In a point system of job evaluation, how is the value determined?

In a point system of job evaluation, the value of a job is determined by assigning points through a point manual. This method involves a structured approach where specific job factors—such as skills required, responsibilities, effort, and working conditions—are identified and weighted according to their importance to the organization. Each job is then evaluated against these factors, and points are assigned based on how well the job meets the criteria laid out in the point manual. The cumulative points determine the relative worth of the job in comparison to others within the organization.

This systematic and objective approach allows for fair comparisons between different positions and aids in establishing a logical basis for compensation. It minimizes subjective bias because the evaluation process relies on standardized criteria rather than personal opinions or arbitrary measures. Consequently, this method provides a clear and defensible rationale for job classification and pay structures, improving overall consistency in human resource management practices.