Why is point method considered as the most widely used method of job evaluation?
The point method is a superior and widely used method of evaluating jobs. It forces raters to look into all key factors and sub-factors of a job. Point values are assigned to all factors in a systematic way, eliminating bias at every stage.
What are the advantages of point method of job evaluation?
The major merits of the method are: It is the most comprehensive and accurate method of job evaluation. Prejudice and human judgement are minimized. The method can not be manipulated.
How do you set up a point job evaluation system?
Identify Compensable Factors. Compensable factors form a basis for judging job value and should represent elements common to the jobs you wish to evaluate. ... Assign Points to Factors. Each factor should be divided into levels or degrees to which points are assigned. ... Weigh Factors or Categories of Factors. ... Categorize Job.
What is a job within the points factor method?
Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level.
Which job evaluation method is most commonly used today?
The most widely used method of job evaluation is point rating method. Under it, jobs are divided into component factors. Points or weights are assigned to each factor depending on the degree of its importance in a particular job. The total points for a job indicate its relative worth or value.
Which job evaluation method is best?
Here are the 5 Best Job Evaluation MethodsRanking Method. This job evaluation method works by ranking jobs according to their perceived value compared to other jobs. ... Grading/Classification Method. ... Point-Factor Method. ... Factor Comparison Method. ... Competitive Market Analysis Method.
What are the three common characteristics of point methods?
Three common characteristics of point methods:Compensable factors.Factor degrees numerically scaled.Weights reflect relative. importance of each factor.
What factors are used as the basis for creating a point system for job evaluation?
The point factor method is the most commonly used approach to job evaluation. This method identifies four primary compensable factors used to determine pay. These factors include: Skills (years of experience, level of education and overall ability)
What is a disadvantage of the point method?
The disadvantages includethe complexity and difficulty involved in developing this system, the fact that it isbasically a subjective process, and the possibility of flaws.
What is the major disadvantage of job classification method?
A disadvantage of job classification is that data pools are small because they only apply to the company that created them. This means whenever companies create a new job, the only thing you have to compare it to is the other jobs that already exist within the company.
When using the point method key jobs refers to?
To compare jobs, evaluate roles based on factors such as mental effort, physical effort and working conditions. Using the point system, you select key jobs and identify the common factors or attributes, such as skills, accountability and effort. Then, you define sub-factors and associate a point value for each one.
What are the 3 compensable factors in job evaluation?
To be useful in comparing jobs, compensable factors should possess the following attributes: They must be present in all jobs. They need to be definable and measurable. The factor must vary across the company.
What is an advantage of using the point factor method in job evaluation?
PFA is a type of job evaluation; the main advantage of PFA is that it is systemic and analytical. Jobs are divided into factors such as “required k...
What is point factor job evaluation?
Point job evaluation is a quantitative form of job evaluation that uses certain factors and levels within them. Job requirements are compared with...
What is a point evaluation method?
The point factor method is a commonly used quantitative technique. This approach divides jobs into compensated factors identified during job analys...
How do you write a point method for job evaluation?
Step 1: Select. jobs to be evaluated. Step 2: Enter. workplace information. Step 3: Select. factors. Step 4: Determine. factors. Step 5: Determine....
What is point factor based job evaluation?
Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level.
How are job scores used?
The job scores are added to determine a total and are used to create a job hierarchy by using either the original points ( job ranking) or a translation into a grade structure ( job grading ). Put simply, the value of a job is judged based on the requirements of the core duties, tasks and generally labor involved.
What is point factor ranking?
For a point-factor based job ranking, the requirements, responsibilities, and other aspects of a job - not the position holder as a person - are evaluated with a set of standardized and generalized factors. And, with the factors consisting of several levels, points are assigned to each level. To do this, the requirements of the job are compared with the factor-level explanation to determine which is the best fit. The total score shows the value of the position. Once the total score is calculated, the jobs can be placed in rank order.
Is there an element of judgement required with point-factor job evaluation?
There’s still an element of judgement required with point-factor job evaluation which impacts on true objectivity. But as the evaluators become more experienced at interpreting the factor plan and input of job descriptions, they start to gain greater clarity on the process and make more accurate judgements.
Can you use non-analytical job evaluations as a defence in equal value claims?
You don’t need to worry about the oversimplified results you get from non-analytical job evaluation - and you can use them as a defence in equal value claims as long as they are based on proper job analysis and a system without inherent gender-bias.
How does the point method work?
With the point method, each position is given a set of scores that can be given for every aspect identified as valuable. Then, HR assigns a value for each individual score. Once scores are calculated with regards to a weighting factor and summed, HR will have a basic ranking of each job as compared to the others based on their assigned ratings and weightings. From there, they can begin to compare salaries within departments and positions, and make sure they are assigning equal compensation to equal worth.
How does HR track employees?
One of the most straightforward ways is to use the point method to evaluate jobs within the company and make sure the pay scales match. The Society for Human Resource Management explains that this system also forces companies to determine which roles are of most value to the company.
Why should employers consider a higher level of reward?
Environment: For employees who physically work in conditions with risk, employers should consider a higher level of reward. For example, while technicians who work in a chemical facility may not compare to other positions in regards to education or experience, since they are the employees out in the field with potential exposure to chemicals and equipment, they should be given higher points than a technician working in an inside laboratory where the conditions are considered more temperate.
What is HR department?
The human resources (HR) department at any company is constantly monitoring and evaluating how internal jobs relate to one another, including via the point value method or simple ranking method. After all, in today’s business world, where information about comparable salaries and compensation is becoming more readily available, it’s becoming increasingly important that individuals feel like they are being compensated on a fair scale as compared to their coworkers.
