resulting in a composite score for each position (Appendix B). Based on these scores, jobs

were then classified into the eight grades.

1.12 To arrive at the scores, each job was rated on a scale of 1 to 10 against four key

criteria (see Exhibit 4):

a. Technical know-how: the level of professional knowledge and technical

expertise required for a given job, varying from basic command of simple skills to full mastery of a complex skill or discipline.

b. Creativity/problem-solving ability: the range of creative or analytical

challenges inherent in the job, from simple, standard tasks to highly undefined problems requiring synthesis or rigorous analytical thinking.

c. Managerial ability: the degree of planning, communications, and leadership

skills needed to execute a particular job. This extends from doing one's own work with routine collaboration to leading a sizable division requiring long- range planning and extensive external contacts.

d. Responsibility/judgment: the amount of influence and impact on the

organisation, in terms of editorial and resource control. This ranges from fulfilling basic, low-level responsibilities to shaping the performance of a

division.

1.13 These ratings were weighted according to the type of position (i.e., specialised, programming, or administrative) and rank (i.e., senior, middle, or junior), and then aggregated to arrive at the composite score (Exhibit 5). For example, creativity and problem-solving ability are more important for programming staff than for administrative staff, while technical know-how is more important at the junior level than the senior level.

1.14 This rigorous process is intended as a guide for judgment, not as a mechanical formula to be applied across the board. As RTHKC gains more experience under the new organisation, management may review the grading system to ensure no anomalies have arisen. Guided by this methodology, RTHKC management will need to conduct individual assessments to assign grades in borderline cases.

McKinsey & Company, Inc.

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