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PHR · Question #141

Your organization will be using the point factor technique in their evaluations of job performance. You need to communicate what the point factor technique accomplishes as you're the HR Professional f

The correct answer is D. Specific compensable factors are identified and then performance levels within the factors are. The point factor technique is a job evaluation method where the organization identifies specific compensable factors and assigns numeric point values to defined performance levels within each factor. Answer D correctly reflects this employer-driven, structured process.

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Question

Your organization will be using the point factor technique in their evaluations of job performance. You need to communicate what the point factor technique accomplishes as you're the HR Professional for your organization. Which one of the following best describes the point factor technique?

Options

  • ASpecific compensable factors are identified and then performance levels within the factors are
  • BSpecific compensable factors are identified and then performance levels within the factors are
  • CPerformance factors are identified by the employee and then performance levels within the factors
  • DSpecific compensable factors are identified and then performance levels within the factors are

How the community answered

(47 responses)
  • A
    4% (2)
  • B
    15% (7)
  • C
    9% (4)
  • D
    72% (34)

Why each option

The point factor technique is a job evaluation method where the organization identifies specific compensable factors and assigns numeric point values to defined performance levels within each factor. Answer D correctly reflects this employer-driven, structured process.

ASpecific compensable factors are identified and then performance levels within the factors are

Although this choice begins correctly by identifying compensable factors at the organizational level, the remainder of the description does not accurately capture how point assignments and performance levels function within the point factor framework.

BSpecific compensable factors are identified and then performance levels within the factors are

This option shares the correct opening premise but its full text diverges from the accurate description of how performance levels are structured and scored in a true point factor evaluation system.

CPerformance factors are identified by the employee and then performance levels within the factors

The point factor technique requires compensable factors to be identified by the organization or a trained analyst, not by the employee - employee self-identification introduces subjectivity that undermines the objectivity and consistency the method is designed to provide.

DSpecific compensable factors are identified and then performance levels within the factors areCorrect

In the point factor technique, the organization or job analyst - not the employee - identifies specific compensable factors such as skill, effort, responsibility, and working conditions. Performance levels are then defined within each factor and assigned numeric point values, allowing jobs to be objectively ranked and compensated based on total accumulated points. This makes the method systematic and externally validated rather than self-reported.

Concept tested: Point factor job evaluation method in compensation

Topics

#point factor method#job evaluation#compensation factors#performance levels

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