This chapter discusses the principles of internally consistent compensation systems and the practices that establish them. The point method system assigns point values to job 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 jobs point total

Job Title Job Evaluation Point Total

Management trainee 200 points

Assistant manager 310 points

Associate manager 450 points

Manager 525 points

Senior manager 700 points

Lets assume that the avenger market pay rate for the associate manager job is $50,000 and

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

the list

Questions:

6-11. What should the typical pay rate be for the following jobs: (a) management trainees, (b)

assistant manager, ( c )manager, and (d) senior manager? (Hint: Calculate the dollar value

per job evaluation point to start based on the associe manager job and salary.)

6-12. What would the pay rates be for the remaining jobs if the associate manage job pay

rate was increased by $10,000? (a) management trainees, (b) assistant manager, ( c

)manager, and (d) senior manager?

6-13. Assume that the associate manager job is valued at $50,000 (with a point total of 450

points), and we add 50 points to the total of the remaining jobs. What should the pay rates

be for the (a) management trainees, (b) assistant manager, ( c )manager, and (d) senior

manager?

PLEASE SHOW WORK FOR EACH QUESTION!