Job Evaluation, Compensation,

8/13/2019 Job Evaluation, Compensation,

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Presented By

Rajiv.K.S


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Job evaluation represents an effort to

determine the relative value of every job

and the fair basic wage for such a job


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Compare jobs and pay

Job description, job specification,employee specification

To determine the rank of jobs

Compare duties, responsibilities and

demands of jobs

Classification

of jobs

Retain High

potentialemployees

Rational

ranking system

based on pay

Attract

desirable

candidates


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Jobs are ranked

based on title or

content

Jobs are assigned

grades and

classified intothem

Vague & Non-

quantifiable

Different

factors for jobs

Different

degrees for

each factor

Different

points for eachdegree

Factors are

determined for

each job-5

One factor at a

time for every

job

Point value for

each factor-final value

More Precise and

systematic


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Management

Reward Policy

Internal

Equity

External

Equity

Business

Policy &

Strategy

Wage Theories

Firms

Ability toPay

Wage/Salary

Levels and

Structures

Rewards

in other

Organisations

Wage

Survey

Government

Regulations& Laws

Cost of

Living

Union Pressure

Productivity

JobEvaluation


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Compensation to benefit employees for the

work obtained from the employees.

Incentives - which encourages an employee to

do his work better. An extra financial reward

that increases productivity and motivates


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Recognize hard working employees.

Increased employee involvement and productivity

Motivated environment; reduced supervision


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Classification of Incentives Plans

Profit sharing

Co-partnership

Gain-sharing

ESOPs

Incentives plans

Output-based

Individual

Time-based

Organization- wide Group

Time-based


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To attract and retain high potential employees

management provides benefits

Helps maintain the employees and reduce theturnover and absenteeism.

Stimulate people to greater effort and higher

performance.

Fosters loyalty and act as a security base for the

employee.


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Any benefits that the employee receives in

addition to direct remuneration

Indirect compensation extended as a condition

of employment and not directly related to

performance

Also called welfare expenses, wage

supplements sub wages or social charges


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Cost

Ability to pay

Needs of the employees

Bargaining strength of the trade union

Tax consideration

Social responsibility

The reaction of employees


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Payment for time not worked

Employee security

Safety and Health benefits

Vacations & Holidays Sick Leave Shifts Premium

Severance Pay

Lay off compensation

Unemployment benefits

Annual wage increase

Health insurances


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Maternity Benefits

Dependent Benefits (father to son)

Welfare and recreational facilities

Old age and Retirement benefits

Legal assistance

Educational assistance

Housing facilities

Financial services

Employee Assistance programs


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In addition to fringe benefits, organizations also

provide services that employees find desirable.

These services are provided at low or no cost to

the employee.

These are provided at the discretion of the

management with consultation with the trade

unions.


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Services related to work performed- subsidies for the purchase and

upkeep of work clothing and uniform.

Eating and Cafeteria facilities

Transportation facilities

Child care facilities

Recreational, cultural and social programs

Educational services

Medical services

Flexible time


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Charge of Paternalism = When too many benefits & services are

offered to employees , they look upon employers like parents who

care for their children despite their performance.

Excessive Expenditure =Its a very costly affair and involves agreat deal of paper work

Maintenance of least productive worker = With increase in

benefits and services, particularly when employees are not very

productive ,they tend to stick to their jobs and are not interested to

change them.


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Organizations should dedicate considerable time

and expense to categorize jobs and pay scales.

It is encouraged for organizations to provide

incentive to its employees to motivate and promotethem

The management should present employees with

lucid benefits and services plans to promote

loyalty and effectiveness.


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Documents

Job Evaluation, Compensation,