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JOB EVALUATION(Hay System)

Damascus

6 March/ 2012

Presenter:

Safwat Kabbani

04 March 2012 1

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04 March 2012 2

What is Job Evaluation (JE)?

Job evaluation is a system for logically and fairly ranking jobs inan organisation by comparing one job against a predeterminedscale.

Work with more complexity or responsibility should receive moreweight than work with less complexity or responsibility.

The JE evaluates the job, not the person doing it.

Emphasis on organisational reviews.

JE is JE is not

Comparative Absolute

Judgmental Scientific

Structured Unstructured

Job Centered Incumbent Focused

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What is the Purpose of Evaluating a Job?

Internal equity and fairness.

To support an efficient and effective organisation structure.

Common job language and standards globally.

Support external benchmarking of job levels against the external

market to ensure competitive pay.

Legal, regulatory or trade union requirements where applicable.

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04 March 2012 4

What Do You Know About The Hay Method?

The most widely used and recognised method of job evaluation

in the world.

Three dimensions which feature in every job.

Appropriate level for each dimension is determined and scored.

Total score gives relative weight of the job in a company.

Know-How

INPUT

PROCESS

OUTPUT

Problem Solving

Accountability

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04 March 2012 5

The Hay Evaluation Factors

Three Charts Eight Judgement Factors

Know-How Job KnowledgeManagerial ScopeHuman Relation Skills

Problem Solving Thinking EnvironmentThinking Challenge

Accountability Freedom to ActImpactMagnitude

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Internal Checks Some Elements of Hay areHierarchical

04 March 2012 6

KH PS ACC

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The Principle

Accountability

Jobs exist to achievean end result

Accountability

Problem Solving

Therefore, the job holderrequires a level of knowledgeand experience suitable forthe scale and complexity of

the deliverables

Know-How

Problem Solving

To achieve this, job holdersmust address problems,

create & analyse solutionsand apply judgement

1 32

Accountability

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04 March 2012

8

Hay Translated to Job Group/Salary Group and Pay

$$$Hay

ScoreJob

GroupSalaryGroup

Job Evaluation Pay

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Job Weight

Know-how score +

Problem solving score +

Accountability score =Total score

Total score = Job Weight

Job Weight => Job Group => Salary Group=> Remuneration

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JG/SG Bands

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X

Y

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04 March 2012 11

When to seek JE services?

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Organisation review

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5 Test Questions

Talent issue?

Has the job substantially

changed to warrant a review?Is it a permanent job?

Does the evaluation request

have the right support?Could the job be evaluated(slotted) by using Job

Ladders or Job Families?

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04 March 2012 13

5/5 Could the Job be Evaluated (Slotted) by Using JobLadder or Job Family?

Website

Ladder Family

Leader

RE JG Z

RE JG Y

RE JG X

RegionalManufacturing

Leader

Refinery X GM

JG X

Refinery Y GM

JG Y

Refinery Z GM

JG Z

GM = General Manager

RE = Reservoir Engineer

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Can a position be benchmarked/slotted in anorganisational archetype?

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Archetype

RegionalManufacturing

Leader

GM = General Manager

Refinery X GM Refinery Y GM Refinery Z GM

Production Manager JG Z Production Manager JG Y Production Manager JG Y

Maintenance Manager JG Y Maintenance Manager JG X

HSSE-SD Manager JG X HSSE-SD Manager JG W

HSSE-SD Manager JG W

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04 March 2012 15

Example Business Need Governance

20%

50%

30

%

JG

3

4

5Department X 170 jobs inJG5-3

Agreement between

Business Line

HRiB/Skillpool Manager

JE

JE Accountability Matrix

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04 March 2012 16Date 04/03/2012 Enter document title in Footer (Insert > Header & Footer > Apply to All) 16

