COMMERCE 2BC3 Lecture Notes - Lecture 22: Equal Pay For Equal Work, Job Satisfaction
24 Apr 2016
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Pay level: average pay (wages, salaries, and bonuses) of jobs in an organization. Job structure: relative pay of jobs within an organization- more informative than pay level. Pay structure = job structure + pay level. It is important to consider relevant competitors and representative jobs when determining pay level. Job evaluation: an administrative procedure used to measure internal job worth. Signals the value of the job to the organization, career path to higher pay, and required ksao to get more money. Three approaches to job evaluation: ranking, classification, point method a. Jobs are assigned points based on pre-determined compensable factors . Ideal is to be close to the midpoint on average (cr of 1. 0) Cr<1. 0 means actual average pay is lagging org. pay policy. Cr>1. 0 means that actual average pay is exceeding org. pay policy. Pay is wages, salaries, bonuses/increases not linked to performance and incentive/performance pay. Total compensation averages at 22% of sales, but varies across industries.
