Culture and

Compensation:
SRF Limited
GROUP 14
 PA & COMPENSATION WERE NOT UNIFORM AND RATHER
HAPHAZARD
 NO UNIFORM PA AND COMPENSATION WAS THERE AMONG
DIFFERENT BUSINESS UNITS
 THIS LEAD TO DIFFICULTY IN TRANSFER OF EMPLOYEES
PA &  THE PERFORMANCE WAS ASSESSED AT FOUR DIFFERENT LEVELS:

Compensation of 1 GOOD
2. VERY GOOD

SRF 


AVERAGE
POOR
 DIVIDING THE PERFORMANCE IN THESE FOUR BROAD CATEGORIES
LEAD TO GENERALIZATION AND INDIVIDUAL PERFORMANCE FOCUS
 COMPENSATION LACKED FOCUS ON OVERALL COMPANY
PERFORMANCE
 PRINCIPLES OF COMPENSATION WAS NOT CHANGED
 NO JOB EVALUATION ON REGULAR BASIS
5 Specific features of the earlier Compensation
System

1. Four broad Job Grades included annual cost of living, individual performance and personal growth

2. Individualized Salaries for Managers: Job Level Description was standardized

3.Job grades were increased to 14 and then decreased to 6 but principle components remained unchnged

4. No overall performance was included in compensatiom

5.Good performance was associated with 10-15% increase in salary

Inference from these specific features

5 Specific features of the earlier PA

1. Performance Review 3. Performance Ratings were used

Management : Development • To determine permanent salary increments
Dialogue
• It included Questions for an employee to 2. Multiple Managers reviewed an
answer about him/himself employee
• Questions for manager to answer about the
employee

5. SRF combined perceptions of

employee’s previous year
4. Employee focussed values in PA
performance with future potential
performance
Key Aspects of PA

SRF should incorporate both Instead of just Trust based

action and moral values while system, SRF should also
assessing PA focus on team performance

PA should also incorporate Proper KPIs and KRAs

contribution of employees in should be decided for
company’s growth employees
  To decide the compensation structure Job Evaluation should be done
 Transition in the current compensation structure should be gradual
Salary Breakup:
Compensation Direct Pay
1. Fixed Pay
Structure  Base Salary
2. Variable Pay
with  Individual Task Outcomes
Performance aligned with organizational Goals
breakup of


 Contribution to SRF
Responsibility based
SRF


 Compensation based on PA
3. Indirect Pay
 Benefits
 Health Insurance
 Travel Allowance
 Accommodation
 Housing
Thank You