Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Ranking method. The analyst, however, can combine two or more methods for counter checking the balance. The market pay rate for each job is then allocated among the factors based upon a market pay rate scale. This method is highly expensive because expert raters are to be employed. No points or weights are used. Gaining agreement on the measurement definitions may take several weeks, depending on the makeup of the job evaluation committee and the perspectives of its members. Job evaluation is the process to assess the relative value of a job in an organisation by comparing it with other jobs within the organisation and with job market outside. Each job should be considered in its entirety. The point method is the most accurate job evaluation system and remains relatively stable over time, unlike the factor comparison method whose key jobs are subject to change. A method of job evaluation in which jobs are compared with each other in terms of compensable job factors. No matter which These degrees determine the number of points to be credited to each job. Under this method, each job is given a rank. 5. Factor Comparison Method. Job evaluation has been defined as a process of analysis and assessment of jobs to ascertain reliably the relative worth. 4. Especially, it is more suitable for rating supervisory and executive job positions where intangible factors are to be taken into account for purpose of evaluation. The multiplicity of factors creates confusion and acts against precision in decision. Joseph Tiffin says that the ranking should be done at least by ten raters and each rater should rank each job three times. 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 a job the wage rate is apportioned along the recognized factors. ii. It is essentially a combination of the ranking and point systems. They are: 1. Perhaps the simplest method of job evaluation is the ranking method. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. This is another quantitative method of job evaluation. In this method, each job is given a rank on the basis of a number of factors. Advantages of Job Evaluation. The key factors generally used under this method are 1. Though it is the most difficult method of all, it is appreciable & consistent. 3. It involves quantitative and analytical approach to the measurement of job value. Instead of ranking by complete jobs, under the Factor Comparison method evaluators rank each key job by predetermined factors. The point method is an extension of the factor comparison method. Factor Comparison definition A scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. To ensure proper understanding of the job, the factors of a job should be properly defined. Factor Comparison Method. Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! These factors should also be classified into two namely, major factors and minor factors. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i.e. Get multiple benefits of using own account! The next step in the job evaluation process is to select or design a method of evaluating jobs. The human management and senior management team incorporates one the methods that is geared to managing the evaluation … Methods (cont)
Paried comparison: the evaluator ranks each job in turn against all other jobs to be appraised, so that a series of paried ranking is produced. Job Evaluation by Factor Comparison Method. Analytical Job Evaluation Methods. It is a sophisticated method of ranking in which jobs are compared to each other across several factors. The four major methods of job evaluations are: job ranking, job classification, factor comparison and the point method. The merits of the Ranking method of job evaluation system are as follows: 1. All of other jobs are measure up to with the list of key jobs and wage rates are determined. Ranking Method of Job Evaluation system, though simple, suffers from various defects. There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. the amount of compensation offered for that part of the role. Assign money value to each of factor and decide the wage rates for each key job. This method provides record of the factors considered on the basis for rating and therefore it is not useful in explaining the employees and union representatives why one job is rated higher than the other. The internal worth of a job is evaluated based upon factors like – Know-How, Problem Solving, Accountability, Education, Experience, Complexity involved in the job, Scope of job… JOB EVALUATION Presented by- Sandeep Singh 2. In spite of the serious limitations referred above, this system does provide an overall review of jobs at one time. Create your account The Factor Comparison Method This method is a combination of the ranking and point system. Use of the Factor Comparison method of job evaluation is not as widespread as the Points Rating systems, because the use of points enables a large number of jobs to be ranked at one time. This system is usually used to evaluate white collar, professional and managerial positions. Assume the job of a 'painter' is found to be same to electrician in skill (15), welder in physical effort (12), fitter in mental effort (10),  labourer in working conditions (4) and cleaner in responsibility (6) .The wage rate for this job would be (15+10+12+6+4) is 47. The human management and senior management team incorporates one the methods that is geared to managing the evaluation processing (George and Jones, 2005). Then the key jobs or basic factors are ranked in order. This system does not tell how much one job differs from another. 2. 3. Graphic Rating Scale Method of … The time-required for grading the jobs is very little when compared with other methods. The ranking should be made independently. The points for each factor are summed to form a total point score for the job. 1. 4. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. The primary factor in determining compensation is an evaluation of work performed. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay-equity between jobs. It is a logical and to a certain extent an objective method of ranking and grading the jobs. The factor-comparison method is yet another approach for job evaluation in the analytical group. Method # 3. 