Understanding Job Evaluation Methods: The Point System

The question asks about a specific method of job evaluation where jobs are assessed based on identified compensable factors, and points are assigned to each factor according to its importance. Let's analyze the different options provided to determine which method fits this description.

Analysis of Job Evaluation Methods

Job evaluation is a systematic process of determining the relative worth of jobs within an organization. This helps in establishing a fair and equitable pay structure. Several methods are used for job evaluation:

• Ranking System: This is a simple, non-analytical method where jobs are ranked from highest to lowest in terms of their overall worth to the organization. It doesn't involve breaking down jobs into factors or assigning points.
• Classification Method: Also known as the grade description method, this involves establishing pre-defined grades or classes with descriptions of the types of jobs that fall into each grade. Jobs are then assigned to the grade that best matches their overall characteristics. Like the ranking method, it doesn't typically involve assigning points to specific factors within a job.
• Factor Comparison Method: This is an analytical method where jobs are compared factor by factor against benchmark jobs. Each factor (like skill, effort, responsibility, working conditions) is assigned a monetary value or points based on the benchmark comparison. While it uses factors and points, it relies on comparing jobs directly to benchmark jobs, which is slightly different from the description focused purely on factors and their importance.
• Point System: This is another analytical and widely used method. It involves the following steps:
  1. Identify key compensable factors common to a range of jobs (e.g., skill, effort, responsibility, working conditions).
  2. Define different degrees or levels for each factor (e.g., Skill Level 1, Skill Level 2, etc.).
  3. Assign a specific number of points to each degree of each factor. The points assigned reflect the relative importance of the factor and the degree of the factor to the job and the organization's objectives.
  4. Evaluate each job by determining the degree to which it possesses each compensable factor.
  5. Calculate the total points for each job by summing the points for all factors.
  Jobs with higher total points are considered to have greater relative worth.

Evaluating the Options Against the Question

The question describes a method where:

• Specific compensable factors are identified.
• Points are assigned to each factor based on its importance.

Comparing this description to the methods:

• Ranking System: Does not use factors or points.
• Classification Method: Does not typically use specific factors with points for individual job evaluation.
• Factor Comparison Method: Uses factors and can use points, but its core mechanism is comparing jobs to benchmarks factor by factor, which isn't the primary focus of the question's description.
• Point System: Directly involves identifying compensable factors, defining degrees, and assigning points based on importance, precisely matching the description.

Therefore, the method that evaluates jobs by identifying specific compensable factors and assigning points according to their importance is the Point System.

Based on this analysis, the correct answer is the Point System.

Revision Table: Key Job Evaluation Methods

Additional Information: Importance of Compensable Factors

In the Point System and Factor Comparison methods, compensable factors are crucial. These are characteristics of jobs that an organization values and for which it is willing to pay. Common compensable factors include:

• Skill: The knowledge, experience, and abilities required.
• Effort: The physical and mental exertion needed.
• Responsibility: The accountability for results, decisions, and impact on the organization.
• Working Conditions: The environment in which the work is performed, including hazards, discomfort, and surroundings.

The selection and weighting of these factors are critical steps in designing a Point System. The points assigned to each factor and degree reflect the organization's priorities and values regarding different aspects of a job.