PHR · Question #99
Which of the following is the process of systematically determining a relative internal value of a job in an organization?
The correct answer is A. Job evaluation. Job evaluation is the formal, systematic process of analyzing and ranking jobs within an organization to determine their relative internal worth, providing the foundation for an equitable compensation structure.
Question
Which of the following is the process of systematically determining a relative internal value of a job in an organization?
Options
- AJob evaluation
- BBroadbanding
- CSWOT Analysis
- DGainsharing
How the community answered
(50 responses)- A78% (39)
- B12% (6)
- C8% (4)
- D2% (1)
Why each option
Job evaluation is the formal, systematic process of analyzing and ranking jobs within an organization to determine their relative internal worth, providing the foundation for an equitable compensation structure.
Job evaluation is specifically defined as the systematic process of determining the relative internal value of jobs by analyzing their content, duties, responsibilities, and requirements. It establishes an objective hierarchy of positions to ensure internal pay equity before salary ranges are assigned. Common methods include point-factor, job ranking, and job classification systems.
Broadbanding is a compensation design strategy that consolidates multiple narrow pay grades into fewer, wider salary bands, and is applied after job evaluation has already established relative job worth.
A SWOT Analysis is a strategic planning tool that identifies organizational Strengths, Weaknesses, Opportunities, and Threats, and is not used to determine the relative value of individual jobs.
Gainsharing is an incentive compensation program that distributes measurable productivity or cost-saving gains back to employees, and does not involve assessing or ranking job worth.
Concept tested: Job evaluation for determining internal job worth
Source: https://www.shrm.org/topics-tools/tools/toolkits/understanding-compensation-job-evaluation-pay-structures
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