Hi i want to understand the methodology, logic, principles of point factor job evaluation scheme. Quantitative factor by factor methods point method, factor comparison ranking method simplest job eval method rank jobs in order of difficulty, pay ranges are assigned to each level. Factor comparison definition a scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. There are many different types of job evaluation systems to choose from. Job evaluation methods free online courses on job analysis.
It can also be defined as the procedure to determine the relative values of the job in a point to determine the basic wages for that job. Jobs are then grouped by total point score and assigned to wage. Advantages and disadvantages of factor comparison method. Under this method, one begins with the selection of factors. The factor comparison method this method is a combination of the ranking and point system. The point method is an extension of the factor comparison method. A study of the pointfactor job evaluation process used in the des. Job evaluation 2010 international council of nurses. A study of the pointfactor job evaluation process used in. The job knowledge factor is the basic entrance qualification required for the. The step difference is the essential building block of the method, and thus the basis of the job evaluation scale. The modified aiken plan described here is a factor comparison plus factor analysis plus point evaluation. As mentioned when we discussed internal and external factors, the value of the job is a major factor when determining pay.
These factors are assumed to be constant for each set. These methods include the ranking method, classification method, hay or point method, grading method, and factor comparison method. Factor comparison is a complex quantitative method. Five universal job factors used to compare jobs are responsibility, skills, physical effort, mental effort, and working conditions. Factor comparison utilizes several evaluation methods in order to evaluate jobs within an organization. The points for each factor are summed to form a total point score for the job. This method is also known as factor comparison method. The most commonly used include job ranking, whole job classification, and points factor comparison.
Point factor plans are considered to be particularly suitable for purposes of pay equity compliance. Job evaluation refers to the measurement of the value of a job relative to other jobs. Computerized job evaluation l e a r n i n g o b j e c t i v e s. Factor comparison method employment labour free 30day. Jul 18, 20 the primary factor in determining compensation is an evaluation of work performed. The factor comparison method is yet another approach for job evaluation in the analytical group. The objective of job evaluation is to determine which jobs should get more pay than others. Sep 20, 20 pay will be assigned in this method by comparing the weights of the factors required for each job. Each factor is then divided into levels or degrees which are then assigned points. Typically the number of compensable factors is small 4 or 5. There are primarily three methods of job evaluation.
Hitten was the first to originate factor comparison method of jobevaluation. In factor comparison, evaluators first rank jobs using a point assessment. Each factor is ranked individually with other jobs. 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. Chapter job evaluation methods flashcards quizlet. 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. It is based on the fact that the ability to discern a difference, is proportionate to the size of the 2 jobs which are being compared, and the step difference must, therefore, always be the same in percentage terms. Job evaluation is a technique to provide a systematic, rational, and consistent approach to. Point rating job evaluation is one method of determining the relative value of jobs. While many variations of these methods exist in practice, the three basic approaches are described here. The process of the pointfactor job evaluation method included the following components. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs.
Scribd is the worlds largest social reading and publishing site. The four most common job evaluation approaches are job ranking, job classification, point factor, and factor comparison. Preparing a manual for various jobs, fixing values for key and subfactors, establishing wage rates for different. The steps for implementing the point method of job evaluation are summarized in exhibit 8. The internal worth of a job is evaluated based upon factors like knowhow, problem solving, accountability, education, experience, complexity involved in the job, scope of job, supervision received and authority exercised. The job evaluation methods can be categorized as two different types. A set of compensable factors are identified as determining the worth of jobs.
This is the same as in other methods of job evaluation. At the end, a nal rank order was established for a meaningful base to build up a grade structure. It tries to make a systematic comparison bw jobs to assess their relative worth for the purpose of establishing a rational pay structure. The primary factor in determining compensation is an evaluation of work performed. Though it is the most complex method of all, it is consistent and appreciable. 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. Systematic way of determining the value or worth of a job in relation to other jobs in an organization.
Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. A combined analytical method of job evaluation semantic scholar. Pdf a study on job evaluation point factor analysis in. Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors viz. Advantages it is relatively detailed and specific jobs are evaluated on a component basis and compared against other jobs it is usually easier to develop than the point method it is tied to external market wage rates. Job evaluation methods free download as powerpoint presentation. Each has its advantages, disadvantages, costs and risks. Job ranking this method is one of the simplest to administer. The point factor job evaluation model figure 1 used for the des moines public school districts administrative job evaluations, provides the flow of activities for the point factor job evaluation process.
