Professional Documents
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Job evaluation is the formal and systematic comparison of jobs in order to determine the worth of one job relative to another
The comparison results in a wage or salary
hierarchy
Compensable Factors
Two approaches in comparing jobs Intuitive or via compensable factors Intuitive based on decision that one job is more important than another Compensability determined arbitrarily but some examples include:
factors
Evaluate the worth of each job via
Rates categories of jobs into groups Groups called classes if jobs are similar Called grades if groups contain different jobs of similar difficulty
Method 3: Point
The point method is more quantitative Identifies compensable factors The degree to which each of these factors is present Assume five degrees of responsibility Most widely used method
A pay grade is composed of equally difficult jobs Once its used job evaluation to determine the relative worth of each job, the committee can turn to the task of assigning pay rates to each job; however, it will usually want to first group jobs into pay grades. If the committee used the ranking, point, or factor comparison methods, it could of course just assign the committee will probably group similar jobs (in terms of their ranking or number of points, for instance) into grades for pay purposes. Instead of having to deal with hundreds of pay rates, it might only have to focus on, say, 10 or 12. A pay grade is comprised of jobs of approximately equal difficulty or importance as