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Organizational Management

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Chapter 8 Job Evaluation

1. What is meant by internal equity? What is the relationship between internal equity and job evaluation?
“Internal equity is a situation that results when people feel that performance fairly determines the pay for each individual with a certain job or that relative difficulty results in appropriate differences in pay rates between jobs. Worker dissatisfaction may arise when internal equity principles aren't met.Internal equity studies analyze the nature of a particular position including: 1.Skill2.Effort and 3.Responsibility” (web).

2. What is a benchmark or key job? Why are these kinds of jobs so critical in various job evaluation methodologies?
Bench mark jobs are highly visible jobs that common to a variety of organizations. These jobs are critical in various job evaluation methodologies because they can be used for comparison with other jobs that are above, below, or comparable in complexity and difficulty for pay purposes. This is usually a job that is clearly defined and shows the differences between departments. Working in retail I observed different departments such as clothing and appliances. Working in the education filed I observed different “departments” such as special education, speech, dual language as well as mainstream classes. (pg174).

3. What are some of the strengths and limitations in the use of ranking for job evaluation purposes?
Some of the strengths of job ranking is when evaluators are intimately familiar with all jobs being ranked, they may only have to direct their decision making processes to a job title which helps make accurate results (pg175). Ranking is valuable as a first step in job evaluation or as a tool for teaching anyone the basic concepts of evaluation. Some of the limitations of job ranking is that it is inflexible. It does not readily identify changes in job content, which could lead to internal equity inconsistencies. It also lacks in communication with employees and of substantiating data to justify the final results. One of its crucial disadvantages is that it provides no yardstick for measuring the relative value of all jobs and provides little assistance in comparing jobs in different or geographically dispersed units when there is no basis for equating jobs that differ by kind of subject matter or kind of but that have similar levels of difficulty, responsibility, and qualification requirements (pg176).

4. What must be done to develop a predetermined grading or position classification method?
Survey data is important and can be helpful when companies evaluate their employees. These types of analysis are utilized to determine whether or not the employee is performing their tasks well. When developing a predetermined grading classification you must identify and describe the benchmark that would normally be paid at the highest and lowest levels of pay and sufficient jobs between these two points to establish an orderly scale of pay relationship. Positions are analyzed and evaluated and the pay grade classification standard must have sufficient detail so that the non-benchmark job descriptions can be compared with the grade narratives and the jobs then placed in the appropriate grades (pg177).

5. How does the Smyth-Murphy method of market pricing differ from a pure market-pricing approach to establishing job worth?
Smyth-Murphy method differs from pure market pricing approach because it permits the influence of internal equity to interact with existing market rates when an evaluator is determining rates of pay for the jobs in the organization (pg179). When using pure market pricing method, organizations allow the market to dictate the pay of the job and relative worth (pg178).

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