Job evaluations are used to determine the pay scale of all employees in an organization from...

Question:

Job evaluations are used to determine the pay scale of all employees in an organization from hourly workers to the CEO. Indicate whether this statement is true or false.

Job evaluation:

Job evaluation is a method in which a job's worth is assessed in comparison to other workers in a company. The process is designed to make a systematic distinction between workers to determine their relative value with the intention of creating a fair pay structure. Job evaluation starts with job analysis and finishes at a point where the importance of a job is calculated in order to achieve wage parity between jobs and various positions.

Answer and Explanation:

The statement is FALSE.

Job evaluation is a good way to determine a fair pay structure. Many companies use this method to create a fair pay structure. But it is not used to determine the pay scale of all employees in the company, from hourly workers to the CEO. There are other ways for this purpose.


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Four Methods of Job Evaluation: Ranking, Classification, Point & Factor Comparison

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Chapter 3 / Lesson 6
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Learn what job evaluation is. Understand when to use it. Explore job evaluation methods, such as job ranking, job classification, job comparison, etc. with examples.


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