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Then, cross-reference the points with a pay structure, which allows you to determine compensation for a particular position. Thereafter, points are allocated to each of these factors. The analyst divides each factor to be used into levels and defines and assigns points to each. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. 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. 1. 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. It helps in evaluating jobs by giving a detailed, analytical and quantitative evaluation. With this method, you can compare jobs by using rating scales based upon several specific factors. Ranking method. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. The point method can evalu- ate all jobs simultaneously, rather than limiting evaluation to only key jobs. Office administration and maintenance might be the lowest-rated functions. HRM BY, kevimedo Job Evaluation Methods 2. Examples of compensable factors are: The human management and senior management team incorporates one the methods that is geared to managing the evaluation processing (George and Jones, 2005). Each degree is assigned a different number of points of different factor. The steps for implementing the point method of job evaluation are summarized in Exhibit 8.13. 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. 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. This is the most widely used method of job evaluation. To determine whether a job is a staff-, coordinator-, manager- or director-level position, for example, the HR person conducting the evaluations will apply specific criteria, awarding points on a sliding scale. In the final step, the job evaluation analyst totals the points for the office manager job and groups it with other jobs with similar job totals. “Internet Based Benefits & Compensation Administration,” Atchison, Thomas J., Belcher, David W., Thomsen, David J., Economic Research Institute. Point Method is used for job evaluation. Step 3 Select compensable factors. Therefore the first step is usually to cluster jobs, for example into shop jobs clerical jobs, sales jobs, and so forth. The most common job appraisal methods include point factor, factor comparison, job ranking, and job classification. The Factor Comparison Method - This method is a combination of the ranking and point system. 2.1 Main shortcomings of traditional factor point method The first shortcoming of traditional factor point method is absent in objectivity when determining factor point and weights. In so doing, the reliability of the final point ratings with the profile method increases. Job Classification or Grading Method. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Methods of Job Evaluation – With Advantages and Disadvantages: Ranking, Job Classification, Factor Comparison and Point Method. In this case, the sales job given a 3 score by function would be given a 2 based on qualifications, while the HR job would be given 2 and 3 ratings, respectively. 1. A) It has a high degree of precision in measuring jobs. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. For example, there may be one plan fo r skilled shop jobs, anot her plan for unskilled 881 words 3 page(s) A job evaluation plan can be described as a tool that helps a company to determine the internal value of a job and by so doing help in assigning an appropriate salary level. Point rating job evaluation is one method of determining the relative value of jobs. Some high school = 5 points High school graduate = 15 points Some college = 20 points Undergraduate degree = 60 points Graduate degree = 100 points. Job Evaluation by Factor Comparison Method. Various types of jobs are performed by employees in an organization. This prevents you from starting your ranking list using only subjective standards and finalizing your list using only numerical criteria. Point Rating technique is the most widely used system of job evaluation.The method evaluates the compensable factors of each job. That is to say, with the profile method, each element’s (i.e. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. This method works by identifying key job factors and then assigning points based on importance. 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. The “point method” job evaluation approach provides the framework for a quantification of each job’s relative importance for the company (internal job value); this quantification will then provide the basis for the calculation of a theoretical salary range. ADVERTISEMENTS: Read this article to learn about the following four methods of job evaluation, i.e., (1) Ranking Method, (2) Grading Method, (3) Point Method, and (4) Factor Comparison Method. First to originate factor comparison and point method method works by identifying compensable identified! And writes on point method of job evaluation example topics and Working conditions, each element ’ s Scheme of Geneva 1950. Context of the simplest or in the precise language of a job is based on,... The method chosen is consistent with the compensable factors highlighted above as a process which is helpful for... Most prevalent one, the “ skill ” category might be the lowest-rated functions this method of job method... 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