Edward Hay created most famous job evaluation approach. The logic is following - each job need knowledge, therefore the first factor for evaluation is Know how. Mr. E. Hay made quite strange assumption, that - schools, Universities or MBA are providing knowledge needed for business environment.

1. Logical illogical
job evaluation
Incompleteness of logic

2. Edward Hay created most
famous job evaluation approach

3. The logic:
Each job need
knowledge,
therefore the First
factor for evaluation
is Know how

4. Each job needs to solve problems
Therefore second factor is Problem solving

5. Each job has
responsibility
for the result
Therefore, up to Edward
Hay, last factor is
Accountability

6. 6
The Hay Job Evaluation Methodology:
The Concept
Accountability
Level of responsibility for
the output
Know-How
(Requirements to deliver
the output)
Problem
Solving
Output
Throughput
Input
(Thinking process
necessary to deliver
the
output)

7. 7
The Hay Job Evaluation Methodology:
The Criteria
ACCOUNTABILITY
freedom to act
magnitude
impact
KNOW-HOW
technical knowledge
management breadth
human relation skills
PROBLEM SOLVING
thinking environment
thinking challenge

8. 8
Table I: Know-How: 3 criteria
1. Technical know-how
= The requirements for Know-How in practical procedures,
specialised techniques and scientific disciplines
2. Management breadth
= The requirement to plan, organise, integrate and harmonise the
diverse elements assigned to the job
3. Human Relations skills
= The skills required to obtain results by working through and
with people

9. 9
Table I: Know-How
1. Technical Know-How
A. Primary
B. Elementary vocational
C. Vocational
D. Advanced vocational
E. Basic professional
F. Seasoned professional
G. Professional Mastery
H. Unique authority
Can hardly read or write
First year of secondary school (+ little
experience)
Secondary school (+ 1 year’s experience)
Technical college + 1 to 2 years experience
University + 1 to 5 years experience
University 5 - 10 years experience
>
>

11. Here is one strange
assumption of
today:
That the schools,
Universities and MBA are
providing knowledge needed
for business environment?
Times changed, but old believes stayed

12. Universities more or less
prepares students in the
field of fundamental science.
Nonetheless, in business it is
applicable only in some
specific jobs like chemic,
physic, mechanic engineer
and few more.
But such jobs make up only
5% of all workforce in most of
the profit oriented
companies.

13. However, do they
really prepare
students for business?
Like salesman, client
service, product
manager,
procurement,
inventory, supervisor
or just office clerk.

14. Times changed, centrally
planned economies dried
up, while education, even
MBA, because of the
artificial difficulty while
changing study programs,
hopelessly staggers behind
from these days reality.

15. What will happen if we’ll
use different approach?
Most jobs requires basic Wisdom
not textbook smart?
Knowledge that will be required
by the future no-one has. It is
acquired by bravely doing what
no-one has done so far.

17. Here is another
strange
assumption made
by E. Hay
That problem solving is
individual task and therefore
for problem solving you can
only use a % from Know how?

18. What will
happens if we’ll
use different
approach?
The most effective problem
solving is not an individual
but a group work? In this
case you can multiply
knowledge in hundreds %!

19. It has been long
proven that it is
easier to solve
problems in a group.
Assumption about individual problem
solving, probably comes from the
geniuses, who personally were able to
make changes in thought process.
Such as Einstein. However, science of
today is based not on individuals but
on the collective mindset.

21. Here is the last
and most strange
& controversial
assumption
That some one from the TOP
can see the future and show
the right path to others!

22. monių matavimo sistema pagrįsta individualiai - dar-
gos, produkto, padalinio ir kt. efektyvumo matavimu
gmeniu. Iš vienos pusės Vakarų valdymo kultūrai yra
ti daugybę skirtingų matavimų skirtingiems padali-
ursams, o iš kitos – visi matavimai susiveda į vieną
imą – atskirai paimto santykinio vieneto fizinį efek-
Vakarų vadyboje virto rašytine arba nerašytine taisy-
aliai efektyviai išnaudok kiekvieną resursą. Resursas, stovintis be darbo, yra didžiausias efektyvumo švaistymas
ALTAS JIS!
Do you know a lot of
examples that CEOs
ideas are accepted with
enthusiasm and whole
team rushes to do it?
Wether for you Resistant
to Change is unheard
though?

23. 158
159
IS IT
AN ORGANIZATION
OR A MONUMENT?
As business conditions fluctuate with the rise and fall of the
economy, an organization can’t stop changing because, otherwise,
it will become no more than a gigantic headstone designated for
tourists. That’s why we travel to Egypt. It’s to see how far marginal
egocentrism can go! However, there’s no way we want to see that in
our own organizations.
During crisis years, the worst is that any sort of cooperative work
collapses in a pyramidic organization almost as soon as the first
difficulties hit the business. Departmental managers shy away
form collective decision-making. Every department focuses more
and more on its own problems. Turnover decreases, and everyone
begins blaming each another. Self-preservation takes over instead
of problem resolutions. Every department pulls the sheet over to
its side attempting to snatch an ever-larger piece of a constantly
decreasing budget. Since news becomes generally negative,
communication nearly fades away in the company. Usually no one
especially hides anything; there is simply no more reason to keep
meeting. Everyone knows less and less about what is happening
over in the next department. . .
Ultimately every employee in the organization feels like a
tourist there.
«Я памятник себе воздвиг нерукотворный…»
Exegi monumentum A. Pushkin
Have you heard examples,
where in a large
organisation CEO
personally bankrupted it
in a short period of time?
Maybe for it you need the
whole united management
team work?
After all it leads to not
only job loss but also
criminal liability.

25. The chess play
If you want to evaluate your
first move with one chess
figure from 12 possible and a
possible competitor’s response
to your move - you need to
count approximately 144
possibilities!
If two steps?
If three?

26. Looking into
todays future
labyrinth, leads ten
equivalent roads.
Where to find a genius
who will say which road to
take?

27. Why not to
evaluate just
courage to do first
step to “no where”?
Or help to make a group
step?
My approach

28. The biggest lack is not
accountability and
responsibility, but
courage to make step to
“nowhere”, e.g. to make
continuous changes.
The most popular path for TOP
management is to live
according with internal fear of
failure, what means is to
continue doing the same things
according to instructions and
people that complain..

29. The management based
on financial numbers -
the best way to hide your
own fear to show lack of
personal knowledge
In spite of helping to find
the solution, very often
TOP manager requires to
take full responsibility for
results.

30. What to change
to?
At first - mindset
1. People are good. E. Goldratt. If not -
it’s the best time to fire your HR
department
2. Employees are adult! R. Semler. If
not, you are Nanny in a kinder garden.
Wake up, you are not so old
3. Release your employees from
monotony slavery. Only not working
employees can continuously improve
your organization and to find joy at
work. Use their brain, not muscles - the
main rule for 3tonis Flow management.

31. Literature

32. Darius Radkevicius
Mob: + 370 698 41027
darius.radkevicius@gig-europe.eu
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INFORMATION FLOW
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