ASSIGNMENT

DRIVE SPRING 2014

PROGRAM MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4)PGDHRMN (SEM
2)
SUBJECT CODE &NAME MU001 !C"#$%&'()*"& (&+ B%&%,*)'
B- ID B1./0 CREDIT & MAR-S 4 C1%+*)'0 60 #(12'
34N" 1 D*'56'' )7% 5"&)%&)' (&+ $1"5%'' ", J"8 %9(:6()*"&
(Explain the contents of Job Evaluation, Explain the process of Job Evaluation) 3+ 7= 10
A&';%1<
The contents of job evaluation are as follos!
1" Job analysis: #t is the process of exa$inin% the job content b& brea'in% it (on into its
functions, ele$ents, tas's, operations an( processes"
)" Job description: #t is a ritten an( %eneral state$ent that outlines the s'ills, e(ucation an(
trainin% re*uire( b& the potential e$plo&ee to perfor$ the particular tas'"
3" Job classification: +ere jobs are %roupe( ith respect to their orth"
," Job specification: #t is a state$ent, hich contains the *ualifications an( characteristics of
an e$plo&ee, hich are re*uire( for the successful tas' co$pletion"
P1"5%'' ", J"8 E9(:6()*"&
The steps relate( to job evaluation are explaine( in the folloin% fi%ure!
Thus, the fi%ure (epicts steps, hich are as follos!
Step 1: Appointment and creation of committee
#n the first step a co$$ittee is set up hich consists of experience( +- experts, e$plo&ees an(
union $e$bers so as to evaluate all the jobs in the or%anisation"
Step 2: Finding and identifying jobs that needs to be evaluated
#n the secon( step, the jobs in various (epart$ents of the or%anisations nee( to be i(entifie( in
or(er to fin( out hich job re*uires to be evaluate("
Step 3: Analysing the job description and job analysis
The thir( step in the or%anisation is to con(uct job anal&sis an( job (escription hich is
necessar& for successful perfor$ance"
Step 4: Selection of job evaluation method
The fourth step in the evaluation of the job is to select the $etho( for evaluation" This $ust be
i(entifie( hile 'eepin% the (e$an(s of the or%anisation as ell as factors relate( to job in
$in("
Step : !lassification of job and compensation
#n the fifth step, the relative orth of the jobs are arran%e( as per the re*uire$ent of s'ills,
experience re*uire(, con(itions un(er hich the tas' is to be carrie( out, responsibilities to be
han(le(, (e%ree of supervision that is re*uire( an( so on" Thus, all these factors are assi%ne( b&
ei%hts hich (eter$ine the relative orth of the job"
Step ": #nitiating the program
This step is further carrie( out hen the action plan is rea(& an( the top $ana%e$ent explain
this plan to their e$plo&ees an( finall& put it into operation"
Step $: !oncluding results
Thus, final step in the evaluation of the job is to revie an( exa$ine the jobs perio(icall& ta'in%
into account the environ$ental con(itions such as technolo%&, services, pro(ucts etc"
324 S6$$"'% ="6 (1% ( HR M(&(>%1 (&+ ="6 (1% ('2%+ )" +%9%:"$ (& %,,%5)*9%
I&5%&)*9% S57%#% ,"1 ="61 "1>(&*?()*"&4 @7() (1% )7% $1%A1%B6*'*)%' ="6 ;*::
5"&'*+%1 ;7*:% +%9%:"$*&> (& E,,%5)*9% I&5%&)*9% S57%#%C D*'56'' )7% #%1*)' (&+
+%#%1*)' ", I&5%&)*9%'
(Explain the pre.re*uisites for an Effective #ncentive /che$e, Explain the $erits an( (e$erits of
#ncentives) +=10
A&';%1<
The pre.re*uisites are as un(er!
