Point Method

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:

Skill
Responsibilities
Effort
Working Conditions

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.

Advantages

*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.

Disadvantages

*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.