(ii) Selecting a sample of jobs and preparing job descriptions, job specifications and employee specifications. One way to create a point system for evaluating jobs is to assign a numerical scale to determine the value of the job. Value the factors in which key jobs are divided. The job evaluation committee ranks each of the key jobs under five factors: (a) Mental requirement – memory, intelligence etc. In other word giving numeric points for the jobs to evaluating jobs worth. Classification method. An employee receives a piece rate up to a standard and then receives a higher rate once the standard has been exceeded. Most appropriate in small organisations, iii. This method is more comprehensive, logical and reliable compared to the simple ranking method. The preparation of trade description, different levels or grades of job may be identified. Basically, a company will set up a … Whether formal job evaluation began with the United States Civil Service Commission in 1871 or with Frederick W. Taylor Eight to twelve factors are most desirable. Factor Identification. Factors could include education, training, experience, customer relation, responsibilities and decision making authority. It involves ranking different jobs on the basis of various compensable factors and then assigning a pay grade to that job. (d) There is an assignment of numerical scores on a rating scale and then key factors are measured. There are two methods under conventional quantitative techniques, viz., points rating and factor comparison system. The evaluator, in order to minimise this problem has to identify the key or representative jobs at the first stage, rank the key jobs at the second stage, identify and rank all other jobs at the third stage. Quantitative techniques include points rating and factor comparison method. (i) This method is simple, easy to understand and less time consuming. This method of job evaluation should be developed systematically and applied methodically in order to avoid the anomalies. 2. iii. However, points system will help in arriving an equitable pay structure. 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. iii. The orga- nization must also weight the factors, determine the number of complexity levels or … It is difficult to determine the factor level within factors and assign values of them. brochure on gender neutral job evaluation, Working Conditions (uncommon in modern job evaluation systems). A key job must be clearly divisible into sub-factors and components. The jobs are to be priced after they are ranked. It identifies certain number of factors i.e. iv. iii. (vi) The sixth step is comparing all the jobs (factor by factor) of the same grade or level with the related key job and establishing monetary value to the sub-factors of various jobs based on the monetary value of sub-factors or key jobs. Selection of grades and key jobs. The factor-comparison method is yet another approach for job evaluation in the analytical group. It is simple to operate and simple to understand. (c) Responsibility- For preventing monetary loss, machines, materials, safety, policy etc. 1. Under this method, jobs are … The Factor Comparison Method: Methods of Job Evaluation – 4 Important Techniques: Ranking, Grading, Point System and Factor Comparison System Techniques. Point–Factor Job Evaluation Method explained. It is used in important Government services and operates efficiently. They are ranking and job classification methods. Read More: Point Rating Method of Job Evaluation Selecting a number of key jobs: This step is more critical and useful from the point of final evaluation as the other jobs are assigned monetary values based on the fixed wage rates arrived for the key jobs on the basis of negotiations. It does not take much time or requires technical help. Posted: (1 days ago) 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. A factor is a major classification category that identifies aspects of a job for which the business is willing to pay. The advantages of this method are presented in Exhibit 14.4. (d) Job conditions-Working conditions, hazards etc. Generates a hierarchy but does not have an external component. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level. Advantages and Disadvantages of Signal Factor Ranking Method: ii. 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). There are several steps in the mechanism of this method. Combination of ranking and factor comparison methods, iii. But those proprietary systems can be quite cryptic, needing the specialized knowledge of consultants to operate. We’ll look at the four major methods used in job evaluation and the advantages/disadvantages of each Job Ranking Method Job Classification Method Point Method Factor Comparison Method 3. 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. ii. Operation involves heavy expenditure, time and clerical work. Pay for such jobs should range from about the lowest to or near the highest, usually 15-20 jobs are chosen against which to evaluate all other jobs. II. . (iv) It can be applied to a wide range of jobs. The second degree 3 to 6 month, gives 10 points. May not reflect market values of jobs. Difficult to explain the mechanism and operation of the method, and. Points Rating Method 2. The pay scales of various jobs will be fixed within the minimum and maximum limits of the pay. 33/-/ •o u-5w3 TableofContents INTRODUCTION JOBEVALUATION JOBEVALUATIONHISTORY 13 BASICMETHODSINUSE page13 TheRankingMethod 14 TheClassificationMethod 14 TheFactorComparisonMethod 15 ThePointSystem 16 ESSENTIALSOFAJOB EVALUATIONSYSTEM page19 EstabHshingPolicies 20 SelectingthePlan 20 ChoosingtheFactors 21 … iv. All the jobs are comparing with key jobs, factor by factor to determine their relative importance and positioning the scale of job, to determine also their money value. (i) Determine the shape and size of organisational structure, i.e., tall or flat organisation, geographical or functional organisation etc. Job Evaluation: Point Method Point Method-The job evaluation method in which