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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