Directorate of distance education master of business administration

 
Point method is an approach to job evaluation in which numerical 
values are assigned to specific job components and the sum of these 
values provides a quantitative assessment of a job’s relative worth. The 
Point method of job evaluation consists of first developing compensable 
factors on which each job must be evaluated. The collection of these key 
factors is called manual or yardsticks.  Each of these key compensable 
factors has a scale value which defines the degree of presence of that 
factor. Each job is rated on these key factors and a value is assigned 
accordingly. 
Jobs are divided into a specified number of grades so that when 
rates are established they are not applied to individual jobs but rather 
to groups of jobs that are rated about the same number of points. In 
choosing point factors, the organizations decide on the particular job 
components that they should value. The advantages of this method are 
that a large number of specific factors are included. Off-the-shelf, ready-
made plans are also easily available for a price from HR services and 
consultancy firms. If an organization prefers to save costs by developing 
a complete plan internally, it would be a time consuming process and 
more difficult to understand. There is also greater opportunity for people 
involved to disagree on many grounds. 

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