SALARIES AND COMPENSATION

1. SALARIES AND COMPENSATION:

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. Many salaries also include such employee benefits as health and life insurance, savings plans, and Social Security. Salary income is taxable by the federal, state, and local government, where applicable, through payroll withholding. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.

Compensation and benefits affect the productivity and happiness of employees, as well as the ability of yourx organization to effectively realize its objectives. It is to your advantage to ensure that your employees are creatively compensated and knowledgeable of their benefits.

Isra Universitys perspective: Isra University provides lucrative salaries to the employees, the salaries offered are equal to other institutes in the market. The employees are satisfied with the university. University mostly updates the salaries according to the market. As far the as the compensation is concerned university provides transport, medical and house facilities to the employees. 1.1 JOB MARKET TREND:

Basically job market trend how employee are learning new skills and techniques so that if he or she can move for another job or transferred so can do the job. So its better to learn new skills and techniques because of the survival of the job and the way competition is increasing day by day in the market. And job trend makes organization in more profitable position because more expert are and newly skills are been learned. By this organization can reduce expenses and can gain more profit. It is difficult to accurately predict which occupations will be in demand in the future, and how many jobs will be created in these occupations. Economic conditions, technological
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developments, demographics and consumer behavior will continue to affect the labor market, the occupational composition, and the kinds of job opportunities that will be available. We do know that most new job creation is expected to be in occupations requiring considerable education and training. Management skills, which are usually gained through experience following a period of formal education and training Isra Universitys perspective:

Job market trend in Isra has been seen a lot like BBA teachers are teaching in M.phil and Ph.d students and a teacher of industrial management are teaching also to macro economics and micro economics so it shows how organization is saving more staff and but there pay might be not that much more. But I have not seen the old teachers are not using computers but they are less awareness of technology but by the courses point of view teachers are been rotated and even computer teachers dont know the management courses but they implement computer applications in management courses. Even the teachers like marketing, finance are teaching research courses so this has became a new trend or like a new task to teach what is coming new so even teachers are been reading and learning new things new skills new way of teaching new technology so new job market trend are been introduced. Another job market trend as Isra has introduced M.phil program almost free of cost for the students because after completing their M.phil program those students will serve the Isra University and will be given them the pays. So this is how Isra in future will not only be hiring any teaching staff but will save the cost of salaries because in future M.phil students will serve the Isra University. By this Isra University has introduced two important aspects:

o More students for M.phil and Ph.d o Quality teaching staff after students completing their M.phil & Ph.d programs. The above is how Job market trend have been followed and how its functioned, job market trend identify how development & how changes occurs and how the organizations goals are achieved.

1.2 AVAILABILITY OF JOB:

In human resource the job plays an important role as it is the stage when organization seeks right person for the right job. When an organization expands it requires more employees to carry out the business activities. The number of employees with the required skills and the required locations is determined. The needed employees may be found internally, externally or both. If a shortage is forecasted the needed may come from developing creating methods, increasing compensation methods incentives to employees , conducting special training programs and using different selection standards such as lowering employment requirements in terms of hiring an inexperienced employee and providing on the job training to that employee. A situation of surplus workers may exist. This surplus can be handled through various reduction methods such as restricted hiring, reduced work hours, encouraging early retirements, mandatory layoffs or even downsizing the department or company. Isra Universitys perspective:

Isra University is an emerging university. There is an active competition in the market; well known institute like SZABIST has opened its campus in Hyderabad. Isra University is strengthening its teaching faculty, by employing professors and experienced lecturers. As university is progressing it has opened its campuses in Islamabad and Karachi. Currently looking at the market as job availability the situation is worse as inflation is increasing day by day. University is providing job opportunity to the local people hence contributing in the economy.

1.3 IMPORTANCE OF JOBS: "The tougher the job, the greater the reward" - George Allen A job is important because it is important to have money in order to survive in our world. Even without money, you can survive off of shelters, but they encourage you to get a job and earn some money on your own. It is also important because it improves your self-value. It means something to have money, and to have a job. The importance of getting a job, particularly at a young age, is extremely beneficial for youngsters in the modern world. If you have a job or a career, you can earn money. If you can earn money, you can buy things you need, pay your bills, have a place to live, and basically do things you want to do. Having a job or career makes you feel good. When you work, you develop new skills, learn new things, and create a record of employment. Then when you want to get a new or a better job, or maybe even go to college, your experiences can help you to do that.

