Page 130 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes • The system is inflexible as the same point systems cannot generally be used for
production and office jobs.
(ii) The Factor Comparison System: This system is similar to the point rating system. The
factor comparison system was developed by Eugine J Benge at the Philadelphia Rapid
Transit Company in 1926. He developed this system in order to solve the two problems
faced by the point rating system, i.e. determining the relative importance of factors
and describing their degrees. This method begins by finding out the major factors
which are present in more or less degree in all the jobs in a particular organization.
Each job is ranked several times-once for each compensable factor selected. For example,
jobs may be ranked first in terms of the factor skill. Then, they are ranked according
to their mental requirements. Next, they are ranked according to their responsibility
and so forth. Then these ratings are combined for each job in an overall numerical
rating for the job. There after, it is easy to assign money value to these jobs in some
direct proportion to the points assigned under evaluation.

Merits of Factor Comparison Method
• It is a systematic, quantifiable method for which detailed step-by-step instructions are
available.

• This method can be used to evaluate a combination of unlike jobs such as clerical,
manual and supervisory jobs.
• It uses the job-by-job comparison technique which is a far more accurate method of
measurement.
• It is a fairly easy system to explain to employees because the weights selected are not
entirely arbitrary but reflect existing wage and salary practice.

• The reliability and validity of the system are greater than the other methods of job
evaluation.
Demerits of Factor Comparison Method

• The difficulty of the system is that it is very expensive and complicated and cannot
be readily explained to the workers.
• The method is somewhat difficult to operate.

• Money rates, when used as a basis of rating, tend to influence the rater.
6.1.7 Essentials for Success of Job Evaluation Programmes

According to the findings of the International Relations Section, the following conditions are
necessary for the successful operation of a job evaluation programme:
(a) It must be carefully established by ensuring that:

(i) The management’s aims are clear to all concerned and that not only the manual
workers but also all levels of supervisory and management employees fully
understand its implications;

(ii) All the relevant internal and external factors have been taken into account in
arriving at the final form of the scheme.
(b) It must have the full approval and continued support and backing of the top management.

(c) It must have obtained the acceptance of trade unions.
(d) Adequate administrative control must be setup to ensure:
(i) A centralized coordination of the scheme;
(ii) The evaluation of new and changed jobs;

124 LOVELY PROFESSIONAL UNIVERSITY