several compensable factors are identified, and the degree to which each portion is present on the job is determined. It is difficult to determine factor levels and assign point values, ii. i. It is to find out whether the difference among factors as per the ranking and factor evaluation is one and the same or not. (ix) Appraise all the jobs and arrive at a composite numerical value for each job. Conventionally, non-quantitative — simple and crude techniques are developed. (d) Ranking of all jobs in the organization around the benchmark jobs, until all jobs are placed in their rank order importance. (iv) Determining the weight of each factor according to its relative importance and assigning the percentage value to each factor. (iv) The fourth step involves valuing the sub-factors of each of the key jobs. A different number of points are usually assigned for each degree of each factor. The mechanism or modus operandi of this method involves the following steps: i. iii. Account Disable 11. The preparation of job description which gives us basic job information usually derived from job analysis. The total score shows the value of the position. The method evaluates the compensable factors of each job. The evaluator compares one job with other jobs based on duties, responsibilities and demands made by the jobs on the job incumbent and the degree of importance of the job to the organisation and ranks all the jobs from the most important to the least important. ii. iii. Copyright 9. Step 4 Define compensable factors After we know the compensable factors from the step 3, … Point factor method is most representative and most widely used job evaluation method. (viii) Testing the mechanism- Get the total points with the help of above mentioned method for a few sample jobs and compare them with the results obtained through other methods. Trend line through a scatter of points is seen in Figure 14.4. Put simply, the value of a job is judged based on the requirements of the core duties, tasks and generally labor involved. The sum of these points gives us index of the relative significance of the job that is rated. The method of paired comparison can be adopted to minimise this problem. The basic pay for each key job is allocated to each factor. About 10-20 jobs are selected which include all the major departments and functions. (iii) The value of the job is expressed in monetary terms which make the method effective. Various types of jobs are performed by employees in an organization. evaluation methods, the point method generally uses a set of factors that has been developed by others. For more information, refer to Module People, Functional Area 4, Section. v. Establishing the Monetary Unit Value for all Jobs: Monetary values are assigned to each factor of every key job. (iii) Preparation of grade descriptions based on various components. And, with the factors consisting of several levels, points are assigned to each level. This should reflect a range from lowest to the highest. The ranking method is the simplest method of job evaluation, where each job as a whole is compared with; other i.e., “the whole job” is compared rather than compensable factors. This method is superior to other methods discussed so far as this is analytical as well as quantitative. This method is based on certain compensable factors within a company. vi. There are no limits to the value which may be assigned to each factor. (ii) It is difficult to determine the factor levels within factors and assign values to them. Finally, wage/salary rate is fixed for each grade, because of difference in duties, skills and knowledge. The most common compensable factors in a small-business factor evaluation system include skills, responsibilities, effort and working conditions. (ii) Divide each major factor into a number of sub-factors. A modernized weighted factor plan was published by the ILO on page 78 of their 2009 brochure on gender neutral job evaluation. The important steps in the process of developing this technique are: (i) Constituting a representative committee of members from various departments for job evaluation. (c) In quantitative method ‘compensable factor’ are considered i.e., Key factors or critical factors. Definitions are written in applicable terms to the jobs, iii. Probability consequences of errors (in terms of waste damage etc.). For example, Assistant Accountant, Accountant, Senior Accountant and Chief Accountant are the jobs in the occupation of Accountant. (i) It is difficult to write a grade description especially where large number of jobs is involved. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. Personal evaluation by executive establishes the major classes and determines into which classes each job should be placed. (v) Discussion and negotiation with trade union representatives regarding the number of grades, grade descriptions, getting their consent, finalising the number of grades and grade description and recording them. Does not provide yardstick for measuring relative worth of a job, ii. (i) It is the most widely used method of job evaluation. Each job is placed into the job class where the evaluator finds the best fit. It is difficult to know how much of jobs rank is influenced by the man on the job. Considerable clerical work is essential in recording the scale. To implement the Point Factor method, identify which factors make one job more valuable to the organization than another. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level. Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. Advantages and Disadvantages of Points Rating Method: i. (c) Identification of key jobs or benchmark is done and rated on the basis of its importance. Thus, each job is ranked a number of times (i.e., number of compensable components or sub-factors). (i) Select key jobs and cluster the jobs on the basis of similar skills, efforts, responsibility etc. The methods of job evaluation are categorised into:-, A. Non-Quantitative Techniques – 1. 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