Professional Documents
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Take my assets, leave my people, and in five years I will have it all back. - Alfred Sloan, General Motors
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Intrinsic
Achievement Feelings of accomplishment Informal Recognition Job Satisfaction Personal growth Status
Extrinsic
Formal Recognition Fringe Benefits Incentive Payments Pay Promotion Social Relationships Work Environment
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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
Job Analysis
It contains two parts: Job Description & Job Specification. This can help to know about the duties and responsibilities will be covered by the specific job and also the quality of the people engaged in that job. This is necessary to set a rationale pay structure for a specific position.
Job Evaluation
Job Evaluation: The systematic determination of the relative worth of jobs within an organization.
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
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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 below 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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Incentive Compensation
Incentives can be added to the basic pay structure to provide rewards for performance. It may be 3 types: 1. 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 2. Group Incentives : Incentives can be offered to groups, rather than individuals, when employees' tasks are interdependent and require cooperation. 3. Plant-wide Incentives: Direct employee efforts toward organizational goals (such as cost reduction)
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objectives Protectives - programs which insure employees against loss Capital Accumulation programs that provide the opportunity to establish a personal estate (equity /stock plan) Retirement Income - plans that defer income for services rendered to a later payment date Perquisites - company paid allowances beyond direct pay(Housing,Car, Leave travel, etc.) Paid Time Off - vacations, holidays, maternity leave, etc
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HR OPERATIONS
Operationalizing C&B
Payroll
Benefits Administration
Fixed Cash
Base Salary Housing Assistance/HRA
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Benefits
Company Housing Company Car (grades T & above) Furnishing program
Housing Loan Personal loans Car Loan Tuition Refund Plan Professional Body Membership
Variable Pay
Individual Performance Award/Annual Bonus Sales Incentive Plans
Golden Handcuffs
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