Now retired from a Fortune 500 company, she consults and writes on related topics. Or you can use of scale of 1 to 4, signifying staff-, coordinator-, manager- or director-level value. Its primary goal is to produce a systematic comparison between jobs in order to assess their relative worth, usually for the purpose of establishing a rational pay structure. If the office manager job requires an education level of college graduate, but education is less important, it might be weighted at a smaller number, such as 0.75, resulting in a value of 45 for education (60 points x 0.75 weighting factor = 40). These points would be added to the other rating criteria you set. Step 2 Input the job information. He is an internationally traveled sport science writer and lecturer. 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. 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. This requires ranking the different functions in a business. Specify the contribution given by the job to the organization. for example, True ... you realize a significant number of pay ranges do not overlap or do not connect. 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. In this guide we use the Hay or Point method, this is the most common method for job evaluation. Each degree is assigned a different number of points of different factor. Include a point system that identifies and values abilities. For example, there may be one plan fo r skilled shop jobs, anot her plan for unskilled Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. In this guide we use the Hay or Point method, this is the most common method for job evaluation. In so doing, the reliability of the final point ratings with the profile method increases. The manager's job, after totalling key factors + sub factors points, possibly will be getting a point value of 650 from the job evaluation committee. Prepare Job Evaluation Manual: Job evaluation manual is prepared by selecting a number of “key jobs” in each Department/cluster. 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. One way to assign points to a job is based on its function. When ranking jobs at a company, consider creating a point system that initially puts the jobs into A, B and C categories, based on total points. Thereafter, points are allocated to each of these factors. As with all job evaluation approaches, the jobs must be analyzed and job descriptions/specifications prepared. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Point systems often total numbers across a variety of criteria to come up with a final number, with those final numbers used to set pay. 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. Ranking System. A different number of points are usually assigned for each degree of each factor. The point-factor rating method is another approach that Beth can use. The most common job appraisal methods include point factor, factor comparison, job ranking, and job classification. Each job is treated as a whole in determining its Point Method is used for job evaluation. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. 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. Your company is considering using the point method of job evaluation and asks you for feedback. “Internet Based Benefits & Compensation Administration,” Atchison, Thomas J., Belcher, David W., Thomsen, David J., Economic Research Institute. The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. Point Method is used for job evaluation. 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. Job evaluation is the output provided by job analysis. Once this is done for all the compensable factors to be used, the analyst examines individual jobs to determine which factors are most important, assigning weights to these categories. This prevents you from starting your ranking list using only subjective standards and finalizing your list using only numerical criteria. In our example, the evaluator has selected the 1st answer for the “Design and development of solutions” factor, which brings 135 x 2.5% = 3 points to the corresponding position. Some high school = 5 points High school graduate = 15 points Some college = 20 points Undergraduate degree = 60 points Graduate degree = 100 points. Point-Ranking Method: Under this method, each job’s key factor is identified and then the subfactors are determined. Job Evaluation: Methods: Factor Comparison A set of compensable factors are identified as determining the worth of jobs. job analysis is recorded in the precise language of a job description. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. Step 3 Select compensable factors. job difficulty is divided into complexity and judgement elements). The top jobs might be worth 3 points, the middle jobs worth 2 and the last worth 1. Job evaluation is a systematic process that determines the relative worth of jobs within an organization. Which of the following should be a source of concern in using the 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. He has been published in print publications such as Entrepreneur, Tennis, SI for Kids, Chicago Tribune, Sacramento Bee, and on websites such Smart-Healthy-Living.net, SmartyCents and Youthletic. It helps in evaluating jobs by giving a detailed, analytical and quantitative evaluation. Point rating job evaluation is one method of determining the relative value of jobs. “Point method of job evaluation,” Bergmann, T. J., and Scarpello, V. G. (2001), Compensation decision making. The process of the point-factor job evaluation method included the following components: 1. The points for individual factors are added up to get a point value for the whole job. Various types of jobs are performed by employees in an organization. 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