Point rating method of job evaluation Advantages and Disadvantages
Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level. Show
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). Put simply, the value of a job is judged based on the requirements of the core duties, tasks and generally labor involved. For a point-factor based job ranking, the requirements, responsibilities, and other aspects of a job - not the position holder as a person - are evaluated with a set of standardized and generalized factors. And, with the factors consisting of several levels, points are assigned to each level. To do this, the requirements of the job are compared with the factor-level explanation to determine which is the best fit. The total score shows the value of the position. Once the total score is calculated, the jobs can be placed in rank order. Typically the compensable factors include the major categories of:
Click here to open the Book By clicking, you agree to our Terms and that you have read our Data Use Policy, including our Cookie Use. Merits and Flaws of Point-Factor based Job RankingThe issue of total objectivity arises when considering the precision with which level descriptions can be defined - and which information about the job is most relevant. Some systems, often coming from the context of “scientific management” theories, create the illusion of objective “measurement” by using quantified jumps between levels. However the explanation of a 20% jump in communication requirements is seldom given. There’s still an element of judgement required with point-factor job evaluation which impacts on true objectivity. But as the evaluators become more experienced at interpreting the factor plan and input of job descriptions, they start to gain greater clarity on the process and make more accurate judgements. As such, the benefit of point-factor based job evaluation methods is that they can give you a clear marker you can use to increase the objectivity and consistency of your findings. You don’t need to worry about the oversimplified results you get from non-analytical job evaluation - and you can use them as a defence in equal value claims as long as they are based on proper job analysis and a system without inherent gender-bias. That said, these methods are often complex and still rely on judgement for scoring the jobs themselves. It’s not easy to amend the scheme as circumstances change. 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. A modernized weighted factor plan was published by the ILO on page 78 of their 2009 brochure on gender neutral job evaluation. Table - Example of a weighted factor planDetailed factor-level definitions are often available with commercial systems. But those proprietary systems can be quite cryptic, needing the specialized knowledge of consultants to operate. What is Job EvaluationJob evaluation is a process used to determine the relative worth of jobs so that employees can be fairly compensated for their work. It is a systematic method for assessing the value of different jobs. There are several methods for evaluating jobs. The traditional method is a points-based system, in which jobs are broken into levels and the criteria for each level are listed out. The points system is based on the idea that the higher the value of the criteria the higher the value of the job. Job evaluation was described by the following thought leaders as follows:
When evaluating crucial work needs like skill, experience, and responsibility, points may be assigned, or another organized scoring system may be used. This makes sure that everyone is paid fairly and that the entrance and performance standards for various jobs vary. Job Evaluation answers these frequently asked questions: How do you determine the compensation for a certain position? What effect does a position have on the company's success? What price do other businesses pay for this roster of duties? These are common concerns when determining how much to pay for a position in your company. Different job evaluation methods are used to make these decisions Related: Job Rotation: Advantages and Disadvantages History of Job EvaluationFrederick Winslow Taylor effectively put the theoretical evolution of job assessment on the map, according to the literature on management functions and practices. The American self-taught engineer developed the idea of scientific management for improving job productivity and cutting costs through his work on analyzing time, motion, and effort. His efforts to increase the efficiency of the Midvale Steel Company, in particular, resulted in a rigorous and organized examination of how to compensate employees. According to contemporary researcher Richard I. Henderson, Author of Compensation Management, Taylor's study's findings later "became known as job evaluation". H. John Bernardin later repeated this, writing in 2007 that Taylor's technique of tying compensation to work "came to be dubbed job evaluation." Although F. W. Taylor is often regarded as the founder of job evaluation, research indicates that the first job evaluation methods dated back to the U.S. Civil Service Commission in 1871, barely 6 years after Taylor's birth. The Civil Services Commission of Chicago, followed by the Commonwealth Edison Company of Chicago, are likely the two organizations that gave rise to "Modern" job evaluation in 1912. (Figart et al., 2002) The British Institute of Management (1961) places this date a bit earlier at 1909. . For instance, utilizing data from Analytical/Quantitative job assessment techniques during 1924–1926, four formal job evaluation methods were created between 1900 and 1926. What are the four job evaluation methods?Although there are many different methods of job evaluations, the two main components are comparison and data. In other words, any form of job evaluation will either assist you in understanding how a given position compares to other jobs inside the company (internal comparison) or how a position is valued on the job market (external comparison). All evaluation techniques either compare positions using qualitative data, which assesses a position's traits and features, or quantitative data, which compares positions by assigning numerical values. The following are the four job evaluation methods: Quantitative Job Evaluation Methods
Jobs are ranked according to their importance to the firm in a hierarchy. Although it is the easiest approach, not every business should use it. Smaller firms that can limit the number of roles to be examined to no more than 100 unique occupations are best suited for this method. Larger organizations ought to choose a different system. Instead of producing the precise hierarchy seen in the point-factor approach, job ranking has an approximation of the proper job hierarchy. A qualified pay specialist who can handle management bias and assess other subjective information should assist in job ranking. Advantages
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This approach ranks jobs based on a predetermined grade comparison. A CEO, vice president, director, manager, and operator are a few examples of classifications. Many US-based organizations employ this predetermined rating. Within job families, grades are formed (e.g., marketing, HR, sales). Advantages
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Qualitative Job Evaluation Methods
Eugene J.Benge created this technique, sometimes known as the "key job approach," at the Philadelphia Rapid Transit Company in the United States in 1926 to address two significant issues with the point method of job evaluation. Specifically identifying the components' relative importance and specifying their degrees. The essential job, which may be defined or already exist, or other occupations that share the same factor are compared in this procedure. The final rating is calculated by summing the values obtained at each comparison after all criteria have been evaluated. Benge outlined this goal's five elements—mental effort, skill, physical effort, responsibility, and working conditions. Advantages
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The major component for each job is determined using this approach, and the subfactors are subsequently established. The points are then awarded to these sub-factors based on their significance. For instance, the primary need for doing a job is skills, which may be further broken down into sub-factors like the necessary training, communication, social, and persuasive abilities. Advantages
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An additional less common job evaluation method is the market pricing technique. By comparing pay rates to market rates for similar professions, you may determine the job's worth and set the compensation accordingly. Market pricing may reinforce existing market disparities, which would be contrary to the goal of the job evaluation. It does not consider internal equity or the possibility that a job's internal worth may be different from its market value. Different approaches are used based on the complexity and size of the organization. Some organizations even choose to combine these methods. This is why it is important for you as an HR professional to be able to distinguish them and make an informed decision. Fadzai Danha is a consultant at Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm. Phonе +263 242 481946-48/481950 or еmail: [email protected] or visit our wеbsitе at www.ipcconsultants.com What is the disadvantage of point method?The disadvantages includethe complexity and difficulty involved in developing this system, the fact that it isbasically a subjective process, and the possibility of flaws.
What is the advantage and the disadvantage of the job ranking method?The benefits of the individual ranking method are easy to understand and use, easy to compare work performance, and save money and time. The disadvantages of the individual ranking method are that it is not easy to compare each of the employees practically, and it is not applicable to large organizations.
What is the disadvantage of ranking method of job evaluation?Difficult to administer as the number of jobs increases. Rank judgements are subjective. Since there is no standard used for comparison, new jobs would have to be compared with the existing jobs to determine its appropriate rank.
What is point rating method in HRM?According to the Office of the Chief Human Resources Officer, “point rating is an analytical, quantitative method of determining the relative values of jobs. Point-rating plans define characteristics or elements common to the jobs being evaluated, define degrees of each element and allocate point values to each degree.
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