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MMFA13 – HUMAN RESOURCE

COMPENSATION
MANAGEMENT

RATRI WAHYUNINGTYAS

S2 MANAJEMEN – FAKULTAS EKONOMI DAN BISNIS

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LEARNING OBJECTIVES
1. Mampu menjelaskan dan memahami cara – cara
menentukan jenis dan besaran kompensasi karyawan
2. Mampu menjelaskan faktor – faktor yang perlu
diperhatikan dalam menentukan besaran kompensasi
3. Mampu menganalisa komponen – komponen dalam
pengelolaan kompensasi
4. Mampu menjelaskan dan memahami tahapan dalam proses
pengelolaan kompensasi
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1.Compensation is what employees

receive in exchange for their
contribution to the organization, it
helps the organization achieve its
objectives and obtain, maintain, and
retain a productive workforce.

2. Compensation refers to all forms

of financial returns and benefits
that employees receive as a part of
an employment relationship
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The Objectives Of Compensation
Management

a.Acquire qualified personnel

b.Retain current employees
c.Reward desired behavior
d.Control costs
e.Comply with legal regulations

Compensation management help the organization

achieve strategic success while ensuring internal
and external equity.
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Total
Returns

Total Relational
Compensation Returns

•Recognition &
Cash Status
Compensation Benefits •Employment
security
•Base •Challenging
•Income
protection work
•Merit/Cost
of Living •Learning
•Work/life
•Short-term focus opportunities
incentives
•Allowances
•Long-term
incentives
 Major phase of Compensation management 6

Job analysis
Phase-I
Identify & study jobs Position Job Job
descriptions descriptions standards

Job evaluation (develop a rational approach to pay)

Phase-II
Internal equity Job Job Factor Point
ranking grading comparison system

Wage & salary surveys

Phase-III
External equity Dept. of Employer Professional Self conducted
Labor association associations surveys

Phase-IV Pricing jobs

Matching internal
and external worth Job evaluation Labor market
worth Match worth

Rate range for each job

 The Job Evaluation Process
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Preparing for the Job Evaluation

Identifying the need for the job

1
evaluation
2 Getting the cooperation of employees

3 Choosing an evaluation committee

4 Performing the actual evaluation

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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Job Ranking, rank each job subjectively

according to its relative importance (consider
individual factors such as the responsibility, skill,
effort and working condition) in comparison with
other jobs in the firm.

Position Rank Remark

Janitor 1 Less Importance
Secretary 2 Importance
Office Manager 3 Very Importance
 Job Grading, it works by having each job assigned to a 9

grade by matching standard descriptions with each job’s

description.
Job Grade Standard Description

I. Work is simple and highly repetitive, done under close supervision, requiring minimal
training and little responsibility or initiative
Ex: Janitor, file clerk
II. Work is simple and highly repetitive, done under close supervision, requiring some
training or skill. Employee is expected to assume responsibility or exhibit initiative
only rarely.
Ex: Clerk-typist I, Machine cleaner
III. Work is simple, with little variation, done under general supervision. Training or skill
required. Employee has minimum responsibilities and must take some initiative to
perform satisfactorily.
Ex: Part expediter, machine oiler, Clerk-typist II.
IV Work is moderately complex, with some variation, done under general supervision.
High level of skill required. Employee is responsible for equipment or safety;
regularly exhibits initiative.
Ex: Machine operator I, Tool and die apprentice
V Work is complex, varied, done under general supervision. Advance skill level
required. Employee is responsible for equipment and safety; shows high degree of
initiative.
Ex: Machine operator II, Tool and die specialist
 Factor Comparison, comparing the critical or compensable 10
factors (common job elements such as responsibility, skill, mental
effort, physical effort, and working condition) for each key job
(commonly found throughout the organization), and put wages
for each job as its compensation.

Key Jobs
Compensable or
critical factors Forklift
Machinist Secretary Janitor File Clerk
Driver

Responsibility 3,20 1,80 2,40 0,80 1,40

Skill 4,00 1,80 2,00 0,80 1,30
Mental Effort 3,00 1,20 1,80 0,50 1,40
Physical Effort 2,00 1,80 0,70 2,70 0,90
Working Condition 0,07 0,60 0,60 1,90 0,60
Total 12,27 7,20 7,50 6,70 5,60
Wage Rate ($) 12,27 7,20 7,50 6,70 5,60
Point System, this system evaluates the compensable 11

factors of each job, but instead of using wages as the

factor comparison does, it uses points.
Level
Compensable or critical factors Minimum Low Moderate High
I II III IV

1 Responsibility        
a Safety of others 25 50 75 100
b Equipment and materials 20 40 60 80
c Assisting trainees 5 20 35 50
d Product/ service quality 20 40 60 80
2 Skill        
a Experience 45 90 135 180
b Education/ training 25 50 75 100
3 Effort        
a Physical 25 50 75 100
b Mental 35 70 105 150
4 Working Condition        
a Unpleasant condition 20 40 60 80
b Hazard 20 40 60 80

Total 1000
 Wage Structure 12

Copyright © 2011 Pearson

Education, Inc. publishing as
Prentice Hall
 Compensation Policy Issues
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a. Pay for performance

b. Pay for seniority
c. The pay cycle
d. Salary increases and promotions
e. Overtime and shift pay
f. Probationary pay
g. Paid and unpaid leaves
h. Paid holidays
i. Salary compression
j. Geographic costs of living differences

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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DAFTAR PUSTAKA

Dessler, G. (2015). Human Resource Management. Fourteenth edition. United States of America : Pearson
Education, Inc.
Ivancevich, J.M. (2010). Human Resource Management. Singapore: McGraw-Hill
Werther, W.B. & Davis, K. (2006). Human Resource Management. United States of America : McGraw-Hill
Companies, Inc.
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THANK YOU

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