What is point method in job evaluation?
A comprehensive job evaluation system helps you ensure that your company’s pay and promotion structure reflects an equitable system. Using a job evaluation system can be especially helpful to a small business, because it helps your company manage your resources more effectively and attract the most competent employees. Evaluating jobs using a point system involves identifying key factors associated with work at your company and assigning a point value to those factors. To determine the wage rate for each job, sum up the points. When evaluating job using a point system, use the resources at the U.S. Department of Labor's website for Compliance Assistance - Fair Labor Standards Act to ensure compliance with local, state and federal regulations. Show Job Evaluation Methods
Factors
Levels
Strengths and Weaknesses
Point Rating technique is the most widely used system of job evaluation. The method evaluates the compensable factors of each job. It involves a more detailed, quantitative and analytical approach to the measurement of job work. Under this method of job evaluation, jobs are broke down based on various identifiable factors such as skill, effort, training, knowledge, hazards, responsibilities and so on. Thereafter, points are allocated to each of these factors. Weights are given to factors depending on their importance to perform the job. Points so allocated to various factors of a job are then summed. Then, the jobs with similar total of points are placed in similar pay grades. The sum of points gives an index of the relative significance of the jobs that are rated. Point Rating System requires six steps and is usually implemented by a job evaluation committee or by an individual analyst.
Merits – The points rating has several advantages. The major merits of the method are:
Demerits – The points rating method also has some disadvantages. The major demerits of the method are:
Credit: Compensation Management-CU Related Posts:
What are the 5 types of job evaluation methods?Here are the 5 Best Job Evaluation Methods. Ranking Method. This job evaluation method works by ranking jobs according to their perceived value compared to other jobs. ... . Grading/Classification Method. ... . Point-Factor Method. ... . Factor Comparison Method. ... . Competitive Market Analysis Method.. 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.
What are the three methods of job evaluation?Three common methods of a job evaluation are the ranking method, the classification method and the point method.
What skills are in point system method?These factors can then be further defined.. Skill. Experience. Education. Ability.. Responsibilities. Fiscal. Supervisory.. Effort. Mental. Physical.. Working Conditions. Location. Hazards. Extremes in Environment.. |