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Types of Job Evaluation

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Five types of job evaluation: 1. Ranking: The relative value of jobs are determined by knowledgeable individuals. Provides no explicit basis for explaining why jobs are the way they are. 2. Classification or grading: The use of generic grade descriptions for various classes of jobs to assign pay grades to specific jobs. 3. Factor comparison: Assigns pay levels to jobs based on the extent to which they embody various factors. 4. Statistical/policy capturing: Combines use of statistical methods and job questionnaires to derive job values based on prevailing external or internal pay rates. 5. The Point method: Establishes job values by the application of points to each job, based on compensable factors.
Organizations need to ask 5 main questions before setting up a job evaluation process: 1. Who conducts job evaluations? 2. How should the process be communicated? 3. How should the job evaluation results be applied? 4. What appeal/review mechanisms have been or need to be established? 5. How should job evaluations be updated?
Updating Job Evaluations: 1. The job itself has changed significantly 2. The company’s strategy has changed 3. There are signs that the job evaluation system is no longer working 4. Legislative conditions require it.
Pay Equity Steps: 1. Determine what rules apply 2. Identify female and male job classes 3. Establish body of conduct pay equity 4. Select a gender-neutral job comparison system 5. Collect job information 6. Compare jobs 7. Check for permissible differences 8. Adjust compensation 9. Communicate the results 10. Maintain pay equity

Chapter 8: Five steps in developing a job evaluation system: 1. Identify key job characteristics 2. Develop a measuring scale for each job factor 3. Weight each factor according to its

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