13 Chapter 2: Critical Literature Review 2.1 ... - Dissertation

23various jobs, the use of benchmark jobs may be employed in order to understand the evaluationof jobs with less obvious qualifications. They may also be used to match these jobs with otherorganizations in order to establish a market rate for these types of jobs. As mentioned before,benchmarking is also one of the schemes used to evaluate jobs. However, in this case, it may beused to identify a less obvious range of job descriptions.Once the benchmarking is completed, there may be an exploration of the relative valuesinherent in various jobs. Characteristic elements such as the relationship with other jobs, level ofresponsibility, and impact on resources are also considered. The penultimate part of jobevaluation is role analysis where the systematic information regarding the role the job requiresfrom the employee may be presented as an answer to a structured questionnaire. Finally, the lastportion of the job evaluation establishes pay rates or fixes individual rates for the job in question(Wright, 2004, pp. 54-55).2.4.9 Compensation StrategyIn order to meet their goals, it is essential for various organizations to adopt strategiesthat not only meet their goals but also meet the needs of their employees. The compensationstrategy is geared toward creating an environment that can attract and keep employees. In orderto accomplish this task, the compensation strategy follows four key elements. The first is thecompensation philosophy, which is based on an organization’s structure and culture. Financialconstraints, which show how much the company is willing to compensate its employees, is anelement based on the financial situation. The total rewards program details how an organizationmay reward those who perform well and provides the structure for administering pay. Thestructure for administering pay may encompass a strategy that allows certain elements to be