Q & A

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04 March 2012 17

What information is needed for JE? 1/2

Job Description & Organisation Chart

Job Title

Position Number

Purpose : High level statement on WHY the job exists

Relevant Dimensions:Dimensions over which the job has control or influence

Type of jobs impact (influence) on the dimension

Example: Budget, payroll accountability, Opex, Capex (in USD), proceeds (salesvolumes)

Organisation chart :Hierarchy

Reporting relationshipsIncluding Job Group details of supervisor/manager and peers; provide Salary Groupdetails if surrounding jobs have not yet been evaluated

Number of subordinates, staff in the team/organisation

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04 March 2012 18

What information is needed for JE? 2/2

Job Description & Organisation Chart

Key Accountabilities:

5-7 concise statements - relevant, not a long list necessary

Required Knowledge and Experience:

Type of education

Years and type of relevant experience - list of competencies is notadding value, possibly provide only 2-3 differentiatingcompetencies

Key Challenges:

Must be time/country specific - repeat of accountabilities notnecessary

Example of standard Job Description here

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1. A new (additional) position

Is it the same/similar as an existing role?

YES => slot

NOIs the reporting line the same as peers? YES => slot

What is the JG (JGs) of peer(s) => slot

Is the content of the role different? NO => slot

Does the content of the role take elements away from otherpositions/peers around this role?

NO => slotYES => If these changes are significant then there is a case torefer the organisation unit for review by JE.

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CEOs Views

Can you recall the key elements of Peter Vosers view of EffectiveOrganisations that he expressed he would like to further embed inShell?

Some of Peter Vosers principles/views:

Fewer organisation levels.Speed up decision-making.

Single Point Accountability.

Commercial Impact.Less strategy and more doing/implementing.

04 March 2012 20

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04 March 2012 21

Y ORGANISATION

Team Manager 1JG 6

X FTE

Team Manager 2JG 6

X FTE

Team Manager 3JG 6

X FTE

Team Manager 4JG 6

X FTE

Team Manager 5JG 6

X FTE

Team Manager 6JG 6

X FTE

Team Manager 7JG 5

X FTE

Team Manager 8JG 5

X FTE

Senior Team Manager 1JG 4X FTE

Team Manager 9JG 6X FTE

Team Manager 10JG 6X FTE

Team Manager 11JG 6X FTE

Team Manager 12JG 6X FTE

Team Manager 13JG 6X FTE

Senior Team Manager 2JG 5

X FTE

Team Manager 14JG 6

X FTE

Team Manager 15JG 6

X FTE

Team Manager 16JG 6

X FTE

Team Manager 17JG 6

X FTE

Team Manager 18JG 6

X FTE

Senior Team Manager 3JG 5

X FTE

Operations Manager 1JG 3

X FTE

Team Manager 19JG 6

X FTE

Team Manager 20JG 6

X FTE

Team Manager 21JG 6

X FTE

Specialist 1

JG 5X FTE

Team Manager 22JG 6

X FTE

Team Manager 23JG 6

X FTE

Team Manager 24JG 6

X FTE

Specialist 2

JG 5X FTE

Operations Manager 2JG 4

X FTE

Team Manager 25JG 6

X FTE

Team Manager 26JG 6

X FTE

Senior Team Manager 4

JG 5X FTE

Team Manager 27JG 6

X FTE

Team Manager 28JG 6

X FTE

Senior Team Manager 5

JG 5X FTE

Operations Manager 3JG 4

X FTE

Process ManagerJG 2

X FTE

Example of Organisation Chart

Back

Shown JG levels are illustrative

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Job Evaluation in further Support Roles

Although Job Evaluation should not be used to solve Pay, Talent orResourcing issues, JE is related to some activities in these areas:

Pay Benchmarking

JE supports the Pay Benchmarking process by reviewing andcalibrating marker/benchmark jobs in Shell & other companies.

Succession planning

JE can test the structure of an organisation for logicalsuccessor jobs of managerial jobs. But do not forget JE looksat jobs not people.

ResourcingJE can provide advice on appropriate job levels for internal andexternal resourcing, connected as well with required job

competencies.04 March 2012 22