1" The or'ers0 co.operation is $an(ator& in execution of incentive sche$es" The co.operation is
re*uire( in respect of $etho(s a(opte( for anal&sis of result or output on basis of hich
pa&$ent is (one, the settin% a%e rate $etho(s for (ifferent or' cate%ories an( pre.re*uisites
relatin% to job securit&, earnin%s an( (ispute settle$ent re%ar(in% or' stan(ar(s"
)" The incentive sche$e $ust be influence( b& scientific or' $easure$ent li'e the stan(ar(s
set $ust be practical an( inspirin%" #n a((ition, the e$plo&ees $ust be provi(e( ith necessar&
resources to $eet these stan(ar(s"
3" 1ll in(irect staff li'e fore$en, helpers, supervisors, an( canteen staff char%e han(s etc" shoul(
also be roofe( un(er incentive sche$es"
," 1 $ana%e$ent co$$it$ent to oversee the outla& an( sche(ule the proper a($inistration of
plans shoul( be for$e("
2" 1n incentive plan shoul( be first planne( properl& an( then i$ple$ente( carefull& to achieve
(esire( results"
M%1*)' (&+ D%#%1*)' ", I&5%&)*9%'
%erits
#ncentives in(uce an( $otivate e$plo&ees to achieve hi%h efficienc& an( superior output" 3ixe(
re$uneration (oes not act as a $otivator for or'ers to &iel( i$prove( results rather it re$oves
panic of insecurit& fro$ e$plo&ees0 $in("
#ncentives result in enhance$ent of earnin%s hich have helpe( e$plo&ees in i$provin% their
stan(ar( of livin%"

3ir$s can brin% (on their per unit as ell as total cost of pro(uction usin% incentives as
increase in pro(uctivit& ill lea( to a lar%er output for %iven inputs brin%in% (on the total an(
unit cost of pro(uction"
#ncentive re(uce( co$$an(, %reater e*uip$ent utilisation, re(uction in scrap an( ti$e lost,
con(ense( turnover an( absenteeis$ an( au%$ente( output" 3urther$ore, s&ste$s of
i$burse$ent b& results oul( facilitate the application of cost control techni*ues li'e stan(ar(
costin% an( bu(%etar& control"
&emerits
The *ualit& of pro(ucts $a& sho ten(encies to %et orse if steps are not ta'en for ti$el& *ualit&
$aintenance throu%h chec'in% an( inspection involvin% a((e( costs"
1 fir$ $a& face (ifficulties relate( to intro(uction of ne $etho(s or $achines as e$plo&ees
$a& oppose the$ out of their fear that the ne piece of bonus rates set $a& &iel( loer earnin%s
or that such intro(uction ill slo their or' rate"
4ne of the bi%%est co$plexities in incentive s&ste$s is fixin% of piece or bonus rates" -ate fixin%
involves fair an( accurate ju(%e$ent in hich there is ala&s an error ris'" /$all rates ill $a'e
or'ers (isappointe( an( the& ill be un(er pressure to or' ver& har(" /oarin% rates $a&
slac'en their efforts at ti$es an( e$plo&er $a& not ta'e the option of revisin% the rates because
earnin%s are too hi%h"
3ir$s can also face (ifficult& in (eter$inin% stan(ar( perfor$ance"
3D4 D*'56'' )7% )=$%' ", #(&(>%1*(: 1%#6&%1()*"&4 EE$:(*& )7% %:%#%&)' ", (
#(&(>%1*(: 1%#6&%1()*"&
(Explainin% the t&pes of $ana%erial re$uneration, Explainin% the ele$ents of a $ana%erial
re$uneration) )+5=10
A&';%1<
T&pes of 6ana%erial re$uneration!
1" Short term pay: The short ter$ re$uneration is relate( to the bonuses (short ter$) an( the
base pa& hich are usuall& pai( to the $ana%ers accor(in% to their perfor$ance in the
or%anisation" This t&pe of pa& is totall& cash base( $ana%erial re$uneration co$ponent an(
over a certain perio( of ti$e these bonuses beco$e (eferre("
)" 'ong term pay: The lon% ter$ re$uneration co$prises of stoc's hich are restricte(, stoc'
options, salar& hich (epen( on the perfor$ance a%ainst the in(ex an( shares" These lon% ter$
re$uneration ele$ents are use( b& the sharehol(ers in or(er to protect the or%anisation0s value
as ell as %a$in% control of the top level $ana%ers on the risin% value of the fir$ in the
$ar'etplace"
E:%#%&)' ", #(&(>%1*(: 1%#6&%1()*"&<

1" (ase salaries: #t is the first ele$ent of the $ana%erial re$uneration hich is anal&se( ith
the help of Job Evaluation an( also serves as incentives also" 7hile evaluatin% the salar&, Job
Evaluation is just a part of it"
)" Special pac)age of per*uisites and benefits: 6ana%ers also enjo& all 'in(s of benefits
an( per*uisites hich the or%anisations offer to their e$plo&ees" Therefore, in or(er to
$axi$ise the availabilit& of ti$e to 'e& $ana%ers fro$ the purpose of business perspective,
