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The Hay Guide Chart Method of Job Evaluation Generally (and ideally) diverse teams of people within an enterprise are trained in the Hay Guide Chart Method of Job Evaluation. Sometimes jobs are evaluated by a Hay consultant or by a limited group within an organization. Sometimes the entire organization is done from top to bottom and at other times just a single division or group like the executive team is evaluated. The system is very flexible and is underpinned by years of research, real life application in a very wide variety of real situations and a database of millions of jobs.The foundation of job evaluation in the Hay Method is an understanding of job content. The rule is to evaluate the job not the person. Often the evaluator will not know the job or the incumbent. If the evaluator doesnt understand the job from the position description, then they can ask questions, find a resource to help, or delay the job evaluation until the position description is improved. Another key assumption on the part of the evaluators is that the position is being done at a competent level. Excellent or poor performance in the job should not be a factor in the evaluation - this is what performance reviews are for.There is a document called a Guide Chart that is customized to an enterprise and based in a solid foundation of Hay algorithms. This is a fairly straightforward four page (sometimes three) chart that is easily learned with training but not truly understandable until you have applied it over a number and variety of jobs.The Guide Chart is divided into factors. There are a total of four major factors that are in turn divided into 12 dimensions. It will help you to understand the chart below if you remember that the factors are weighted. Know-How usually comprises about 50% of the total points followed by Problem-Solving and Accountability at 20% each and Working Conditions at 10%. This weighting is indicative of the common balance but it may not be the same in a customized application. Also, the Working Conditions factor is not used in every installation. In other words, debating at length your working conditions points for a typical white-collar librarian job will make very little difference in your overall ranking. Focusing on the fairness of the evaluation of your positions requirement for know-how and problem solving will potentially achieve more.Finally, the points in and of themselves dont mean much. When enough of the evaluations are done, all jobs in the enterprise are listed from end to end by their simple total points and profile. This creates the so-called ranking. At this point various analyses are done and decisions made to create bands or pay grades. Research suggests there should be at least a 15% difference between jobs for there to be a noticeable difference. The research includes a lot of human perception research such as when humans perceive a difference in candlelight or sound decibels. Hence, many pay grades are in 15% bands. You have a chance of moving your pay grade if your points increase enough to change your position to the next higher band. If your points are at the bottom of a range then you can do the math . . Another whole layer is added here. Market factors (external salary surveys) are reviewed in the context of the enterprises market competitiveness. The enterprise determines if they want to pay at, above or below market and for what positions. Positions may be red-circled due to market anomalies or business needs (like specialized, programmers in high demand).Of course, this is all a gross over-simplification but you get the idea. Compensation competencies are professional skills usually enjoyed by HR professionals. I hope this outline assists you in effective conversations with them.Hay System Guide Chart Factors SummaryFactorBrief DefinitionAdditional ShadesKnow-How (3 dimensions)The sum total of every kind of knowledge and skill, however acquired, needed for acceptable job performance.Specialized Know-HowPractical procedures, specialized techniques and knowledge within occupational fields, commercial functions, and professional or scientific disciplines. In varying combinations, some jobs require knowledge about a lot of things while others require a lot of knowledge about a few things. Skill levels:Entry, paper pickerSimple processorSuper processor Community college, portable skills Equivalent of college education Seasoned with substantial work experience Authoritative source within organization GURU, usually specializedThe experience scale is similar. Management Know-HowPlanning, organizing, coordinating, integrating, staffing, directing and/or controlling the activities and resources within an organizational unit or function. Can be exercised directly or consultatively. T - Task-oriented, strong boundaries to job First line supervisor or individual contributor that must be aware of many other activities outside of job boundariesActivities are delegated to first line supervisors, or strong consulting across important parts of the organizationLarge unit, functional variety Human Relations SkillsActive face-to-face skills needed for various relationships with other people.Talker Communicator Motivator, negotiator, seller Problem-Solving (2 dimensions)The amount and nature of thinking required in the job in the firm of analyzing, reasoning, evaluating, creating, using judgment, forming hypotheses, drawing inferences, arriving at conclusions, etc.EnvironmentThe environment in which the thinking takes place. How much guidance is available from department policy and practices? How much from supervisors? Detailed rulesStanding instructionswhat and how less limiting Some freedom to resolve problems, unusual situations referred up 1. Problem is clear, solution is not 2. Big Problems expressed as objectives, what to do left to incumbent. 3. Free to determine major functional directions ChallengeThe challenge of the thinking to be done.The complexities: Strictly black & white Shades of grey Rule books available, incumbent selects Analysis, evaluative thinking Creative, not done before Accountability (3 dimensions)The answerability for action and its consequences. It is the measured effect of the job on the end results of the enterprise.Freedom to ActThe extent to which personal or procedural control exists.What controls affect the job? R - Constant supervisionA - Supervision is continuing but not direct B - Some prioritization of work permittedC - Supervision periodic, some checking of work D - Supervisory review, less stringent E - Managerial directionF - Review of end results in 6 months or more Job Impact on End ResultsThe degree to which the job affects or brings about the results expected of the unit or function being considered. A - Limited impact, passes most decision-making on to others C - Contributes in an advisory, support way.S - No sharing with subordinates or superiors - only with equals. Control over most but not all the resources to achieve results.P - Line management - position has a controlling impact on activities that produce the end results MagnitudeThe size of the function or unit measured in the most appropriate fashion (like revenue, production, etc.)How big is the

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