January 27, 2021

factor comparison method of job evaluation slideshare

This system, though claims accuracy, is never accurate in fact. All of other jobs are measure up to with the list of key jobs and wage rates are determined. However this system is suitable for smaller concerns, where jobs are few in number. Job Evaluation 1. Even dissimilar jobs can be rated on the basis of common factors. 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. 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. The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value i.e. 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. Factor comparison is a complex quantitative method. Then the key jobs or basic factors are ranked in order. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. A list beginning with the most important job and ending with the least important is then prepared. For each of these classes, a general specification is prepared with reference to the nature of the work, responsibilities involved and skill required etc. determining the relative importance of factors and describing their degrees. Determines the factors in terms of which the jobs are evaluated (like, mental effort, skill, physical effort, responsibility ,working conditions, etc.). Ranking Method of Job Evaluation system, though simple, suffers from various defects. Job evaluation has been defined as a process of analysis and assessment of jobs to ascertain reliably the relative worth. Under this method, rather than ranking complete jobs, each of jobs is ranked according to a series of factors. It is a sophisticated method of ranking in which jobs are compared to each other across several factors. 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. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. Job Evaluation is a process to determine the value of a particular job to the organization based on the importance of duties and tasks performed on the given job. But in reality, these factors are not independent and hence the weight assigned to each factor does not reflect the realities of the situation. They are: 1. The Factor Comparison Method - This method is a combination of the ranking and point system. Enter right registered email to receive password! This method is highly suitable and less expensive in case of small organization or where the jobs are few in number. 3. When all factors are compared, the final rating is arrived at by adding the value r… A more systematic & scientific method of job evaluation is the factor comparison method. Unlike the first two methods, this method makes a quantitative evaluation of different jobs in terms of certain factors common to all jobs. Analytical Job Evaluation Methods. Note 2). Forgot password? 3. The job manual also specifies the sub-divisions of each factor i.e. Discuss the job ranking, point-factor, classification and factor comparison methods of job evaluation To unlock this lesson you must be a Study.com Member. Job Evaluation by Factor Comparison Method. Installation of this system is highly expensive and unjustifiable. (b) Factor Comparison Method . Job Evaluation Factors For Out-of-Scope Employees Last revised: January 2021 . Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. In rating jobs on this factor consideration is given to the ratings of benchmark descriptors and the position’s Box 2: Merits and Demerits of Factor Comparison Method. the amount of compensation offered for that part of the role. Factor-Comparison Method. Each job is treated as a whole in determining its The importance of each job is generally decided by a committee consisting of persons familiar with all the jobs. Generally, fifteen to twenty key jobs are first selected. The merits of factor comparison system are as follows: 1. It is often used in evaluating, the managing administrative and white-collared jobs. Under this method, each job is given a rank. 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. Presentation on: “ Use of Point Method in Job Evaluation” Presented to: Prof. Ratnaparkhi Presented by: Rajeev Gupta(PGM07060582) Under Job Classification method, all jobs are divided into various classes. By breaking down each job into factors, required number of attributes can be ascertained. Method # 3. The major classes can also be divided into various sub-classes. These factors are enumerated below: 1) Skill. Methods of Job Evaluation – With Advantages and Disadvantages: Ranking, Job Classification, Factor Comparison and Point Method. A) point method B) ranking method C) job description method D) factor comparison method Create an account to start this course today Used by over 30 million students worldwide Point System: This is the most widely used technique of job evaluation. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. The human management and senior management team incorporates one the methods that is geared to managing the evaluation … The point method is an extension of the factor comparison method. 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. This method, also known as key job method, was originally developed at the Philadelphia Rapid Transit Company, USA by Eugene J.Benge in 1926 to overcome two major problems faced in point method of job evaluation. It evaluates the position, not the performance of employees. EXAMPLES OF COMPENSABLE FACTORS: * SKILLS * RESPONSIBILITIES * EFFORT * WORKING CONDITIONS STEPS IN COMPARING AND RANKING JOBS … This is the duty of the job analyst to stipulate the limits of each factor. Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd, 1: An Example of Factor Comparison Method. 2. Each job’s factors are ranked against each other job’s factors. The ranking should be made independently. Job Evaluation Factors For Out-of-Scope Employees Last revised: January 2021 . This system is widely used in Government departments. Jobs with similar responsibilities within the organization are identified to set benchmarks. This procedure adds accuracy to the rating process. They are skill, effort, responsibility and job conditions, These factors can be again sub-divided into eleven characteristics. Already have an account? Top 4 Methods of Job Evaluation (explained with diagram) Posted: (7 days ago) Factor Comparison Method: This method is a combination of both ranking and point methods in the sense that it rates jobs by comparing them and makes analysis by breaking jobs into compensable factors. Factor comparison method. ... through comparison of the job’s typical nature to the level definitions within the factor and confirming through ... by comparison to level definitions within the factor and confirming through comparison to … FACTOR COMPARISON METHOD -A scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. ii. Then the key jobs or basic factors are ranked in order. This method works by identifying key job factors and then assigning points based on importance. 3. The mental bias of the analyst may also affect the validity of the findings of job evaluation. 