Download - Job Evaluation, Compensation,
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Presented By
Rajiv.K.S
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Job evaluation represents an effort to
determine the relative value of every job
and the fair basic wage for such a job
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Compare jobs and pay
Job description, job specification,employee specification
To determine the rank of jobs
Compare duties, responsibilities and
demands of jobs
Classification
of jobs
Retain High
potentialemployees
Rational
ranking system
based on pay
Attract
desirable
candidates
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Jobs are ranked
based on title or
content
Jobs are assigned
grades and
classified intothem
Vague & Non-
quantifiable
Different
factors for jobs
Different
degrees for
each factor
Different
points for eachdegree
Factors are
determined for
each job-5
One factor at a
time for every
job
Point value for
each factor-final value
More Precise and
systematic
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Management
Reward Policy
Internal
Equity
External
Equity
Business
Policy &
Strategy
Wage Theories
Firms
Ability toPay
Wage/Salary
Levels and
Structures
Rewards
in other
Organisations
Wage
Survey
Government
Regulations& Laws
Cost of
Living
Union Pressure
Productivity
JobEvaluation
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Compensation to benefit employees for the
work obtained from the employees.
Incentives - which encourages an employee to
do his work better. An extra financial reward
that increases productivity and motivates
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Recognize hard working employees.
Increased employee involvement and productivity
Motivated environment; reduced supervision
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Classification of Incentives Plans
Profit sharing
Co-partnership
Gain-sharing
ESOPs
Incentives plans
Output-based
Individual
Time-based
Organization- wide Group
Time-based
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To attract and retain high potential employees
management provides benefits
Helps maintain the employees and reduce theturnover and absenteeism.
Stimulate people to greater effort and higher
performance.
Fosters loyalty and act as a security base for the
employee.
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Any benefits that the employee receives in
addition to direct remuneration
Indirect compensation extended as a condition
of employment and not directly related to
performance
Also called welfare expenses, wage
supplements sub wages or social charges
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Cost
Ability to pay
Needs of the employees
Bargaining strength of the trade union
Tax consideration
Social responsibility
The reaction of employees
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Payment for time not worked
Employee security
Safety and Health benefits
Vacations & Holidays Sick Leave Shifts Premium
Severance Pay
Lay off compensation
Unemployment benefits
Annual wage increase
Health insurances
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Maternity Benefits
Dependent Benefits (father to son)
Welfare and recreational facilities
Old age and Retirement benefits
Legal assistance
Educational assistance
Housing facilities
Financial services
Employee Assistance programs
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In addition to fringe benefits, organizations also
provide services that employees find desirable.
These services are provided at low or no cost to
the employee.
These are provided at the discretion of the
management with consultation with the trade
unions.
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Services related to work performed- subsidies for the purchase and
upkeep of work clothing and uniform.
Eating and Cafeteria facilities
Transportation facilities
Child care facilities
Recreational, cultural and social programs
Educational services
Medical services
Flexible time
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Charge of Paternalism = When too many benefits & services are
offered to employees , they look upon employers like parents who
care for their children despite their performance.
Excessive Expenditure =Its a very costly affair and involves agreat deal of paper work
Maintenance of least productive worker = With increase in
benefits and services, particularly when employees are not very
productive ,they tend to stick to their jobs and are not interested to
change them.
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Organizations should dedicate considerable time
and expense to categorize jobs and pay scales.
It is encouraged for organizations to provide
incentive to its employees to motivate and promotethem
The management should present employees with
lucid benefits and services plans to promote
loyalty and effectiveness.
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