Point Method Job Evaluation Example
- Compensable Factors. The job evaluation analyst begins by identifying compensable factors which are common across the jobs being evaluated.
- Assigning Points. The analyst divides each factor to be used into levels and defines and assigns points to each. ...
- Weighting. ...
- Categorizing the Job. ...
- Advantages and Disadvantages. ...
What is the point method of evaluation?
Extremes in Environment The point method is an extension of the factor comparison method. Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.
What is the point factor method of job evaluation?
Point–Factor Job Evaluation 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 method is used for job evaluation?
This method is used for job evaluation. 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.
How are points assigned to a job?
Points are assigned to the factors, and a pay structure is established for the position. The jobs with the highest points garner the highest pay. By comparing the jobs, the rank order of importance of each can be established. The factor comparison method represents a combination of ranking and points factor methods.
What is point method evaluation?
a method of evaluating jobs for the purpose of setting wage or salary levels in which a number of compensable job factors are identified, each factor is divided into degrees or levels, and points are assigned to each level; jobs can then be rated according to their total point score.
How do you write a point method for job evaluation?
1:014:01Point Method of Job Evaluation - YouTubeYouTubeStart of suggested clipEnd of suggested clipThe point method is developed by first identifying a set of factors for which the company is willingMoreThe point method is developed by first identifying a set of factors for which the company is willing to pay.
Which method is a method of job evaluation?
There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. While many variations of these methods exist in practice, the three basic approaches are described here.
What is the major advantage of point method?
ANS:The advantages of this system include a high degree of precision measuring jobs, it'seasy to apply with consistency, it provides an ordering of jobs and relative value of each,and it allows jobs to be clustered in pay classes more easily.
Why is the point method the most widely used for 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 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 are the 5 types of job evaluation methods?
5 Actionable Job Evaluation MethodsRanking Method.Classification/Grading Method.Point-Factor Method.Factor Comparison Method.Competitive Market Analysis Method.
What is the three methods of evaluation *?
The three main types of evaluation methods are goal-based, process-based and outcomes-based.
What is the best job evaluation method?
The paired comparison method (as displayed below) works well for smaller organizations, while a factor-comparison or a point-factor method works better for larger organizations. Of all job evaluation methods, the point-factor method is probably the best known.
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 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 are the steps in designing a point plan?
Step 1: Select. jobs to be evaluated.Step 2: Input. job information.Step 3: Select the. compensable factors.Step 4: Define. compensable factors.Step 5: Define. factor degrees.Step 6: Determine total. points in plan and weight.Step 7: Assign points. to degrees within.Step 8: Evaluate key jobs. first if known or evaluate.More items...
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)
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 is job evaluation with example?
What is job evaluation? A definition. Job evaluation is the systematic process of determining the relative value of different jobs in an organization. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone.
What is an advantage of using the point factor method in job evaluation?
What is an advantage of using the point-factor method in job evaluation? It relies on some degree of judgment by evaluators. It is understandable by employees. It provides documentation and an audit trail.
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.
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.
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 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.
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.
Job Evaluation Points
The HR department has a number of ways to track employees, job responsibilities and compensation. 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.
Additional Points for Evaluation
Responsibilities: Every job has a different set of responsibilities, but some are necessarily worth more compensation than others. For example, employees whose decisions have an impact on internal budgets have higher expectations laid upon them, and as such probably should earn a higher level of compensation.
Point Value Method Ranking
Using these basic categories, the HR representative goes through each position and assigns it a set of numbers based on an established key. For example, education may be ranked 1 through 4, and responsibilities may be ranked 1 through 10. The system is developed by HR internally in a way that will fairly represent the entire axis of employees.
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.
What are the major demerits of the clerical method?
The major demerits of the method are: It is both time-consuming and expensive method. It is difficult to understand for an average worker. A lot of clerical work is involved in recording rating scales. It is not suitable for managerial jobs wherein the work content is not measurable in quantitative terms.
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;
Is prejudice minimized in the systematic method?
Prejudice and human judgement are minimized. The method can not be manipulated. Being the systematic method, workers of the organization favor this method. The scales developed in this method can be used for long time. Jobs can be easily placed in distinct categories.
What is the point method of job evaluation?
It requires identifying several compensable factors (like skills and responsibility) each with several degrees and also the degree to which each of these factors is present in the job. A different number of points are usually assigned for each degree of each factor.
How many points does a decision making factor carry?
Thus, it was decide to assign 204 points to the decision making factor. This automatically means that the highest degree for the decision making factor would also carry 204 points. Then assign points to the other degrees for this factor, usually in equal amounts from the lowest to the highest degree.
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.
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.
What is the difference between quantitative and non-quantitative methods?
The difference between the two is: In quantitative methods, the key factors of a job are selected and then measured. In non-quantitative methods, a job is compared as a whole with other jobs in the organization. This approach breaks down jobs into compensable factors identified during a job analysis.
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.