Point Method : It is most widely used method of job evaluation.Under it,jobs are divided into component factor.Points or weights are assigned to each factor depending on the degree of its importance in a particular jobs.The total points for a job indicate its relative worth or value.
A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:
The procedure involved is as follows:
1) Determine the jobs to be evaluated.
2) Select the Factor :These factors can then be further defined.
Skill : Experience ,Education ;Ability
Responsibilities: Fiscal, Supervisory
Effort : Mental ,Physical
Working Conditions :Location ,Hazards ,Extremes in Environment
3)Define the factors:The selected factors and sub-factors are defines clearly in Writing
Factor:Skill,Responsibility,Efforts and Working Conditions
Sub Factors:Experience,Education,Ability,Fiscal,Supervisory,Mental ,Physical,Location ,
Hazards ,Extremes in Environment
4)Determine the Degree.
5)Determine relative Values of the job factors.
6)Assign Point Values to Degrees.
7) Find Points value of the jobs.
8) Assign Money Value.
*The value of the job is expressed in monetary terms.
*Can be applied to a wide range of jobs.
*Can be applied to newly created jobs.
* Point method is the most comprehensive and accurate methods of jobs evaluation.
*Systematic wage differentials according to content of the job can be determine.
*The pay for each factor is based on judgments that are subjective.
*The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).
*Point methods is complicated and an average worker can't Understand it easily.
*It is time consuming and expensive.