Chapter 8
Job Evaluations, Pay Plans, and Acceptance


This chapter deals with establishment of job worth for pay purposes and also how to gain acceptance of the results by the work force. It is very evident that having the work force believing the pay plan is based on merit is extremely important for the success of the company. Nothing is as large a productivity deflator than the work force, both salaried and hourly, believing they are not justly compensated. Industrial engineering is intimately involved in this task because constructing jobs and placing them in their proper hierarchy with respect to each other is closely related to the methods, planning, time standards, and work measurement work we elaborated on in the previous chapter.

Where does it all start? As with job defining work for methods, planning, time standards, and work measurements, it has its basis with the principles of motion economy and the “Two Knows.” The principles of motion economy because of physical effort required and the “Two Knows” for mental efforts associated with the job.

  • Fundamentals of Job Evaluation
  • Creation of Job Descriptions
  • Defining Key Jobs
  • Using the Job Rating System to Determine Point Value for a Job and Assigning a Compensation Rate
  • Developing a Pay Rate Matrix
  • Thoughts on Alternate Ways of Compensating Employees, and Fairness Involved
  • The Employee Handbook for Selling the Fairness Doctrine of Job Ratings and Pay Levels
  • Summary
  • Review Questions

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