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Grading systems comparison document discusses variations in grading systems and provides a practical example. Specifically, it notes that grading can be "practice-based" and not scientific, as was originally used by Watson Wyatt. It also provides an example using Ideal Standard International.

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Grading Systems ComparisonRalph Leyssens31/08/11

“Practice-based”(not scientific)As originallyused by Watson Wyatt

Practical example(Ideal Standard International owned)

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Leadership Stylesralindha

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Job evaluation is the process by which companies determine employee compensation. It involves analyzing each job based on factors like education, responsibility, discretion, and impact levels. Jobs are then evaluated and assigned levels that determine salaries and financial/non-financial rewards. Techniques for job evaluation include non-quantitative methods like simple ranking, paired comparison, and grading. Quantitative methods include point, factor comparison, and Hay methods. Job evaluation aims to establish a fair wage structure by assessing the relative worth of different jobs.

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Ranking method of job evaluation - compensation management - Manu Melwin Joymanumelwin

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Classification/Grading method of job evaluation - compensation management -...manumelwin

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Jobs are ranked and grouped based on their overall value to an organization. The ranking method involves obtaining job information, selecting and grouping similar jobs, selecting compensable factors to compare jobs, ranking the jobs from highest to lowest value, and combining the ratings. Common ranking methods include simple, alternate, and paired comparison. While the ranking method is simple, inexpensive, and easy to understand, it is not as accurate as other methods and is not suitable for large companies due to potential bias and lack of comparison standards.

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