ABSTRACT

About the chapter Setting wages in a fair and consistent manner is one of the most important issues faced by organizations. Perceived failures to meet this objective can lead to labor strife, grievances, losses of good employees, and charges of unlawful discrimination. Job evaluation is a process in which jobs are systematically evaluated to determine their relative contribution to the organization. This information is then used along with performance measures and other information to establish or set wages. The emphasis of this chapter is on describing several commonly used or traditional methods of job evaluation, and some of their respective advantages and disadvantages. Other issues including methods of administering wages are also briefly discussed.