various other facilities are also offere( to the$ such as connection of internet, connection of cell
phone an( so on"
3" +rofit sharing bonus: This t&pe of bonus is usuall& base( on the profit sharin% or
perfor$ance"
," Short term bonuses: /uch t&pe of bonuses ran%es fro$ 208 of the base salar& to 10 or
$ore ti$es of the base salar& are offere( hen fir$ a ver& %oo( &ear ha( b& reco%nisin% the
financial in(icators"
2" 'ong term performance bonus: +ere the pa&$ent of cash to the corporate $ana%ers is
si$ilar to that of the short ter$ bonuses" The onl& (ifference &ou $a& fin( is in the ti$e perio(
for receipt is ) &ears or $ore into the future an( the aar( si9e is base( on the $ulti&ear
achieve$ent of establishe( perfor$ance relate( objectives"
:" Stoc) options: ;o a (a& $an& fir$s offer <stoc' e*uivalences= in the for$ of share
appreciation ri%hts>phanto$ shares" +ere recipients are co$pensate( ith a stoc' increase(
value that is further (eter$ine( b& the base valuation hich is prepare( hen share
appreciation ri%hts>phanto$ shares are %iven"
7" Severance pac)ages: These t&pes of pac'a%es are also 'non as ?ol(en +an(sha'e hich
is financial re$uneration an( incentive pac'a%es hich if %iven to those e$plo&ees in the
or%anisations ho are retire( or lai( off" This pac'a%e inclu(es!
life an( health insurance
retire$ent benefits
stoc' options
re$uneration for vacation (a&s or unuse( sic'
1ssistance for job place$ent
344 @7() +" ="6 #%(& 8= 1%;(1+ #(&(>%#%&)C EE$:(*& )7% ,(5)"1' (,,%5)*&>
R%;(1+ M(&(>%#%&) $":*5*%' *& '%19*5% '%5)"14
(6eanin% of -ear( 6ana%e$ent, Explain an& ei%ht factors affectin% -ear( 6ana%e$ent
policies) 2+.=10
A&';%1<
M%(&*&>< -ear( 6ana%e$ent basicall& refers to the i$ple$entation, evaluation an(
for$ulation of processes, policies an( strate%ies hich are nee(e( so as to ensure that the
people0s contribution toar(s the for$ is reco%nise( b& both the $onetar& as ell as non @
$onetar& $eans" The basic purpose of -ear( 6ana%e$ent is to rear( the e$plo&ees
e*uitabl&, consistentl& an( fairl& ith respect ith their value to the fir$ an( also to help the
fir$ to achieve is overall strate%ic objectives"
F(5)"1' A,,%5)*&> R%;(1+ M(&(>%#%&) P":*5*%'<
1" #nternal environment: #t consists of culture of fir$ provi(in% services, its businesses,
technolo%& an( the people"
)" ,-ternal environment: #t inclu(es the co$petitive pressures existin% in service in(ustr&,
%lobalisation, chan%es in e$plo&$ent an( (e$o%raphics etc
3" Strategic re.ard management: #t is an aspect of strate%ic $ana%e$ent hose purpose
is to elicit the current actions for future an( beco$e a vehicle for action to institutionalise an(
inte%rate $echanis$s for chan%e" The service sector rear( strate%& has arisen ith ti$e an(
can be re%ar(e( as a pattern in stea$ of activities"
," /otal re.ard: Total rear( policies provi(e a holistic vie to be a(opte( in rear(
$ana%e$ent for businesses en%a%e( in service sector to ensure that all aspects of rear(s are
treate( as coherent portfolio of practices an( policies"
2" 0uman capital management 10!%2: #t is associate( ith procurin%, anal&sin% an(
reportin% on (ata hich provi(es infor$ation on the (irection of value.a((in% people
$ana%e$ent strate%ies, invest$ents an( operational (ecisions ta'en at front.line $ana%e$ent
or at corporate level" +A6 approach to rear( $ana%e$ent atte$pts to access the i$pact of
policies of re$uneration on people an( businesses"
:" %otivation: 6otivational theories also act as an i$portant %ui(e for use of contin%ent pa&
an( the non.$onetar& ele$ents in total rear( s&ste$ thus influencin% the rear( strate%ies
an( $ana%e$ent of service sector fir$s"
7" ,ngagement and commitment: Job en%a%e$ent an( or%anisational co$$it$ent are one
of the 'e& %ui(in% concepts that %ui(e the total rear( policies an( variable pa& in service sector
in(ustries"
5" +sychological contact: 1n un(erstan(in% of ps&cholo%ical contracts an( its si%nificance at
the ti$e of for$ulatin% an( i$ple$entin% rear( policies is i$portant influential factor
affectin% service sector rear( policies $ana%e$ent"
34 EE$:(*& )7% 51*)%1*(F' 5"&'*+%1%+ ,"1 1%;(1+*&> )7% %#$:"=%%' ,"1 )7%*1 >""+
'%19*5%
(Explanation of the criteria0s responsible for rear(in% the e$plo&ees) 10
A&';%1<
The criteria for rear(in% the e$plo&ees for their %oo( service in the fir$ are as follos!
