Point method of job evaluation is widely used in business organisations. A point factor system that is objective, scientific, and justifiable can help delineate critical knowledge, skills, and abilities from the plethora of information that are often presented by the wholesale method of simply comparing job titles and job description summaries. Point factor method law and legal definition uslegal, inc. You would need permission from the owner of this tool to use it. The job evaluation system is comprised of two directly related components, a job description and a job questionnaire. School district to conduct the job evaluation study. It thus fits well into a flat structure, as it allows highlighting the job holders level of skills and responsibilities, independent of the corresponding hierarchical level. Step 4 define compensable factors after we know the compensable factors from the step 3, we must define one of them and make it specifically. Point factor plans are considered to be particularly suitable for purposes of pay equity compliance. These factors are assumed to be constant for each set.
Ppt job evaluation two pointfactor methods powerpoint. Point factor analysis pfa is a systemic bureaucratic method for determining a relative score for a job. Job evaluation methods there are 4 basic and traditional systems of job evaluation. For years, the point factor method was the most widely used. The points for each factor are summed to form a total point score for the job. An internet application this is an interactive webbased tool that allows you to develop a point method job evaluation instrument. The modified aiken plan described here is a factor comparison plus factor analysis plus point evaluation. The point method is a widely used technique in which factors that are important to the job are rated numerically. It involves a morea detailed, quantitative and analytical approach to the measurement of job work. The first shortcoming of traditional factor point method is absent in objectivity when determining factor point and weights. A more detailed description on these methods of job evaluation is presented in the next section. A point factor job evaluation system is used by sfu to determine the relative worth of positions in the cupe, local 3338 bargaining unit.
Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors viz. Every job evaluation method requires some basic job analysis in order to provide accurate information about the jobs concerned. For exam ple, there may be one plan for skilled shop jobs, another plan for unskilled assem bly work, and still a third plan for office and clerical. The job classification method is based on job classes. Hay guide chart profile method of job evaluation hay system. These are ranking, classification, factor comparison, and the point plan. C total number of points determines relative value of each job. Job evaluation two pointfactor methods 1 job evaluation two pointfactor methods. That is to say, with the profile method, each elements i. Quantitative methods of job evaluation what is human. Point rating method of job evaluation determine critical factors the points rating method includes the following job factors. 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 factor is then divided into levels or degrees which are then assigned points. The orga nization must also weight the factors, determine the number of complexity levels or degrees for each factor, and assign points.
Each job or class of jobs can be evaluated in terms of several factors associated with the physical and intellectual requirements, to gether with the responsibility and risk involved. This plan would be used, in turn, to determine the. The information obtained in job analysis is recorded in the precise language of a job description. Perhaps the simplest method of job evaluation is the ranking method. Different factors are selected for different jobs, with accompanying differences in degrees and points. Pdf a study on job evaluation point factor analysis in. Factor evaluation in this not that much objective as that of point rating technique. Under the point method, a detailed analysis of jobs worth is made for determining the fair wages.
Learn english with lets talk free english lessons recommended for you. Each factor should be defined and well understood, and. The point factor method uses specific factors to determine the relative value of a job compared to the others in the organization. The suma total to these points allotted to various job factors is the worth of the job. Job evaluation is a technique to provide a systematic, rational, and consistent approach. Each job is rated using the job evaluation instrument. Job evaluation methods free download as powerpoint presentation. The system must ensure internal equity and pay equity. Computerized job evaluation l e a r n i n g o b j e c t i v e s. The method is based on the following primary factors. Job ranking this method is one of the simplest to administer.
The point method is an extension of the factor comparison method. The factor comparison method this method is a combination of the ranking and point system. 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. Point factor systems are based on major core competencies that are assigned points. Job analysis is a systematic way to accumulate information about a job. Jobs are broken down into factors such as knowledge required. The following is the procedure for job evaluation under this method. The pay grade is associated with a pay range that is. Job evaluation developed out of civil service classification practices and some early employer job and pay classification systems. This method is a combination of the weighted point and factor comparison methods.
