factor comparison method of job evaluation slideshare
The rating process should be done by an expert committee. 2. Due to the accuracy and comprehensiveness of the method, employee acceptance is relatively high. The merits of factor comparison system are as follows: 1. The point method is an extension of the factor comparison method. The importance of each job should be determined with reference to the factors such as skill, experience, working conditions etc. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. After the wage rate for a job is spread along the ranked identified factors, in the department all other jobs are compared in terms of each of factor. The total points value is then used in setting up the monetary wage scale. It involves quantitative and analytical approach to the measurement of job value. Job Evaluation Factors For Out-of-Scope Employees Last revised: January 2021 . Job Evaluation by Ranking Method or Grading Method, 2. Steps of Factor Comparison System. Perhaps the simplest method of job evaluation is the ranking method. Assignment of weightages and monetary values may sometimes be colored by the bias of experts. Job evaluation refers to the measurement of the value of a job relative to other jobs. . Ranking method. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i.e. In this method, each job is given a rank on the basis of a number of factors. The aim of factor comparison is to assign financial value to the relative parts of each job role. 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. This procedure adds accuracy to the rating process. This method is highly unreliable in cases where the jobs to be evaluated are widely dissimilar. The factor comparison method represents a combination of ranking and points factor methods. Job evaluation has a certain advantages over other techniques of pay fixation. The points for each factor are summed to form a total point score for the job. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. The merits of point system are as follows: 1. All rights reserved! They are: 1. These are systematic and formalised systems for evaluating jobs. Assign money value to each of factor and decide the wage rates for each key job. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. • Factor comparison • Statistical/policy capturing ... Ranking/paired comparison job evaluation method define/pro/con: • Group of managers and/or HR specialists examine a set of job descriptions and then rank the jobs according to their overall worth to the organization It merely says that one job is higher and the other is lower. Job Evaluation by Factor Comparison Method. The factor comparison method of job evaluation assumes that there are five universal factors consisting of mental requirements, skills, physical requirements, responsibilities, and working condition. 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. 3. 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… 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. A number of important factor to be considered in each job are identified. Enter right registered email to receive password! There are four factors common to point method of job rating. Selection of the factors common to all jobs. A more systematic & scientific method of job evaluation is the factor comparison method. But in reality, these factors are not independent and hence the weight assigned to each factor does not reflect the realities of the situation. viz. 1. The points for individual factors are added up to get a point value for the whole job. 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. This system was first evolved by E.J.Benye and S.L.H. May not reflect market values of jobs. Factor-Comparison Method. 4. Hence, this method can be used only when the jobs belong to the same class or the same department. 2) Mental effort, 3) Physical effort, 4) Responsibility, and. The factor comparison method represents a combination of ranking and points factor methods. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. This system is usually used to evaluate white collar, professional and managerial positions. The merits of the Ranking method of job evaluation system are as follows: 1. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i.e. The mental bias of the analyst may also affect the validity of the findings of job evaluation. Create your account The job manual also specifies the sub-divisions of each factor i.e. degrees, and provides the scales by which each degree of each factor is to be valued. Factor Comparison Method. Factor Comparison Method. 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. 4. 3. Human Resource Management 4/6/16 10 Job Evaluation methods Job Evaluation methods Qualitative/ Quantitative/ Subjective Objective Job Ranking Factor Comparision Job Classification/ Point method Grading Human Resource Management 4/6/16 11 Job Ranking (1/2) 1. Into eleven characteristics jobs are just selected on the basis of the role as a whole steps job. 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