The market factors are discussed below employers do

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“meet competition” policy. The market factors are discussed below: Employers do not operate in a single homogenous labour market – each operates in many labour markets, each with unique demand and supply. Managers should, therefore, define the markets that are relevant for pay purposes and establish the appropriate competitive positions in these markets. The three factors usually used to determine the relevant labour markets are the occupation (skill/knowledge required), geography (willingness to relocate, commute, or become virtual employees), and competitors (other employers in the same product/service and labour markets). 3.2 Define job evaluation and discuss it in terms of content, value and external market links. In your discussion, briefly discuss the most important job evaluation systems used in South Africa. (15) Use study unit 5 as point of departure for answering this question. Look at “Defining job evaluation: content, value and external market links” and “Choose among methods” in the prescribed book. Job evaluation can be described as a formal process by means of which a relative value is attached to each different job within a particular organisation. Job evaluation is therefore an attempt to determine whether the compensation received by an employee bears any relation to the value of an employee’s job towards the efficiency of the organisation. Job evaluation should be implemented to: establish an orderly, rational and systematic structure of jobs on the basis of their value to a particular organisation justify an existing compensation system, or to develop a system which allows for internal equity assist in instituting rates of pay comparable with those of similar jobs in other organisations provide a rational basis for pay negotiations during corrective bargaining indicate to employees which opportunities exist for career movements and improvement of income ensure that the organisation complies with legislative requirements for equal pay and wage differentiation in accordance with job content serve as a basis for a compensation programme based on performance
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