1. Select Initial Jobs to be Used in Establishing Method Conduct Job Analysis Prepare Job Descriptions Prepare Job Evaluation Manual Select and Define Job Factors Distribute Points to Job Factors Degrees Determine Number of Total Points to Use Determine Number of Factor Degrees and Define them Weigh Job Factors Job Evaluation Committee Evaluate JobsCompleted Job Evaluation Manual Point Factor Method

2.  Select Cluster – Production Units Jobs (Welder, Mechanic, Storekeeper, Boiler Operator, Welding Assistant, Loco Operator, Lancer, Head Rigger, Console Operator, Shift Supervisor etc)  Conduct Job Analysis  Identify Compensable Factors (e.g. Education, Responsibility, Physical Effort, Working Conditions)  Define the Compensable Factors Point Factor Method

3.  Determine the number of degrees in each factor required to sufficiently describe it’s requirement in the job (e.g Education can have five degrees – 1, 2, 3, 4) Degree 1 = School Pass Degree 2 = Graduate Degree 3 = ITI Pass Degree 4 = Licentiate or Diploma Degree 5 = Engineering  Determine Total Number of Points to Use (Normally, 500 to 1000)  Distribute the points along degrees of factors (JE Manual)  JEC now goes through the JDs and the Manual  Job Evaluation Point Factor Method

4. Degree of Factor Job FactorWeight12345 Education50 100150200250 Responsibility30 70110150 Physical Effort12 24364860 Working Condition882440  Total Points – 500 or 1000 normally (not too small, not too large)  Distribute amongst factors according to importance of the factor in this cluster of jobs (Education =250, Responsibility = 150, Physical Effort = 60, Working Condition = 40, Total = 500)  Now distribute along degrees (Max – Min/n-1). Min is normally equal to the weight point. Point Factor Method

5. Degree of Factor Welder12345 Education50 100150200250 Responsibility30 70110150 Physical Effort12 24364860 Working Condition882440  Total Points – 100 + 110 + 48 + 24 = 282 Point Factor Method

6.  Ranking of a job on multiple compensable factors  For ‘factor comparison’, the compensable factors are  Mental Requirements  Physical Requirements  Skill Requirements  Responsibility  Working Conditions  Benchmark Jobs are selected  Factors defined  Rank each job by factors  Rank Jobs according to wages assigned to each factor  Construct job comparison scale Factor Comparison Method

7. Ranking by Wage Rates (Rows) MRPRSRRespWC Welder14112 Crane Operator31344 Punch Press Operator23223 Security Guard42431 Wage ($ Hourly)MRPRSRRespWC Welder9.804.00 (1).40 (4)3.00 (1)2.00 (1).40 (2) Crane Operator5.601.40 (3)2.00 (1)1.8 (3).20 (4) Punch Press Operator6.001.60 (2)1.30 (3)2.00 (2).80 (3).30 (3) Security Guard4.001.20 (4)1.40 (2).40 (4).40 (2).60 (1) Factor Comparison Method Ranking By Factors (Column)