Judgment degree 1 decisionmaking is at a basic level and generally involves choices about how to get assigned work done safely and on time. Methods of job evaluation human resource management. Complexity decisionmaking impact supervisory these factors are divided into several levels, or degrees, each having assigned points. The factor comparison method compares jobs on several factors to obtain a numerical. Point method in job evaluation group 2 elsy wahyuni 1210932007 nur putri hidayati 12109320 fitryani zulkhaira 1210932043 sarvina 1210932002 gesti astria 1210932066 fitri fakhrun nisa 1210932019 fiwidya wahyuni 1210932040 zaid zamanda 1210932067 2. 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. In 1990, the job evaluation study of administrators in the des. A study of the pointfactor job evaluation process used in. Systematic way of determining the value or worth of a job in relation to other jobs in an organization.
Part 1 job evaluation methods and identifying job families. Jul 18, 20 point rating techniquea is the most widely used system of job evaluation. No matter which method is used, the result of the evaluation procedure is the ranking of jobs in order of importance. A point rating plan is developed by identifying compensable factors, defining a number of degrees for each factor, and assigning point values to each degree. The hay group guide chartprofile tm method of job evaluation or hay method the hay method is a proprietary job evaluation methodology that is the worlds most commonly used. How to perform a job evaluation sample pay structure. Each has its advantages, disadvantages, costs and risks. The pay grade is associated with a pay range that is defined by a minimum and a maximum pay rate.
A under this method of job evaluation, jobs are broke down based on various identifiable factorsa such as skill, effort, training, knowledge, hazards. The job evaluation system is known as the weighted job questionnaire custom wjq custom. A committee of six individuals were selected to be trained in the point factor job evaluation method. After this stage, it is usual to group into different grades those jobs to. Five major components in the the pointfactor method job evaluation process.
The method for determining an occupational series is the same for all positions, but the methods for determining grades differ according to the basic job evaluation approach used. Under this method, one begins with the selection of factors, usually five of them. It incorporates many of the characteristics of the lott, benge, and nema methods. Common methods of job evaluations several techniques of job evaluation have been developed. Jobs are rated on this factor, first by evaluating against the level definitions, then. Each degree is assigned a different number of points of different factor. While many variations of these methods exist in practice, the three basic approaches are described here. A study of the pointfactor job evaluation process used in the des. Allocate points to subfactors with the factors listed down one. The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. Bls worked with opm to develop a four factor occupational work level system for the ncs that streamlines the nine factor system. Thea method evaluates the compensable factors of each job.
This technique does not consider all the subfactors as the operating of the system would be difficult if it considers all the factors. An educated, ex perienced employee mak es a gre ater contributi on t han an in experienc ed o ne, thus the non. It helps in evaluating jobs by giving a detailed, analytical and quantitative evaluation. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. Each job receives a specified number of points based on a series of four factors. When a job is evaluated, points are assigned to each factor based on the degree or level each factor is present, and a total point value is derived. Core competencies can be structured and evaluated based on the companys culture, or a system like the hay method can be modified to fit your company. Factor comparison method point method the system starts with the selection of job factors, construction of degrees for each factor, and assignment of points to each degree. Determine the levels of factors since, the amount of responsibility or other factors may vary. There are several job evaluation methods from which to select. The use of limited number of factors usually five ensures less chances of overlapping and overweighting of factors.
The most common compensable factors in a smallbusiness factor evaluation system include skills, responsibilities, effort and working conditions. The factorcomparison method is yet another approach for job evaluation in the analytical group. Job evaluation has a certain advantages over other techniques of pay fixation. Five were selected from the larger dmaa committee and the sixth was this researcher. How to conduct a job evaluation eri economic research. In the point factor analysis method also called point method of job evaluation, the organization identifies the compensable fact ors and breaks them down into degrees. Jobs are compared to each other based on the overall worth of the job to the organization. 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. A factor is a major classification category that identifies aspects of a job for which the business is willing to pay. During world war ii, the national war labour board encouraged the expansion of job evaluation as a method of reducing wage.
