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Which method is used in job evaluation?

  • (i) Point Rating Method
  • (ii) PESTLE Analysis
  • (iii) SWOT Analysis
  • (iv) McGregor's Theory X and Y
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Correct Answer: (i) Point Rating Method

Explanation (2 Marks):

Job Evaluation = systematic process to determine relative worth of jobs for wage fixation.

Methods: Two categories

  1. Non-Quantitative:

    • Ranking Method, Job Classification/Grading

  2. Quantitative/Analytical:

    • Point Rating Method → Most popular. Breaks job into compensable factors (skill, effort, responsibility, working conditions), assigns points/scale, total points gives job value.
    • Factor Comparison Method

Why others not:

  • (ii) PESTLE → Macro-environment analysis
  • (iii) SWOT → Strategic planning tool
  • (iv) McGregor X & Y → Motivation/leadership theory

Hence Point Rating Method is a job evaluation method.

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