compensation management : tools and techniques
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DESCRIPTIONCompensation Management : Tools and Techniques. Lee Kok Wai Lectures 4 and 5. Future/Strategic Focus. HRs 4 Roles & Key Accountabilities. Organizational Design. HR as Business Partner. Staffing. Culture and Image. Performance Measurement. Training & Development. - PowerPoint PPT Presentation
Compensation Management :Tools and TechniquesLee Kok Wai Lectures 4 and 5
StrategicPartnerAdministrative ExpertEmployee Relations ExpertChange AgentHRs 4 Roles & Key Accountabilities
Managing Human Resources in COMPAQCompensation Mgt. T-Comp philosophy & design T-Comp planning & admin. Incentive plans (MIPs/LTB) Profit-sharing scheme Reward & recognition prog. Expatriate mgt.Manpower Mgt. Headcount management Recruitment strategies Sources of labor supply Selection process & tools Retention strategies & plans Staff deployment Staff orientation Employee Relations Mgt. Benefits administration Code of conduct & ethics Employee discipline Employee communications Staff social, sports & recreation Community services & relationsEHS&S Mgt. Environment mgt. Employee wellness Employee health services Loss prevention Asset management Safety mgt. Culture/Values Mgt. Corporate vision Corporate mission Culture building Teambuilding Habits buildingPerformance Mgt. (HRD) Staff training & development Succession planning Career planning Coaching & counseling Appraisal review/ranking Organization development Leadership developmentHuman Resource Admin. Records & information mgt. Personnel research HR policy review HR process improvements HR performance stds & audit Legal compliance Document control
Strategic Components of Human Resources COMPENSATION MANAGEMENTWe believe in paying competitive wages that commensurate with job size and individual performance
WELFARE MANAGEMENTWe believe in being a firm, fair and caring employer. We strive to make employees value their jobs and want to remain in the organization based on their abilities to contribute and grow. PERFORMANCE MANAGEMENTWe believe in equipping employees with the necessary skills to do a good job, providing them with the tools, the environment, the support and the information needed to excel in their jobs. CAREER MANAGEMENTWe believe in matching employees strengths and aptitudes to available jobs, developing them to their highest potential and offering them opportunities to advance in their careers. CULTURE/VALUE MANAGEMENTWe believe in instilling our corporate core values and promoting a corporate culture that emphasizes results, teamwork, learning, sharing, service quality and work excellence.
InternalequityExternalequityEmployeeequityAdministrationConceptsCompensation TechniquesPlanning, Budgeting, Monitoring, EvaluatingJobAnalysisJobDescriptionJobEvaluationJobGradesMarketDefinitionsSalarySurveysPolicyLinesPayStructuresSeniorityIncreasesPerformanceEvaluationIncreaseGuidelinesCompensation ObjectivesRole clarity and accountability.
Facilitates administration and performance management.
Competitive wage policies and practices.
Influence employees workattitudes and behaviour.
Attract talents.Retain talents.Motivate employees.
Comply with regulations.Consistency in policyadministration.The Strategic Compensation Model
What is Job Evaluation?Job evaluation is a decision process of comparing one job with another job with the aim of establishing the relative importance of jobs within the organization.
Job evaluation will provide an internally logical ranking of all jobs which will form the basis of the companys salary structure
Principles For Job EvaluationEvaluating the job, not the job-holderEvaluating the present job, not the future jobJob is being carried out in a fully acceptable and competent mannerProcess of evaluation is based on given facts in the job descriptions.Evaluate the job based on the primary responsibilities and ignore the special personal-to-holder responsibilities.
