Question

What is the primary purpose of job evaluation in establishing pay rates?

a) To determine employee satisfaction
b) To assess employee performance
c) To establish the relative worth of each job
d) To calculate company profits

Answer 1

The main purpose of job evaluation is to establish the relative worth of each position to determine equitable pay rates within an organization.

Step-by-step explanation:

The primary purpose of job evaluation in establishing pay rates is c) To establish the relative worth of each job. Job evaluation is a systematic process used by organizations to assess and compare the demands of different jobs in terms of skills, responsibilities, and other factors that are critical in determining pay rates.

This process helps to ensure fairness and equity in compensation by aligning pay with the relative value of a position within the company, as opposed to factors like employee performance or satisfaction, which are assessed through other mechanisms like performance appraisals and job satisfaction surveys.