Compensation administration is the designation that field of endeavor concerned with the establishment and implementation of sound policies and method of employee compensation,(Bates, 2004). It includes areas like job evaluation, development and maintenance of wage structures, wage surveys and wage adjustment.
Beach (2004) postulates that job evaluation is a formalized system for determining the relative money value of jobs for the purpose of writing job description and specification, rating of these jobs through use of job values to definite wage rates. Job evaluation has rendered a futile exercise by the developments in Zimbabwe towards compensation administration.
In Zimbabwe the adoption of job evaluation program by industrial concern increases and become a wide spread in the modern organizations. Factors inducing companies to adopt wage rationalization programs were the rise of the trade unions in Zimbabwe. Labour unions and the recognition by management of the need for orderly logical means for establishment of of wage rates, (Tracy, 2008). Management has learned that it must have some means for explaining how it has arrived at wage rate decision when it is negotiating with unions. In Zimbabwe trade unions wish very well to know how wages of employees are being calculated during their negations with the management of the organization. The management should know how the wage rate is being derived or calculated and should able to explain how they come upwith the wages for their employees inorder to convince the labour unions, (Boone,2008)
In Zimbabwe the system of rating the job not the employee have developed by most organizations. This system is now used in job evaluation process by most of the organizations, (Beach, 2004). In deciding how much money a particular job is worth, there is a temptation to be influenced in one’s judgment by the qualifications and