Hay Guide Chart for Accountability

Disclaimer

The Hay Job Evaluation Methodology is a proprietary methodology. You would need permission from the owner of this tool to use it. I document it here for human resource practitioners who for various reasons wanted to know how it works (education purposes).

What is Accountability?

Accountability is defined as the answerability for an action and for the consequences of that action. It is measured effect of the job on end results. Another name for this factor is Decision-Making.

The Dimensions of the Hay Accountability Profile Chart

There are 3 dimensions displayed in the Hay Accountability Profile Chart. They are:

  • Freedom to Act: The degree of personal or procedural control and guidance. In other words, the degree of empowerment to take action and the guidance provided to focus decision-making.
  • Job Impact on End Results: This is the nature of the job’s influence on business

There are 2 types of job impact (direct and indirect).

2.1)  Direct impact is further broken down into primary or shared.

2.1a) Primary impact is controlling impact on end results, where shared accountability of others is subordinate.

2.1b)  Shared impact is participating with others (except own subordinates and superiors), within or outside the organisational unit, in taking action.

2.2) Indirect impact is further broken down into contributory and remote.

2.2a) Contributory impact is interpretive, advisory or facilitating services for use by others in taking action.

2.2b) Remote impact is informational, recording, or incidental services for use by others in relation to some important end result.

3)   Magnitude: This is indicated by annual dollar value that the person is authorized to spend.

The points from each of these dimensions are added to form the total points for Accountability factor.

Freedom to Act

Freedom to Act is related to the degree of authority the job holder has in taking action or implementing decisions. These controls tend to diminish as seniority of post increases, in other words the Freedom to Act increases with organisational rank.

Freedom to Act is the most important of the three Accountability / Decision Making sub‑factors. By examining the nature and extent of the controls — or the lack of the controls — that surround the job, it directly addresses the question of the job’s freedom to take action or implement decisions. Because of its importance, this sub‑factor carries the most quantitative weight in the evaluation of a position’s total Accountability / Decision Making. The controls placed on the position’s Freedom to Act can be supervisory or procedural, or both.

The Freedom to Act may be limited by:

  • The need to refer certain decisions to others for approval.
  • Instructions, procedures, practices and policies which define or limit action.
  • The nature of the work itself which may give little opportunity for change in action.
  • The level of job in the organisation which may limit the authority.

The Freedom to Act of a job should not be higher than the required Technical Know How or Thinking Environment. If this were to be the case it would mean that the responsibility being given to the job to get things done would be greater than the knowledge and Problem Solving required to be able to do those things. Similarly, Freedom to Act should not be too low.

Level   Explanation
A Prescribed These jobs are subject to explicit, detailed instructions AND/OR constant personal or procedural supervision.
B Controlled These jobs are subject to direct and detailed instructions AND/OR very close supervision.
C Standardized These jobs are subject to instruction and established work routines AND/OR close supervision.
D Generally Regulated These jobs are subject, wholly or in part, to standardized practices and procedures, general work instructions and supervision or progress and results.
E Directed These jobs are subject, wholly or in part, to practices and procedures covered by precedents or well-defined policies, and supervisory review.
F Oriented Guidance These jobs, by their nature and size, are subject to broad practices and procedures covered by functional precedents and policies, achievement of a circumscribed operational activity, and to managerial direction.
G Broad Guidance These jobs, by their nature or size, are broadly subject to functional policies and goals and to managerial direction of a general nature.
H Strategic Guidance Subject to the guidance of broad organization policies, community or legislative limits, and the mandate of the organization.

Here is an easy way to interpret the Freedom to Act. These are excerpts from Time Rahul, Karma Management Consultants.

