of relative value or contribution to the organizations success Alternation

Of relative value or contribution to the

This preview shows page 10 - 12 out of 23 pages.

of relative value or contribution to the organization’s success Alternation ranking Paired comparison method Disadvantages : Cumbersome as number of jobs increases; basis for comparisons is not called out. Does not tell employees and managers what it is about the job that is important Ranking criteria are usually poorly defined Evaluators must be knowledgeable about every job. Advantages: Fast, simple, easy to explain Classification: Uses class descriptions that serve as the standard for comparing job descriptions. Classes include benchmark job titles. Job descriptions are compared to the class descriptions. Jobs within each class are considered to be equal work and are paid equally. Disadvantage: Descriptions may leave to much room for manipulation. Advantage: Can group a wide range of work together in one system. Point Method: Most commonly used approach to establish pay structures in U.S. Three common characteristics of point methods: Compensable factors, Factor degrees numerically scaled, Weights reflect relative importance of each factor Differ from other methods by making explicit the criteria for evaluating jobs – compensable factors. How the work contributes to the organization’s strategy. Disadvantage: Can become bureaucratic and rule bound. Advantage: Compensable factors call out basis for comparisons; compensable factors communicate what is valued. 5. Paired Comparison: ranking each employee by comparing them to the others 6. Characteristics: Compensable factors- differ from other methods by making explicit the criteria for evaluating jobs. Factor degrees numerically scaled. Weights reflect relative importance of each factor 7. Step1: Conduct Job Analysis Step2: Determine Compensable Factors Step3: Scale the Factors Step 4: Weight the Factors Step 5: Communicate Plan and Train Users Step6: Apply to non-benchmark jobs 8. Generic Factors - Skill: experience, training, ability, and education required to perform a job under consideration. Effort: measurement of the physical or mental exertion needed for performance of a job. Responsibility: extent to which an employer depends on employee to perform job as expected with emphasis on importance of job obligation. Working Condition: hazards and physical surroundings. How many? “Illusion of validity” “Small numbers” “Accepted and doing the job” Research results: skills explain 90% or more of variance, three factors account for 98-99% of variance. Scale the Factors: construct scales reflecting different degrees within each factor. Weight the Factors: different weights reflect differences in importance attached to each factor, advisory committee allocates 100% of the value among factors
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9. Array of pay rates for different jobs within a single organization; they focus attention on differential compensation paid for work of unequal worth Ch.6 Person Based Structure 1. Links pay to the depth or breadth of the KSAs a person acquires that are relevant to the work Pays individuals for all the skills for which they have been certified regardless of
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