1" Analysing and surveying of staff: Aon(uctin% the surve&s is re%ar(e( as one of the $ost
critical challen%e for the fir$s hen it co$es to $otivate their e$plo&ees" 3or this the fir$ $ust
(eepl& un(erstan( their e$plo&ees as ell as their culture" Thus for this, the& have create(
<Aulture Ariti*ue= b& usin% the staff focus %roups an( also one.to.one intervies for both current
an( existin% e$plo&ees"
)" (uild up a chec)list of service *uality: 1s chec'list $a& (iffer fro$ fir$ to fir$
accor(in% to their si9e an( internal factors, to(a& $an& fir$s are usin% Business Excellence
$o(el as a (ia%nostic tool" This tool helps the or%anisation in shoin% ho the custo$er
satisfaction is lin'e( to people issues"
3" !reating a motivational environment by providing training to the managers:
6an& service or%anisations provi(e trainin% to their $ana%ers in $otivation an( lea(ership ith
the help of folloin% five steps!
6a'in% the or'place fun
Crovi(in% the specific an( copious reco%nition for the tas' hich e$plo&ees perfor$
4fferin% tar%ete( an( fre*uent rear(s
6a'in% co$$unication influential an( cre(ible
-ear(in% the lo&alt& of e$plo&ees
," 3iving positive feedbac): 1 Dell (one0 an( DThan' &ou0 fro$ $ana%ers is ver& influential
for the e$plo&ees than to'en or $onetar& rear("
2" ,stablishing a league table of service performance: ;oa(a&s $an& or%anisations
especiall& retailers such as Ci99a +ut use surve& for their custo$er satisfaction as ell as use
$&ster& shoppin% so as to exa$ine their outlet0s perfor$ance" Ci99a +ut brin%s out the outco$es
in lea%ue tables of custo$er service perfor$ance an( finall& fee(bac' the outco$e to the
restaurant ithin five (a&s" " The $ost successful are those here appreciation is %iven not just
to the top perfor$er e$plo&ees but also to those e$plo&ees ho $a'e the best i$prove$ents
over ti$e in their fir$"
:" Feedbac) to the compliments and comments of customers: Ei'.3it 'eeps a
custo$er correspon(ence fol(er in each Fepot reception area, publici9in% positive letters
custo$ers has ritten" #t rin%s up custo$ers on a (ail& basis an( publicises the results
internall&"
7" #ssue Achievement !ertificates: 1n achieve$ent certificate such as to'en aar( can
beco$e hi%hl& pri9e( hen e$plo&ees achieve (efine( stan(ar(s of custo$er service an( s'ills
level"
5" 'in) (onuses to customer satisfaction: ;ot onl& for the $ana%ers but also for the
service staff, bonus pa&$ent hich is a variable ele$ent beco$in% a ver& vital co$ponent of
or%anisations" Bonuses are often lin'e( to the Crofit 1chieve$ent"
G" #mplement 3"4 degree appraisal method: 1s satisfie( custo$ers are closel& lin'e( to
the satisfie( e$plo&ees, $an& fir$s are encoura%in% input b& e$plo&ees as ell as custo$ers
into a $ana%er0s all roun( 3:0 (e%ree fee(bac'"
10" &evelop customer service competencies as .ell as include customer service in
performance management: The first step in settin% out ell.(efine( (evelop$ent an(
i$prove$ent tar%ets is to (efine the service co$petencies" Austo$er /ervice is beco$in% $ore
i(esprea( as a valuable transferable *ualification" Austo$er service is also re%ar(e( as a 'e&
$easure$ent in perfor$ance appraisal"
364 @1*)% ( '7"1) &")% "& )7% ,"::";*&><
() C"#$%&'()*"& $":*5*%'
8) E5"&"#*5 +%)%1#*&(&)' ", $(=
(Aoncept an( 1i$s of Ao$pensation policies, Aoncept of Econo$ic Feter$inants of Ca&)
+=10
A&';%1<
C"&5%$) ", C"#$%&'()*"& $":*5*%'< Ao$pensation polic& is a ritten (ocu$ent, rather a
co$$it$ent of the or%anisation to ensure the concept of e*uit&, easin% out pa&$ents, provi(in%
opportunities to %ro or earn $ore so as to $a'e it cost effective"
Ao$pensation polic& is therefore an i$portant co$$it$ent of the co$pan& an( obli%ation of
the %overn$ent to reco%nise the nee( of (evelopin% the co$$unit& of e$plo&ees" 1s a ritten
(ocu$ent, it reflects the intention an( objectives of the co$pan& to hire or ac*uire, $aintain
an( retain its e$plo&ees"
Aims of compensation policy
The $ain ai$s of a co$pensation polic& can be su$$arise( as belo!
