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It is all about People
“Take our 20 best people and virtually overnight
we become a mediocre company.”
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Human Resource Management
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The Organizational Reward System
• Results from employment with the organization
• Includes all forms of financial returns and tangible services &
benefits employees receive as part of employment relationship:
Intrinsic Extrinsic
Achievement Formal Recognition
Feelings of accomplishment Fringe Benefits
Informal Recognition Incentive Payments
Job Satisfaction Pay
Personal growth Promotion
Status Social Relationships
Work Environment
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Remuneration & Its Components
Definition: Remuneration' is a general term covering the
monetary and related entitlements of employees - paid by
employers in return for the work of employees.
Components: Remuneration
Fringe
Benefits Perquisites
Job Content
Hourly Company
P.F, Challenging job,
and Incentives Car, Club
Gratuity, Responsibilities,
monthly Membership,
Individual Medical Recognition,
Rated Paid Growth
Plans Care,
Wages Holidays, prospects,
Accident
and Group Furnished Supervision,
Relief,
Salaries Plans House, Stock Working
Health and
conditions, Job
Group option
sharing, etc.
insurance scheme, etc
Bonus 5
Direct Indirect
Compensation Administration Process
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Fringe Benefits
• Fringe benefits for employees can take the form
of property, services, cash, or some cash
equivalent (something that can be turned into
cash, such as a gift card or savings bonds).
• These fringe benefits are also generally subject to
withholding and employment taxes.
• Offering fringe benefits may be a way to
differentiate themselves from the competition
and to attract and retain new employees.
• Fringe Benefits are generally tax-exempt. But
depends on the product/service and its value.
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Types of Fringe Benefits
• The most common benefits include
• life, disability and health insurance bundles
• Tuition reimbursement or education assistance
• Fitness center access or discounts
• Employee meals and cafeteria plans
• Dependent care assistance; and
• Retirement plan contributions.
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Job Analysis
It contains two parts: Job Description & Job
Specification. This can help to know about the
duties and responsibilities will be covered by
the specific job and also the quality of the
people engaged in that job. This is necessary to
set a rationale pay structure for a specific
position.
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Job Evaluation
Job Evaluation: The systematic determination of the
relative worth of jobs within an organization.
Ranking Classification
Job
Evaluation
Methods
Factor Point
Comparison Method
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Developing Pay Surveys
Select Employers with Comparable Jobs
Conduct Survey
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Pay Structures
• Common Pay Structures
– Hourly and salaried
– Office, plant, technical, professional, managerial
– Clerical, information technology, professional,
supervisory, management, and executive
• Factors that affect Remuneration/Pay Structure:
– External:
• Labor market
• Cost of Living
• Society
• The economy
• Geographic Location
– Internal Factor:
• Business Strategy
• Job Evaluation & Performance Appraisal
• The employee
• Kind of business 12
Wage & Salary
• Wages: Wages are compensation. This includes
basic wages, allowances, bonuses etc. On the
employers’ points of view, wages form that part of
cost of production which is attributed as
compensation paid to labor. Wages are paid in the
form of time rate or piece rate to the workers,
who are directly involved in the production or
commercial activities.
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Wage & Salary
• On the basis of the employee needs and ability of the
organization, there are various kinds of wages. Wages are
generally four types:
– Subsistence wages
– Minimum Wages
– Fair Wages
– Living Wages
• Subsistence wages: This is level of wage below the
minimum level which can lead inhuman life to the
employees.
• Minimum Wages: This is a wage level fixed by government
which is considered adequate, taking into account the cost
of living. All the organizations are bound to follow this
direction so that no employee is paid a wage less than the
minimum wage fixed by government irrespective of grade,
class or nature of work.
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Wage & Salary
• Fair Wages: This is fixed by employer. This level of
wage varies from industry to industry. The main
criteria are the capacity of payment. Fair wage is a
wage above the minimum wage but below the
living wage.
• M = Market-driven
• A = Analyze Thoroughly
• R = Reward Results
• T = Transformation
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Compensation & Benefits Package
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The C&B Cycle
Corporation’s Strategy on C&B
IMPERATIVES
•Top Management Inputs
•Market Drivers
•HR Strategy
Gauging employee
COMPENSATION POLICY/DESIGN satisfaction
• Policies Designed/Reviewed
•Compensation Structure/Design Issues
•Annual/Cyclical actions (TIR/Bonus/SPP)
•Employee Communication strategy
HR OPERATIONS Payroll
• Housing Assistance/HRA
• Medical Allowance
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Benefits
• Company Housing
• Furnishing program
• Housing Loan
• Personal loans
• Car Loan
• Tuition Refund Plan
• Professional Body Membership
• Golden Handcuffs
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EMPLOYEE COMMUNICATION - taking C&B to the people
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