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Compensation Policy
Click to edit Master subtitle style
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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
Job Analysis Description Specification Grading Classification Assessment/Job Pricing
Job Job Job Job Job
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Rationale
Favoritism Pressure Scarcity
by the supervisor
from employee group/union of skills approach to Pay structure
Unsystematic
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Job Evaluation Procedure
Study
of the jobs in the organization what the organization "is paying for"
JA
Deciding job
hierarchy
Select
a method of appraising the organization's jobs jobs to develop a job structure
assigning
Comparing
decision makers, reaching and recording decisions, and setting up the job hierarchy.
To
arrive at a wage structure
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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
and Prepare Job Description
and Prepare a Job Evaluation Plan Jobs
Classify Install
the Programme the Programme
Maintain
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Factors in job evaluation
Training
level or qualifications requirements and skills requirements of tasks
Knowledge Complexity Interaction
with various levels of the organization and independent judgment authority and responsibility
Problem-solving Accountability
Decision-making Degree
of supervision required requirements
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
Ranking method Classification method
Quantitative
Point rating method Factor comparison
Innovative/Non-Conventional Time
span of discretion method Band
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
Classification method /Grading
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
for factor comparison method
benchmark jobs benchmark jobs by factors money values to factors
Selecting Ranking
Allocating Ranking
the other jobs and wage fixing
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Non-Conventional Method
Time
Span of Discretion Methods
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
Decision Band Band Band
Band Method
E- Top mgt D- Sr, Manager C- Middle Manager
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Non-Conventional Method
Direct
Consensus Method
Workman Guide
and evaluator reach the value by consensus
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
Surveys conduct a survey?
and retaining competent employees pay trends in marketplace
Why
Hiring
Recognizing Defending Data
pay practices in court of law
Collection Techniques
questionnaire
Telephone Mailed Online Face
to face
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External Parity
Type
of Pay surveys Survey method
Informal External Job JD JE Pay
title method
method method
Levels
of Wage trend line structure
Development
Compensation Designing
pay ranges and band.
