Point method of job evaluation in the point method also called point factor of job evaluation, the organization identifies the compensable factors and breaks them down into degrees. Oct 25, 2018 the final job evaluation method is the point method, which measures performance through scales and job factors rather than focusing on entire job functions and ranking employees against each other. Tahereem bardi job evaluation content definition objective principle process methods advantages definition according to wendell. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Advantages it is relatively detailed and specific jobs are evaluated on a component basis and compared against other jobs it is usually easier to develop than the point method it is. You should be very clear about the factors which are most important in the method of evaluation you have chosen. These methods include the ranking method, classification method, hay or point method, grading method, and factor comparison method. In 1990, the job evaluation study of administrators in the des. There are several job evaluation methods from which to select. Factor comparison a set of compensable factors are identified as determining the worth of jobs. The method is flexible as there is no upper limit on the rating of a factor.
Ppt job evaluation powerpoint presentation free to. In quantitative methods key factors of the job are selected and measured. This method works by identifying key job factors and then assigning points based on importance. Quantitative methods of job evaluation what is human. Job evaluation is a technique to provide a systematic, rational, and consistent. Methods of job evaluation human resource management. Jobs are compared to each other based on the overall worth of the job to the organization. Thats why its critical to assess and determine the value of jobs performed within the organization and the relative value or worth of the employees efforts. As originally developed this method involves ranking of jobs in respect of certain factors and usually involves the assigning of money wages to the job depending upon the ranking. May 23, 2014 job evaluation is the heart of the process by which managers determine how much they will pay one employee compared to another. Point factor method is most representative and most widely used job evaluation method.
Advantages it is relatively detailed and specific jobs are evaluated on a component basis and compared against other jobs it is usually easier to develop than the point method it is tied to external market wage rates. Job evaluation is the heart of the process by which managers determine how much they will pay one employee compared to another. While many variations of these methods exist in practice, the three basic approaches are described here. Factor comparison method of job evaluation youtube. Factor comparison is a complex quantitative method.
The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i. Job analysis is a systematic way to accumulate information about a job. Quantitative factorbyfactor methods point method, factor comparison ranking method simplest job eval method rank jobs in order of difficulty, pay ranges are assigned to each level. The paper aims to develop a new method to measure and assess qualitative parameters of job in a simple, transparent, universal and timeless way. Job evaluation, point rating, factor comparison, factor plan, linear programming. How to conduct a job evaluation eri economic research. It is the most widely used method of job evaluation. A free powerpoint ppt presentation displayed as a flash slide show on id. Advantages and disadvantages of factor comparison method. Factor comparison definition a scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. Objectives, principles and methods of job evaluation.
The method may consider the whole job by ranking a set of jobs, or by comparing each job to a general level description. The committee composed of executives and representatives of. With this method, job factors are identified under primary groups i. The factor comparison method represents a combination of the ranking. A committee of six individuals were selected to be trained in the pointfactor job evaluation method.
The point method is an extension of the factor comparison method. Job evaluation methods there are 4 basic and traditional systems of job evaluation. Job ranking this method is one of the simplest to administer. Points or weightage are assigned to each factor depending on the degree of its importance in a particular job. Example of a pay equity plan jobtojob comparison method version pdf 54 kb3pages download adobe reader disclaimer.
Factor evaluation in this not that much objective as that of point rating technique. Each factor is then divided into levels or degrees which are then assigned points. There are primarily three methods of job evaluation. In other words, wages are assigned to the job in comparison to its ranking on each job factor. The most common are job ranking, factor comparison, point evaluation and job comparison methods. Jul 17, 20 there are four basic methods of job evaluation. It is flexible also and has not upper limit on the rating that a job may receive on a factor. There are many different types of job evaluation systems to choose from. Building a system of job evaluation in the organization 7.
Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation so as to develop an equitable wage and salary structure. Each has its advantages, disadvantages, costs and risks. In the literature we know several methods to job evaluation. Top 4 methods of job evaluation explained with diagram. It tries to make a systematic comparison bw jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job evaluation is a process to determine the value of a particular job to the organization based on the importance of duties and tasks performed on the given job. Therefore, job evaluation begins with job analysis and ends at that point where the value of a job is determined for achieving pay equity between. Systematic way of determining the value or worth of a job in relation to other jobs in an organization. Next we give a brief overview of the ranking method. Example of a pay equity plan jobtojob comparison method. Steps involved in factor comparison method select key jobs say 15 to 20, representing wagessalary levels across the organization. Weight priorities determined based on comparisons designate relative value of a comparative factor.
A set of compensable factors are identified as determining the worth of jobs. The four methods of job evaluation are now discussed one by one. An educated, ex perienced employee mak es a gre ater contributi on t han an in experienc ed o ne, thus the non. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. The methodology underlying the approach contributes to a minimum of. The objective of job evaluation is to determine which jobs should get more pay than others. Pay will be assigned in this method by comparing the weights of the factors required for each job. Introduction a more systematic and scientific method of job evaluation. However, none of them determines precisely the value of individual job evaluation within organization. A study on job evaluation point factor analysis in.
Hitten was the first to originate factor comparison method of jobevaluation. The use of limited number of factors usually five ensures less chances of overlapping and overweighting of factors. This technique does not consider all the subfactors as the operating of the system would be difficult if it considers all the factors. The factorcomparison method is yet another approach for job evaluation in the analytical group. Under this method, one begins with the selection of factors. Quantitative factor by factor methods point method, factor comparison ranking method simplest job eval method rank jobs in order of difficulty, pay ranges are assigned to each level.