When you work, you contribute to the community. You help make the economy and your community stronger. You are being a productive citizen (which communities like) and a valued community member. When you have a job or a career, you have self-respect, dignity, and self-worth. You are being responsible and making sure that you can take care of yourself. You are creating a solid foundation that you can build on to have a successful future. Also consider the importance of getting a job from the perspective of what happens outside of college. If the new graduate has little or no experience working your typical high-school age jobs, then they will have difficulty adapting to working internships or a regular 9-5 job once they graduate. It will also be difficult for hiring managers to consider them, given the number of experienced workers currently searching for a job. The government wants you to work so you will pay taxes and continue to help the government grow bigger. Isra Universitys perspective:

As far as the importance of jobs is concerned for entry level people in Isra University, University provides opportunity to them it is the only university in the city which gives opportunity to fresh candidates. University provides jobs to hundreds of people of the city hence taking an active part in the economy.

1.4. JOB RANKING AND JOB GRADING:

Before understanding the terms job ranking and job grading it is essential to understand the job evaluation as both are the methods of job evaluation
JOB EVALUATION:

Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established. It evaluates the job and not the job holder. The job is evaluated before the job holder is appointed to perform the job. Once the job evaluation is done, it is applicable over a number of years. Evaluation is done by a committee consisting of specialists in a relevant area. Job evaluation is not adopted by all organizations, even the large ones. They may follow the generally accepted prevailing practices
RANKING METHOD:

In the ranking method, a whole job is compared with others and rank is provided on the basis of this comparison. There are several steps in job ranking method: 1. Obtain job information: Job analysis is the first step: job description for each job is prepared and the information they contain about the jobs duties is usually the basis for ranking jobs. 2. Select and group jobs: It is often not practical to make a single ranking for all jobs in an organization. The usual procedure is to rank jobs by department or in clusters (such as factory workers or clerical workers). This eliminates the need for direct comparison of, say, factory jobs and clerical jobs. 3. Select compensable factors: In a ranking method it is common to use just one factor (such as job difficulty) and to rank jobs based on the whole job. Regardless of the number of factors you choose, it is advisable to explain the definition of the factor(s) to the evaluator carefully so that they evaluate the job consistently. 4. Rank jobs. For example, give each rater a set of index cards, each of which contains a brief description of the job. Then they rank these cards from the lowest to the highest. Some managers use alteration ranking method for making the procedure more
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accurate. After ranking, it is possible to slot additional jobs between those already ranked and to assign an appropriate wage rate. 5. Combine ratings: Usually several raters rank the job independently. Then the ranking committee simply averages the rankings.

For example: Job ranking by ABC company

Ranking Order Office manager Chief Nurse Bookkeeper Nurse Cook Nurses aide Orderly Annual pay scale Rs 430000 Rs 425000 Rs 340000 Rs 325000 Rs 310000 Rs 285000 Rs 255000

Merits:
I.

The method is comparatively simple, easy understandable, and mostly acceptable by labor unions. It is suitable for comparatively smaller organizations which may not like to undertake more laborious exercises.

II.

The method is less costly to undertake and maintain as compare to other systems.

Demerits: Since ranking methods of job evaluation is qualitative and non-analytical, it suffers from the following limitations:
I.

Ranking method is judgmental and therefore, it is affected by personal preferences of job evaluators.

II.

This method ranks various jobs in order of their relative worth. It does not specify the real difference between two jobs. For example, the exact difference between job ranked at first and the job ranked at second cannot be specified.

GRADING METHOD: Job grading method is also known as Job Classification method establishes various grades for different categories of jobs. For example, jobs of an operative may be classified as unskilled, semi skilled, skilled and highly skilled. The process followed in this method is as under: I. At the initial stage, a number of job classes or grades are decided on the basis of job analysis. Job grades can be determined on either of two bases. First, all jobs may be first be ranked and their natural classes may be determined. The description of each job class is prepared covering all jobs falling in a class. Second, the job evaluation committee is prepared a series of job class description in advance on the basis of which various jobs may be graded.
II.

Different characteristics of each job are matched with description of job class and a job is placed in the class with which it matches best.

Merits: Grading system of job evaluation particularly in government jobs is quite popular as this has certain merits over the ranking method. These are as follows: I. The job classification method is less subjective when compared to the earlier ranking method. II. The system is very easy to understand and acceptable to almost all employees without hesitation. III. One strong point in favor of the method is that it takes into account all the factors that a job comprises. IV. This system can be effectively used for a variety of jobs
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Demerits: I. Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. II.
III.

It is difficult to write all-inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different grades. When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgment.

