Compensation and Benefit Management

Evaluation Methods

Evaluations are the measuring stick for organizational growth. Appraisals help companies determine if they are meeting their strategic objectives. Evaluations critic the value of the work performed by employees verses the established job description based on a performance matrix. This process measures the company’s return on investment, set wages, and salary increases for the employees. There are three different methods company’s uses to measure performance. All three methods have merits and are useful tools; it depends on which scenario is appropriate to use.

Ranking

Ranking is a standard method of evaluating employees based on a metric that uses job value as its placeholder. The job descriptions are placed in order based on their level importance to the overall success of the organization. An example of ordering would be a chef’s ranking would be higher than a sous-chefs ranking in the grand scheme of valuing a position worth. Ranking a job description is not a complex task, it is an inexpensive method, and it is easy to convey to employees (Milkovich, Newman & Gerhart 2014). Job rankings criterions use judgment as its basis for determining the worth of a job description. The worth translate to skills and decision-making abilities, efforts exertion of duties both physically and mentally, and job responsibilities whether the position has a supervisory component or has financial responsibilities or duties to determine the position worth to the organization.

There are disadvantages to using this method as well, if employees do not understand why one position is more valuable than theirs the ranking system over time will become ineffective. Having too many positions to rank is another downside to the ranking me...

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...uld work in those industries are they tend to hire and recruit employees based on person-based job descriptions, which also look at similar compensable factors. Therefore, it would also tie into developing and evaluating the compensable factors for those types of jobs. For instance, an office administrator would have certain type of compensable skills. Factors like, typing computer literacy, education, and supervisory skills all make up a person-base job description but are also evaluated in on a point scale. These factors could be useful in evaluating that position but using this method would not work for a teacher position. That position has an education component to it but it would require a more in-depth analysis that a point system could not convey.

Works Cited

Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation. (11th ed.). New York: McGraw-Hill.