Feb 10, 20 job evaluation presented by sandeep singh 2. The most prevalent one, the point factor plan, uses a quantitative approach that will be explained in this guide. Discuss the job ranking, point factor, classification and factor comparison methods of job evaluation to unlock this lesson you must be a member. At the end, a nal rank order was established for a meaningful base to build up a grade structure. Methods of job evaluation with advantages and disadvantages.
Advantages and disadvantages of factor comparison method will include the following. Under this method, instead of ranking complete jobs, each job is. Jan 27, 2019 this video contains explanation of job evaluation, job evaluation in hindi, methods of job evaluation, point rating method and factor comparison method of job evaluation. By abhilasha goel monica rani factor comparison method thomas e. There are many methods to evaluate the job on the basis of which you can judge the performance of the employee. Every job evaluation method requires some basic job analysis in order to provide accurate information about the jobs concerned. Various types of jobs are performed by employees in an organization.
A study of the pointfactor job evaluation process used in. With competition outside firms increasing, external labor market price has more and more influence on internal labor market price since 20cen80s, traditional point factor method developing before and after. Ideally, all factors should be present in all the jobs being evaluated to some degree, so that each job can be scored under each factor heading. Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy andor salary system is in place. Factor comparison is a quantitative type of job evaluation that involves ranking benchmark. Factor comparison method job evaluation pdf evaluation. It is flexible also and has not upper limit on the rating that a job may receive on. Factors comparison method this is a combination of both rating and point. Out of these, firsta two methods are nonquantitative and also known as traditional, nonanalyticala or summary methods.
These factors are assumed to be constant for each set. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. Out of these, first two methods are nonquantitative and also known as traditional, nonanalytical or summary methods. Ranking method of job evaluation this is simplest form of job evaluation method. A gender neutral job comparison system was used to measure the value of each job class. Points were assigned to each job class based on the following factors and subfactors. Job evaluation has a certain advantages over other techniques of pay fixation. Job evaluation is the process of comparing a job against other jobs within the. Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors viz. The advocates of factor comparison method point out that it usually results in accurate job evaluation because it is relatively more objective because weight are not selected arbitrarily. The points for each factor are summed to form a total point score for the job. Chapter job evaluation methods flashcards quizlet. Ranking, job classification, factor comparison and point method. This factor plan was, in turn, used to evaluate a sample of 54 jobs carried out in the company.
Every job evaluation method requires at least some basic job analysis in order to. This video contains explanation of job evaluation, job evaluation in hindi, methods of job evaluation, point rating method and factor comparison method of. The ranking method is the simplest form of job evaluation. Advantages with the hay group method of evaluation based on a credible, simple and coherent model of the characteristics of different levels of work sensitive. The factor comparison method is a very precise method of job evaluation.
You can choose any of the methods for job evaluation. Job evaluation is a systematic process that determines the relative worth of jobs within an organization. A method of job evaluation in which jobs are compared with each other in terms of compensable job factors. Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of. It should be recognised that a second system, the factor comparison method, was born out of the point method and the hay method has been drawn from the womb of both the point method of 1924 and the factor comparison method of 1926 this, after so many experiments and applications of both of these systems see sec. Sep 20, 20 pay will be assigned in this method by comparing the weights of the factors required for each job. Pay is a source of justice or mostly injustice within a firm. The method involves ranking each job relative to all other jobs, usually based on some overall factor like job difficulty each job as a whole is compared with other and this comparison of jobs goes on until all the jobs have been evaluated and ranked. Advantages and disadvantages of factor comparison method will. Pdf a study on job evaluation point factor analysis in.
Hitten was the first to originate factor comparison method of job evaluation. Five were selected from the larger dmaa committee and the sixth was this researcher. This method determines the relative rank of the jobs to be evaluated in relation to monetary scale it is often used in evaluating, the managing administrative and white. Discuss the job ranking, pointfactor, classification and factor comparison methods of job evaluation to unlock this lesson you must be a member. The factor comparison method is yet another approach for job evaluation in the analytical group. Pdf job evaluation developed out of civil service classification practices and some early employer job and pay classification systems.
Common methods of job evaluations several techniques of job evaluation have been developed. Pdf a study on job evaluation point factor analysis in smes. The most commonly used include job ranking, whole job classification, and points factor comparison. Refer to the pay equity act for exact interpretation. Each factor is ranked individually with other jobs. Typically the number of compensable factors is small 4 or 5. Job evaluation is a technique to rank jobs in an organization on the basis of. The ranking system, job classification or grading system, the factor comparison system, and the point system. In seventeen years of consulting and teaching, ive only encountered the factor comparison method in use a handful of times, shares astron solutions national director jennifer loftus. In this method, each job as a whole is compared with other and this comparison of jobs goes on until all the jobs have been evaluated and ranked. With this method, you can compare jobs by using rating scales based upon several specific factors. Analyzing to price competitively by hr daily advisor editorial staff oct 27, 2014 benefits and compensation job evaluation is a systematic method of determining a jobs relative worth within an organization. The last two methods of job evaluation are quantitative.
Each job is rated using the job evaluation instrument. School district to conduct the job evaluation study. In this method, each job is given a rank on the basis of a number of factors. I am currently doing job evaluation of a paint manufacturing concern. The factor comparison method this method is a combination of the ranking and point system. Read this article to learn about the following four methods of job evaluation, i. Under this method, one begins with the selection of factors, usually five of them.
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