HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

JOB EVALUATION A SYSTEMATIC PROCESS OF ANALYSING JOBS TO ASCERTAIN THEIR RELATIVE WORTH WITHIN THE ORGANISATION OBJECTIVES PROVIDES A STANDARD PROCEDURE DETERMINE HIERARCHY CONSISTENCY IN WAGE STRUCTURE MAINTAIN ACCURATE DATA REDUCE WAGE DISCRIMINATION

PRINCIPLES

- TRANSPARENCY - PROPER SELECTION OF FACTORS - PATICIPATION OF EMPLOYEES/UNIONS - JOB DESCRIPTION - SPECIFICATIONS - JOB EVALUATION PLAN- IMPLEMENATION

PROCEDURE

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

METHODS

QUANITATIVE ANALYTICAL

NON-QUANTITATIVE NON-ANALYTICAL

POINTS RATING METHOD

FACTORS COMPARISION METHOD

CLASSIFICATION OR GRADING OR RANKING METHOD

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

FACTORS JOB TOTAL PHYSICAL MENTAL POINTS EFFORTS EFFORTS SKILL

RESPONSIBILITY WORKING CONDITIONS

ELECTRICIAN

60 50 40 30 25

11 14 12 9 8

14 10 7 6 4

15 9 8 4 6

12 8 7 6 3

8 9 6 5 4

FITTER WELDER CLEANER UNSKILLED

A JOB MAY RANK TOP ON ONE FACTOR AND LOW ON ANOTHER FACTOR. AFTER JOBS ARE ASSIGNED LEVELS AGAINST EACH FACTOR, POINTS ARE ALLOCATED TO EACH FACTOR AND TOTAL POINTS INDICATE WAGE RATES

FACTOR COMPARISON METHOD

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

POINT RATING METHOD Job factors Minimum I 1. Responsibility a. Safety of others b. Equipment and material c. Assisting trainees d. Product/Service quality Skill a. Experience b. Education/training Effort a. Physical b. Mental Working Conditions a. Unpleasant condition b. Hazard Low II Levels Moderate III High IV

25 20 5 20 45 35 25 35 20 20

50 40 20 40 90 70 50 70 40 40

75 60 35 60 135 105 75 105 60 60

100 80 50 80 180 125 100 125 80 80

2.

3. 4.

. POINT RATING METHOD

SALARY 170 . 150 . 130 . . . . . . . . . . . . . . . .

. . . . .

110

90

70 100 200 300 400 500

EVALUATED POINTS

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

RANKING OR GRADING METHOD PUTS JOBS IN LEVELS DEPENDING ON SIMPLE TO COMPLEX TASKS MERITS - LOGICAL - OBJECTIVE - JUSTIFIES WAGE DIFFERENTIALS - FITTING NEW JOBS INTO EXISTING STUCTURE - DATA CAN BE USED AS HRIS

DEMERITS - MAINTENANCE IS DIFFICULT - LOWER RATED EMPLOYEES ARE DISSATISFIED ( ALL ARE LOWER TO SOMEONE ) - CREATES FEARS WHEN JOBS ARE EVALUATED THE LATEST ALTERNATIVE IS DECISION BANK METHOD (DBM) DEVELOPED BY THOMAS T PATERSON AND REFINED BY ERNST AND YOUNG WHERE SCOPE TO TAKE DECISIONS DETERMINE THE RELATIVE WORTH OF A JOB

HUMAN RESOURCE MANAGEMENT

COMPENSATION MANAGEMENT
A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

COMPENSATION MANAGEMENT IS REIMBURSMENT FOR CONTRIBUTIONS MADE TO THE ORGANISATION

COMPONENTS OF REMUNERATION
FIXED BASE SALARY- SCALE OF PAY - INCREMENTS DA-CONSUMER PRICE INDEX - EXTENT OF NEUTRALISATION HRA PF GRATUITY PENSION OR SUPERANNUATION SCHEMES

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

VARIABLE PIECE RATE STANDARD HOUR PLAN COMMISSIONS INDIVIDUAL AND/OR GROUP INCENTIVE PLAN PROFIT SHARING GROUP - CURRENT OR DEFFERRED EMPLOYEE STOCK OPTION PLAN UP-GRADATION OF LEVEL OF THE POST OVERSEAS ASSIGNMENTS - INCOME TAX RELIEF MEDICAL EXPENSES ENTERTAINMENT EXPENSES LTC LEAVE TRAVEL COMPENSATION

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

BENEFITS TRANSPORTATION - CONVEYANCE ALLOWANCE - CAR LOANS - HOUSING - CAR MARRIAGE SUBSIDISED CANTEEN EDUCATIONAL FACILITIES MEDICAL FACILITIES TELEPHONES MOBILE INTERNET ENCASHMENT OF LEAVE EMPLOYMENT OF CHILDREN INSURANCE CITY COMPENSATORY ALLOWANCE CRECHE MATERNITY LEAVE WORK FROM HOME FACILITIES DURING WORK OUTSIDE VISITS ABROAD

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

WAGE AND SALARY CONCEPT MINIMUM WAGE FAIR WAGE - LIVING WAGE OBJECTIVES ATTRACT AND RETAIN TALENT MOTIVATE FOR HIGHER PERFORMANCE MEET LEGISLATIVE REQUIREMENTS KEEP COST OF PEOPLE WITHIN LIMITS FACTORS AFFECTING WAGE AND SALARY LEVEL

CONTRIBUTION OF THE INDIVIDUAL COLLECTIVE BARGAINING PROCESS ECONOMIC CONDITION COST OF LIVING REMUNERATION IN COMPARABLE INDUSTRIES CAPACITY OF THE INDUSTRY TO PAY LEGISLATION

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

WAGE DIFFERENTIALS WAGE REASONS DIFFERENCE IN SEX,SKILLS,AGE,EXPERIENCE VARYING DEGREE OF SKILL, KNOWLEDGE, DEMAND-SUPPLY COST OF LIVING,COLLECTIVE BARAGAINING POWER

INTERPERSONAL

INTER-OCCUPATION

INTER-AREA

INTER-INDUSTRY

ABILITY OF THE INDUSTRY TO PAY EXTENT OF UNIONISM

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

DESIGN OF COMPENSATION PACKAGE INTERNAL AND EXTERNAL EQUITY FIXED AND VARIABLE

PERFORMANCE AND ATTENDANCE

JOB AND THE INDIVIDUAL MARKET RATE AND OTHERWISE

OPEN AND SECRET

CTC CAFTERIA APPROACH INCOME TAX INTEREST ON LOAN

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT

IMPORTANT ASPECTS

WAGE BOARDS PAY COMMISSIONS IMPLICATIONS DURING LATERAL ENTRIES FITMENT ON PROMOTION MERGERS - DEPUTATION - ABSORPTION

HUMAN RESOURCE MANAGEMENT

A. K. MOHAPATRA

SCHOOL OF MANAGEMENT