What is job evaluation?
Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. The point method is a widely used technique in which factors that are important to the job are rated numerically.
What is the final step of job evaluation?
In the final step, the job evaluation analyst totals the points for the office manager job and groups it with other jobs with similar job totals. This group will eventually become the job pay grade, ensuring that even dissimilar jobs can be compared equitably.
How many points does experience have?
For example, he could define the “experience” factor into 5 levels with points distributed as follows: No experience (entry level) = 10 points 1-3 years experience = 30 points 4-6 years experience = 50 points 7-10 years experience = 75 points Over 10 years experience = 100 points
Is the point method of job evaluation easy to use?
Although it is complex and may require the participation of management, once completed the point method of job evaluation is easy to use and is not likely to need frequent updating. External point evaluations for common jobs are widely available.
What is point rating method?
Point Rating Method of Job Evaluation. Point Rating technique is the most widely used system of job evaluation. The method evaluates the compensable factors of each job. It involves a more detailed, quantitative and analytical approach to the measurement of job work.
What are the factors that determine the job evaluation?
Under this method of job evaluation, jobs are broke down based on various identifiable factors such as skill, effort, training, knowledge, hazards, responsibilities and so on. Thereafter, points are allocated to each of these factors. Weights are given to factors depending on their importance to perform the job.
How to allocate points to sub-factors?
Allocate points to sub-factors – With the factors listed down one side and the levels placed across the top, the result is a point method matrix. Starting with highest level, the job evaluation committee subjectively assigns the maximum possible points to each sub-factor. The allocation allows the committee to give very precise weights to each element of the job.
How to apply point system?
Apply the point system — When the point matrix and manual are ready, the relative value of each job can be determined. This process is subjective. It requires specialists to compare job descriptions with the point manual for each sub-factor. The match between the job description and the point manual statement reveals the level and points for each subfactor of every job. The points for each sub-factor are added to find the total number of points for the job. After the total points for each job are known, the jobs re ranked.
How are weights given?
Weights are given to factors depending on their importance to perform the job. Points so allocated to various factors of a job are then summed. Then, the jobs with similar total of points are placed in similar pay grades. The sum of points gives an index of the relative significance of the jobs that are rated.
How many steps are required to implement the Point Rating System?
Point Rating System requires six steps and is usually implemented by a job evaluation committee or by an individual analyst. Determine critical factors — The points rating method includes the following job factors for allocation of points: Safety of other; Equipment of materials;
Can jobs be easily placed in distinct categories?
Jobs can be easily placed in distinct categories.
What are the steps involved in the point method?
Steps involved in point method: 1. Determining the type of a job: The jobs range from top senior position to watchman level. Each involves different skills, responsibility, efforts and working conditions. Unskilled jobs have a separate evaluating programme for them. 2.
How does a degree help in evaluating jobs?
It helps in evaluating jobs by giving a detailed, analytical and quantitative evaluation. It identifies certain number of factors i.e. various characteristics of jobs and the determining degree to which the ease of such factors is present in the job. Each degree is assigned a different number of points of different factor.
What are the four methods of job evaluation?
The four primary methods of job evaluations used to set compensation levels are point factor, factor comparison, job ranking, and job classification . The first two are quantitative and the latter two are non-quantitative. The difference between the two is: In quantitative methods, the key factors of a job are selected and then measured.
How does job evaluation work?
Job evaluation typically occurs early in the process of creating a compensation system for an organization. The goal is to make a comparison between jobs to assess their relative worth for the purpose of establishing a logical pay structure. It may be compared to or used in conjunction with market pricing, which uses the labor market to set the value of jobs. An effective job evaluation system determines the best rate of pay for a position and develops a broad job description that adapts to a company’s needs as they change over time. There are a number of ways to approach job evaluation, but there are four primary methods that all HR professionals should know.
What is job evaluation?
Job evaluation is a systematic and objective process used by companies to compare jobs within their organization to assess the relative value or worth of each job. This is unrelated to performance reviews, as the goal is to evaluate the job itself, not the person who is performing the job. Job evaluation typically occurs early in the process ...
What happens when you go down in the ranking method?
As you go down in the ranking method, duties become less specialized and jobs considered less valuable or expendable. Salaries are typically generated in order of job importance to the company and compensation is then based on ranking order with the highest-ranked position earning the highest pay. Job classification.
What is job classification?
Job classification. This is a grading system. In the job classification method, descriptions of each class of jobs are created and assigned a grade based on the job’s skill and complexity that best matches the class description.
What are the characteristics of a job?
The characteristics may include the level of responsibility required, competencies required, and physical exertion necessary to perform the job and, as such, positions may fall within more than one grade level.
What is the most important level in a job?
The jobs are typically ranked based on a single factor, such as difficulty or education required to effectively perform the job. The top of the hierarchy is considered the most important level; the person who sits at the top has the most authority.
Point-Factor Job Ranking Explained
Merits and Flaws of Point-Factor Based Job Ranking
- The issue of total objectivity arises when considering the precision with which level descriptions can be defined - and which information about the job is most relevant. Some systems, often coming from the context of “scientific management” theories, create the illusion of objective “measurement” by using quantified jumps between levels. However the explanation of a 20% ju…
Table - Example of A Weighted Factor Plan
- Detailed factor-level definitions are often available with commercial systems. But those proprietary systems can be quite cryptic, needing the specialized knowledge of consultants to operate.