Presented By Rajiv.K.

 Job

evaluation represents an effort to determine the relative value of every job and the fair basic wage for such a job

Compare jobs and pay

Classification of jobs Retain High potential employees

Job description, job specification, employee specification

To determine the rank of jobs

Rational ranking system based on pay

Compare duties, responsibilities and demands of jobs

Attract desirable candidates

Vague & Nonquantifiable

More Precise and systematic

Jobs are ranked based on title or content

Jobs are assigned grades and classified into them

Factors are determined for each job-5 One factor at a time for every job Point value for each factorfinal value

Different factors for jobs Different degrees for each factor Different points for each degree

Business Policy & Strategy

Management Reward Policy

Wage Theories
Wage/Salary Levels and Structures

Productivity

Internal Equity

Firms Job Ability to Evaluation Pay Union Pressure

Rewards in other Organisations

External Equity

Government Regulations & Laws

Wage Survey

Cost of Living

 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

Recognize hard working employees.

Increased employee involvement and productivity Motivated environment; reduced supervision

Classification of Incentives Plans

Incentives plans

Individual

Organization- wide

Group

Time-based

Profit sharing

Co-partnership
Gain-sharing Output-based ESOPs

Time-based

 To

attract and retain high potential employees

management provides benefits

Helps

maintain the employees and reduce the people to greater effort and higher

turnover and absenteeism.

Stimulate

performance.

Fosters loyalty and act as a security base for the employee.

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

Cost
Ability to pay Needs of the employees

Bargaining strength of the trade union

Tax consideration Social responsibility The reaction of employees

 Payment

for time not worked

Sick Leave Shifts Premium

Vacations & Holidays

Employee

security
Lay off compensation

Severance Pay Unemployment benefits

Annual wage increase

Safety

and Health benefits

Health insurances

Maternity Benefits
Dependent Benefits (father to son) and recreational facilities
Financial services

Welfare

Educational assistance Employee Assistance programs Housing facilities

Legal assistance

Old

age and Retirement benefits

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.

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

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 a great 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.

 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 promote them The management should present employees with lucid benefits and services plans to promote loyalty and effectiveness.