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 200 points 310 points Assistant manager 450 points Associate manager 525 points Manager Summary: Building Internally consistent Compensation Systems 525 points Manager Senior manager 700 points Let's assume that the average 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. 6-12 What should the typical pay rate be for the following jobs: (a) management trainee, (b) assistant manager, (c) manager, and (d) senior manager? (Hint: Calculate the dollar value per job evaluation point to start based on the associate manager job and salary.) What would the pay rates be for the remaining jobs if the associate manager job pay rate was increased by $10,000? (a) management trainee, (b) assistant manager, (c) manager, and (d) senior manager. 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 trainee, (b) assistant manager, (c) manager, and (d) senior manager? 6-13