CRM

Module II: Compensation Structure-Indian Practices Salary Progression, Methods of Payment, Limitations of the Job Related Compensation, Competency based Compensations, Performance linked Compensations- Performance Appraisal. Salary Progression: Salary progression is based on assessed performance against the criteria established in the Performance Plan. In order for progression to take place to a higher level within the range and, within the Band, the requirements of the Performance Plan are to be met. The Performance Plan and assessment criteria will identify what employees need to demonstrate in order to achieve salary movement to a higher level. Criteria will include achievement of performance goals, but may include demonstration of particular competencies or achievement of particular qualifications. Performance goals and criteria against which performance is assessed will specifically relate to the Statement of Duties, reflect the classification level of the role, and is expected to become progressively more demanding as salary progression is achieved. Where performance is assessed as outstanding (or equivalent Agency terminology), salary progression of more than one salary level may be approved or may progress across a salary point more than once in a 12 month period. Where performance is assessed as not achieving the criteria established in the Performance Plan, salary progression will not be approved. In order for salary progression to be denied, the Agency must provide documented evidence that the employee has been provided with feedback about their performance, direction about the nature of the improvement required, and support to achieve that improvement prior to the final assessment. Where resources, training and development opportunities have been agreed between a manager and an employee and have not been provided, this is to be taken into account in assessing performance.

Where performance is assessed as not achieving the Performance Plan and progression is not approved; a process is to be put in place to review performance within a reasonable period but not more that 12 months. Where performance is subsequently assessed as achieving the criteria identified in the performance plan, salary progression is provided from the date of the later assessment. Payment Methods While buying products on eBay, it is extremely important that you select the right payment method for yourself. eBay offers an array of payment options, both online and offline, which are made available to you by the seller. Different payment methods have innumerable advantages and every option can work differently for different buyers. Before you buy an item, always make sure that the seller's payment methods will work for you. Payment Methods Online Payment Methods (PaisaPay)

Online Bank Transfer Credit Card Debit Card Cash Card Mobile Payment (IMPS/Airtel Money) Offline Payment Methods

PaisaPay Cash on Delivery Cheques Demand Draft Buyer picks up and pays

Limitations of the Job Related Compensation:

There are two potential statute of limitations dates for workers compensation cases in Illinois. They are: Three years from the date of when the injury happened or when the injury was discovered; or Two years from date of the last payment of benefits.

Computing the three year date is frequently easy to do, especially with traumatic injuries. For example, if you step off a ladder at work and break your ankle, the statute of limitations is three years from that date. For cases like involving injuries like work related carpal tunnel syndrome, the statute of limitations begins to run when you receive the diagnosis and have reason to believe that it was work-related. With regard to the two year statute of limitations date, that applies where the employer of their insurer is voluntarily paying workers compensation benefits and then stops. For example, if you are off work for two years with your employer paying your medical expenses and TTD benefits and then they suddenly stop, you would have two years from the date of the last benefit you received to file your claim, even though it is still more than three years from the date of your actual accident. Filing a workers compensation claim is free, so if you have any concern about whether the statute of limitations will affect your workers compensation case, you should file your case in the Workers Compensation Commission as soon as possible.

Competency based compensation:

Broad banding versus Competency based pay systems:

Organizations that follow a skill based or competency based pay system frequently use board banding to structure their compensation payments to employees. Broad branding simply compresses many traditional salary grades (say 15 to 20 grades) into a few wide salary bands (three or four grades). By having relatively few job grades, this approach tries to play down the value of promotions. Depending on changing market conditions and organizational needs, employees move from one position to another without raising objectionable questions (such as when the new grade is available, what pay adjustments are made when duties change etc.). As a result movement of employees between departments, divisions and locations becomes smooth. Employees with greater flexibility and broader set of capabilities can always go in search of jobs in other departments or locations that allow them to use their potential fully. Broad banding further helps reduce the emphasis on hierarchy and status. However, broad banding can be a little un-setting to new recruits when they are made to roll on various jobs. Most employees still

believe that the existence of many grades helps them grab promotional opportunities over a period of time. Any organization having fewer grades may be viewed negatively as having fewer upward promotion opportunities. Moreover a number of individuals may not want to move across Below the versus organizations above into market other areas. compensation:

In high tech firms R&D workers might be paid better than their counterparts in the manufacturing division. Blue chip firms such as HLL, Nestle, Procter & Gamble, TCS, Hughes Software Systems might pay above market compensation to certain groups in order to attract (and retain) the cream of the crop. To grow rapidly and to get ahead of others in the race, especially in knowledge based industries most companies prefer to pay above market salaries. Above market wages are typical in well-established manufacturing units operating in a highly competitive environment. Firms paying below market tend to be small, young and nonunionized. Open versus secret pay: In real world the issue of paying compensation openly or in a secret way may often become a bone of contention between employees and the employer(s). Current research evidence indicates that pay openness is likely to be more successful in organizations with extensive employee involvement and an egalitarian culture that encourages trust and commitment. Open pay eliminates doubts in the minds of employees regarding equity and fairness because there is equal pay for equal work. But open pay has a downside. First, managers are forced to defend their compensation decisions publicly. The question of how much pay one should get is more or less decided by the manager, based on his own subjective assessment of various factors. In such decisions, it is not easy to please everyone. Second, the cost of making a mistake in a pay decision increases when the pay is open. Third, to avoid never ending and time wasting arguments with employees, managers may eliminate pay differences among subordinates despite differences in performance levels. This may in the end force talented people to leave the organization. Pay secrecy involves withholding information from the recruits regarding how much others make, what raises others have received and even what pay grades and ranges exist within an organization. Pay secrecy gives managers some amount of freedom in compensation management, since pay decisions are not disclosed and there is no need to justify or defend them. Employees who do not know how much others are getting have no objective

base for pursuing complaints about their own pay. Secrecy also serves to cover up inequities prevailing within the internal pay structure.

Performance linked Compensations:

One of the latest strategies being followed in all sectors through out the world for retention and talent management is "linking compensation to performance". Commonly known as "Performance pay" or "Performance based pay", it links the compensation of the employees to their performance and their contribution to the organizational goals. Therefore, periodic performance reviews play a vital role and provide the basis of performance related pay.

Commissions, incentives and bonuses, piece rate pay help the employer to pay the employee according to their productivity and hard work. The process of performance based pay involves:

Deciding and clearly defining the performance goals and the performance measures Setting the target bonus for different levels of performances Measuring the performance of the employee Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various roles and positions in the organization. Types of Performance Pay

Merit pay The first step to performance pay, merit pay means setting some basic salary according to the position and the rank of the employee and the variable part of the salary is based on the periodic performance reviews.

Profit Sharing Sharing the profits of the enterprise with the employees as bonus. Incentives and Performance Bonus Rewards for special accomplishments or fulfillment of the targets set such as sales commission. Gain sharing - Sharing of gains as a result of the increased performance of the employees with them.

Although performance related pay has always been a topic of discussions and controversies with many arguments against it, but it has also been proved that performance based pay motivates employees to perform better and earn, and encourages learning, innovation, creativity, problem solving and empowerment which can be facilitated through proper performance measurement and reviews.