Job Evaluation : 3 Main MethodsQualitative Method (an example is the Job Classification Method and the Job Comparison Method)Quantifying the Qualitative Method (an example is the Point Method)Quantitative Method (an example is the Guide Chart Profile Method)
Job Classification Method adopted by Academic Institutions such as UniversitiesJob Class A : Doctorate Degree with at least 10 years post doctoral experience plus relevant management experience (Faculty Head)Job Class B : Doctoral Degree with at least 5 to 10 years post doctoral experience (Full Professor)Job Class C : Doctoral Degree with less than 5 years post doctoral experience or Masters Degree with over 10 years post graduate experience (Associate Professor and Senior Lecturer)Job Class D : Masters Degree with 5 to 10 years post graduate experience (Lecturer) Job Class E : Masters Degree with 3 to 5 years experience (Assistant Lecturer) Job Class F : Masters Degree with less than 3 years experience (Teaching or Research Assistant)
Job Evaluation: The Point MethodJob Evaluation Process1. Form a Job Evaluation Steering Committee2. Draw up a workplan for the exercise3. Decide on the benchmark jobs4. Decide on the job factors for the evaluation5. Determine number of degrees for each factor6. Prepare job descriptions based on job-factor format7. Analyse each benchmark job in terms of factors and degrees8. Decide on the weights of each factor9. Determine the weighted score for each benchmark job10. Slot in all other jobs into the job grades
The Point MethodForm the Job Evaluation (JE) Steering Committeea. The Steering Committee should be chaired by the CEO with functional Managers/ Heads as members. The HR Manager should be the Secretary of the JE Steering Committee.b. If an external consultant is employed to assist in the exercise, then he should be designated as the advisor to the Steering Committee. The HR Manager should then double-up as the counterpart for internal skills transfer.
Job Factor Score Sheet : Job # 12Total Score = 440 points
FactorABCDEEducation20406080100Experience306090120150Interpersonal Skills1020304050Problems Encountered306090120150Size of unit supervised1020304050Decision Making306090120150Work Environment1020304050Impact of errors306090120150Contacts/Committees1020304050Assets Controlled ($)20406080100
The Point MethodSlot all other jobs into the job gradesa. From the clusters, decide on the number of job grades to adopt.b. Slot in all other jobs into the job grades adopted.
The Guide-Chart Profile : Hay MethodThis method, first developed by Dr Edward N. Hay in the early 1950s, is essentially concerned with decision making and responsibility. Guide Charts were created in 1951 in client situations.Emphasis was placed on answerability for the consequences of decisions, the degree of freedom to take decisions and bring them to fruition, the degree to which there is prime accountability, as compared to shared or contributory accountability in a job.
The Guide-Chart Profile : 4 Critical ObservationsThe most significant factor could be grouped as representing the knowledge required to do a job, the kind of thinking needed to solve the problems commonly faced, and the responsibilities assigned.Jobs could be ranked not only in the order of importance within the organization, but the distances between the ranks could be determined.The factors appeared in certain kinds of patterns that seemed to be inherent to certain kinds of jobsThe focus of the process of job evaluation must be on the nature and requirements of the job itself, not on the skills or background or characteristics or pay of the job holder.
The Guide-Chart Profile : Hay MethodThere are Three Factors with a total of eight elements which determine the value of different jobs. They are:1. Know-How2. Problem-Solving3. Accountability
The Guide-Chart Profile Method : Know-HowWhat is Know-HowKnow-How is the total of every kind of skill required for average acceptable job performance. It is knowledge and experience in professional, managerial and human Relations activities necessary to fulfill the job.Know-How is measured in depth by eight degrees and in breadth by five degrees
The Guide-Chart Profile Method : Know-HowThe three dimensions of Know-How are:Practical procedures, specialized techniques and knowledge within occupational fields, commercial functions, and professional or scientific disciplines. This is commonly referred to as the Depth of Know- How.Integrating and harmonizing simultaneous achievements of diversified functions within managerial situations occurring in operating, technical, support or administrative fields. This is referred to as the Breadth of Know-HowActive, practicing person-to-person skills in work with other people. This is referred to as the Human Relations Skill.
The Guide-Chart Profile Method : Know-HowDepth Of Know-HowA. Education to post primary levelB. Practiced in standard work routines and /or use of simple equipment and machinesC. Procedural or systematic efficiency and use of specialized equipmentD. Specialized skill gained by on-the-job experience or through part professional qualification E. Understanding of theoretical principles normally gained through professional qualification or through a detailed group of involved practices and proceduresF. Seasoned proficiency in a highly specialized field, gained through experience built on theories or a broad and deep understanding of complex practicesG. Mastery of principles, practices and theories gained through wide experience and/or special developmentH. Unique command of principles, theories and practices
The Guide-Chart Profile Method : Know-HowBreadth Of Know-HowI. Non or minimal Performance or supervision of jobs which have closely specified objectivesII. Homogeneous Integration of operations which are homogeneous in nature and objective, and coordination with associated functionsIII. Heterogeneous Integration