1" To attract co$petent e$plo&ees ithin its plans
)" To ensure stable earnin% an( %roth of the e$plo&ees
3" To reco%nise the values of all jobs an( positions
," To encoura%e an( $otivate the e$plo&ees to %ro ith the or%anisation
2" To (evelop trust an( confi(ence in the e$plo&ees throu%h transparent co$$unication
:" To eli$inate possible (isputes or %rievances
7" To effectivel& $aintain an( retain the talents
5" To effectivel& a($inister an( $ana%e the co$pensation an( satisfaction of the e$plo&ees
G" To si$plif& the bar%ainin% process
10" To ensure (esire( behaviour an( in(ustrial har$on&"
E5"&"#*5 D%)%1#*&(&)' ", P(=
There are various forces hich are consi(ere( as pa& (eter$inants" 1s $an& (ecisions hich are
relate( to the pa& are $a(e b& $a'in% co$parison ith the labour $ar'ets, so $an&
(eter$inants appear to be econo$ic" Thus, both the force of the econo$ic variables an(
$eanin% are interprete( b& the (ecision $a'ers of the fir$" The econo$ic (eter$inants of pa&
are classifie( into the folloin%!
1" Ability of the organisation to pay: The fir$0s abilit& to pa& is (eter$ine( b& the external
forces of the $ar'et hich reflects the overall financial position of the fir$ hether the& can
affor( to pa& to their e$plo&ees as per the $ar'et rate or not" +i%her earnin% profitable
or%anisations $a& ten( to pa& hi%her a%es (epen(in% upon hether profitabilit& is base( on
$ana%e$ent abilit&, pro(uct $ar'et, si9e, technical efficienc& an( so on"
)" +roductivity: Cro(uctivit& is re%ar(e( as a pri$e (eter$inant of the fir$0s abilit& to pa&" #f
pro(uction increases in the sa$e percenta%e as the pa& cost then the cost of the labour per unit
re$ains stable an( unchan%e(" But on the other han(, if there is ine*uit& beteen increase in
pro(uction an( percenta%e of increase in pro(uctivit& then the cost of labour per unit also
increases"
3" ,mployer5s .illingness to pay: 1lon% ith the e$plo&er0s abilit& to pa&, e$plo&er0s
illin%ness to pa& is re%ar(e( as one of the i$portant (eter$inants of pa&" 6an& fir$s use an(
obtain infor$ation re%ar(in% the co$pensation structure hich are pai( b& the other e$plo&ers"
Thus, before offerin% pa& to the$, an e$plo&er has to 'eep in $in( the folloin% points hich
are as follos!
Ao$parable a%es represent the $anner in hich $an& fir$s attain the %oal of co$pensation
b& bein% co$petitive"
Aost of livin% is stresse( on b& the tra(e union an( e$plo&ees as a consi(eration of a%e level
hich is increasin% at a rapi( pace"
Fe$an( for labour arises (ue to chan%in% scenario of the econo$& hich creates lac' of
e$plo&ees ith the relate( s'ills an( co$petencies"
," ,mployee Acceptance: #n (eter$inin% the a%e levels, the consi(eration ta'en b& the
e$plo&ers in pa& (eter$ination $ust $eet the test of current as ell as potential e$plo&ees as
accepte( b& the$" Thus, the contract of e$plo&$ent an( the effort bar%ain ill be inco$plete if
there is unillin%ness of the e$plo&ees to accept the a%es offere( to the$"