Communications in Information Science and Management Engineering Mar. 2013, Vol. 3 Iss. 3, PP. 154-160 - 154 - Study on the Effectiveness of Point-Factor Job Evaluation System in Operation Position Xinbo Sun 1 , Neng Luo 2 School of Business Administration ，Northeastern University，Shenyang, China 1 xbsun@mail.neu.edu.cn; 2 nengluo825@163.com Abstract- In order to establish a reasonable and scientific internal pay system, this paper makes an in-depth study on the application process of point-factor job evalustion approach. Questionnaire survey and statistical analysis methods are used to determine the factors of job evaluation system. Also, it focuses on the weight determination using improved AHP method. Then, it is proposed that the order of positions relative value in some benchmark enterprises should be utilized to verify the result. Finally, a pay system of the industry of refining of gold are constructed, which are accord with the characteristic of operation positions. All the work is based on the practice in specific enterprises, so the effectiveness of the method and the data is testified. Keywords- Point-Factor; Job Evaluation; Analytic Hierarchy Process; Effectiveness Study; Operation Position I. INTRODUCTION Human resource management is faced with the severe challenges in Knowledge Economy Times. As a matter of fact, knowledgeable and technological competition among countries is the competition of human resource management level [1] . Reasonable compensation system is a significant objective of human resource management in enterprises, and job evaluation is the foundation for the establishment of fair and reasonable compensation system. Job evaluation, which is also called analysis of job value, refers to the process of confirming relative value between positions by means of collecting information of positions at all levels and evaluating positions from four aspects: labor complexity, labor responsibility, labor intensity and labor condition. Job evaluation is a kind of technology which locates the position of each job in the internal compensation structure systematically. It takes assessment results of relative importance of task in the whole work as standards. Regardless of personal capability or performance, job evaluation is based on the systematic analysis and comparison of requirements to laborers in a certain specific position under normal circumstances, and it aims at the establishment of relative value system of internal positions in enterprise. Post relative value, based on the results of job evaluation, determines the payment grade, which works as a standard of position compensation. Payment grade can objectively reflect the relative value of each position, and have functions of compensation balance and internal justice for the purpose of fair distribution [2~6] . II. RESEARCH REVIEW A. Research Review on Point-Factor Approach Currently, point-factor approach, which is widely used throughout the world, is one of comparatively important methods of job evaluation among various methods [7, 8] . Some scholars at home and abroad have made relevant researches on point-factor approach. Most of foreign researches are focused on the application of this method. Biman Das and Alberto Garcia Diaz (2001) have identified relativity not only among elements but also elements and post values in the aspect of statistics based on the establishment of job evaluation elements system [9] . A. Spyridakos, Y. Siskos and D. Yannacopoulos (2001) have put forward a multi-criteria evaluation method against obscurity and inaccuracy of post duty description occurred when a scope enterprise conducts job evaluation. In essence, this evaluation method is to change deterministic process of element weights into linear programming problem of acquiring judgment bias of each element weight. Meanwhile, this method is not applied to make an intensive research on deterministic process of elements and its foundation, but to confirm optimal weight by the means of interactive approach [10] . Craig Skenes and Brian H. Kleiner (2003) have made a systematic analysis of point-method-based index system of Hay job evaluation method. In brief, this index system includes skill, resolution capability and responsibility. It also takes the affects that staff’s motivation has on job evaluation into account [11] . Through a large amount of experiments, Daniel E. Martin, Donna Wiley and Peter J. Legree (2007) found that race difference, altogether with gender difference and difference of cultural adaptability, would probably result in different treatment on compensation [12] . Based on traditional point- factor approach, Albert Corominas, Anna Maria Coves, Amaia Lusa and Carme Martinez (2008) have built up ISOS job evaluation system by introducing the relationship between job evaluation and gender, which aims at elimination of gender discrimination [5] . Domestic researches are comparatively less than foreign ones on point-factor approach. For the high complexity of confirming index weights, Yu Shunkun (2006) has adopted an improved analytic hierarchy process to make an analysis.