Job evaluation, point rating, factor comparison, factor plan, linear programming. Impact assesses the level of responsibility relative to other outofscope jobs. The internal worth of a job is evaluated based upon factor like knowhow, problem solving, and accountability, education, experience, complexity. Under this method, rather than ranking complete jobs, each of. Compare and contrast the four job evaluation methods. The most common are job ranking, factor comparison, point evaluation and job comparison methods. Each job is rated using the job evaluation instrument. I want to have a structured way of assigning points and giving weightage to factors while evaluating a job. With this method, you can compare jobs by using rating scales based upon several specific factors. Steps involved in factor comparison method select key jobs say 15 to 20, representing wagessalary levels across the organization. Job evaluation methods there are 4 basic and traditional systems of job evaluation. Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy andor salary system is in place. Then jobs are analyzed in regards to the external labor market to determine the.
Pay will be assigned in this method by comparing the weights of the factors required for each job. Advantages and disadvantages of factor comparison method will. Factor comparison method of job evaluation youtube. In other words, wages are assigned to the job in comparison to its ranking on each job factor. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. Top 4 methods of job evaluation explained with diagram. The ranking system, job classification or grading system, the factor comparison system, and the point system. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. Job evaluation is a technique to rank jobs in an organization on the basis of. Building a system of job evaluation in the organization 7. Under this method, rather than ranking complete jobs, each of jobs is ranked according to a series of factors. Weight priorities determined based on comparisons designate relative value of a comparative factor.
Purpose the purpose of the hay system is to provide a consistent procedure to evaluate position classifications by. For example, you may determine that skill is one of. This method determines the relative rank of the jobs to be evaluated in relation to monetary scale it is often used in evaluating, the. How to conduct a job evaluation eri economic research. Perhaps the simplest method of job evaluation is the ranking method.
If the human resources office makes changes, the job description is. The hay group was founded in 1943 in philadelphia, pennsylvania, by edward n hay. 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. Pdf a study on job evaluation point factor analysis in smes. Factor comparison a set of compensable factors are identified as determining the worth of jobs. In this method, each job is given a rank on the basis of a number of factors. Factor comparison method job evaluation method, pay plans. A factor comparison scale, instead of a point scale, is used. Give an example of an organization in which each of the four methods might provide an optimal strategic fit. There are many methods to evaluate the job on the basis of which you can judge the performance of the employee. A study of the pointfactor job evaluation process used in the des moines, iowa public school district.
This method is a combination of the weighted point and factor comparison methods. Quantitative factorbyfactor methods point method, factor comparison ranking method simplest job eval method rank jobs in order of difficulty, pay ranges are assigned to each level. Hay guide chart profile method of job evaluation hay system human resource management services adopted the hay system effective july 1, 2012 based on a legislative study of employee classification and compensation practices. Personnels are compared to key men as regards one factor at a time. Methods used for job evaluations include the job ranking method, the classification method, the pointfactor method and factor comparison method. There are several job evaluation methods from which to select. There are several ways to determine the value of a job through job evaluation. The factors include leadership qualities, initiative etc. 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. Hitten was the first to originate factor comparison method of job evaluation. The brandon university job evaluation system, which is used to evaluate and classify positions.
Advantages and disadvantages of factor comparison method will include the following. I have seen that people randomly allocate points to factors without any logic except statistics which helps only in calculation at the end. In the whole job category, there are two constructs. This factor plan was, in turn, used to evaluate a sample of 54 jobs carried out in the company. Factor comparison method job evaluation method, pay. Advantages with the hay group method of evaluation based on a credible, simple and coherent model of the characteristics of different levels of work sensitive in measuring job differences enables comparison of dissimilar jobs. Jobs are compared to each other based on the overall worth of the job to the organization. The korn ferry hay guide charts property of the korn ferry hay guide chartprofile method are the central instrument of the proprietary pointfactor job evaluation method developed by the hay group, now korn ferry. Introduction job evaluation is the process of comparing job with other jobs in terms of wages a worker should be paid for performing any task. Quantitative methods of job evaluation what is human. A job evaluation method that uses a factorbyfactor comparison.
The factorcomparison method is yet another approach for job evaluation in the analytical group. This method works by identifying key job factors and then assigning points based on importance. Definitions of job evaluation background of job evaluation. Job evaluation is defined as the process of determining the relative worth of jobs to determine pay structure. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i. The most prevalent one, the point factor plan, uses a quantitative approach that will be explained in this guide. This method determines the relative rank of the jobs to be evaluated in relation to monetary scale it is often used in evaluating, the managing administrative and whitecollared jobs. Common methods of job evaluations several techniques of job evaluation have been developed. How to assign points to factors in point factor job. In his article characteristics of factor comparison job evaluation, hay 1, 1946, hay had expressly shown his confidence and belief in the judgement of the skilled and well trained evaluators to presentproduce equal intervals.
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