Start studying CH. Job Evaluation by Factor Comparison Method. Unlike technical skills, abilities are subjective qualities. It’s not easy to amend the scheme as circumstances change. The analyst continues until all factors are rated for the office manager job. However, if experience is among the most important factors, it might be weighted at 1.5, and thus the final value of the experience factor for the office manager job would be 75 (50 points x 1.5 weighting factor = 75). Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. Sam Ashe-Edmunds has been writing and lecturing for decades. 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. This method works by identifying key job factors and then assigning points based on importance. Then the committee will generally develop a point plan for one group or cluster at a time. For example, the “skill” category might be divided into experience, education and ability. by using the weights introduced at step 2). Job evaluation refers to a systematic method of determining a given job’s relative value or worth in relation to other jobs within a specific organization. Job evaluation has been defined as a process of analysis and assessment of jobs to ascertain reliably the relative worth. The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organisational objectives. Points so allocated to various factors of a job are then summed. But even so, point-factor methods are the most common forms of analytical job evaluation, with the International Labor Organization’s Scheme of Geneva from 1950 a popular though out-dated example of point-factor-based job ranking. A) It has a high degree of precision in measuring jobs. The steps for implementing the point method of job evaluation are summarized in Exhibit 8.13. Your company is considering using the point method of job evaluation and asks you for feedback. Four components of factor point method are: evaluation factor, factor level, factor point, weight. “Internet Based Benefits & Compensation Administration,” Atchison, Thomas J., Belcher, David W., Thomsen, David J., Economic Research Institute. Weights are given to factors depending on their importance to perform the job. Thereafter, points are allocated to each of these factors. It helps in evaluating jobs by giving a detailed, analytical and quantitative evaluation. Point-Ranking Method: Under this method, each job’s key factor is identified and then the subfactors are determined. Lower-level jobs that don’t give the employee much autonomy rely more on learned skills than innate abilities. For example, there may be one plan fo r skilled shop jobs, anot her plan for unskilled Point rating job evaluation is one method of determining the relative value of jobs. 1. 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. B) The process is objective and … Under this system, the job raters simply rank one job against another without assigning point … job analysis is recorded in the precise language of a job description. It breaks down jobs into compensable factors identified above. Weights are given to factors depending on their importance to perform the job. Under ranking method a committee is constituted. Specify the contribution given by the job to the organization. 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. There are several job evaluation methods from which to select. It involves a more detailed, quantitative and analytical approach to the measurement of job work. The process of the point-factor job evaluation method included the following components: 1. Characteristics of chosen job evaluation methods Example of numerical estimation on importance of verbal evaluation on a 5-point scale Figures - uploaded by Wiktor Adamus This requires ranking the different functions in a business. Each degree is assigned a different number of points of different factor. Job evaluation methods 1. The total job scores are used to create a job hierarchy by using either the original points (Job Ranking) or a translation into a grade structure (Job Grading). The Point Methods of Job Evaluation The Point Method – Establishing job values by the application of points to each job based on compensation factors Basic procedure:A number of compensable factors are identified and then the degree to which each of these factors is present in the job is determined and an overall point value is calculated (See Compensation Notebook 8.1, P.299of the text). The ranking and classification methods provide the evaluation of jobs in non-quantitative terms, whereas the point method and factor comparison method furnish the result in quantitative job values. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. (Five were selected from the larger DMAA committee and the sixth was this researcher.) The most common job appraisal methods include point factor, factor comparison, job ranking, and job classification. 2. Examples of compensable factors are: These include leadership, communications, judgment, innovation, entrepreneurship and problem-solving. For example, the key factor to perform a job is skills, and then it can be further classified into sub-factors such as training required, communication skills, social skills, persuasion skills, etc. These methods are discussed in the next section. 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. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. The point Method of job evaluation. job difficulty is divided into complexity and judgement elements). For example, for the factor “education” the difference in value between “some high school” and “some college” might be much less than the difference in value between “some college” and an “undergraduate degree,” thus accounting for the point spread. Although the outcome of job evaluation should be the same for any method the process might have to be adapted slightly for different methods at later stages. Typically the compensable factors include the major categories of: Skill ; Responsibilities ; Effort ; Working Conditions. Each degree is assigned a different number of points of different factor. Characteristics of chosen job evaluation methods Example of numerical estimation on importance of verbal evaluation on a 5-point scale Figures - uploaded by Wiktor Adamus For example, marketing, sales and financial management might be the top-rated functions at a company. A prominent example for a job ranking method is the International Labor Organization’s Scheme of Geneva from 1950. Then, cross-reference the points with a pay structure, which allows you to determine compensation for a particular position. Step 2 Input the job information. For example, if your evaluation includes the phrase, “failed to meet project deadlines”, they will know they need to work on their time management skills in the future. You can then break this category down even further and assign points based on experience, education and ability. In this guide we use the Hay or Point method, this is the most common method for job evaluation. In 1990, the job evaluation study of administrators in the Des Under this system, the job raters simply rank one job against another without assigning point values. With this method, you can compare jobs by using rating scales based upon several specific factors. 8 - Point Method of Job Eval.. For example, you may determine that skill is one of the factors. The point method is a widely used technique in which factors that are important to the job are rated numerically. Now retired from a Fortune 500 company, she consults and writes on related topics. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure.. That is to say, with the profile method, each element’s (i.e. 3. 1. Step 3 Select compensable factors. Because a qualified human resources professional might be harder to find than a salesperson -- and because an HR miscue can lead to legal problems -- this position might require you to pay similar compensation to a salesperson. Examples • a dog pound attendant was rated more highly than a child care worker • zookeeper rated more highly than day care worker Point Method of Job Evaluation Advantages of using the point method 1. various characteristics of jobs and the determining degree to which the ease of such factors is present in the job. Therefore the first step is usually to cluster jobs, for example into shop jobs clerical jobs, sales jobs, and so forth. It is particularly suited to jobs consisting of a variety of tasks. The point-factor rating method is another approach that Beth can use. For example, the highest points assigned to an officer's job in a bank come to 540. Prepared by selecting a number of pay ranges do not overlap or do not connect by which professionals... 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