What does the point factor approach rely on for job evaluation?

The point factor approach relies on a detailed examination of job factors to evaluate and assign value to different positions within an organization. This method breaks down jobs into specific components or factors such as job duties, required skills, responsibilities, working conditions, and the impact of the job. Each factor is assigned points based on its relative importance and complexity, allowing for a quantitative assessment of various jobs.

By focusing on measurable criteria, the point factor approach provides a systematic and objective means of determining job worth, facilitating fair compensation decisions. This structured assessment can help ensure internal equity and consistency in pay practices across the organization. The emphasis on detailed analysis is crucial, as it enables organizations to recognize the various dimensions that contribute to a job's value rather than relying on subjective or simplistic methods.