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. They are the following: Under this method, a point-value is assigned to each characteristics of a job..Much care is needed in giving proper weight to each factor and each job should be considered individually on the basis of the job specifications. There are five stages in this method. 6.9 If the job evaluation indicates a higher job level and the environment has sufficient Meaning of Job Evaluation Job evaluation : Systematic way of determining the value or worth of a job in relation to other jobs in an organization. May not reflect market values of jobs. Assign money value to each of factor and decide the wage rates for each key job. While many variations of these methods exist in practice, the three basic approaches are described here. This is another quantitative method of job evaluation. The rating process should be done by an expert committee. This method determines the relative rank of the jobs is evaluated in relation to the monetary scale. 1. 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. Experts should be appointed for rating the job factors. Though it is the most difficult method of all, it is appreciable & consistent. 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. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. In fact, it is only an extended idea of the simple ranking system. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. In this method, each factor of a job is compared with the same factor of the other jobs or the key job either defined or existing one. Select key jobs (say 15 to 20), representing wage/salary standard across the organisation. Finally, the analyst should select a suitable method for job evaluation. These factors are enumerated below: 1) Skill. This is the most simplest method of job evaluation. It involves quantitative and analytical approach to the measurement of job value. 2. 2. The importance of each job should be determined with reference to the factors such as skill, experience, working conditions etc. EXAMPLES OF COMPENSABLE FACTORS: * SKILLS * RESPONSIBILITIES * EFFORT * WORKING CONDITIONS STEPS … Since expert raters are assigned with the rating process, the rating under this system is bound to be realistic and accurate. 2) Mental effort, 3) Physical effort, 4) Responsibility, and. Rank the decided jobs under each of the factor (by each & every member of the job evaluation committee) independently. In this way, Hay tries to apply The points for each factor are summed to form a total point score for the job. The degree of each factor is also determined for assigning points. 1. Each factor is then divided into levels or degrees which are then assigned points. The factor comparison method represents a combination of ranking and points factor methods. There are many different types of job evaluation systems to choose from. This system usually gives equal weight to all factors. A more systematic & scientific method of job evaluation is the factor comparison method. Factor comparison is a complex quantitative method. While many variations of these methods exist in practice, the three basic approaches are described here. The total of these points establishes the point value of each job. Thus ,the steps involved in factor comparison method might be briefly stated as: An instance of how the factor comparison method works is given below: Box 1: An Example of Factor Comparison Method. FACTOR COMPARISON METHOD -A scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole. Since this system is highly complex, it cannot be easily explained to the employees. Job evaluation is the output provided by job analysis. This method is highly unreliable in cases where the jobs to be evaluated are widely dissimilar. JOB EVALUATION Presented by- Sandeep Singh 2. 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. Job Evaluation Point Method 1. Job Evaluation by Factor Comparison System, Classification of Organization | Features | Merits | Demerits, Central Banking or Primary Functions of RBI, Concepts of Job Analysis | Meaning, Procedure, Merits, Demerits, Social Responsibility of Business | Meaning | Need, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. Job Evaluation by Ranking Method or Grading Method, 2. There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. The merits of the Ranking method of job evaluation system are as follows: 1. This is another quantitative method of job evaluation. The most common are job ranking, factor comparison, point evaluation and job comparison methods. 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. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. Otherwise, misleading results will be produced. This method is highly expensive because expert raters are to be employed. The Factor Comparison Method This method is a combination of the ranking and point system. This system is also subject to severe limitations. We ensure premium quality solution document along with free turntin report! Factor Comparison: Factor comparison method is more scientific and complex than the qualitative methods of ranking and classification. The points for each factor are summed to form a total point score for the job. Jobs with similar responsibilities within the organization are identified to set benchmarks. In spite of the serious limitations referred above, this system does provide an overall review of jobs at one time. This is essentially an expert’s method and so its adoption calls for rich experience and knowledge. Factor Comparison Method. The market pay rate for each job is then allocated among the factors based upon a market pay rate scale. A Job Evaluation Programme, which is generally conducted by the job analyst involves three steps. It is a sophisticated and quantitative … This video explains methods of job evaluation Job evaluation Part 1 https://youtu.be/eb_1hPl196g Like ranking system, this system is also very simple. Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of factors. 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. 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. Hence, it has the same merits and subject to the same limitations. Generally, fifteen to twenty key jobs are first selected. ... Job Evaluation: Methods: Factor Comparison A set of compensable factors are identified as determining the worth of jobs. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. 4. Under this system, the jobs are just selected on the basis of the job analysis. Job evaluation refers to the measurement of the value of a job relative to other jobs. 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. the amount of compensation offered for that part of the role. For a job the wage rate is apportioned along the recognized factors. Selecting a job evaluation method. The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. It is a logical and to a certain extent an objective method of ranking and grading the jobs. The job ratings are then computed by totaling the points received by each job. 