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HRM 3490 (10)
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Evaluating Jobs: The Job Evaluation Process

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Human Resources Management
HRM 3490
Ping Peng

Chapter 6Purpose of Job EvaluationTo determine the relative contribution made by each job in an organization to the success of that organization so that each job can be remunerated accordinglyThe output of job evaluation is a hierarchy of jobs where all jobs of a similar value to the organization are located in the same level on the job hierarchy Key objectives are to ensureoAll jobs in the organization are compensated equitablyoAre perceived by organizational members as being compensated equitablySteps in the Job Evaluation Process1Understand the jobs to be evaluated Accurate and reliable job information is an essential precondition for job evaluation2Decide how many pay structures to use In the past firms tended to create different pay structures for different occupational groups But for the purposed of internal equity the fewer they pay structures the better3Select and apply the most appropriate job evaluation methods4Create a pay structure with appropriate pay grades and pay ranges along with procedures for moving through these ranges5Develop procedures for evaluating and modifying the systemJob AnalysisProcess of collecting information on which job descriptions are basedA job description is a summary of the duties responsibilities and reporting relationships pertaining to a particular jobDerived from the job description are the job specifications which are the employee qualifications deemed necessary to successfully perform the duties for a given jobMethods of Job Analysis includeObservationInterviewsQuestionnaires oOpenended ask questions or closedended select from a list of phrasesFunctional Job AnalysisoAn attempt to develop generic descriptions of jobs using a common set of job functionso1 Who performs what 2 to whom or what 3 with what tools equipment or processes 4 to achieve what purpose or outcome
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