Documente Academic
Documente Profesional
Documente Cultură
Chapter Content:
We will cover the following:
Remuneration & its Components Compensation Administration Process Wage & salary Administration Different types of reward Different types of Incentives and Incentives Plan International Compensation.
Remuneration
Non Financial Perquisites
Company Car, Club Membership, Paid Holidays, Furnished House, Stock option scheme, etc Indirect
Job Content
Challenging job, Responsibilities, Recognition, Growth prospects, Supervision, Working conditions, Job sharing, etc.
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Group Plans
Direct
Conduct Survey
Pay Structures
Common Pay Structures
Hourly and salaried Office, plant, technical, professional, managerial Clerical, information technology, professional, supervisory, management, and executive Factors that affect Remuneration/Pay Structure: External: Labor market Cost of Living Society The economy Geographic Location Internal Factor: Business Strategy Job Evaluation & Performance Appraisal The employee Kind of business
basic wages, allowances, bonuses etc. On the employers points of view, wages form that part of cost of production which is attributed as compensation paid to labor. Wages are paid in the form of time rate or piece rate to the workers, who are directly involved in the production or commercial activities.
Salary: This is compensation paid to the indirect
labor in the form of cash. Indirect labor involves supervisors, managers and supporting staff like office assistants, clerks, etc. Salaries are paid in the form of time rate, mostly on monthly basis.
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organization, there are various kinds of wages. Wages are generally four types: Subsistence wages Minimum Wages Fair Wages Living Wages Subsistence wages: This is level of wage bellows the minimum level which can lead inhuman life to the employees. Minimum Wages: This is a wage level fixed by government which is considered adequate, taking into account the cost of living. All the organizations are bound to follow this direction so that no employee is paid a wage less than the minimum wage fixed by government irrespective of grade, class or nature of work.
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of wage varies from industry to industry. The main criteria are the capacity of payment. Fair wage is a wage above the minimum wage but below the living wage.
Living Wages: Living wage is one which should
enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter, but a measure of frugal comfort, including education for his children, protection against ill health, requirement of essential social needs and a measure of insurance against the more important misfortune including old age.
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Reward
People do what they do to satisfy some
need and they look for a payoff or reward. The most obvious reward is pay, but there are many others, including:
promotions desirable work assignments peer recognition work freedom
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Types of Reward
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Types of Reward
Intrinsic versus Extrinsic Rewards Intrinsic rewards (personal satisfactions) come from the job itself, such as:
pride in ones work feelings of accomplishment being part of a work team
job
include rewards offered mainly by management Money Promotions Benefits
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Types of Reward
Financial versus Non-financial Rewards Financial rewards include:
wages bonuses profit sharing pension plans paid leaves purchase discounts
the job more attractive; employees vary greatly on what types they find desirable.
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Types of Reward
Performance-based versus Membership-Based Rewards Performance-based rewards are tied to specific job performance criteria.
commissions piecework pay plans incentive systems group bonuses merit pay
Incentive Compensation
Incentives can be added to the basic pay structure to provide rewards for performance. It may be 3 types:
1. 2. 3. Individual Incentives Group Incentives Plant-wide Incentives
Individual Incentives include merit pay plans (annual increase, based on performance) piecework plans (pay based on number of units produced typically in a specified time period.) time-savings bonuses and commissions Work best where clear objectives can be set and tasks are independent.
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Incentive Compensation
Incentive Compensation Plans: Group Incentives
Incentives can be offered to groups, rather than individuals, when employees' tasks are interdependent and require cooperation.
Golden parachutes protect executives when a merger or hostile takeover occurs by providing severance pay or a guaranteed position
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