Job Classification and Grading Methods. A factor is a major classification category that identifies aspects of a job for which the business is willing to pay. The common factors are – Education, training, experience, physical skill and efforts, planning for the supervision of others, external contract, internal contract working condition. Finally, wage/salary rate is fixed for each grade, because of difference in duties, skills and knowledge. Costly or it is costly to install and difficult to operate. These factors are the yardsticks used to determine the relative position of jobs in the organization hierarchy and let employees know which contributions are rewarded. (e) Finally, job classification is done based on the rating where the total ranked job is classified into appropriate group by considering the common features of jobs. A job grade is defined as a group of different jobs of similar features, requiring similar skills to perform them. Point–Factor Job Evaluation Method explained. Whether formal job evaluation began with the United States Civil Service Commission in 1871 or with Frederick W. Taylor This method identifies four primary compensable factors used to determine pay. (ii) Job can be easily placed in distinct categories. This method is used for job evaluation. The single most important task to be performed in a job is identified and compared with the single most important task to be performed in other jobs. It is used in important Government services and operates efficiently. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. This is again a simple method in concept. The single factor considered is the discretionary contents present in each job related to other jobs. Point-Factor Rating. i. (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. Technique # 2. This method of job evaluation should be developed systematically and applied methodically in order to avoid the anomalies. It is an analytical, factor-based scheme, which aims to measure the relative size of jobs within an organization. However the explanation of a 20% jump in communication requirements is seldom given. The Factor Comparison Method - This method is a combination of the ranking and point system. 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). Here are the compensable factors for the job evaluation for. All the jobs within a single group or classification receive the same range of wages. Disclaimer 8. It is also referred to as the Hay Plan. 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. (i) It is difficult to write a grade description especially where large number of jobs is involved. (ii) The system is a failure in large organizations. The limited number of factors tends to reduce the possibility of overlapping and overweighting of factors. (v) Defining each factor, specifying the scope and elements of each factor. (a) Skill- Education, training, judgment, analysis, mental complexity, mental dexterity, adaptability etc. It is simple to operate and simple to understand. v. Establish the monetary unit value for all the jobs. (v) The fifth step is integrating the monetary value of sub-factors arrived through factor evaluation with those of ranking of factors. But, various factors like influence of trade unions, pay structure in comparable industries, financial position of the company, living cost affect the pay level. The total of point values assigned to each factor gives the total point values for each job which can be compared. Grade descriptions are the result of the basic job information which is usually derived from the job analysis. (c) This method fails to indicate the degree to which one job is better than the other. There are certain alternatives regarding plotting money on the Y-axis. iii. There are no limits to the value which may be assigned to each factor. This method is widely used, where jobs are expressed in terms of Key of factors or compensable factors and points are assigned to each factor on the basis of priority. The important task in this context is conversion of point scores into monetary values by assigning a standard unit of money to each point. Most appropriate in small organisations, iii. Jobs are evaluated on the basis of various techniques. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions, Methods of Job Evaluation – Non-Quantitative Techniques and Quantitative Techniques, 4 Important Techniques: Ranking, Grading, Point System and Factor Comparison System Techniques. Point factor method is most representative and most widely used job evaluation method. The sum of these points gives us index of the relative significance of the job that is rated. (iv) Determining the weight of each factor according to its relative importance and assigning the percentage value to each factor. After formulation and studying job description and job specification, jobs are grouped into classes or grades Mechanism. ii. Wage differentials are systematic and according to the content of the job. The points for each factor are summed to form a total point score for the job. Read More: Point Rating Method of Job Evaluation (vii) Determining relative value of each level within factors. And, with the factors consisting of several levels, points are assigned to each level. i. This method is analytical in the sense that jobs are broken into components for purposes of comparison. Trend line through a scatter of points is seen in Figure 14.4. Selecting a number of key jobs: This step is more critical and useful from the point of final evaluation as the other jobs are assigned monetary values based on the fixed wage rates arrived for the key jobs on the basis of negotiations. 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. In other words, ‘money value should be assigned to each job. Advantages and Disadvantages of Points Rating Method: i. The factor-comparison method is yet another approach for job evaluation in the analytical group. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Probability consequences of errors (in terms of waste damage etc.). The next step is assigning the monetary values to the components or sub-factors of each job. Considerable clerical work is essential in recording the scale. The point-factor rating method is another approach that Beth can use. This system requires a detailed examination of the job. (iv) Establishment of a number of job grades and division of the organisation into various grades like Grade-I, Grade-II . It involves ranking different jobs on the basis of various compensable factors and then assigning a pay grade to that job. Jobs are evaluated on the basis of various techniques. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level. 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. (d) It is a failure when large numbers of jobs are to be analyzed. Exhibit 14.2 depicts the advantages and disadvantages of job classification and grading methods. (iv) This method is associated with minimum rating errors because rater using similar criteria would get more or less similar answers. (iii) Preparation of grade descriptions based on various components. Various types of jobs are performed by employees in an organization. (d) It is economical and requires little effort for maintenance. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. The Factor Comparison Method: Methods of Job Evaluation – 4 Important Techniques: Ranking, Grading, Point System and Factor Comparison System Techniques. 33/-/ •o u-5w3 TableofContents INTRODUCTION JOBEVALUATION JOBEVALUATIONHISTORY 13 BASICMETHODSINUSE page13 TheRankingMethod 14 TheClassificationMethod 14 TheFactorComparisonMethod 15 ThePointSystem 16 ESSENTIALSOFAJOB EVALUATIONSYSTEM page19 EstabHshingPolicies 20 SelectingthePlan 20 ChoosingtheFactors 21 … (c) In quantitative method ‘compensable factor’ are considered i.e., Key factors or critical factors. This method is quantitative as each component of the job is assigned a numerical value. Job can be easily placed in distinct categories. i. (i) It is time consuming process due to consistent detail required. iii. The pay scales of various jobs will be fixed within the minimum and maximum limits of the pay. The evaluator compares one job with other jobs based on duties, responsibilities and demands made by the jobs on the job incumbent and the degree of importance of the job to the organisation and ranks all the jobs from the most important to the least important. Points Rating Method 2. The factor method is based on the analysis of jobs in terms of separately defined factors, component that are compensable to the organization. Advantages and Disadvantages of Signal Factor Ranking Method: ii. iii. It has long been accepted that three to fi ve factors are sufficient to capture a desired The correct answer is the most distinguishable feature of the point-factor method that other job evaluation methods are not able to achieve. email@example.com Once the factors in weights are established, the whole score is calculated for each job. 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