HAY SYSTEM OF JOB EVALUATION
The Hay Guide Chart Profile System was developed in the United States in the periods immediately before and after the Second World War. It was designed specifically to cover administrative and managerial jobs in large organisations. Hay was first used in the UK in financial sector organisations. It subsequently spread to many other sectors, primarily, until the late 1980s for managerial and administrative jobs. Since then Hay has increasingly been used to cover all jobs in an organisation.
The scheme was amended in the late 1990s to accommodate local government manual jobs. A unique feature of the Hay system is that it is a universal scheme, in that the same scheme, with the same factors, factor levels and scoring system is intended to be applied in the same way in any organisation adopting the Hay system. A second unique feature of the Hay system is the Guide Charts. In summary, the factor headings are:
Know-How
Depth of Technical Know-How
Breadth of Management Know-How
Human Relations Skills
Problem-Solving
Thinking Environment
Thinking Challenge
Accountability
Freedom to act
Magnitude
Impact
Physical Demands
Physical Effort
Working Conditions
The numbers of levels used on some Hay factors can vary depending on the
organisation. Generally there are up to eight levels.
THE HAY GUIDE CHART-PROFILE METHOD OF JOB EVALUATION
General Use of the Hay Scheme
The nature of job evaluation schemes is such that only those schemes that compare jobs against jobs are universally applicable at any level in an organisation. The Hay scheme has found widespread acceptance because it:-
* is based on the step difference principle;
* it measures any job from office junior to the Chairman;
* will relate different cultures and styles of organisation; and
* is effective in all market sectors.
Consequently, it is now used by more organisations on a worldwide basis than any other single type of evaluation scheme. Hay has over 1000 consultants working from 76 offices in 36 countries around the world. In the British Isles, the HayGroup are working with over 1000 clients. Wherever the Hay Guide Chart-Profile Method of Job Evaluation is used it employs a number of well tried procedures and rules.
Procedures
1. Jobs must be properly understood before they can be evaluated hence, good quality information is required in the shape of job descriptions which make the content and context of the job clear.
2. Job evaluation is a judgmental, not a scientific, process thus every effort must be made to minimise subjectivity. This is achieved by having people with knowledge of the sector, function or organisation involved and by having a number of factors to make judgements about.
3. The task of the evaluators is to make consistent judgements and the use of the evaluation method is the tool which enables this to happen.
4. Each evaluation is checked using the profiling techniques.
5. As patterns of relativities begin to emerge they are reviewed on the basis of reason and fairness using the step difference and profile techniques to clarify judgements.
6. Each decision is properly recorded in order that the reasoning is documented for future use when maintaining the scheme as jobs change, or dealing with appeals when job holders consider the evaluators are at fault.
Rules
1. It is jobs that are evaluated not job holders.
2. The evaluation is based on a fully acceptable level of performance by occupants of the job.
3. The job is evaluated as it exists today.
4. Present pay, status or grading are not relevant.
5. Jobs can only be evaluated if they are understood.
The Hay Guide Chart-Profile Method has been developed empirically over a period of 50 years and has a number of key features:-
a) the three elements common to all jobs which facilitate comparison;
b) the step difference principle, which is the tool of comparison;
c) the numerical scale for relating different levels of jobs; and
d) the profiling technique for checking the consistency of each evaluation.
The Common Element
There are a number of different methods of job evaluation. Some compare whole jobs, the majority look at factors or elements which are common between jobs, such as knowledge, skills, experience, mental effort and responsibility. The Hay scheme is based on the analysis of three common elements, each element being measured on a separate guide chart which is set out like a grid. The elements are:-
KNOW-HOW The sum total of every kind of capability or skill, however acquired, needed for acceptable job performance.
PROBLEM SOLVING The original, self-starting use of KNOW-HOW required by the job to identify, define and resolve problems. "You think with what you know." This is true of even the most creative work. The raw material of any thinking is knowledge of facts, principles, and means. For that reason, PROBLEM SOLVING is treated as a percentage of KNOW-HOW.
ACCOUNTABILITY The answerability for action and the consequences thereof. It is the measured effect of the job on the end results of the organisation.
The Step Difference Principle
Some job evaluation schemes compare job factors against pre-determined scales. These are known as points rating schemes. The Hay scheme compares jobs against jobs using the step difference principle which works as follows:-
* if the difference between an element in two jobs is immediately evident and requires no consideration at all, then it is probably three steps or more;
* if, after some consideration, the difference is reasonably clear, it is probably two steps;
* if, after very careful consideration and scrutiny, a difference can just be discerned, then the difference is one step;
* if, after very careful scrutiny and consideration, no difference can be detected between the element in the jobs, then they are, for evaluation purposes, identical.
The Numerical Scale
Each intersect on the grid contains two or three numbers which overlap other intersects in order to provide the finest of tuning in evaluation judgements. The numbers themselves are directly proportional to each other in a geometric progression e.g. 100, 115, 132, 152. This avoids the difficulty that in an ordinary progression e.g. 1, 2, 3, 4, the numbers are in a constantly diminishing relationship to each other. The Hay scale of progression is 15% and means that each judgement is given this constant relativity wherever it falls on the scale.
Profiling
The Hay scheme also has a facility for checking the soundness of an evaluation by considering the shape or profile of the job. This is accomplished by testing the distribution of the three elements of Know-How, Problem Solving and Accountability in the evaluation of each job to see if it makes sense.
QUESTIONNAIRE FOR ASSESSING COMPETENCIES
BUSINESS ACUMEN
Q1. What are the various business opportunities, you see in your organization? (Ignore constraints)
Q2. How do you wish to convert them into workables?
