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019 Drawbacks of Jobbased Compensation Programs ? Jobbased pensation plans do not take into account the nature of the business and its unique problems. ? The process of establishing jobbased pensation plans is much more subjective and arbitrary than its proponents suggest. ? Jobbased systems are less appropriate at higher levels of an anization. ? As the economy has bee more service oriented and the manufacturing sector has continued to shrink, jobs have bee more broadly defined. ? Jobbased pensation plans tend to be bureaucratic, mechanistic, and inflexible. ? The jobevaluation process is biased against those occupations traditionally filled by women. ? Wage and salary data obtained from market surveys are not definitive. ? In determining internal and external equity, it is the employees’ perceptions of equity that count, not the assessments of jobevaluation mittees. 169。 1998 by Prentice Hall 1. Job Analysis Job Evaluation for Internal Equity 2. Job Descriptions Identify Compensable Factors 3. Job Specifications 4. Rate Worth of All Jobs Using a Predetermined System 5. Job Hierarchy 7. Establish Final Pay Policy Individual Pay Assignment 6. Classify Jobs by Grade Levels 1. Check Market Value Using Benchmark or Key Jobs Market Surveys for External Equity WithinPayRange Positioning Criteria for Individual Equity Criteria for Pay Positioning Within Range for Each Job ? Experience ? Seniority ? Performance ti ll 169。 2020 by Prentice Hall 1012 Pay Structure of a Large Restaurant Developed Using a JobBased Approach Jobs Number of Positions Pay GRADE 6 GRADE 5 GRADE 4 GRADE 3 GRADE 2 GRADE 1 Chef Manager SousChef Assistant Manager Lead Cook Office Manager General Cook Short Order Cook Assistant to Lead Cook Clerk Server Hostess Cashier Kitchen Helper Dishwasher Janitor Busser Security Guard 2 1 1 2 2 1 5 2 2 1 45 4 4 2 3 2 6 2 $$$$21/hr. $$ $$ $$ $$169。 2020 by Prentice Hall 108 The Labor Market Model Wage Number of Qualified Workers 0 W1 N1 Supply of Qualified Employees Demand for Employees 169。