Compensation

Management:
A good compensation
system should be able to
attract & retain
employees,give them a
fair deal,keep the
organization competitive
& motivate employees to
perform their best.
 JOB EVALUATION.
1.It is a systematic process
of analyzing & evaluating
jobs to determine the
relative worth of each job in
an organization.
It forms the basis for
designing the compensation
management system in an
organization.
 Factors Determining the
compensation system:
 1.Size & structure of the
organization.
 2.Industry in which it operates.
 3.The strength of employee
unions.
 4.The position of the person &
his importance to the
organization.
 5 The Demand for particular skill
sets in the industry.

Process Of Job Evaluation:
 1.Preparation of a Job Evaluation
Plan.
 2.Job Analysis.
 3.Job Description & Job
Specification.
 4.Selection of Job Dimensions
 5.Classification of Jobs.
 6.Implementstion of the
evaluation.
 7.Maintenance.
 Techniques of Job
Evaluation.
1.Quantitative Techniques.
Point Rating Method.
Factor Comparison Method.
2.Non Quantitative
Techniques.
Ranking Method.
Job Classification or Job
Grading Method.
 Wage & Salary
administration:
1.Attracting Talented
Resources.
2.Retaining & motivating
employees.
3.Financial Management.
4.Legal requirements.
Concepts of Different
Wages:
1.Minimum wage.
2.Fair wage.
3.Living wage.
 Basic Wage Plans:
 1.Time Wage Plan.
 2.Piece wage Plan.
 3.Skill based pay.
 4.Competency based pay.
 5.Broadbanding
 6.Variable Compensation.
 7.Executive compensation.
 8.National Wage Policy.
 Concept Of Rewards:
 1.Extrinsic Rewards & Intrinsic
Rewards.
 2.Financial & Non Financial Rewards.
 3.Incentives:Performance Based
Rewards.
 Ex:Annual Performance incentives
( monetary) and ESOP (Employee
Stock Option Plans)
 Benefits-Rewards an employee
receives for his employment &
position in the organization.
Types Of Incentives Plans:
1.Short Term Incentive Plans.
1.Halsey Plan,Rowan Plan,Barth
System of wages,Task Bonus
System,Point Rating
system,Progressive Bonus.
2.Long Term Incentive Plans.
Annual Bonus,Profit sharing,Gain
Sharing,Employee Stock Plans.
 Employee Benefits:
 Free/Subsidized Lunches,Medical
Facilities,Paid vacation to the
employee,Retiral benefits like PF
& gratuity,Employee
Insurance,Maternity Leave,Child
care centers,Educational
allowance,company
accomodation,company
transportation facilitiesetc.
 Some Modern Concepts
in Employee Benefit
Schemes:
1.Golden
Parachute.
2.Cafeteria Benefit
Plan.