How do job evaluation and market pricing approaches to setting pay ranges differ? What are the strengths and drawbacks of each approach?
What is the push today in many organizations (for example, JCPenney) for pay to be determined by job accountabilities and results, not effort and tenure?
Formulate your research-based recommendations about whether or not the job evaluation approach is outdated.
Please use and cite at least 3 references.
Article to Read:
Donna R Graebner and Kevin A Seaward. "Bringing it All Inside: Job Evaluation and Market Pricing at JCPenny" Scottsdale: Aug 2004, Vol 47, Iss 8, pg 30-34.
Job Evaluation and Market Pricing Setting Pay Ranges
The job evaluation approach is important in knowing how a job needs to be conducted. It is important that the right person is hired for the right job. A job must be correctly defined. Evaluating whether a person has the right qualifications for the job is also critical. In the past most job descriptions only included what was needed for the job to be done. It contained the responsibilities and the expectations, but not exactly how that job would be done (Effective Compensation, 2011).
The alternatives to job evaluation approached are as follows:
Advantage: Simple to do, quick to follow and can be used on a job-to-job basis.
Disadvantage: Little detail for evaluators to follow, no basis for job description.
Advantage: Simple, inexpensive, scale of values to follow, skill measurements
Disadvantage: Hard to define job worth, need different class definitions, assigning grade levels may not be relevant
3) Factor Comparison
Advantage: Compare job to job, limited factors, avoids inconsistencies
Disadvantage: Complex, time consuming
4) Point Factor
Advantage: Consistent definition, show which job is worth more and value of it
Disadvantage: Complex, time consuming, difficult to measure, difficult to explain
5) Marketing Pricing
Advantage: Development is quick, easy to maintain, more effective, survey data is ...
This solution discusses JC Penny's approach to job evaluation, job accountability and performance based pay. This solution is approximately 850 words and 3 additional references.