Multiple choice

Which method is used to determine wage differentials?

  1. Merit rating

  2. Job design

  3. Job evaluation

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 A job evaluation is a systematic way of determining the worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Hence, job evaluation can be used to determine wage differential.

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