The process of determining the relative worth of jobs in an organization to develop the organization's pay structure is known as what?

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Study for the University of Central Florida MAN3302 Talent Management Exam. Use flashcards and multiple-choice questions with explanations. Get exam-ready with interactive learning!

The process described in the question refers to job evaluation, which is a systematic method used to assess the relative value of different jobs within an organization. By analyzing various factors such as the skills required, responsibilities, and the contribution each role makes to the organization’s goals, job evaluation helps in establishing a fair and equitable pay structure. This ensures that employees are compensated appropriately based on the complexity and importance of their roles.

In contrast, job analysis involves gathering detailed information about job duties, responsibilities, necessary skills, and working conditions but does not directly address pay structure. Job classification is the process of grouping jobs that are similar in nature and responsibilities, often for the purposes of establishing pay grades or categories but not necessarily focused on evaluating their relative worth. Job design, on the other hand, pertains to organizing tasks and responsibilities within a job, aiming to improve efficiency and satisfaction but does not involve assessing monetary value. Therefore, job evaluation is the correct term for determining job worth within an organization to guide pay decisions.