Factor Comparison Method
A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, supervisory responsibility, working conditions and other relevant factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor.
The steps involved in factor comparison method may be briefly stated thus:
- Select key jobs (say 15 to 20), representing wage/salary levels across the organization. The selected jobs must represent as many departments as possible.
- Find the factors in terms of which the jobs are evaluated (such as skill, mental effort, responsibility, physical effort, working conditions, etc.).
- Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently.
- Assign money value to each factor and determine the wage rates for each key job.
- The wage rate for a job is apportioned along the identified factors.
- All other jobs are compared with the list of key jobs and wage rates are determined
Point method
This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in the order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The procedure involved may be explained thus:
(a) Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.
(b) Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale.
The most frequent factors employed in point systems are:
I.I.Skill (key factor): Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgment, Creative thinking;
II.II.Responsibility/Accountability: Breadth of responsibility, Specialized responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials;
III.III.Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress.
The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance.
Degree Define
1. Able to carry out simple calculations; High School educated
2. Does all the clerical operations; computer literate; graduate
3 Handles mail, develops contacts, takes initiative and does work independently; post graduate
4. Discuss the deference between job criteria and performance standards?p.274
Performance is essentially what an employee does not do. Employee performance common to most jobs includes the following elements:
· Quantity of output
· Quality of output
· Timeliness of output
· Presence at work
· Cooperativeness
Other dimensions of performance beyond these general ones apply to various jobs. Specific job criteria or dimensions of job performance identify the most important elements in a given job.
A performance standard is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance. A Fully Successful (or equivalent) standard must be established for each critical element and included in the employee performance plan. If other levels of performance are used by the appraisal program, writing standards for those levels and including tem in the performance plan is not required by is encouraged so that employees will know what they have to do to meet standards higher than Fully Successful
. Performance standards should be objective, measurable, realistic, and stated clearly in writing (or otherwise recorded). The standards should be written in terms of specific measurers that will be used to appraise performance. In order to develop specific measurers, you first must determine the general measure(s) that are important for each element. General measurers used to measure employee performance include the following:
- Quality address how well the work is performed and/or how accurate or how effective the final product is. Quality refers to accuracy, appearance, usefulness, or effectiveness.
- Quantity addresses how much work is produced. A quantity measure can be expressed as an error rate, such as number ore percentage of errors allowable per unit of work, or as a general result to be achieved. When a quality or quantity standard is set, the Fully Successful standard should be high enough to be challenging but not so high that it is not really achievable.
- Timeliness addresses how quickly, when or by what date the work is produced. The most common error made in setting timeliness standards is to allow no margin for error. As with other standards, timeliness standards should be set realistically in view of other performance requirements and needs of the organization.
- Cost-Effectiveness addresses dollar savings to the Government or working within a budget. Standards that address cost-effectiveness should be based on specific resource levels (money, personnel, or time) that generally can be documented and measured in agencies' annual fiscal year budgets. Cost-effectiveness standards may include such aspects of performance as maintaining or reducing unit costs, reducing the time it takes to produce a product or service, or reducing waste.
Performance standards state what behaviors or results are expected for performance to be considered satisfactory. Standards are the criteria against which performance is judged. Standards should be:
- attainable
- specific
- observable
- meaningful
- measurable, and
- stated in terms of quality, quantity, timeliness, or cost.
Involve the employee in the development of standards. Be certain the standards describe the conditions that will be met when performance is satisfactory. For example, how well, how much, what speed, etc. is expected. Performance standards are the basis for performance evaluation and should clearly state how you and the employee will recognize when expectations have been met, exceeded, or not met.