Identify and briefly describe the main steps in developing a job evaluation system using the point method.

The main steps in developing a point method of job evaluation system are as follows: identify the compensable factors,scale the factors,weight the factors,and apply and test the system.Appropriate compensable factors are those characteristics of jobs that are valued by the organization and differentiate jobs from one another.The four main categories of factors include: skill,effort,responsibility,and working conditions.Scaling involves breaking down the factors into major categories (i.e.,universal factors,sub-factors,and degrees or levels).In "scaling the factors," the objective is to create a scale for each factor that reliably measures the extent to which that factor is present in a given job.Determining the relative weight for each factor is based on how the organization values each factor.Although it can be done statistically,this is very rare,and it is generally a judgmental process.Once the weightings are determined,points are assigned across factors,sub-factors,and degrees.The total point value of each job is determined using the system.The resulting hierarchy of jobs is tested to determine validity (i.e.,if the system is actually a true measure of relative job worth)and for reliability (i.e.,if the results come out the same when the system is applied by different evaluators).If so,the system must then be calibrated to the market,using benchmark jobs and market comparator jobs.This provides the opportunity to test for market fit,as well as testing for other potential problems.