Discuss the Concept of Job Evaluation, Including the Most Common

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The Answer is Job evaluation is a method for determining the relative value or worth of a job to an organization so that individuals who perform that job can be adequately and appropriately compensated.This process is concerned with establishing internal pay equity.The most common methods are job ranking,the classification system,the point system,the factor comparison method,and the regression-based system.
The classification system attempts to group sets of jobs together into clusters,often called grades.Each set of jobs is then ranked at a level of importance to the organization,on the basis of relative difficulty,sophistication,or skills and abilities needed to perform the job.Most organizations will utilize eight to ten job categories or grades.Once grades have been determined,the job evaluator writes definitions and descriptions of each job class.This system is more complex than simple ranking.However,it is relatively simple and quick to use.
The point system requires managers to quantify in objective terms the value of various elements of specific jobs.This system is more sophisticated than ranking or classification,but it is also relatively easy to use.Using job descriptions,managers assign points to various compensable factors required to perform each job.Point systems typically evaluate eight to ten compensable factors for each job.Using this system,the organization usually develops a point manual,which is used to implement the point system for all subsequent job evaluations.
The factor-comparison method assesses jobs on a factor-by-factor basis,using a factor comparison scale as a benchmark.This method differs from the point system in that jobs are evaluated against a standard of key points.The organization will commonly use five job factors to compare jobs:responsibilities,skills,physical effort,mental effort,and working conditions.The process includes identifying the comparison factors,identifying benchmark jobs in the organization,ranking the benchmark jobs on each comparison factor,allocating a part of each benchmark job's wage rate to each job factor,developing a consensus about the assignment of monetary values,assessing evaluators' consistency,and developing a job comparison chart to use in rating other jobs within the organization.

Discuss the Concept of Job Evaluation, Including the Most Common

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