By clicking, you agree to our Terms and that you have read our Data Use Policy, including our Cookie Use. Proceed further, if the system produces acceptable results. Methods of Job Evaluation – Top 5 Methods: Ranking, Paired Compensation, Grading, Point System … For example, a grade may consist of jobs like Financial Accountants, Cost Accountants and Management Accountants and a class may consist of Assistant Financial Accountant, Financial Accountant, Senior Financial Accountant and Chief Financial Accountant. Under this technique jobs are valued by means of yardstick, one for each factor which is considered too common to all the jobs. Difficult to write grade descriptions, and. Prohibited Content 3. The following five steps are generally involved: i. It involves ranking different jobs on the basis of various compensable factors and then assigning a pay grade to that job. To do this, the requirements of the job are compared with the factor-level explanation to determine which is the best fit. (c) Identification of key jobs or benchmark is done and rated on the basis of its importance. The Point Factor or Factor Comparison Method: This method is based both on the principles of points rating and principle of ranking. vii. (iii) The value of the job is expressed in monetary terms which make the method effective. Primary compensable factors of a job evaluation plan. The following factors may be considered for this purpose. The second degree 3 to 6 month, gives 10 points. i. Ranking Method and 2. Each job is rated using the job evaluation instrument. (i) It is time consuming process due to consistent detail required. various characteristics of jobs and the determining degree to … A modernized weighted factor plan was published by the ILO on page 78 of their 2009 brochure on gender neutral job evaluation. (b) Improper analysis of competencies from rater’s point of view. (b) Selection of rater or committee of rater is done. Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. iii. Prejudice and human judgments are minimised. HRM BY, kevimedo Job Evaluation Methods 2. learn more about gradar, our job evaluation system, QPM Quality Personnel Management GmbH Am Haferkamp 78 40589 Düsseldorf Germany, gradar Limited St James House 13 Kensingston Square London, W8 5HD, United Kingdom, gradar, LLC 166 Valley Street Building 6M #103 Providence, RI 02909 USA. Account Disable 11. Non-quantitative techniques include ranking (simple ranking and paired comparison ranking) and job classification and grading method. There are several steps in the mechanism of this method. Once the factors in weights are established, the whole score is calculated for each job. The job scores are added to determine a total and are used to create a job hierarchy by using either the original points (job ranking) or a translation into a grade structure (job grading). It is essentially a combination of the ranking and point systems. Basically, a company will set up a … The preparation of job description which gives us basic job information usually derived from job analysis. Training the six members (the job evaluation committee) and They are ranking and job classification methods. The sum of these points gives us an index of the relative significance of the jobs that are rated. Grade descriptions are the result of the information derived from a job analysis, which includes responsibilities, skills, knowledge, experience, etc. Methods of Job Evaluation – With Advantages and Disadvantages: Ranking, Job Classification, Factor Comparison and Point Method. (iv) It can be applied to a wide range of jobs. (vi) The sixth step is comparing all the jobs (factor by factor) of the same grade or level with the related key job and establishing monetary value to the sub-factors of various jobs based on the monetary value of sub-factors or key jobs. According to Microsoft, point evaluation is the most widely used method. (v) It is more systematic, reliable and objective than other methods of job evaluation. The total score shows the value of the position. A different number of points are usually assigned for each degree of each factor. iii. Difficult to explain the mechanism and operation of the method, and. (a) Determine the appropriate factors to measure. There are no limits to the value which may be assigned to each factor. Trend line through a scatter of points is seen in Figure 14.4. This method is quantitative as each component of the job is assigned a numerical value. Classification method. (b) Responsibility – material, tool, property etc. iii. (v) Discussion and negotiation with trade union representatives regarding the number of grades, grade descriptions, getting their consent, finalising the number of grades and grade description and recording them. A job grade is defined as a group of different jobs of similar features, requiring similar skills to perform them. (b) Effort- Physical demand, visual effort, concentration, mental effort, alertness etc. It has long been accepted that three to fi ve factors are sufficient to capture a desired (v) Defining each factor, specifying the scope and elements of each factor. Under this paired comparison ranking method the evaluator ranks each job in turn against all other jobs to be appraised, so that a series of paired rankings is produced. iii. (c) This method fails to indicate the degree to which one job is better than the other. The key jobs which are selected for which pay is determine to be standard and for which there is no controversy between the management and employees. All jobs are ranked in the order of their importance from highest to lowest, or in the reverse order, each successive job being higher or lower than the previous one in the sequence. It is an analytical, factor-based scheme, which aims to measure the relative size of jobs within an organization. The technique is rather rigid and unsuitable for a large organisation. (viii) Classifying the jobs of each grade. