Term Paper 1. Definition Job Evaluations acts as the instrument of determining the relative worth of a job.

This process is helpful in terms of the personnel managers for framing compensation plans in the business and the employees themselves. Its a process by which it becomes an advantage in company related problems such as Selection of employees, Standardization, Specialization and Equality and Inequality in Salary structures. 2. Major Decisions in Job Evaluation The following are the Major decisions made in Job Evaluation: I. II. III. IV. V. Establish purpose of the evaluation To know what it is the essence of the evaluation itself. Decide whether to use single or multiple plans To establish the limitation of the evaluation. Choosing among alternative approaches To help in deciding which approach will be used in the evaluation to determine more results. Obtain involvement of relevant stake holders To involve stakeholders in the business in making the decisions. Evaluate plans usefulness To know the usefulness of the plan itself in the business future.

3. Job Evaluation Methods I. Job Ranking

The one who rates examines and analyzes the description of the job itself; also it arranges jobs according to how the company can use them as assets.

II.

Job Classification Classes or grades are defined to describe a group of jobs in the business.

III.

Point Method Statistical method; it assigns numerical values to each specific job and sums of the values to provide the company with quantitative assessment of the importance of the job.

4. Final Result Pay structure A pay structure is a collection of pay grades, levels or bands, linking related jobs within a hierarchy or series that provides a framework for the implementation of reward strategies and policies within an organization. I. Develop a pay policy which includes the Increases ability & retain employees and can be more selective in hiring (Above Market); Reduces ability to select and Reduces labor expenses (Market) II. Pay Ranges which includes productivity differences, employee performance differences, recognizes impreciseness of job evaluation and allows for seniority pay differentials. III. IV. V. VI. Construct Grades which shows jobs that are similar in their worth in the organization or the grouping of jobs. Pay Policy Line includes the Job evaluation points and pay to find the Predicted Salary. Pay structure Ranges which talks about the judgment about career paths & promotions, also broadbanding.

SOURCES: Kimball, . "Job evaluation." n.d. n. page. 0. <http://www.managementstudyguide.com/job-evaluation.htm>. . "Pay structures." . CIPD, 2012. Web. 18 Aug 2012. <http://www.cipd.co.uk/hr-resources/factsheets/pay-structures.asp&xgt;. . Evaluating work: Job evaluation. N.p., 2002. Web. 18 Aug 2012. <http://business.uni.edu/mitra/chap05.pdf>.