Question: Modifying a Job Evaluation Worksheet This chapter discusses the principles of internally consistent compensation systems and the practices that establish them. The point method system

Modifying a Job Evaluation Worksheet

This chapter discusses the principles of internally consistent compensation systems and the practices that establish them. The point method system assigns point values to jobs based on the degree of compensable factors that define them. When job evaluation is conducted correctly, jobs with higher point totals will be valued (in terms of average market pay rates) more highly than jobs with lower point totals. The following list shows five jobs and each job's point total.

Job Title

Job Evaluation Point Total

Management trainee

220

points

Assistant manager

330

points

Associate manager

470

points

Manager

545

points

Senior manager

720

points

Let's assume that the average market pay rate for the associate manager job is

$55,000

and it is being used as the frame of reference for determining the rates for the remaining jobs on the list.

Part 2

(Hint: Calculate the dollar value per job evaluation point to start.)

The typical pay rate for the following jobs:

(Round your answers to the nearest hundredths place.)

(a) Management trainee =

$

(b) Assistant manager =

$

(c) Manager =

$

(d) Senior manager =

$

Part 3

The pay rates for the remaining jobs if the Associate manager job pay rate was increased by $10,000:

(Round your answers to the nearest hundredths place.)

(a) Management trainee =

$

(b) Assistant manager =

$

(c) Manager =

$

(d) Senior manager =

$

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