2. Generally, fifteen to twenty key jobs are first selected. There are four methods of job evaluation. the amount of compensation offered for that part of the role. This is because all the factors contained in a single job are not of equal importance. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. The issue is whether job evaluation should be viewed as a measurement device, and therefore be valued according to _____ standards, or as an administrative procedure that invites discussion and consensus.Some researchers say that if job value can be quantified, then job evaluation takes on the trappings of measurements and can be judged according to technical standards. It attempts to make a methodical comparison between jobs to assess their relative worth for the purpose of establishing a … This will avoid overlapping. The procedure for factor comparison method of job evaluation is as follows: At the initial stage, some key jobs which are well recognized are selected. They are as follows: In order to measure one job in terms of other jobs or with reference to other jobs, it is necessary to select factors common to all occupations. Factor-Comparison Method. Even though Occupations vary in duties, operations, routine, equipment and materials, the basic nature of all jobs can be expressed in terms of attributes such as skill, efforts, responsibility etc. It examines the job by carrying out a comparative study. The factor comparison method is a quantitative method of job evaluation which evaluates jobs according to several compensable factors. Each factor is then divided into levels or degrees which are then assigned points. These factors are enumerated below: 1) Skill. Even dissimilar jobs can be rated on the basis of common factors. Each job’s factors are ranked against each other job’s factors. 4. It is often used in evaluating, the managing administrative and white-collared jobs. Burk. Don't have an account? Each job is treated as a whole in determining its This method is also known as the Factor Comparison Method. For each of these classes, a general specification is prepared with reference to the nature of the work, responsibilities involved and skill required etc. Factor Comparison: Factor comparison method is more scientific and complex than the qualitative methods of ranking and classification. Factor comparison is a complex quantitative method. 1. Job Evaluation 1. The factor comparison method represents a combination of ranking and points factor methods. After making minor adjustments to arrive at uniform wage scales, the ratings are converted into a money scale with reference to the prevailing wage level. It is often used in evaluating, the managing administrative and white-collared jobs. This method determines the relative rank of the jobs is evaluated in relation to the monetary scale. It is worthwhile noting which ones are used most commonly in your sector. Though it is the most difficult method of all, it is appreciable & consistent. Each job is rated using the job evaluation instrument. . 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 ranking and classification methods provide the evaluation of jobs in non-quantitative terms, whereas the point method and factor comparison method furnish the result in quantitative job values. Each job is rated using the job evaluation instrument. This job evaluation process helps to determine the true qualities and efficiency of work in the given work field. Presentation on: “ Use of Point Method in Job Evaluation” Presented to: Prof. Ratnaparkhi Presented by: Rajeev Gupta(PGM07060582) Otherwise, misleading results will be produced. 3. This practice tends to under value the jobs that are high in the skill factor and to over value jobs that receive many points for the working conditional factor. Next, benchmark jobs … There are four factors common to point method of job rating. Selection of the factors common to all jobs. 2. Job evaluation refers to the measurement of the value of a job relative to other jobs. Forgot password? This system was first evolved by E.J.Benye and S.L.H. Factor comparison method. Job Evaluation Factors For Out-of-Scope Employees Last revised: January 2021 . The objective of job evaluation is to determine which jobs should get more pay than others. Assignment of weightages and monetary values may sometimes be colored by the bias of experts. Point System: This is the most widely used technique of job evaluation. But in reality, these factors are not independent and hence the weight assigned to each factor does not reflect the realities of the situation. The ranking is done in the order of importance of each job. Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. In this way, Hay tries to apply Generally, fifteen to twenty key jobs are first selected. determining the relative importance of factors and describing their degrees. The point method is an extension of the factor comparison method. 2. Hence, it has the same merits and subject to the same limitations. The degree of each factor is also determined for assigning points. Perhaps the simplest method of job evaluation is the ranking method. 2. Under this method, rather than ranking complete jobs, each of jobs is ranked according to a series of factors. The four major methods of job evaluations are job ranking, job classification, factor comparison, and the point method. This system is widely used in Government departments. The merits of factor comparison system are as follows: 1. It evaluates the position, not the performance of employees. 2) Mental effort, 3) Physical effort, 4) Responsibility, and. The demerits of factor comparison system are given below: 1. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. EXAMPLES OF COMPENSABLE FACTORS: * SKILLS * RESPONSIBILITIES * EFFORT * WORKING CONDITIONS STEPS IN COMPARING AND RANKING JOBS … Already have an account? Selecting a job evaluation method. Of the various methods of job evaluation, the point method is more popular all over the world. The points for each factor are summed to form a total point score for the job. Job Evaluation Point Method 1. 