Level   Explanation
A Closely Controlled
  • Operating within direct and detailed instructions with very close and continuous supervision.
  • Told: What to do, How to do, When to do it.
  • May be supervised by a machine or process.
  • Typical jobs: Production line jobs, shop floor workers etc
B Controlled
  • Subject to instructions and established work routines, under close supervision.
  • Told to do as you are supposed to do.
  • Typical jobs: Technicians, clerical roles.
C Standardised
  • Operating within standardised practices and procedures, general work instructions and supervision of progress and results.
  • Told: Here is what and how
  • Told: Keep me informed on progress.
  • Typical jobs: First line supervisory jobs.
D Generally Regulated
  • Operating within practices and procedures covered by precedents or well defined policies and review of end results.
  • Told: Tell me when you have done it.
  • Typical jobs:Engineer, Senior Accountant, Junior Management roles.
E Clearly Directed
  • Subject to broad practices and procedures covered by functional precedents and policies and management direction.
  • Told: This is what must be done.
  • Typical jobs: Department manager, plant manager.
F Generally Directed
  • Subject to general direction and broadly defined policy objectives.
  • Typical jobs: Senior management roles (generally CEOs, COOs etc.)
G Guided
  • Subject only to overall guidance on broad organizational objectives & collection of strategic policy.
  • Typical jobs: Senior management roles (generally CEOs) MDs of every large business.

Here are some broad guidelines that can help in assessing Freedom to Act (Source:Executive Group Position Evaluation Plan, Treasury Board of Canada Secretariat)

  • At the D level, positions are relatively free to decide how to achieve predetermined results under some direction from superior management. Positions at this level are subject to managerial approval of tactical objectives and periodic evaluation of results, generally on a quarterly or annual basis.
  • At the E and F level, positions are relatively free to determine what the general results are to be. Managerial direction will be general in nature. Assessment of end results must be viewed over longer time spans (e.g., six months to a year or longer).
  • At the G level, the what is communicated only in very general terms. Positions become subject to guidance rather than direction or control. Any job evaluated here is subject only to broad policy.

Common Mistakes

It is a common mistake to confuse the restraints placed on Freedom to Act with the help available in the Thinking Environment:

  • Freedom to Act is concerned with action or decisions about action.
  • Thinking Environment is concerned with mental manipulation.

Impact (Type of Impact) Versus Magnitude (Size of the Area of Impact)

The Impact sub‑factor measures the directness of the position’s effect on end results. Magnitude measures the size of the area affected by a position. While it does give an indication of the “weight” to be assigned to the position, it is the least important of the three sub‑factors used to determine the overall Accountability / Decision Making evaluation. These two sub‑factors should always be considered together.

Magnitude

Every position in every organization has a role to play in helping to achieve the objectives of the organization; however the importance of this role is better understood in the context of a department, or a division. Magnitude measures the size of the area of impact. It represents the size of the unit or function most clearly affected by the job.

The question to be answered is:  Does the position’s magnitude impact within one unit, or does it impact across the organization for one function, or perhaps across the organization for several unrelated functions?  This would differentiate the Magnitude scoring.

This is dealt with in one of two ways. If there is a financial responsibility in the job then annual budget dollars is used as an quantitative measure of size. Some jobs do not have any financial responsibility or it may not be appropriate to measure it in those terms. In these cases what it called the “indeterminate” level is used.

Magnitude (Financial)

Level

(Annual Basis)

Explanation
O

(Minimal: Under $50,000 or Not Quantified)

Results generally affect an individual or are usually non-quantifiable in terms of department budget responsibility, revenues and expenditure authority.
1

(Very Small: $50,000 to $500,000)

Results can be non-quantifiable or can affect a smaller work group or unit within a department.
2

(Small: $500,000 to $5 million)

Results are internally focused and affect a department or may be externally focused and affect a limited segments of clients outside the department.

 

3

(Medium: $5 million to $50 million)

Results are generally internally focused and may affect several units within a department and/or some other departments and/or are externally focused affecting a significant clientele within a program or functional area.
4

(Large: $50 million to $500 million)

Results typically affect an entire department and may have some impact on several other departments and/or are externally focused affecting a large clientele within a program or functional area.
5

(Very Large:$500 million to $5 billion)

Results achieved primarily affect other departments, the government as a whole and significant client groups external to government operations. Work performed may affect broad, provincial or territorial clientele within a variety of programs or functional areas.

Time Rahul, Karma Management Consultants provided the following Accountability Magnitude Index.

Country Currency 0 1 2 3 4
India INR <25 LACS 25 LACS to 2.5 CR 2.5 CR to 25 CR 25 CR to 250 CR 250 CR to 2500 CR
Sri Lanka LKR <4 million 4 million to 40 million 40 million to 400 million 400 million to 4 billion 4 billion to 45 billion
Singapore SGD <92,000 92,000 to 920,000 920,000 to 9.2 million 9.2 million to 92 million 92 million to 920 million
Indonesia IDR <353.5 million 353.5 million to 3.535 billion 3.535 billion to 35.35 billion 35.35 billion to 353.5 billion 353.5 billion to 3535.0 billion

Examples of Measurements of Magnitude

Time Rahul, Karma Management Consultants gave some examples of the Areas of Impact.

