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

212.4.4 Skill-Based SchemesThese schemes are used to determine the various compensable factors required byindividuals at various levels. These factors are then equated toward the responsibilities held byindividuals within their job description in order to ascertain whether they can carry out theirtasks at that level. Thus, in order to ascertain the amount of skill the individual has with regard tothe job, various factors are assigned importance within the job description (Cooper and Locke,2000, pp.18-20).2.4.5 Market PricingMarket pricing is a scheme that has been used either individually or in conjunction withother job evaluation schemes in order to ascertain the pay equity within various organizations.This method has employed the use of market appraisals of various jobs in order to fix rates andemploy policies within an organization. It should be noted, however, that this is not considered amethod of job evaluation in certain academic circles and merely provides a guideline for the paystructure, which may be adopted by various companies. Oftentimes, internal evaluations directlyrelated to analytical schemes may be used in conjunction with this scheme in order to ascertainthe pay grade of various employees (Armstrong, Murlis and Group, 2007, pp.139-140;Armstrong, Cummins, Hastings and Wood, 2005, pp.23-25).2.4.6 Single-Factor SchemesSingle-factor schemes are those that, in accordance with its name, employ the use of onecompensable factor in order to evaluate various jobs. There are two methods which may beemployed: the first is decision banding and the second is time span of discretion. The decisionbanding scheme is based on the principle that every job demands a certain standard of decision