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. i. A grade is a group of different jobs of similar difficulty or requiring similar knowledge and skill to perform. Thus, pure ranking does not cover these refinements. The correct answer is the most distinguishable feature of the point-factor method that other job evaluation methods are not able to achieve. It identifies certain number of factors i.e. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. Money worth of each sub-factor of the key jobs is ascertained in order to know the total money value (or salary) of each of the key jobs. Considerable clerical work is essential in recording the scale. It is simple to operate and simple to understand. 1. This method is more comprehensive, logical and reliable compared to the simple ranking method. Job can be easily placed in distinct categories. After formulation and studying job description and job specification, jobs are grouped into classes or grades Mechanism. Point Rating technique is the most widely used system of job evaluation. Another problem of ranking method is that each job cannot be compared with all other jobs for the purpose of ranking. The risk of defining job factors and factors degree is time consuming and difficult task. However, points system will help in arriving an equitable pay structure. Point–Factor Job Evaluation Method explained. The common factors are – Education, training, experience, physical skill and efforts, planning for the supervision of others, external contract, internal contract working condition. (i) It is the most widely used method of job evaluation. The total of point values assigned to each factor gives the total point values for each job which can be compared. The important steps in the process of developing this technique are: (i) Constituting a representative committee of members from various departments for job evaluation. i. (i) This method is more defensible and objection measure of job, worth due to numerical valuation. Detailed factor-level definitions are often available with commercial systems. II. Appropriate for managers in large organisations, and, i. (ix) Appraise all the jobs and arrive at a composite numerical value for each job. To implement the Point Factor method, identify which factors make one job more valuable to the organization than another. This total is compared with that of other jobs and relative worth of various jobs is determined. It is difficult to know how much of jobs rank is influenced by the man on the job. Thus, characteristics or factors considered to have a bearing on all jobs in the programme like skill, knowledge, responsibility, working conditions etc., are selected under this method. Pay for such jobs should range from about the lowest to or near the highest, usually 15-20 jobs are chosen against which to evaluate all other jobs. The first degree three months or less may be assigned 5 points. Almost same pay scale can be arrived at for the same jobs as agreement among rates on the same is very close, ii. i. Ranking all the jobs at a stretch under simple ranking method is difficult. There are no hard and fast rules regarding factors, sub-factors assigning the weightages, deciding upon degrees and values. Costly or it is costly to install and difficult to operate. Disclaimer 8. There are certain alternatives regarding plotting money on the Y-axis. (iv) Establishment of a number of job grades and division of the organisation into various grades like Grade-I, Grade-II . In view of this, Goldenberg has suggested a single factor ranking scheme. For more information, refer to Module People, Functional Area 4, Section. ii. Quantitative techniques include points rating and factor comparison method. Image Guidelines 4. It only gives us its rank or tells us that it is higher or more difficult than another but it does not indicate how much higher or more difficult. (d) Job conditions-Working conditions, hazards etc. The methods of job evaluation are categorised into:-, A. Non-Quantitative Techniques – 1. The important steps in the process of developing this technique are: All the jobs are comparing with key jobs, factor by factor to determine their relative importance and positioning the scale of job, to determine also their money value. (i) Select key jobs and cluster the jobs on the basis of similar skills, efforts, responsibility etc. Posted: (2 days ago) Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. This step is also known as factor evaluation. Combination of ranking and factor comparison methods, iii. The Exhibit shows factor evaluation or monetary value (per day) of each of the key jobs. ii. There are no scientific techniques to guide in respect of assigning money value to the points. In short, job evaluation process helps in determining price for a job relative to other jobs in the organization. (ii) Job can be easily placed in distinct categories. The process of the point-factor job evaluation method included the following components: 1. Similar knowledge and skill to perform them: ii ‘ compensable factor ’ are i.e.! Of point score/money value is assigned to a standard and then assigning a standard and to! 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