Hay & Mercer method of Job evaluation

Presented By Piyali Saha Roll No.-13 Batch No-85

Job Evaluation and the Hay System

The Hay method of job evaluation is generally understood to be a point plan, although Hay itself does not define the guide chart-profile method as such. Hays Methodology is the most widely used process in the world: Measures jobs to reflect their relative weight in the organization Provides means to assess pay across different market/functions Evaluates jobs and not people Not based on performance, title, writing skills or current salary

How are jobs evaluated using the Hay System?

Job description questionnaires are completed and signed by the jobholder, the supervisor, and other managerial staff who have responsibility for position. The job description questionnaire is given to each member of the job evaluation committee for his/her initial evaluation. The committee meets with the jobholder and supervisor to explore questions and clarify content. The committee members then compare their individual evaluations and resolve differences that might exist.

WHY HAY?
Organized, systematic job ranking system Assigns point values to job components Widely used - both public and private sector Useful for large classification studies. Helps determine appropriate level of a position within a class series. Used when necessary to create new classes.

Hay Job Evaluation Factors

All jobs need "KNOW-HOW" To be used in "PROBLEM SOLVING" In order to carry out "ACCOUNTABILITIES" Some jobs may encounter ADDITIONAL WORK ELEMENTS

Know-how
To achieve the accountabilities of a job requires know-how (or inputs), which is the sum total of every capability or skill, however acquired, needed for fully competent job performance. Know-how has three dimensions: Practical / technical knowledge: Depth and breadth of technical or specialized knowledge needed to achieve desired results. Planning, organizing and integrating (managerial) knowledge: The requirement to undertake managerial functions, such as planning, organizing, staffing, directing and controlling financial, physical and human resources, to achieve business results over time. Communicating and influencing skills: The interpersonal skills required for successful interaction with individuals and groups, inside and outside the organization.

Problem solving
The value of know-how is in its application to achieve results. Problem solving (or throughputs) refers to the use of know-how to identify, delineate, and resolve problems. Problem solving measures the requirement to use know-how conceptually, analytically, and productively and has two dimensions: Thinking environment: The jobs context regarding business matters to address and the degree to which problems and solutions are clarified and focused by strategy, policy, precedents, procedures or rules. Thinking challenge: The inherent complexity of the problems faced and the difficulty in identifying solutions that add value.

Accountability
Every job exists to add organizational value by delivering some set of results (or outputs). Accountability measures the type and level of value a job can add. In this sense, it is the jobs measured effect on an organizations value chain. It has three dimensions: Freedom to act: The degree of empowerment to take action within the framework of guidance provided to focus on decision-making. Scope: The business / business measure(s) the job is designed to positively impact. Impact: The nature of the jobs influence on business results (defined in Scope) ranging from degrees of direct to indirect.

Additional Work Elements

This factor is likely to apply to a limited number of posts within the current range of posts being evaluated. It is concerned with additional physical effort and/or strain beyond normal working requirements or working conditions. The factor is evaluated through consideration of two elements: Physical Effort :This element is concerned with any physical effort/strain above what would normally be incurred in the day-to-day office environment that is required to perform the job to the required standard. Working Conditions: This element is concerned with unfavorable environmental conditions to which you are exposed in order to perform the job to the required standard. This could include dust, dirt, heat, cold, fumes, steam, moisture, noise and direct physical contact with unpleasant substances. The frequency with which such a requirement occurs should be identified.

MERCER'S INTERNATIONAL POSITION EVALUATION SYSTEM (IPE)

Mercer's International Position Evaluation System (IPE) offers organisations an independent method to compare various aspects of a job and rank positions against each other. The system allows for fast, reliable and consistent measurement of positions' size and value to an organisation across job families, within any type of organisation across the world.
Mercer consultants use IPE to design effective grading structures to support the organisational goals.

What are the benefits of Position Evaluation with IPE?

Clarification of positions A systematic, objective and comparable basis for reviewing roles

A method for market comparison of compensation and benefits

A fair and objective basis for grading design A transparent, accepted and internationally applicable approach

The Five Factors

Organisation

Organisation size is determined by monetary scale such as sales and assets, range of activity and number of employees. Assess nature of impact a position has on the organisation. Assess relative contribution that a position holder makes in the context of Impact.

1. Impact

Impact

Contribution

Communication

Assess the nature of the necessary communication ability required by a position. Determine both organisation frame and nature of interests of communication contacts.

2. Communication

Frame

Positio n

Innovation

3. Innovation

Assess the requirements to identify, make improvements to, or develop procedures, services or products Assess level of complexity that a position holder must deal with.

Complexity

Knowledge

Measure the nature of knowledge required in the job to accomplish objectives and create value.
Assess the way the knowledge is applied. Assess the breadth (geographic context) in which the knowledge is to be applied.

4. Knowledge

Team

Breadth

Risk

5. Risk

Assess the exposure to risk of mental or physical injury in the job. No points are yielded if work conditions meet international standards. Assess level of exposure from the working environment.

Environment

Major IPE applications

Application in Human Resources Management
Organisational analysis Remuneration management Recruitment Promotion and succession planning HR information HR controlling HR audits

IPE deliverables
A clear ranking of positions that is internally consistent A first analysis of the organisational effectiveness A global comparison of relations between positions A starting point to establish position / competency profiles A database to support career planning and succession An objective reference to solve title issues A reliable base for an equitable salary structure A tool that facilitates market benchmarking

Position Evaluation Systems Remarks

Thank You