7 State the factors that are generally selected in pointsys

7. () State the factors that are generally selected in point-system method of job evaluation plan. (i) Why is the point-system method preferred over other methods of job evaluation plan? (ii) Why standard hour plan is most commonly used in direct financial plan, compared piecework and measured day work?

Solution

7 (i) The factors that are generally selected in point-system method of job evaluation are – skills, responsibilities, effort, and working conditions. Skills include sub factors like experience, education and ability. Responsibilities include both supervisory responsibility as well as fiscal responsibility. Effort includes both physical effort as well as mental effort. Lastly the factor of working conditions includes sub factors like location, hazards and any extremes in the environment.

(ii) The point-system method is preferred over other methods of job evaluation plan due to the fact that such a system enables to express the value of a job in tangible monetary terms. This method can be applied to a wide range of jobs, including all newly created jobs. Thus this method is a systematic way of examining job roles and hence is preferred.

(iii) Standard hour plan is more commonly used in direct financial plan as compared to piecework and measured day work because direct financial plans deal with jobs that have a short cycle, are repetitive in nature and usually require only a couple of skills. On the other hand piecework and measured day work usually consists of tasks that are non-repetitive, have long cycles and require variety of skills. In such cases standard hour plan cannot be used at all.