Correct option is B
The correct sequence is:
C. Choose benchmark jobs
– The process begins by selecting widely understood and stable jobs used as standards for evaluation.
B. Select compensable factors
– Once benchmarks are set, we identify compensable factors like skills, responsibility, effort, etc.
E. Assign weights to compensable factors
– Each factor is given a weight based on how critical it is to the organization.
D. Define each factor’s degree
– Next, each factor is broken down into degrees (e.g., 1–5 levels) to fine-tune evaluation.
A. Review job descriptions and job specifications
– Finally, the remaining jobs are reviewed using these structured criteria to evaluate and compare them systematically.
This flow is consistent with practical application of the point-factor method, especially in large organizations where evaluation systems are built around benchmarks and factor models first, and then applied to job documentation.
Information Booster:
Benchmark jobs are selected first to create a stable and unbiased evaluation framework.
Compensable factors are attributes of jobs (not people) that add value—examples include skill, effort, responsibility, and working conditions.
Assigning weights makes the evaluation system flexible and aligned with organizational goals (e.g., tech firms may assign more weight to innovation).
Factor degrees ensure granularity and equity in job comparison.
Only after the framework is established, job descriptions/specifications are reviewed to apply it to all other jobs.
This method supports internal equity, rational pay structures, and transparent compensation systems.
Commonly used in large corporations and public sector institutions for structured compensation analysis.
English
10 Questions
20 Marks
12 Mins