Isra Universitys perspective:

Isra University is a private organization i think grading method should be used as Isra is not a small organization .First Isra should define categories and then place the jobs according to characteristics of each category. Example:
o o o o

Category 1 Executive: Board of Directors, Chancellor, Vice Chancellor. Category 2 Skilled: Professors, Surgeons. Category 3 Semi Skilled: Assist Junior Lecturers. Category 4 Unskilled: Peons, Helpers, and Guards.

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1.5: MONEY, AUTHORITY & STATUS AND OTHER INCENTIVES:

MONEY INCENTIVE: For all the championing of alternative motivators, money still occupies a rightful place in the mix of motivators. The sharing of a company's profits gives incentive to employees to produce a quality product, perform a quality service, or improve the quality of a process within the company. What benefits the company directly benefits the employee. Monetary and other rewards are being given to employees for generating cost savings or process-improving ideas, to boost productivity and reduce absenteeism. Money is effective when it is directly tied to an employee's ideas or accomplishments. Nevertheless, if not coupled with other, nonmonetary motivators, its motivating effects are short-lived. Further, monetary incentives can prove counterproductive if not made available to all members of the organization. Isra Universitys perspective:

To be very honest the current situation in Pakistan is very poor unemployment rate 15% and poverty ratio increasing day by day so people hardily find the job in Pakistan. Talking about isra university lower employees earning is around 7000 to 8000 which is very low the way inflation rate is around 24% where everything seems to be hard to purchase. In this situation no any employees will be happy and no motivation will be there for the employees, every employee will be trying to run where they find even 100 rupees more in their salary so its a duty of HODs to keep monetary incentives for that
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employee work in organization and employees Childs and his basic needs should be fulfilled nicely. The organization like ISRA were more than 60% are the lower staff working if from 100% the 60% lower staff is not well motivated from the money how can organization can built itself so ISRA should try to overcome from the employees salary problems and give them well standard salary so that their basic needs should be fulfilled.

AUTHORITY & STATUS: Authority is also very essential part for the higher level of employees, its the duty of higher authority to think that be easy with employees try to be more frank with employees and behave with them in gently so that lower staff can express their problems and give them some little authority to lower staff so they try to think that they are also the part of this organization. At ISRA University from my thinking and observation even chairperson dont have authority and command so that he can take decision, he asks from others before declaring any decision if chairperson lacks the decision power what will be the situation with the lower staff or even teaching staff so authority should be in the hand to whom the ISRA have handed the responsibility. Without authority no any employee will be comfortable and will be short of confident. STATUS: According to the status of the job every employees must get well comfortable things so that he or she never think less or fell uneasy its the duty of higher authority to make employees well standard status. Status makes employees proud and I think ISRA should make status categories for the different type of employees. CATEGORY A
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CATEGORY B CATRGORY C Status like of Higher Authority such as Chancellor, Vice Chancellor, Board of Directors, Dean Chairperson these should be placed in Category A so that they should know which benefits than can avail and the Professor Assistant Professor and Lecturers they should be in Category B so they also know which benefits or what is their functions in this category. And in Category C the lower staff should be placed so that all should know why we are in this category and how and by what we can achieve more incentives and benefits. According to the category every individuals should be rewarded by the respectable status. But at ISRA there is no particular system no any category so that we can see any positive impact on their personality of status.

OTHER INCENTIVES: Study after study has found that the most effective motivators of workers are nonmonetary. Monetary systems are insufficient, in part because expectations often exceed results and because disparity between salaried individuals may divide rather than unite employees. Proven nonmonetary motivators foster team spirit and include recognition, responsibility, and advancement. Managers, ho recognize the "small wins" of employees, promote participatory environments, and treat employees with fairness and respect will find their employees to be more highly motivated. Its a great from ISRA University to the teaching staff that they will be getting bonus/ additional benefits of checking the exams papers. Its just a motivational to check the papers nicely and mark the paper honestly. Its a motivational factor, while this type of activity should be also for the lower workers its just to make them active and boost them by such activities. ISRA University should also provide employees benefits retirement plans wealth life
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insurance life insurance disability insurance vacation employees stock ownerships, maternity holiday pays. I would like to share a great motivational factor like intangible incentive as in Indian movie (Munna bhai) sanjay dutt the actor who was a doctor in the movie he gave (JADU KI JHAPPI) to a lower worker (peon) and how much peon got happy after his JHAPPI and was working with great mood it shows not only money is the boost for the motivational factor but positive behavior and well manner can be also a great incentive.

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