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Joined: Oct 2010
What is Factor Comparison Method of Job Evaluation? What are its advantages and disadvantages?
Posts: 615
Threads: 461
Joined: Oct 2010
Thomas E. Hitten was the first to originate factor comparison -method of job-evaluation. This method determines the relative rank of the jobs to be evaluated in relation to monetary scale. It is often used in evaluating, the managing administrative and white-collared jobs. It is essentially a combination of the ranking and point systems. Like the rank order method it rates jobs by comparing one with another. Like the point system, it is more analytical in the sense of sub-dividing jobs into compensable factors and finds ratings one expressed in terms of numbers. These factors are not predetermined and chosen on the basis of job-analysis. The most widely used factors are (a) mental requirements (b) skill requirements, © physical requirements (d) responsibilities and (e) working conditions.
Under this system, a few jobs arc selected as key jobs which serve as standard against which all other jobs are compared. Key job is one whose contents has been stabilised over a period of time and whose wage rate is considered to be presently correct by the management and the union. The steps in evaluating the job under this method can be enumerated as under:
(a) first, various factors (as given above) are selected and defined clearly.
(b) Secondly, key jobs are selected.
(c.) Thirdly, wages are fixed for different factors of each key job.
(d) Fourthly, a comparison scale is developed. Each key job should be fitted to it, when all the key jobs have been evaluated and wages allocated in this manner, a job comparison scale is constructed.
(e) Fifthly, jobs are evaluated factor by factor, in relation to key jobs on job comparison scale. Then each job is to be evaluated and compared to other jobs in terms of each factor, and
(f) Lastly, a wage structure is designed, adjusted and operated.
The system is usually used to evaluate white collar, professional and managerial positions.
Merits
The systems has following benefits:
(1) It is a systematic, quantifiable method for which instructions are available.
(2) Jobs are compared to other jobs to determine a relative value.
(3) It is a fairly easy system lo explain to employees.
(4) There are no limits to the value which may be assigned to each factor.
(5) The plan does not require a translation from points to money. It involves a comparative process wherein jobs are priced against other jobs rather than against some numerical scale.
(6) The reliability and validity of the system are greater than the statistical measures obtained from job analysis plans.
(7) The limited number of factors (usually - 5) tends to reduce the possibility of overlapping and over weighting of factors.
Demerits
The system suffers from following demerits:
(1) It is costly to install and somewhat difficult to operate for anyone who is not acquainted with the, general nature of job evaluation techniques.
(2) Wage levels change from time to time and their inconsistencies may be adjusted to bring all the jobs into alignment. Jobs with too wide discrepancies are discarded as jobs.
(3) Money rates tend to influence the actual rate more than the abstract point.
(4) If the system is complex and cannot be easily explained to and understood by, every day non- supervisory organisational employee.
(5) The use of five factors is a growth of the technique developed by its organisations yet using the same five factors for all organisations and for all jobs in an organisation may not always be appropriate.
