factor comparison method is used as a technique of


These factors can be categorized as employee characteristics and employee contributions. The human management and senior management team incorporates one the methods that is geared to managing the … ", Cite this page: N., Pam M.S., "FACTOR-COMPARISON METHOD," in, https://psychologydictionary.org/factor-comparison-method/. Identify key (benchmark) jobs: As with the point method, these are equitably paid and generally well-known jobs. These factors include mental effort, physical effort, skill needed, supervisor responsibility, working conditions and other relevant factors (e.g., know-how, problems- After reading it, you will understand the basics of this powerful Decision Making tool. (Business Environment Analysis n.d.) Different tools, methods, and techniques are used for environmental analysis. x Temperature Gradient method. the amount of compensation offered for that part of the role. It involves quantitative and analytical approach to the measurement of job value. Methods used for job evaluations include the job ranking method, the classification method, the point-factor method and factor comparison method. Step5: The money value of the job is then apportioned amongst the formulated factors. This technique extracts maximum common variance from all variables and puts them into a common score. This type is looked down upon, by many scientists, as ‘quasi-experimental’ research, although this is usually an unfair criticism. This method is widely used and is considered to be one of the reliable and systematic approach for job evaluation in mid and large size organisations. Factor Comparison is a method used to carry out Job evaluation. Here, jobs are expressed in terms of key factors. Note: The term method is used as a generic term and can include different measurement procedures, measurement systems, laboratories, or any other variable that you want to if there are differences between measurements. x Solvent Evaporation method. Three coefficients of factor similarity were examined with regard to their behaviour within four sets of data. Moreover, a holistic use of various techniques should be done to arrive at any conclusion. Each job is ranked according to a specific set of factors, such as physical effort, mental effort, or responsibility, all of which have predetermined weights indicating their importance to success. This method ranks different jobs in respect of certain job factors and then assign of money wages to the job depending upon the ranking. Radiometric dating, radioactive dating or radioisotope dating is a technique which is used to date materials such as rocks or carbon, in which trace radioactive impurities were selectively incorporated when they were formed. The Factor Comparison Method. Method comparison measures the closeness of agreement between the measured values of two methods. Traditional Methods of Performance Appraisal – 5 Important Methods: Ranking Method, Man-to-Man Comparison, Grading and Few Other Methods 1. MBA Skool is a Knowledge Resource for Management Students & Professionals. Psychology Definition of FACTOR-COMPARISON METHOD: is one of the many methods used to evaluate jobs which is then used to set an appropriate wage or salary level for potential employees. Factor analysis is a regression-based data analysis technique, used to find an underlying structure in a set of variables. The point-factor method includes seven job factors which are grouped into four categories: Complexity Decision-making impact Supervisory These factors are divided into several levels, or degrees, each having assigned points. Different companies may have different accounting methods and hence, comparison with peers has to be done carefully. Converting the value of jobs in monetary terms can enable the organizations to make sure their recruitment and selection method provides a reasonable return on investment. This article explains the Paired Comparison Method in a practical way. This method is flexible as there is no upper limit on the rating of the factors. A method of job evaluation in which jobs are compared with each other in terms of compensable job factors. In this method, one person is compared with all other personnel. The degree of each factor is also determined for assigning points. Factor analysis is a regression-based data analysis technique, used to find an underlying structure in a set of variables. It is also known as the simplest method of rating. The Factor Comparison Method - This method is a combination of the ranking and point system. This method is bases both on the principles of points rating and principle of ranking. iii. Point System: This is the most widely used technique of job evaluation. Thomas E. Hitten was the first to originate factor comparison -method of job-evaluation. The advantage of this job evaluation method is its broad application. This is a complex system used only by a few organizations. Factor Analysis. Monetary values are assigned in very fair way according to the agreed ranks fixed by the job evaluating authority. (b) Factor Comparison Method . These may include skill, effort, decision making, working conditions, and responsibility for people, finance, or equipment. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. For example, some employee might believe that knowledge is worth more than skills and might allot this factor more salary. 9 The factor-comparison method consists of the following steps: 1. Typically the number of compensable factors is small (4 or 5). FACTOR-COMPARISON METHOD: "Most employers when starting up their own company will undergo a series of factor comparison methods to determine the most appropriate wage for various levels of staff. It is hard to communicate to employees. EXAMPLES OF COMPENSABLE FACTORS: * SKILLS * RESPONSIBILITIES * EFFORT * WORKING CONDITIONS STEPS IN COMPARING … Each factor is assigned a dollar value (as opposed to point value). These factors are enumerated below: A composite score is obtained by assigning different weights to each factor and the value of the particular job is hence obtained. the amount of compensation offered for that part of the role. Factor comparison method or Point method. About 20-25 jobs across various departments of the organisation can serve the purpose well, Step2:  For each job selected, corresponding evaluation parameters are selected, Step3: Each job is given a rank under each formulated factor in an independent fashion (without any consideration from other parameters), Step4:  An equivalent monetary value is assigned to each job parameter. The point-factor rating method is another approach that Beth can use. Psychology Definition of FACTOR METHOD: is a basic and simple term which is used to describe the method during which factors which are extracted from a specific experiment are then used in the However, this technique is superior to the conventional non-quantitative techniques in several respects. Learning Outcomes. It goes with finding new independent factors (variables) that describe the patterns and models of relationships among original dependent variables. 4. This is a widely practiced method; the techniques used here are, x Slow cooling method. The steps to be followed in this particular method are as under: Step1: Key Jobs across the organisation are selected. Two simple methods using Pearson r correlations and Tucker Congruence coefficients were compared with a more complex method given by Kaiser, Hunka and Bianchini (1971). Most consulting firms adopt this method, which was pioneered by Edward Hay in 1943. It can be used in wide range of job roles, it can also be applied to the new roles in different organizations to compare them with similar positions. When possible, a “reference method” should be chosen for the comparative method. The jobs are then compared on the basis of their composite score. It assesses a person on the quality and quantity of his work divided into a number of factors. True False The aim of factor comparison is to assign financial value to the relative parts of each job role. With the medical students gathered around, the physicians conducting the autopsy observed that the patient's lungs were speckled with large dark masses of cells that had caused extensi… But they remain in the minds of the evaluators and thus affect the results. Another conventional quantitative technique is the point factor or factor comparison method The Point Factor or Factor Comparison Method. It has been reviewed & published by the MBA Skool Team. In the point evaluation method, two techniques are generally used to assign the number of points to each degree: (1) the straight arithmetic method, and (2) the geometric progression method. The point factor method uses specific factors to determine the relative value of a job compared to the others in the organization. 3. The four methods available are ranking, classification, factor comparison, and point method to choose in utilizing the aspects to assist in job evaluation. The content on MBA Skool has been created for educational & academic purpose only. Paired Comparison Method is a handy tool for decision making; it describes values and compares them to each other. Factor comparison is … The first category covers the simple methods which apparently make no use of detailed job factors. Each job is ranked according to a series of factors. It is essentially a combination of the ranking and point systems. With such scores, several other multivariate analyses can be performed.We can now take up the important methods of factor analysis. As an index of all variables, we can use this score for further analysis. Thomas E. Hitten is the pioneer of factor comparison method of job evaluation. This term has a specific meaning that infers a high quality method whose results are known to be correc… Further delve into the financial statements that are made from equalities between units a combination the. 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