on extensive and through research and research work is a tasking exercise, which requires a lot of financial commitment, moreover, despite all the limitations, the researcher made effort to carryout a detailed and thorough research work on the subject matter.

Chapter Five

5.0 Summary Of Findings, Conclusion And Recommendations

5.1 Discussion Of Findings

In the course of the research study, the following findings were made by the researcher which hitherto is discussed in line with the proven question

  1. Job evaluation remains the major and indispensable tool for determination of wage/salary structure of workers according to the study analyzed. It is pertinent to state that job only. It doe not directly conceptualize the level of work nor how efficiently a given job is performed, thus the Nigerian Bottling company have formed job evaluation scheme, which is the basis on which the equitable remuneration in terms of salary/wages structure of their employees is determined
  2. There is a relationship between the remuneration and the value added in productivity in the Nigerian Bottling Company as the analysis of the study showed. The concept of value added refers to the wealth created by the combined efforts of capital and employees and now this wealth is appropriated among the various segments ranking for dividend of capital (share holders government, employees, creditors, growth and maintenance of the company, given that employees productivity in value added induces an increase in employees remuneration by manner of wages/salary. This reason accounts for why some companies have different salary/wages structures and why employees of the same qualification can earn different salaries/wages in different companies.

5.2 Summary

This research work is mainly concerned with job evaluation as a tool for wage/salary structure determination, with particular reference to the Nigerian Bottling Company plc.

The research work started by defining the concept of job evaluation an then another relation to wages/salary determination. Also the problems, significance and purpose of the study were stated.

In chapter two, a detailed review of related literatures was made by consulting published texts on the subject matter by various researchers and authors.

In the third chapter the methods and procedures of data collection analysis were highlighted and. Sources of data including both the primary and secondary sources. In analyzing the data, evaluation simple percentage were used.

  1.  Job evaluation is an indispensable tool in determination of wage/salary structure in the Nigerian bottling company plc Aba.
  2. There is a correlation between workers remuneration and the value added in productivity.
  3. Job evaluation harmonies the salary structure by anchoring the disparity inherent in a wide range of different professions and skills.

5.3 Conclusion

Job evaluation is only concerned with rating and many methods are available for doing this, however, ranking method seems to be most widely used in Nigeria than other methods.

Job evaluation as a tool for wage/salary structure determination is a work while phenomena, a formal process that provides an equitable rational and justifiable explanation for the level of remuneration commensurate with a given job hierarchy or positions.

The satisfaction of workers can be guaranteed with a salary structure that is based on job evaluation.

5.4 Recommendation

Job evaluation methods have a lot of short-comings which perhaps account for why it has been so much consolidated in many organization or companies.

Most companies attach more importance to performance appraisal than job evaluation.

This is why most employers of labour commenting on this issue in such a manner that their statement would seldom be more than an agglomeration of euphemistic platitudes, Onuoha (1991:178) job evaluation should therefore be given equal attention as performance appraisal because workers performance sometimes depends on how well he/she is remunerated.

Job evaluation is also time-consuming thus a lot of time has to be allocated in the process of determining an objective salary structure.

Looking at the benefits derived through the installation of a formal job evaluation method, organization, both larger and small should imitate a job evaluation method that will lead to a reasonable salary structure for the organization.

Areas Of Further Research

It is recommended that more studies should be carried at into this area of management. Seminars and courses could be designed to educate organizations about the usefulness of job evaluation a good management tool to be undertaken.

Information emanating form these seminars and researchers should as a matter of policy is disseminated to universality libraries and to the Nigerian public.

Going through the limitation of job evaluation schemes as stated in the study, a good methodology should be developed in order to reduce the barest minimum or wipe completely those limitation that hinder the growth of job evaluation scheme.

Conclusively, serious awareness campaign should be organized to make known that job evaluation is all about, because some management staff mistakes it with performance appraisal exercise.

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Frequently Asked Questions

What is job evaluation (Je)?

Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization.

How do you evaluate a job in an organization?

THE BASIC STEPS FOR DEVELOPING A JOB EVALUATION IN YOUR ORGANIZATION: STEP 1: Define the jobs. STEP 2: Select a job evaluation method. The process of defining a job is called job analysis.

What are the different job evaluation methods?

There are several job evaluation methods from which to select. The most prevalent one, the Point Factor Plan, uses a quantitative approach that will be explained in this guide. With this method, you can compare jobs by using rating scales based upon several specific factors.

What is the difference between job evaluation and GNWT?

The GNWT complies with equal pay for work of equal value and ensures that jobs are assessed in a gender-neutral manner and based on skill, effort, responsibility and working conditions. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization.

What causes an employer perform a job evaluation?

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

Why is job evaluation important for an organization?

Why job evaluation is important for an organization? Job evaluation is a valuable technique by which a more rational and consistent wages and salary structure can be evolved. As it eliminates wage inequalities within the organization so it helps in maintaining harmonious relationship between labour and management. It is a standardize process of …

How to develop a job evaluation in your organization?

THE BASIC STEPS FOR DEVELOPING A JOB EVALUATION IN YOUR ORGANIZATION: STEP 1: Define the jobs STEP 2: Select a job evaluation method The process of defining a job is called job analysis. The information obtained in

How do you evaluate the performance of members of an organization?

Discuss evaluation with members in the early phases of the evaluation. The best forms of evaluation include the commitment and participation of members of the organization. Therefore, it is best if you involve them as soon as possible in the design and implementation of evaluation plans.

How do you evaluate a job in human resources?

Human Resources applies a consistent, systematic process to evaluate all jobs, including internal comparison with same or similar roles prior to assigning a grade. STEP 1: Initiate a conversation with your HR Manager to ensure that a job evaluation request is appropriate (refer to the bullets above).

How do you evaluate a new workplace?

Keep your eyes open, ask questions and listen to your gut as you evaluate a new workplace and you’ll be able to make a fully informed decision about your next step.

What does the GNWT mean for employers?

The GNWT complies with equal pay for work of equal value and ensures that jobs are assessed in a gender-neutral manner and based on skill, effort, responsibility and working conditions. What is Job Evaluation?

How does the NWT assess and evaluate jobs?

The Government of the NWT assesses and evaluates jobs using the Hay Method, and the outcome is expressed in a point value. The point value is then aligned to the negotiated pay grid, which results in the pay range that is applied to the job.

How is the job description posted on the GNWT website?

The supervisor provides the incumbent of the position with their result letter; and • the job description is placed on file and posted on the GNWT Position & Salary website.

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