Question to be answered: What is the job designed to impact and in what way?
Operations Human Resources Technical/R&D
  • Operating budget
  • Annual payroll
  • Expenses controlled
  • Units produced
  • Capital budget
  • Employees (Managerial,Professionals, Hourly)
  • Total HR costs
  • Salaried personnel costs
  • Hourly personnel costs
  • Employees (Professional, Clerical)
  • New product/Service revenues
  • Average annual project costs
  • Average annual capital budget
  • Department budget
  • Employees (Professional, clerical)
Sales/Marketing Purchasing Financial
  • Annual sales revenues
  • Value added
  • Gross margin
  • Operating budget
  • Marketing costs
  • Employees (Professional, clerical)
  • Annual cost of purchases
  • Department budget
  • Employees (Professional, Clerical)
  • Revenues
  • Operating costs
  • Capital budget

Dollars are only a Representation of Magnitude

Dollars are the most convenient measure of the size of the unit or function affected by a job. However, this does not mean that jobs impact on dollars. Jobs impact on functions, programs or operations of organizational units.

Pass Through Dollars

Many positions may appear to have a very large Magnitude, but the dollars being used to measure the unit are “Pass-Through Dollars.”

In cases of Pass-Through Dollars, the position deals with the process of payment but has practically no impact on determining whether payments should be made or what payments should be made. These dollars do not properly represent the Magnitude of the position. A more appropriate proxy should be found.

Indeterminate Area of Impact (non-financial)

Nominal A
  • Provision of incidental services for use by others in relation to some important end results
Moderate

B

  • Operation or maintenance of ancillary plant or equipment
  • Provision of support services usually of a informational or recording nature within closely defined accuracy, quality requirements
  • Provision of practical/personal support services within a defined programme of work
Major C
  • Operation or maintenance of major plant or equipment
  • Provision of support services usually of a facilitating or interpretative nature across one or several departments
  • Co-ordination of practical/personal support services, typically through others to a group of clients
Critical D
  • Control of a major process unit
  • Provision of support services, usually of an advisory or diagnostic nature

Here is an easy way to interpret these indeterminate area of impact in terms of non-quantifiable positions . These are excerpts from Time Rahul, Karma Management Consultants.

Impact of Non Quantifiable Positions
I Minor Incidental support with very indirect effects.

Examples:Clerk, Data Entry, Custodian.

II Moderate Support with indirect effects.

Examples: Secretary, Process Operator.

III Important Tasks that directly affect the results of the work unit.

Examples: Maintenance, customer service.

IV Critical Leadership for activities that directly effect the work unit.

Examples: Operators, lead workers.

The underlying notion in order to score the Magnitude component is to recognize that Impact and Magnitude judgments must be made in tandem.

Impact of Job on End Results

Impact refers to the degree to which the job affects or brings about the results expected of the unit or function being considered.  This is the influence of the job on a unit.

Type or Nature of Impact

Whether it is financial responsibility or “indeterminate”, the level given is measured in conjunction with the type of impact.

Where financial responsibility has been used, this measures the extent of the influence that the job has on the end results. There are 4 levels available:

  • Remote where provision of information for others to use is involved.
  • Contributory this may be where there is responsibility for giving advice or facilitation which influences decisions.
  • Shared where there is shared responsibility for the end result.
  • Primewhere the job has overall responsibility for the end result.

For jobs that have no financial responsibility where the “indeterminate” level has been used, the influence is measured on the level of services provided and/or operation of plant or equipment. There are four levels available: nominal – A; moderate – B; major – C; critical – D.

The Hays Group gives the following descriptions

Nature Level Explanation
Indirect Impact R Ancillary/Remote/Indirect

One of several/many positions, which contribute to the end results expected of the unit or functions OR informational, recording, or other facilitating services for use by others in achieving results.

Indirect Impact C Contributory

One of few positions which contribute significantly to the end results expected of the unit or function OR interpretive, advisory, or other important supporting services for use by others in achieving results.

