Final answer:
Market-based job evaluation establishes pay scales by analyzing the market value for each position. In labor markets, wage measures include annual and hourly rates based on demand and supply. Though wages impact job satisfaction, work-content factors are more predictive of overall satisfaction than pay level. Hence, option C is the correct answer.
Step-by-step explanation:
The job evaluation method being asked about is known as Market-based job evaluation. This approach to job evaluation focuses on determining the relative worth and pay structure of different jobs by comparing them to the market value or the going rate in the marketplace. Employers look into the job market, examining minimum requirements for various positions and their corresponding wage offers to ensure their compensation offerings are competitive.
Furthermore, in the demand and supply analysis of labor markets, price is gauged in terms of annual salary or hourly wage, while the quantity of labor could be measured in the number of workers or the number of hours worked. Such analysis helps in understanding how salaries and wages are set based on market trends and labor availability.
It's important to note that although pay level does contribute to job satisfaction, research, specifically by Saari & Judge (2004) and Judge et al. (2010), has found that the work-content factor, which includes the variety, difficulty level, and role clarity of the job, has a stronger link with overall job satisfaction than pay level.