What system assesses jobs to determine appropriate compensation?

The correct answer, which is Job Evaluation, is a systematic approach used to assess the relative worth of jobs within an organization to determine equitable compensation. This process examines various factors such as the skills required, responsibilities, working conditions, and the complexities involved in performing the job. The primary goal of job evaluation is to ensure that employees are compensated fairly based on the value of their role compared to others in the organization, which helps avoid wage disparities and ensures compliance with labor laws.

Job Classification refers to the method of grouping similar jobs together based on predefined criteria and does not directly assess the value of individual jobs for the purpose of compensation. Compensation Strategy is more about the overarching plan for an organization regarding how to manage its pay structures and may involve considerations informed by job evaluation, but it is not the tool specifically used to assess job value. Similarly, a Salary Scale represents a predetermined range of pay rates for specific job levels or classifications but does not itself conduct assessments to establish those rates. Hence, Job Evaluation is the definitive method for determining appropriate compensation by analyzing job roles and their value within the organization.