Direct Impact S Shared

Equal and joint control, with one other position, of the activities and resources which produce the results OR control of what are clearly most (but not all) of the variables which are significant in determining results.

Direct Impact P Primary/Prime

Controlling impact – the position has effective control over the significant activities and resources which produce the results and is the sole position (at this level of Freedom to Act) which must answer for the results.

The following descriptions are found in the Executive Group Position Evaluation Plan, Treasury Board of Canada Secretariat. They are easier to understand.

Nature Level Explanation
Indirect Impact R Ancillary/Remote/Indirect

The position provides information, recording or other supportive services for use by others. Activities are noticeably removed from final decisions / end results. The position’s contribution is modified by or merged with other support before the end result stage.

Indirect Impact C Contributory

The position provides interpretative, advisory or facilitating services for use by others or by a team in taking action. The position’s advice and counsel are influential and closely related to actions or decisions made by others. Such an Impact is commonly found in staff or support functions which significantly influence decisions related to various units or programs.

Direct Impact S Shared

The position is jointly accountable with others (usually one other) for taking action and exercising a controlling Impact on end results. Positions with this type of Impact have noticeably more direct control over action than positions evaluated at the Contributory level, but do not have total control over all the variables in determining the end result. In addition, Shared Accountability can be used to indicate that a position makes an extremely strong contribution to end results (stronger than its peers) but does not have a Primary Impact.

Direct Impact P Primary/Prime

The position has controlling Impact on end results, and the accountability of others is subordinate. Such an Impact is commonly found in managerial positions which have line accountability for key end result areas, be they large or small.

How to Interpret the Hay Accountability Guide Chart

Here is the Hay Accountability Guide Chart without the scores. The financial magnitude (impact area) is shown horizontally at the top, with the type of impact (impact nature) shown below each magnitude. The levels of Freedom to Act appears vertically on the left.

O 1 2 3 4
R C S P R C S P R C S P R C S P R C S P
A
B
C
D
E
F
G
H

Here is part of the same chart with the scores.

O 1 2
R C S P R C S P R C S P
A 8

9

10

10

12

14

14

16

19

19

22

25

10

12

14

14

16

19

19

22

25

25

29

33

14

16

19

19

22

25

25

29

33

33

38

43

B 12

14

16

16

19

22

22

25

29

29

33

38

16

19

22

22

25

29

29

33

38

38

43

50

22

25

29

29

33

38

38

43

50

50

57

66

C 19

22

25

25

29

33

33

38

43

43

50

57

25

29

33

33

38

43

43

50

57

57

66

76

33

38

43

43

50

57

57

66

76

76

87

100

D 29

33

38

38

43

50

50

57

66

66

76

87

38

43

50

50

57

66

66

76

87

87

100

115

50

57

66

66

76

87

87

100

115

115

132

152

E 43

50

57

57

66

76

76

87

100

100

115

132

57

66

76

76

87

100

100

115

132

132

152

175

76

87

100

100

115

132

132

152

175

175

200

230

F 66

76

87

87

100

115

115

132

152

152

175

200

87

100

115

115

132

152

152

175

200

200

230

264

115

132

152

152

175

200

200

230

264

264

304

350

G 100

115

132

132

152

175

175

200

230

230

264

304

132

152

175

175

200

230

230

264

304

304

350

400

175

200

230

230

264

304

304

350

400

400

460

528

H 152

175

200

200

230

264

264

304

350

350

400

460

200

230

264

264

304

350

350

400

460

460

528

608

264

304

350

350

400

460

460

528

608

608

700

800

The way to determine the score is the sequence is First Dimension then Second Dimension then Third Dimension.

The First Dimension is the Freedom to Act. The Second Dimension is the Impact Area. The Third Dimension is the Nature of Impact. An example is the score for D2-P is 115. (It reads D two minus P)

Which Number Should I Select?

Let us look at our example again. The cell contains 3 numbers: 115, 132 and 152, representing 3 step values.

Of the 3 factors,  the fit of the Freedom to Act sub‑factor is the most important one to consider.Magnitude is the least important sub-factor to consider.

Considerations of Impact and Magnitude should be used to confirm the direction of the overall evaluation, as determined by considerations of Freedom to Act.

 

 

 

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