Q3. What are the improvements that you would like to make:
· In your job
· In your organization
Q4. Prepare an organization direction for your present organization.
Q5. Make a SWOT Analysis of your Organization / Department.
Q6. Explain the financial viability of the case: Mini Diary Project
STRATEGIC PERSPECTIVE
Q1. Draw out a Road Map for this company / department if you were the Department Head or CEO of the organization? Give financial implications of each of the proposals.
Q.2 Find business opportunities for short term & long term in the given case:
CASELET: A
CASELET: B
CASELET: C
Q3. What is the likely business scenario by 2015?
INNOVATIVE THINKING & APPLICATION
Q1. What are the new ideas that you want to implement to improve the effectiveness in your current job / organization.
Q2. Explain the strategies for making the following products successful.
· A
· B
· C
· D
Q3. Mention an incident where you had to use a unique method to handle or resolve an issue.
Q4. A system / process / product have been doing well for your organization? Have you modified/altered or found an alternative for the same to get better output from the same?
Q5. What are the some of the reservations you have about doing a thing differently from what has been the practice?
Q6. What are the some of the ideas you have picked from elsewhere and implemented? Explain instances.
Q7. How do you get new ideas from your team members? How did you influence the team to implement? What has been the outcome?
LEADERSHIP
Q1. What are some of the leadership roles that you have assumed in your life?
Q2. What are some of the tools and techniques that you use to influence people performance?
Q3. Prepare a brief write-up on yourself to appear in a renowned Business Magazine in the year 2015? Name the magazine.
Q4. How do you identify talents, specify some of the talents you have identified and explain how you have developed them?
Q5. What are the major contributions you have made to your department which you are extremely proud of?
· Situation
· Process
· Outcome
Q6. What do you think are the priorities of people in work situations?
Q7. What are the contributing factors for high team output?
Q8. What are the different roles that you play in a Team?
1. Plant
(Advancing new ideas & strategies with special attention
to major issues)
2. Resource Investigator
(Exploring, reporting on idea developments & resources)
3. Co-ordinator
(Controlling in a way that team moves towards group
objectives)
4. Shaper
(Shaping the way in which a team effort is applied)
5. Monitor Evaluator
(Analysing problems, evaluating ideas and suggestions)
6. Team Worker
(Supporting members in their strengths)
7. Implementer
(Turning concepts and ideas into practical working
procedures)
8. Completer - Finisher
(Ensuring the team is protected from mistakes)
9. Specialist
(Contributing a professional viewpoint on the subject
under discussion)
CUSTOMER ORIENTATION
Q1. How do you build internal relationships?
Q2. In your tenure how did you build customer loyalty?
Q3. What did you do to identify customer needs?
Q4. Describe a Project team you managed, the people you involved. What was accomplished?
· Situation
· Process
· Outcome
Q5. Describe the situations of disagreement with your colleagues, boss, and what did you do to overcome the same?
Q6. Who are the people whom you regularly interact with?
Q7. You interact with people for --------
1. --------------
2. --------------
3. --------------
Q8. What are your most important values with respect to people?
Q9. Situation Test Questions.
DECISION MAKING
Q1. Have you ever planned a major Project? What was it? How did you handle?
Q2. What are three major decisions you have taken during the last one year? How did you go about making the decision? What was the impact
· Situation
· Process
· Outcome
Q3. Often we may have to take decisions, one which is less risky with minimum returns and other which is high risk and high returns. Have you been in any such situation? What decision did you take?
· Situation
· Process
· Outcome
Q4. What were the occasions you were required to take multiple decisions, under time pressure?
· Situation
· Process
· Outcome
Q5. What has been the most challenging performance standard set and achieved by you?
Q6. What are the reasons for non-adherence to schedule in an organization in general?
Q7. We sometimes exceed targets and/or complete work within timeframes. What could be the reasons?
Q1. What does work mean to you?
Q2. My preference in life: Rank them in order of preference
A) Completing assignments on record time with team of people
B) Generating new Product, Services
C) Creating direction for the team
D) Influencing others to produce high results
· Short case will be made available to be used in the discussion
· Role Play situations will be provided for different positions
Q1. In the context of globalization what are the various functions that would be necessary
for building competitive edge and organizational success. How do you measure the
success of HR Professionals in a large multinational organization ?
Q2 Explain the following (Any 3)
1.0 Development of Fast Trackers through Potential identification
2.0 Pay for Performance system
3.0 Hay MSL Job Evaluation system
4.0 HR Role in the coming years
5.0 Knowledge Management
Q3 Explain the function Engaging people for high performance. What are the practices
relevant to this function, how do you measure effectiveness of this function?
Q4 What are the various components of Performance Management System and explain
the same. How do you measure the effectiveness of Performance Management
System?
Q5 In large Indian multinational company operating in different countries it has been
decided to prepare a blueprint of HRM initiatives to be implemented in the next 2
years. What are the issues you would consider for preparing the above plans?
Q6 Analyse the case HI TECH COMPANY LTD and recommend your approach to
take the company forward
Q7 Recommend a compensation management system for a multinational company
which has manufacturing and marketing units in USA , Middle East , Singapore,
India and Japan. Recommendation should include the various issues and a common
Job Evaluation System
Q8 Apply change management model for making JBIMS a World Class Academic
Institute
Q9 How do you measure the effectiveness of following HR function?
1 - Leadership and Team Development
2 - Internal and External Customer Orientation
Q10 What are the various applications of Human Resource Audit, Explain the
processes. Recommend HRM benchmarking for an International Airline company
Q11 Why International Human Resource Management? , What are the competencies
required for HR Professionals to be effective in a global business scenario
Q12 Explain the various components of Talent Management in the context of an
International business organization.
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