【正文】 have access to information about other workers pensation levels and how pensation decisions are made (open pay), or will this knowledge be withheld from employees(secret pay)? ?Centralization Vs Decentralization Of Pay Decisions: Will pensation decisions be made in a tightly controlled central location, or will they be delegated to managers of the firm?s unit? Continued… ?Egalitarianism Vs Elitism: Will the pensation plan place most employees under the same pensation system (egalitarianism), or will it establish different plans by anizational level and/or employee group (elitism)? ?BelowMarket Vs AboveMarket Compensation: Will employees be pensated at belowmarket levels, at market levels, or at abovemarket levels? DETERMINANTS OF COMPENSATION ? Category of Employees ?Bargaining power of the employee and his trade union ?Demand and supply manpower for the specific category of position or job ?Good payment to the employees ?Firm?s ability to pay economically viable and healthy corporate citizens ?The salary of its people productivity, profitability and firm?s financial position Continued… ?The Standard of Living ?The Government Regulations A Moary Compensation plan must fulfill four conditions: ?Should attract and keep appropriate number of people in the anization。 ?Should motivate the people at work to contribute their best toward the pany?s objective。 ?Should satisfy the needs of the pany?s own people。 ?Should not attract frequent demand and struggle of people for wage enhancement affecting the cordial industrial relations. ELEMENTS OF TOTAL COMPENSATION Total Compensation Base Compensation Incentive Compensation / Variable pensation Supplementary pensation paid to large group of employees A. BASE COMPENSATION ?Basic pay fixed to various categories of jobs, post or positions – Basic Pay/ Scale of Pay ?Paid mostly in moary terms Moary Compensation ?Factors considered in the process: ? Job Content – the job expected to be carried out by the employee and his worth to be on that particular job。 ? Bargaining Power of the trade union, or that of the employee, representing the trade or the job。 Continued… ? Demandsupply interplay or the specific category of jobs or positions。 ? Remuneration level in the industry, identical firms or the firms in the locality for the specific job。 ? Ability of the firm to pay。 ? Productivity, profitability and financial position of the firm。 ? Cost/Standard of living in the environment of the anization。 ? Government Regulations. B. INCENTIVE COMPENSATION ? A good incentive system motivates people to put in their best efforts to perform well. ? Commonly used to motivate people at work. ? Steps of the process: 1. Fixation of Performance Standards 2. Fixation of specific Incentive Schemes 3. Linking of performance levels with anizational objective 4. Classification of performance standards Continued… 5. Periodical feedback 6. Conspicuous Incentive 7. Constitution of a mittee for the administration of incentive schemes 8. Linking of HRD programs with incentive schemes 9. Publication of names of recipients 10. Awards and Promotions 11. Honor of Incentivetakers 12. Incentive scheme and Corporate Policy Continued… 13. Active involvement of top management 14. Clubbings of incentives with lease pensation 15. Adequate financial allocation 16. Adjustment of performance standard and incentive 17. Acceptance of suggestions from the employees EXAMPLES: FINANCIAL ? Profitrelated and share option schemes ? Bonuses ? Commission NONFINANCIAL ?Vouchers ?Extra holidays ?Gifts ?Company Cars C. SUPPLEMENTARY COMPENSATION It includes additional annual wage, employee profit sharing (present day bonus), production sharing plans, employee?s equity participation as an additional bonus ASPECTS TO BE CONSIDERED FOR ACCOMPLISHING EFFECTIVENESS OF THE MONETARY REMUNARATION SYSTEM ? Salary and Wage level may be higher than or equal to what is prevailing in the surroundings or in the industry。 ?Moary remuneration should be adequate to meet the needs。 ?Moary remuneration system should not be exorbitantly higher or lower。 pared with existing standards。 ? It is better to pay the salary a few days in advance before it fails due。 ?A sound meritrating and systematic job evaluation may be used as the basis for pay fixation。 ?There should be some scope for pay hikes to offset the inflationary tendencies。 ?Monthly salary may be supported by financial incentive schemes so that there would be scope for every executive to increase his ine by increasing his performance. METHODS OF REMUNARATION ?TimeWork/DayWork System ?Straight PieceWork System ?Differential Piece Rate System ?Group Bonus System ?Priestman?s Production Bonus ?CostEfficiency Bonus Plan ?Emerson Efficiency Bonus ?Halsey Premium Plan ?Rowan Bonus Plan FACTORS DETERMINING THE LEVEL OF REMUNERATION ?Production and the nature of work ?Use of machines ?Use of labor ?Labor supply ?Wage policy KINDS OF WAGES ?MINIMUM WAGE: that wage which is sufficient to cover the bare physical needs of a worker and his family ?FAIR WAGE: something more than the minimum wage providing mere necessities ?LIVING WAGE: the normal needs of the average employee, regarded as human beings in a civilized munity ?NEED BASED MINIMUM WAGE: should be ?need based?。 should ensure the satisfaction of the minimum needs of the industrial worker. TimeWork/DayWork System Employees are remunerated at pre determined hourly/daily rates for hours/days they are actually employed in the factory Advantages: ?Simple ?Quality Control and Steady Ine Disadvantages: ?No distinction ?Go Slow Habits ?Constant Supervision Straight