3. The Point Factor or Factor Comparison Method. 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. 3. May not reflect market values of jobs. how can I recover my password now! 4. In fact, it is only an extended idea of the simple ranking system. Methods of Job Evaluation – With Advantages and Disadvantages: Ranking, Job Classification, Factor Comparison and Point Method. The ranking should be made independently. This is essentially an expert’s method and so its adoption calls for rich experience and knowledge. Job evaluation is the output provided by job analysis. This system, though claims accuracy, is never accurate in fact. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i.e. Factor Comparison is similar to Points Rating job evaluation scheme, being based on an assessment of factors, though no points are allocated. (b) Factor Comparison Method . Factor comparison is a complex quantitative method. In the rating process, each job should be compared with others (one factor at a time), and point values to each job should be assigned. FACTOR COMPARISON METHOD -A scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. The job evaluation process defines the wages for the work to be done by the workers, which helps the works to be specific about their work and wages that they are going to get after the decided time. When all factors are compared, the final rating is arrived at by adding the value r… Ideally, all factors should be present in all the jobs being evaluated to some degree, so that each job can be scored under each factor heading. While many variations of these methods exist in practice, the three basic approaches are described here. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. The job ratings are then computed by totaling the points received by each job. Any job, which does not come out essentially with the same rank, is eliminated from the list of key factors. Job Ranking: The job ranking method is the simplest and easiest job evaluation method; jobs and the employees who perform those jobs are ranked from highest to lowest depending on their quality and value to the organization. The decided jobs must represent as various departments as possible. This system was first evolved by E.J.Benye and S.L.H. Enter right registered email to receive password! ... Job Evaluation: Methods: Factor Comparison A set of compensable factors are identified as determining the worth of jobs. 4. In performance appraisal, it is not of much use because the designing of scale is a very difficult task. This is the most simplest method of job evaluation. The key factors generally used under this method are. The mental bias of the analyst may also affect the validity of the findings of job evaluation. For instance, if a job worth, 200 points and monetary value of each point is Rs.2, the wage for the job shall be Rs.400. Presentation on: “ Use of Point Method in Job Evaluation” Presented to: Prof. Ratnaparkhi Presented by: Rajeev Gupta(PGM07060582) O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. 2. 6.9 If the job evaluation indicates a higher job level and the environment has sufficient Experts should be appointed for rating the job factors. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. EXAMPLES OF COMPENSABLE FACTORS: * SKILLS * RESPONSIBILITIES * EFFORT * WORKING CONDITIONS STEPS … The rating process should be done by an expert committee. This system is more accurate and systematic than the simple ranking system. Job Ranking If you've been running your business long enough, you know how the jobs rank in importance to the overall goal and mission of the company. Unlike the first two methods, this method makes a quantitative evaluation of different jobs in terms of certain factors common to all jobs. A more systematic & scientific method of job evaluation is the factor comparison method. 1. The total of these points establishes the point value of each job. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. This is essentially an expert’s method and so its adoption calls for rich experience and knowledge. The total points value is then used in setting up the monetary wage scale. This system usually gives equal weight to all factors. A more systematic & scientific method of job evaluation is the factor comparison method. This method is highly suitable and less expensive in case of small organization or where the jobs are few in number. Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy and/or salary system is in place. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Hence, this method can be used only when the jobs belong to the same class or the same department. 6.7 Human Resources will compare the outcome of the job evaluation with other similar positions within SU’s organisational structure for the purpose of mutual comparison. Since expert raters are assigned with the rating process, the rating under this system is bound to be realistic and accurate. Identifiable factors for the benchmark jobs are ranked during factor analysis and then are compared to market rates in order to assign a monetary value to each compensable factor. Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. This is the simplest method of job evaluation. They are: i. Job Evaluation by Point Method. Rank the decided jobs under each of the factor (by each & every member of the job evaluation committee) independently. Weightages are given on the basis of prevailing wage and salary practices and hence cannot be held absolutely arbitrary. This system is usually used to evaluate white collar, professional and managerial positions. Factor Comparison Method This method works by identifying key job factors and then assigning points based on importance. 6.8 The result of the job evaluation is conveyed in writing to the Environment Head. Job Evaluation Factors For Out-of-Scope Employees Last revised: January 2021 . The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. The factor comparison method of job evaluation entails both the rating and point allocation methods. 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