ADMS 3490 Chapter Notes - Chapter 4: Job Evaluation

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It is (cid:374)ot li(cid:374)ked to (cid:448)aria(cid:271)ilit(cid:455) i(cid:374) a(cid:374) e(cid:373)plo(cid:455)er"s a(cid:271)ilit(cid:455) to pa(cid:455) i(cid:374) the (cid:449)a(cid:455) that performance pay can be. It does not direct motivate task behaviour, nor does it signal key task behaviours. It does not directly contribute to citizenship behaviour. Marketing pricing establishing base pay by determining the average amount of pay other employers are offering for a given job. Advantages: simplicity and cost, keeps jobs aligned with market conditions. Disadvantages: (cid:862)goi(cid:374)g rate(cid:863) (cid:374)ot al(cid:449)a(cid:455)s eas(cid:455) to ide(cid:374)tif(cid:455, job definitions may vary from the market data, does not address internal equity, lack of control of compensation strategy, may violate pay equity legislation. Job evaluation establishing base pay by ranking all jobs in the firm according to their value to that firm. Disadvantages: may impede high involvement, more costly to develop than marketing pricing, need for job descriptions, may become an adversarial process, costly to maintain, can inhibit flexibility and skill development.

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