BU121 Lecture Notes - Canada Labour Code, Snowplow, Job Analysis
Document Summary
Objectives: attract, retain, and motivate (want to gain employee commitment) Employees should feel that they"re being paid according to their value: external and internal equity, and incentives. External equity- must be comparable or competitive against other firms (you"re competing against these firms for resources) Incentives go inside the compensation package that motivate people. Internal equity - job evaluation (evaluates the job to determine pay; not the person doing the job: develop rating system, use job analysis to rate jobs, assign pay based on relative value - price the pay structure . If two different jobs have a similar value to the company, they should be paid similarly. Point method commonly used, but is expensive and complicated: workers see this method as fair; more likely to stay there, universal factors: 4 criteria used for every job. Skill, effort, responsibility, job conditions: sub-factors degrees point values pay grades.