【文章內(nèi)容簡介】 ARY Objectives of pensation system ?Acquire qualified personnel ?Retain present employees ?Ensure equity ?Reward desired behavior ?Control costs ?Comply with legal regulations ?Facilitate understanding ?Further administration efficiency 38 How Compensation System is used ? Compensation is used to: and retain qualified employees. or maintain morale/satisfaction. and encourage peak performance. internal and external equity. turnover and encourage pany loyalty. (through negotiations) practices of unions. 39 Components of pensation system ?Job Descriptions : define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs 1. Job Analysis : The process of analyzing jobs from which job descriptions are developed. 2. Job evaluation : for paring jobs for the purpose of determining appropriate pensation levels for individual jobs or job elements Continue… ?Pay Structures : based on several grades pay structure is determined through collective bargaining (unions) ?Salary Surveys : May include average salaries, inflation indicators, cost of living indicators, salary budget averages. Different types of pensation system ?Base Pay ?Commissions ?Overtime Pay ?Bonuses, Profit Sharing, Merit Pay ?Stock Options ?Travel/Meal/Housing Allowance ?Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes... Compensation Plans ?Develop a program outline. ?Designate an individual to oversee designing the pensation program. ?Develop a pensation philosophy. ?Conduct a job analysis of all positions. ?Evaluate jobs. ?Determine grades. ?Establish grade pricing and salary range. 43 Continue………. ?Determine an appropriate salary structure. ?Develop a salary administration policy. ?Obtain top executives39。 approval of the basic salary program. ?Communicate the final program to employees and managers. ?Monitor the program. 44 Sources of Compensation Data ?Labour ?Employer Information ?Employer Association ?Professional Association 45 Compensation Methods ?There are basically two pensation system viz. Basis Time Rate and Piece Rate. ?Its is meant for making payment, which should adequate pensate the worker for his efforts. 46 Compensation System Compensation System Time Rate Piece Rate Bonus Profit sharing Indirective Moary Incentive 47 Time Rate System 48 Time Rates Ordinary level High Wage Level Graduated Time Rates Piece Rate System Piece Rate Straight piece rate Piece and time bination Differential piece Taylor System Marrick System Gantt Task System 49 Compensation Structure Compensation System Consists of the following: ?Salary, Basic Salary or Consolidated Salary: ?Grade wise flat Allowance: ?Reimbursements of expenses: ?Annual payments: ?Benefits: ?Employee stock option schemes : ?“ Total cost to the Company” concept : ?Retiral benefits: ?Performance Bonus : 50 Compensation Administration The major functions of an administration consist of the following: ?Approval and /or remendation of management on job evaluation methods and findings. ?Review and remendation of basic wage and salary structure. ?Coordination and review of relative departmental rates to ensure conformity. ?Review of budget estimates for wage and salary adjustments and increases. 51 Principles of Administration of Compensation ?There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements. ?Prompt and correct payments of the dues of the employees. ?The plan should carefully distinguish between jobs and employees. ?Equal pay for equal work. 52 Continue… ?The wage and salary structure should be flexible. ?The employees and the trade union, if there is one, should be informed about the procedures used to establish wage rates. ?The wage should be sufficient to ensure for the worker and his family reasonable standard of living. 53 Financial and Non Financial Incentives ?An incentive scheme can offer employees extra pay according to individual or group performance targets. ?Examples include: ? profitrelated and share option schemes ? bonuses ? mission 54 Continue….. ?Nonfinancial Example include: ? vouchers ? extra holidays ? gifts ? pany cars 55 Advantages and Disadvantages Incentives Advantages Disadvantages Financial on hitting target a given value are sometimes small demoralize if not earned Non Financial recognize employee priorities and lifestyle encourage attachment to business be taken for granted be inappropriate 56 Reasons For Introducing An Incentive Scheme 1. Increase in earnings for employees? 2. Increase in output? 3. Improvement in quality? 4. Better mobility of labour? 5. More efficient methods of working? 6. Improvement in safety? 7. Higher housekeeping standards? 8. Reduction in absenteeism? 9. Reduction in labour turnover? in overtime working? 57 What Type Of Work Needs An Incentive Scheme? ?Does the work necessitate skilled, semiskilled or unskilled labour? ?Can individual skill be fully applied when manipulating machines etc. or is the employee?s quantity and quality of output regulated to a large extent by factors outside his/her control? ?Does the level of output remain steady throughout the year or is it subject to seasonal variations? 58 Continue…. ?Is