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CompensationManagement
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Job Evaluation flows from JOB ANALYSISProcess & uses JOB DESCRIPTION as itsbase. Job Description is examined by
comparing:
Relative importance of the job
Relative skills needed to perform thejob
Difficulty of one job compared toother jobs
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Internal job worth through JOBEVALUATION MARKET PRICING:
Pay set by other employers is anaccurate reflection of a jobs worth
Jobs are same in anotherorganization
Economic condition not
considered(impact) Employer size not considered
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Ranking Method
Places Jobs in order ranging, Lowestto highest value
Entire job considered More Thanindividual components.
More useful for small Organization
Large number of job increasesubjectivity
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Classification method
Gather information from J.D. &J.S.
Separate jobs intotypes(sales,operations,accounts,clerical).
List Out Common Feature to all. Place in appropriate Classification.
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Point Method
Most widely used.
Sophisticated.
Focus on component.
Weight age in logical.
More Objectivity.
Compensation is Fair.
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FACTOR COMPARISON
Bench mask Jobs are Categorizedaccording to levels of Responsibility,
Knowledge, Skills, WorkingConditions Etc.
Comparisons of Direct indirect jobs
in organization is made. Market rateof pay ins assigned to the particular
job
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HAY PLAN-used to exemptemployees
Focus factors, key issues
Problem solving
Accountability
Know how(practical application)
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ADVANTAGES
Tells real worth of the job
Factors values easily converted to
monetary values Most widely used
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DISADVANTAGES
Cant be used as tailor made
Need to consult specialist
Reference to comparison methodand manuals is essential
Time consuming
Requires regular review
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Wages and salary survey
Information available throughnational survey,bureau of labour
statistics,national chambers ofindustries
Fresh and specific surveys are also
undertaken Listing of compatible organization
and job responsibility is important
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ISSUES TO BE ADDRESSED
Is the survey a realistic sample ofemployers, or is it dominated by a fewlarge employers?
Is the data provided by other personnelspecialists, not individual operatingmanagers?
How old is the information?
How sound and experienced is theorganization that prepared the survey?
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SAMPLE FACTOR COMPARISON CHART,DANBO
MANUFACTURING CORPORATION
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POINT METHOD CHARTS
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PAY SCATTERGRAM
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EXAMPLE OF PRICED LABOUR GRADE