Beruflich Dokumente
Kultur Dokumente
Compensation Administration
Process
Recommended books
Milkovich, G.T. Newman, C.S (latest edition), Tata McGraw-Hill, New Delhi
There should be a definite plan to ensure that differences in pay for jobs are
based upon variations in job requirements.
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.
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Purpose of Compensation
For Employer
Retaining talent
Consistency in compensation
For Employee
Work-life Balance
Mental requirements,
Physical requirements,
Skill requirements,
Responsibility level, and
Working conditions (risk, time, hazards)
Organizational Affordability
Man power planning
Output vs salary ratio
Market Rate for Talent
Economic Conditions
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Laws governing and affecting Pay Structure
Job Evaluation
Job Specification
Job Description
Time and Motion Study
Market Survey
Demand and Supply- Talent Mapping
Industry wise bench marking
Labor Market
Employer Information
Employer Association
Professional Association
Salary Survey
HR Service Providers
Compensation Administration
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
The major functions of an administration consist of the following:
Approval and /or recommendation of management on job evaluation
methods and findings.
Review and recommendation of basic wage and salary structure.
Co-ordination and review of relative departmental rates to ensure conformity.
Review of budget estimates for wage and salary adjustments and increases.
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
JOB EVALUATION: The process of analysing jobs from which job descriptions are
developed.
Job evaluation techniques include the use of interviews, questionnaires, and
observation.
Job evaluation is used to determine the relative value of each job in relation to all
jobs within the organization.
Immediate objective: to obtain internal and external consistency in wages and
salaries.
Ultimate objective: employee and employer satisfaction with wages and salaries
paid.
1865 - Karl Marx wrote in Das Kapital that the value of goods and services is
based on the amount of labor that goes into them
1885 - Frederick Winslow Taylor stated that the content of labor in labor
determines the price of labor
1935 - Edward Hay developed the Hay point factor system
1963 - The Equal Pay Act prohibited discrimination on the basis of sexfor
equal work on jobs, the performance of which requires equal skill, effort, and
responsibility and which are performed under similar working conditions.
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Importance of job evaluation
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Advantage Disadvantage
RESPONSIBILITI
SKILLL EFFORT WORKING ES
CONDITION - Fiscal
Experience Mental - Supervisory
Education Physical Locati
Ability on
Hazar
ds
Extre
mes in
Environment
Decision making and problem Accountability
solving
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Job Evaluation benchmarking
Job Evaluation
External
Internal
consisten
consistency
cy
This potential to blend internal forces and external market forces both
strength and an opportunity to job evaluation system.
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Hays Method Process
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd
Purpose of evaluation should be clearly defined
Adoption of appropriate technique
Allocation of sufficient resources
HRM 611 Compensation Policy, , MBA Program, School of Business, Brac University,
Course Instructor: MD. Tariqul Haque, tariq@enroute.com.bd