Job Evaluation

1) Read the following and report in full below:

You are a newly hired HR professional now working for Jeans, Inc. Jeans does not have a formal wage structure, rate ranges and does not use compensable factors. Wages are basically set on prevailing wages in surrounding communities coupled with some attempt for internal equity among workers.

Jeans does not participate in formal pay surveys. Instead, the President’s Assistant routinely looks over online job openings and conducts informal surveys among her friends in local organizations. Jeans has always followed a policy of paying employees about 10% above what the Assistant feels are the prevailing rates. She thinks this reduces turnover and fosters employee loyalty. The practice is to pay men about 20% more than women for the same job. The Assistant explains, “When we hire males, they have families, and they are stronger and can work harder for longer hours.”

2) Answer the following 4 questions below. Use question and answer (Q&A) format; in other words, include the original question along with your response. Within your post support your responses with information from at least two reputable sources (library and/or web-based), and provide the full citation at the end. Use APA format for your references. Bring in your own personal experiences, readings, and research, where applicable.

1. Compare and contrast the following methods of job evaluation: ranking, classification, factor comparison and point method. Which method (if any) do you recommend for the Jeans company? Why?

2. Is the Jeans company to a point where it should set up a formal salary structure based on a complete job evaluation? Why?

3. Is the policy of paying 10% more than the prevailing rates a sound one, and how could it be determined?

4. What would you do now with respect to a pay plan process at Jeans? Why?

APA format

Required Reading

Armstrong, M. (2012). Chapters 1, 7, 13, 15, 16, & 18. In Armstrong’s handbook of reward management practice: Improving performance through reward. London: Kogan Page. Retrieved from EBSCO in the Trident Online Library.
Determining base compensation: Should you use market value or internal equity? (2002). Employee Benefit Plan Review, 57(5), 4. Retrieved from the Trident Online Library.
Society for Human Resource Management (2016).
Visit the SHRM website ( for some of the latest information on dynamic HRM topics, certification details, and SHRM membership information. This website is listed as required, because you should visit it frequently to keep up with the field and learn how you might become more involved with the national association and/or regional SHRM professional groups.
Optional Reading
Business & Legal Reports (2014). Employee Compensation in California. Madison, CT: BLR.
Graebner, D. R., & Seaweard, K. A. (2004, August). Bringing it all inside: Job evaluation and market pricing at JCPenney. Workspan, 47(8), 30-35. Retrieved from the Trident Online Library.
Minow, A. S. (2012). Reasonable compensation. California CPA, 80(7), 11-13. Retrieved from the Trident Online Library.
Survey says most firms have formal salary range structures. (2011, January). IOMA’s Report on Salary Surveys, 11(1), 7-8. Retrieved from the Trident Online Library.

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