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Compensation Management – Bus 409

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Compensation Management – Bus 409
Assignment 2
Arlene Miller
Professor Fitzpatrick
Compensation Management – BUS 409
November 27, 2011

Describe the differences between job analysis and job evaluation and how these practices help establish internally consistent job structures.
The differences between job analysis and job evaluation is, job analysis is a systematic process for gathering, documenting, and analyzing information in order to describe jobs. Job analyses describe content or job duties, worker requirements, and, sometimes, the job context or working conditions. Job evaluation is a systematic recognition of differences in the relative worth among a set of jobs and establishes pay differentials accordingly.
“Job analysis provides information about what duties the job entails and what human characteristics are required to perform these activities. This information, in the form of job descriptions and specifications, helps managers decide what sort of people to recruit and hire. Compensation ( such as salary or bonus) usually depends on the job’s required skill and education level, safety hazards, degree of responsibility, and so on all factors you assess through job analysis. Furthermore, many employers group jobs into classes for pay purposes. Job analysis provides the information to determine the relative worth of each job” (Dessler, pg 117).
“Job evaluation aims to determine a job’s relative worth. The job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. Job evaluation eventually results in a wage , salary structure, or hierarchy. The basic principle of job evaluation is this: jobs that require greater qualifications, more responsibilities, and more complex job duties should receive more pay than jobs with lesser requirements” (Dessler, pg 397).

How these practices help establish internally consistent job structures are the descriptive job analysis results directly aid compensation professionals in their



References: Dessler, G. (2011). Human Resource Management: 2010 custom edition (12th ed.). Upper Saddle River, NJ: Prentice Hall. Martocchio, J. J. (2011). Strategic compensation: A human resource management approach: 2011 custom edition (6th ed.). Upper Saddle River, NJ: Prentice Hall. What is health insurance. (n.d.). Retrieved November 15, 2011, from Investorwords.com website: http://www.investorwords.com/2289/health_insurance.html

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