1. Explain Various Wages and Compensation Concepts Explain why job evaluation is necessary. Give examples
23 August 2010

2. Advance Personnel Management 4 Presentation Lecturer Mr. S Mgudlwa
Group Members
Amanda Socenywa
Archibald Mkubukeli
Khaya Valashiya
Boniswa Gae
Lettie Mabena
Grace Malapi

3. Objectives of the presentation
Learners will be able to
Understand the nature of the compensation and Job evaluation strategies
Understand the components of a compensation management and job evaluation
Understand the use of variable reward programs
Discuss the use of salary packaging and benefits
Be aware of current compensation issues and trends in compensation management

4. Compensation

5. What Is Compensation? Compensation is the total reward received by
an employee in exchange for services
performed for an organization.
Dunn JD, Rachel FM, wage and salary administration: Total compensation systems

6. Strategic objectives of compensation
The strategic objectives of compensation are to:
Reward past performance
Remain competitive in the labour market
Maintain salary equity among employees
Motivate employees future performance
Attract and retain good staff
Reduce unnecessary staff turnover
Alan N, Robert C. Marian B, Strategic human Resource management th edition

7. Compensation continued
Purpose of compensation
WATSON, S. (2005) is job evaluation making a comeback - or did it never go away? Benefits and Compensation International. Vol 34, No 10, June. Pp8-12, 14.

8. Compensation systems Fixed Compensation
Variable or Temporary Compensation
Richard I. Henderson, compensation management: rewarding performance 6th edition

9. Compensation cont Incentives and recognition rewards
Incentives Rewards
Grobler p, Warnich S, Carrell M R, Elbert N .F, Hartfield R.D , Human Resources Management in south Africa 3rd edition 2006

10. Compensation Policy Matching the competition Lead policy Lag approach
Fisher Schoenfeldt Shaw, Human Resource Management th edition

11. Advantages of compensation
Employer
Job satisfaction
Motivation
Low Absenteeism
Low Turnover
Fisher Schoenfeldt Shaw, Human Resource Management th edition

12. Advantages cont. Advantage to Employees: Peace of Mind
Increases self-confidence
Fisher Schoenfeldt Shaw, Human Resource Management th edition

13. Wages . definition Wages is remuneration received by an
employee (group of employees) for service
rendered during specific period of time –
hour, week, or month.
Milkovich, GT&Newman, JM Compensation.8th edition.Boston: Irwin Mc Graw-Hill

14. Wages continued The main types of wages are: Subsistence wage;
Minimum wage;
Fair Wage; and
Living Wage
Milkovich, GT&Newman, JM Compensation.8th edition.Boston: Irwin Mc Graw-Hill

15. Job evaluation Is the process of systematically determining
a relative internal value of a job in an
organization………………….
EGAN, J. (2004) ‘Putting job evaluation to work.’ IRS Employment Review. No 792, 23 January. Pp8-15.

16. Job evaluation continued
Principles of Job Evaluation
When to use job evaluation
Types of job evaluation
CAS. (2008) Job evaluation: considerations and risks. Advisory booklet. London: Acas. Available at:

17. Job evaluation continued
Implementing a scheme

18. advantages and disadvantages of job evaluation methods
Job ranking methods
Job classification method
Point method
Grobler p, Warnich S, Carrell M R, Elbert N .F, Hartfield R.D , Human Resources Management in south Africa 3rd edition 2006

19. Advantages and Disadvantages continued
Factor comparison method
Grobler p, Warnich S, Carrell M R, Elbert N .F, Hartfield R.D , Human Resources Management in south Africa 3rd edition 2006

20. Conclusion
Recommendations