Chapter 7 - Recognizing and Rewarding Employees

Latter basis provides greater incentive for employees

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Unformatted text preview: d to compare jobs would be grouped together with different common name and different common pay • Description of each of job classes constitute scale against which specifications for various jobs are compared • Managers evaluate jobs by comparing job descriptions with different wage grades to “slot” job into appropriate grade • Simple but less precise than point and factor comparison systems Point System • Quantitative job evaluation procedure that determines a job’s relative value by calculating the total points assigned to it o Successfully used by high- visibility organizations and public/private organizations • Complicated to establish but once put in place are relatively simple to understand and use • Advantage – more refined basis for making judgements, produces results that are more valid and less easy to manipulate • Permits jobs to be evaluated quantitatively on basis of factors or elements (compensable factors) that constitute the job • Skills, efforts, responsibilities, and working conditions that a job entails are common major compensable factors that serve to evaluate the worth of a job as more or less important than the other Factor Comparison System • Permits job evaluation process to be accomplished on a factor- by- factor basis • Typically used for legislated pay equity purposes • Differs from point system in that the compensable factors of the jobs to be evaluated are compared against compensable factors of key jobs within the organization that serve as the job evaluation scale • Key jobs evaluated against five compensable factors – skill, mental effort, physical effort, responsibility, and working conditions o Resulting in ranking of different factors for each key job • All job evaluation methods require varying amounts of judgement made by individuals • Supervisors/managers make decisions on components of any job o Supervisors make decisions on how much responsibility and authority any particular job may have • Organizations use committee or panel for job evaluation assessments to help ensure objectivity in process • Make use of companies HRMS to collect data, assess data, and record final decision The Compensation Structure • • Job evaluation systems do not in themselves determine wage rate o Instead provide for internal equity Evaluated worth of each job based on its rank, class, points, or monetary worth must be converted into hourly, daily, weekly, or monthly wage rate Wage and Salary Surveys • Wage and salary survey – survey of the wages paid to employees of other employers in the surveying organization’s relevant labour market...
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This document was uploaded on 03/28/2014 for the course MOS 1021B at UWO.

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