Factor-comparison | Meaning and Definition

What is the meaning of factor? 

Some parameters or factors are considered while undertaking any evaluation or measurement that not altogether predicts any rank for a job but are divided into various factors that rank the job and create a successful evaluation.

What is the meaning of comparison? 

Comparison also holds the same meaning. The comparison here is comparing the factors that determine the job evaluation. 

What is the Factor-Comparison method? 

Factor comparison is a scientific and systematic method mainly created and developed for job evaluation. There are a series of parameters or factors involved in the factor-comparison method. This method helps by assigning and giving value to each job role in a company and not just to the whole job. 

Factors involved in the Factor-Comparison:

There are several factors involved in the factor-comparison:

  • Physical effort
  • Mental effort
  • Working conditions
  • Skill
  • Responsibility

Advantages of Factor-Comparison:

Here are some of the advantages of factor-comparison:

  • This application is very broad
  • This assigns the money in a fair method
  • This gives surety to the company to get a reasonable return on the company’s investments.
  • This is a flexible method as it doesn’t consist of any upper limit to its rating on various factors

Disadvantages of Factor-Comparison

Here are some of the disadvantages of Factor-Comparison:

  • The cost is very high
  • It is necessary to make decision on evaluating each factor
  • It was very time consuming process

Factor comparison steps

Here are some of the steps involved in the factor comparison:

  • Selecting key jobs across the comparison, around 20 to 25 jobs
  • Selecting evaluation parameters for each of the job selected
  • Providing ranks to each job under each sector
  • Assigning a monetary value to each job parameter
  • Dividing money value of the job amongst all the formulated factors
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