Questions and Answers
What does the Ranking Method primarily compare jobs based on?
Name one of the disadvantages of the Ranking Method.
Difficult to administer as the number of jobs increases.
What is one advantage of the Classification Method?
What is a key feature of the Factor Comparison Method?
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Which of the following are considered compensable factors?
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The Point Method allows for the assessment of newly created jobs.
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Identify one disadvantage of the Factor Comparison Method.
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What are the main categories of compensable factors in job evaluation?
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Study Notes
Ranking Method
- Simplest job evaluation method; compares jobs based on overall worth to the organization.
- Worth determined by skill, effort (both physical and mental), responsibility (supervisory and fiscal), and working conditions.
Types of Ranking Methods
- Ordering
- Weighting
- Paired Comparison
Ranking Method - Advantages
- Simple to use.
- Most effective for evaluating fewer jobs (fewer than 30).
Ranking Method - Disadvantages
- Administration becomes difficult with increasing job numbers.
- Judgements are subjective; no standard for comparison.
- New jobs require comparison with existing jobs for ranking.
Classification Method
- Jobs assigned to an established grade/category structure, each having a description and associated job titles.
- Each job categorized based on the closest match to the description.
Classification Method - Advantages
- Simple process; existing structures facilitate classification.
- Easier to classify new jobs compared to the Ranking Method.
Classification Method - Disadvantages
- Subjective classification judgments.
- Grade/category structures may contain inherent biases affecting various employee groups (e.g., women or minorities).
- Some jobs may fit into multiple categories.
Factor Comparison Method
- Identifies compensable factors that determine job worth.
Compensable Factors
- Skill
- Responsibilities
- Effort
- Working Conditions
Factor Comparison Method - Advantages
- Expresses job value in monetary terms.
- Applicable to a diverse range of jobs.
- Useful for newly created jobs.
Factor Comparison Method - Disadvantages
- Pay judgments for factors are subjective.
- Potential biases in determining pay affect certain employee groups.
Point Method
- Similar to the Factor Comparison Method, identifies compensable factors for job worth determination.
Compensable Factors in Point Method
- Skill
- Responsibilities
- Effort
- Working Conditions
Skill
- Involves experience, education, and ability.
Responsibilities
- Includes fiscal responsibility and supervisory roles.
Effort
- Incorporates mental and physical effort.
Working Conditions
- Factors such as location, hazards, and environmental extremes.
Point Method - Advantages
- Job value expressed in monetary terms.
- Applicable to various job types, including new positions.
Point Method - Disadvantages
- Subjective nature of judgments affects pay for each factor.
- Pay determination standards may introduce biases impacting certain groups.
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