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. All rights reserved! 2) Mental effort, 3) Physical effort, 4) Responsibility, and. 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. Under this method, rather than ranking complete jobs, each of jobs is ranked according to a series of factors. For purpose of ascertaining the common factors, the job manual is used. The ranking should be made independently. It is worthwhile noting which ones are used most commonly in your sector. Job Evaluation by Factor Comparison Method. After ranking the key factors, weights are assigned to the factors. The job analyst should be familiar with all jobs. It attempts to make a methodical comparison between jobs to assess their relative worth for the purpose of establishing a … . Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. A method of job evaluation in which jobs are compared with each other in terms of compensable job factors. There are four methods of job evaluation. Under this method, one begins with the selection of factors, usually five of them: mental requirements, skill requirements, physical exertion, responsibility, and job conditions. FACTOR COMPARISON METHOD Copyright :: Sneha Husaina & Jugnoo Raja The human management and senior management team incorporates one the methods that is geared to managing the evaluation processing (George and Jones, 2005). 4. Joseph Tiffin says that the ranking should be done at least by ten raters and each rater should rank each job three times. Graphic Rating Scale Method of … Of the various methods of job evaluation, the point method is more popular all over the world. Each job is rated using the job evaluation instrument. Ranking method. This system is usually used to evaluate white collar, professional and managerial positions. 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. The job evaluation committee or job analyst, then allocate each and every job to the approximate predetermined class. 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. They are: 1. Each job should be considered in its entirety. The basis and guidelines of evaluation are standardized by experts and so the management can justify the rating of a job to the Trade Union authorities. Job evaluation is a systematic process that determines the relative worth of jobs within an organization. The analyst, however, can combine two or more methods for counter checking the balance. 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. 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. These factors should also be classified into two namely, major factors and minor factors. Ranking method. viz. Typically the number of compensable factors is small (4 or 5). The system is usually applied when allocating managerial positions, white collar, and professional jobs. 1. 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. 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. This system was first evolved by E.J.Benye and S.L.H. Though it is the most difficult method of all, it is appreciable & consistent. 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. A more systematic & scientific method of job evaluation is the factor comparison method. These factors comprise physical effort, mental effort, responsibility; skill needed supervisory responsibility, working conditions and other such kind of factors (for example, know-how, problem solving abilities, accountability, etc.). This job evaluation process helps to determine the true qualities and efficiency of work in the given work field. It is essentially a combination of the ranking and point systems. Factor Comparison is similar to Points Rating job evaluation scheme, being based on an assessment of factors, though no points are allocated. 2. 1. Job Evaluation by Point Method. The factor comparison method is a quantitative method of job evaluation which evaluates jobs according to several compensable factors. 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 time-required for grading the jobs is very little when compared with other methods. It examines the job by carrying out a comparative study. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. The multiplicity of factors creates confusion and acts against precision in decision. Hence, this method can be used only when the jobs belong to the same class or the same department. This is the most popular method of job evaluation. Job evaluation refers to the measurement of the value of a job relative to other jobs. 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. Steps of Factor Comparison System. The primary factor in determining compensation is an evaluation of work performed. This system is more accurate and systematic than the simple ranking system. Under this method, rather than ranking complete jobs, each of jobs is ranked according to a series of factors. 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. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. This system is laborious, because it requires that a single factor for one job is to be compared with the same factor in a large number of different jobs. A number of important factor to be considered in each job are identified. 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. These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. These evaluations are extremely important to companies because they provide the basis for pay rates. This system does not tell how much one job differs from another. It merely says that one job is higher and the other is lower. The ranking is done in the order of importance of each job. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. The next step in the job evaluation process is to select or design a method of evaluating jobs. 3. Next, benchmark jobs … The four major methods of job evaluations are: job ranking, job classification, factor comparison and the point method. Job evaluation has a certain advantages over other techniques of pay fixation. Under this system, the jobs are just selected on the basis of the job analysis. Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. The factors and their sub-divisions are more in number. This method is also known as the Factor Comparison Method. This is the simplest method of job evaluation. Factor Comparison Method. The four major methods of job evaluations are job ranking, job classification, factor comparison, and the point method. They are: 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. This is essentially an expert’s method and so its adoption calls for rich experience and knowledge. 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. We can use this method in job evaluation. In this method, each job is given a rank on the basis of a number of factors. 3. 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. Get multiple benefits of using own account!

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