To construct a carefully worded rating scale for each factor, be sure to include. The objective was to produce a factor plan from the analysis of subjective paired comparison decisions through a study of a small sample of jobs. Postsecondary courses, by definition, require high school graduation as a prerequisite. Just as with other methods or other job evaluation methods, the point method generally uses a setof factors like skill, effort, responsibility and job conditions. A study on job evaluation point factor analysis in smes. Aug 04, 2015 factor comparisonpoint method of job evaluation this method is widely used and is considered to be one of the reliable and systematic approach for job evaluation in mid and large size organisations. Jobs can then be banded into grades, and the grades used to determine pay. It is flexible also and has not upper limit on the rating that a job may receive on a factor. The ranking system, job classification or grading system, the factor comparison system, and the point system. The point factor method of job evaluation consists of a large number of discretionary decisions that result in something that appears to be entirely objective and, even, scientific. Select a job evaluation method the process of defining a job is called job analysis. Job evaluation is a technique to rank jobs in an organization on the basis of the duties and responsibilities assigned to the job.
By consensus some post secondary training is determined to be an additional program of up to six months. Point rating method of job evaluation mba knowledge base. This is the most widely used method of job evaluation. Job evaluation method the point system of jobevaluation is more commonly in use than other methods. Whether formal job evaluation began with the united states civil service commission in 1871 or with frederick w. I document it here for human resource practitioners who for various reasons wanted to know how it works education purposes.
This method works by identifying key job factors and then assigning points based on importance. When evaluating jobs, raters should select the factor degree that best represents the positions typical nature as not all of a job s responsibilities will fit within the same level definition. The important of job evaluation to organizational success. 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. The point method is based on one or several questionnaires that contain an evaluation scale for each of the considered compensation factors. With point methods of job evaluation, organizations usually have a series of job evaluation plans. Converting from nine factors to four in the occupational work.
Objectives, principles and methods of job evaluation. Job evaluation methods pdf free download as pdf file. Job evaluation methods pdf employment evaluation scribd. Factor comparisonpoint method of job evaluation most consulting firms adopt this method, which was pioneered by edward hay in 1943. The human management and senior management team incorporates one the methods that is geared to managing the evaluation. Jobs are then grouped by total point score and assigned to wagesalary grades so that similarly rated jobs would be placed in. Chapter job evaluation methods flashcards quizlet. Learn vocabulary, terms, and more with flashcards, games, and other study tools. I lesson 1 introduction to job evaluation o u t l i n e o f t h e l e s s o n 1.
Contemporary job evaluation typically relies upon point factor jes for the determination of relative job value. In the point method also called point factor of job evaluation, the organization identifies the compensable factors and breaks them down into degrees. The most commonly used include job ranking, whole job classification, and points factor comparison. The method is flexible as there is no upper limit on the rating of a factor. Each job is placed into the job class where the evaluator finds the best fit. It tries to make a systematic comparison bw jobs to assess their relative worth for the purpose of establishing a rational pay structure. Hitten was the first to originate factor comparison method of job evaluation. Top 4 methods of job evaluation explained with diagram. There are primarily three methods of job evaluation. Its starts with understanding the organization and its jobs, and then breaking down a job and evaluate it on the basis of several compensable factors, which are. The point factor rating method is another approach that beth can use. Government of newfoundland and labrador job evaluation.
Decisions are made within a framework of fairly detailed verbal or written instructions that provide little latitude for interpretation. Discuss the job ranking, point factor, classification and factor comparison methods of job evaluation to unlock this lesson you must be a member. The job evaluation process results in a job being assigned to a pay grade. Jan 26, 2019 job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. A it is an analytical and quantitative method which determines the relative wortha of a job on the basis of points alloted to each specific factor of a job. 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. The point factor method is the most commonly used method of job evaluation, which involves using specific factors to evaluate job worth. Scribd is the worlds largest social reading and publishing site. Jul 05, 2016 the hay job evaluation methodology is a proprietary methodology. Building a system of job evaluation in the organization 7. Developed in 1977 by the office of personnel management for nonsupervisory general schedule employees.
The point factor method includes seven job factors which are grouped into four categories. It is an analytical, factor based scheme, which aims to measure the relative size of jobs within an organization. Ncs determines the occupational work level by classifying each occupation job according to a point factor method. Pdf a study on job evaluation point factor analysis in smes. B jobs are analyzed in terms of their compensable factors and the total points for each job are accumulated. Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive.