What is Point Factor Job Evaluation

The point-factor method of job evaluation is a systematic, quantitative approach that uses predefined factors and their specific levels to assess job roles. Each job is analyzed based on these factors, and points are assigned according to how well the job aligns with the described factor levels.

Understanding the Point-Factor Job Evaluation Method

In this method, the total scores from the evaluated job factors are compiled to derive a cumulative score. This total score helps in constructing a hierarchy of jobs which can be structured by maintaining the raw score rankings or by translating them into different job grades. Essentially, the intrinsic value of a job is determined by analyzing the key requirements and tasks involved.

Breaking Down Point-Factor Job Ranking

In the point-factor job ranking system, it’s the job’s requirements and responsibilities that are evaluated, not the attributes of the job holder. This evaluation utilizes a set of broad, standardized factors, each broken down into multiple levels. The job’s characteristics are matched against the descriptions at each level to find the best fit, and points are awarded accordingly. The final aggregation of these points reflects the job’s overall value, enabling a ranked order of positions.

Key Factors Considered in the Evaluation

Typically, the factors considered include:

• Skills/Qualifications
• Responsibilities
• Effort
• Working Conditions (though this is less common in modern evaluations)

Pros and Cons of the Point-Factor Job Ranking System

One challenge in this system is achieving complete objectivity. The precision in defining factor levels and selecting relevant job information can vary, which may affect fairness and accuracy. Originally rooted in principles of “scientific management,” these systems attempt to quantify each level’s requirements, which might not always be clearly justified.

However, with experienced evaluators, the process tends to become more refined and accurate over time. The point-factor method offers a structured way to enhance objectivity and consistency in job evaluations, serving as a robust defense in equal value claims, provided it is backed by thorough job analysis and an unbiased system.

Despite its advantages, the point-factor method is complex and involves significant judgment in scoring, which makes adjustments cumbersome as organizational needs evolve. Nevertheless, it remains a prevalent analytical tool in job evaluation, evidenced by its inclusion in historical frameworks like the International Labor Organization’s 1950 Scheme of Geneva.

Availability of Detailed Factor-Level Definitions

While detailed definitions for each factor level are available through commercial systems, these often require specialized expertise to understand and implement effectively.

In summary, the point-factor job evaluation method offers a structured, albeit complex, approach to determining the value of job positions, emphasizing objectivity and the ability to adapt to legal and functional requirements in human resources management.