MGT 462 Lecture Notes - Lecture 5: Job Evaluation, Job Analysis, Medtronic
Document Summary
Compensable factors - details about a job that influence how the job is paid. Research shows managers" competencies are related to their performance ratings, but there is no relationship to unit-level performance (individual competencies), so some researchers suggest taking a portfolio approach. Pay mix - what are the forms of pay. Get better quality of applicants if you are known to be a better payer. In reality pay decisions don"t necessarily follow theory. External competitiveness: how much and how to pay. Determine what people do by watching, documenting and understand the reasons jobs exist. Comparing jobs against one another helps us know their relative value within the company. Regardless of relative internal valuations, we need to attach pay to jobs using market jobs. Pay sometimes appears to be determined without reason or justice but there is usually logic. External competitiveness - pay relationships among organizations; it"s the organization"s pay relative to its competitors.
