Business Administration 2257 Lecture 2: Lecture 2 Readings.docx
8 Dec 2013
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Compensable job factors: factors, such as responsibility and education. Job evaluation: the process of determining the monetary worth of a job (the job itself, however, not the worth of a person in the job). Done in two stages: determining internal pay equity and determining external pay equity. Internal pay equity: involves comparing jobs within an organization to ensure that the people in jobs worth the most money are paid accordingly. The difficulty in this process is determining the worth of each job requirements, that differentiate the relative worth of jobs. Examples: level of responsibility, physical demands, mental demands, education requirements training and experience, working conditions. Step 2: determine the levels for each compensable job factor: the next step is to determine the levels for each factor. For factors such as education this may be easier (bachelor, masters, doctorate), but for other factors (such as responsibility) more time and discussion is required factor and to each level within a factor.
