Merits and Demerits

The point method is a superior and broadly used method of evaluating jobs. It forces raters to look into all of the key factors & sub-factors of a job. Point worth is assigned to all of factors systematically, removing bias at every stage. It is reliable because raters utilizing similar criteria would obtain more or less similar answers. The method underlying the approach contributes to a minimum rating error (Robbins p.361). It accounts for differences in wage rates for many jobs on the strength of job factors. Jobs might change over time, but the rating scales established under the point technique remain unaffected.

On the negative side, the point method is difficult. Preparing a manual for many jobs, establishing wage rates for different grades, fixing values for key and sub-factors, etc., is a time consuming procedure. According to Decenzo & Robbins, "the key criteria must be carefully and apparently identified, degrees of factors ought to be agreed upon in terms that mean the similar to all rates, the weight of each of criterion ought to be established and point values ought to be assigned to degrees". It may be too taxing, especially while evaluating managerial jobs where the nature of work (complex, varied novel) is such that this cannot be expressed in quantifiable numbers.