Professional Documents
Culture Documents
Compensation Policy
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Objectives
To get insight into micro concept of compensation. understand internal consistency and external parity understand job evaluation and Job pricing. know Four Basic, Traditional Systems of Job Evaluation
To
To To
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Job Evaluation
Consist
of
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Rationale
Favoritism Pressure Scarcity
by the supervisor
Unsystematic
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of the jobs in the organization what the organization "is paying for"
JA
Deciding job
hierarchy
Select
Comparing
decision makers, reaching and recording decisions, and setting up the job hierarchy.
To
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Indian way of JE
In
India, the National Institute of Personnel Management, has laid down the following steps which should be taken to install a job evaluation programme:
Analyse Select
Classify Install
Maintain
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with various levels of the organization and independent judgment authority and responsibility
Problem-solving Accountability
Decision-making Degree
Cross-training
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JA
Includes Job
purpose: Job duties Job criteria / results Records and Reports Supervisor Authority Working instruments Health and safety Working conditions Responsibilities Knowledge Skills/ Experience Abilities required on JA
More
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Techniques of JE
Conventional Non-quantitative
Quantitative
Innovative/Non-Conventional Time
Decision Direct
consensus
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Conventional Method
Non-quantitative
Ranking method
Under this system, all jobs are arranged or ranked in the order of their importance from the simplest to the hardest, or in the reverse order, each successive job being higher or lower than the previous one in the sequence
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Conventional Method
Non-quantitative
A number of pre-determined grades or classifications are first established by a committee and then the various jobs are assigned within each grade or Grade descriptions are the result of the basic job information which is usually 'ed from a job analysis
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Grading example
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Conventional Method
Quantitative Method:
Point
rating method:
This
method is the most widely used type of job evaluation plan. It requires identifying a number of compassable factors (i.e., various characteristics of jobs) and then determining degree to which each of these factors is present in the job. different of points is usually assigned for each degree of each factors. the degree factor is determined, the corresponding number of points of each factor are added and overall point value is obtained.
Once
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Factor Comparison
Developed
in 1926
Benchmark
jobs and its method of comparing jobs and fixing wage rates. and describe clearly the factors to be generally recommended:
requirements
Select
used .
Factors Mental Skill
requirements requirements
Physical
Responsibilities Working
conditions
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Factor Comparison
Steps
Selecting Ranking
Allocating Ranking
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Non-Conventional Method
Time
Uses
concept that all make decision in their work and effect of such decision is felt in organization after certain period.
Unskilled worker few hrs Marketing Manager 2-3 yrs Board directors 10 yrs
Band Method
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Non-Conventional Method
Direct
Consensus Method
Workman Guide
Chart profile
in managerial pay on three critical factor
Used
Emphasizes
Know-how Practical exp(functional expertise) specialized and technological depth, Width of managerial knowledge, Human relations Problem solving- thinking env , , challenging env. Accountability - Freedom to act, impact on result magnitude of success annually.
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External Parity
Pay
Why
Hiring
Collection Techniques
questionnaire
to face
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External Parity
Type
title method
method method
Levels
of Wage trend line structure
Development
Compensation Designing