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Objectives
Theories
of Remuneration Model
Remuneration
Identify the different components of remuneration Describe the theories of wage and salary payments Identify the variables that influence employee remuneration Point out the wage policy of Government Explain the wage concepts Explain how special groups can be compensated
Environment
Remuneration
Financial
Non-financial Job Context Challenging job Responsibilitie s Recognition Growth prospects Supervision Working conditions Job sharing, etc.
Fringe Benefits PF Gratuity Medical Care Accident Relief Health and Group Insurance, etc.
Perquisites Company car Club membership Paid holidays Furnished house Stock option Schemes, etc.
Direc t
Indirect
Pay Dissatisfaction
Business Strategy
Remuneration Strategy
Blend of Remuneration
Invest to grow
High cash with above average incentive for individual performance. Modest benefits,
Normal growth to maturity Reward management skills Average cash with moderate incentives on individual, unit, or corporate performance. Standard benefits. Stress Below-average cash with small incentive tied to cost control. Standard benefits.
Job Description
Job Evaluation
Job Hierarchy
Pay Survey
Pricing Jobs
2004
(Increase in percent)
17 25 12 25 15 7 22
10
Employee Participati on
Remunerati on
Pay Secrecy
Eliticism or Egalitarianis m
11
Job-based Based on job performance Job carries wage; Employee linked to job
Skill-based Based on ability to perform Employee carries wage; Employee linked to skills.
Job promotion to earn greater pay Skill acquisition to earn greater pay. Pay based on value of work performed Flexibility; Reduced workforce.
Source: Raymond A. Stone, Human Resource Management, John Wiley & Sons, 1995, p.324.
12
Minimum
wage
wage wage
elsewhere
Living
providing essentials plus certain
comforts
13
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