1. Compensation Management HRM Session - 5

2. Job Evaluation Job evaluation is a systematic process of Analyzing and Evaluating jobs to determine the relative worth of each job in an organisation.

3. Objectives The primary objective of job evaluation is to determine the relative worth of different jobs in the organisation and provide the basis for the compensation management system. The other objectives are: To determine the position and place of a job in the organisational hierarchy. To clarify the responsibility and authority associated with the job. To manage internal and external consistency in the compensations. To maintain complete and accurate data regarding job description and job specification. To ensure employee satisfaction with respect to the compensation.

4. Process of Job Evaluation Preparation of a Job Evaluation PlanJob AnalysisJob Description and Job SpecificationSelection of Job DimensionsClassifications of jobsImplementation of the evaluationMaintenance

5. Techniques of Job Evaluation Types of Job Evaluation Methods Quantitative Point Rating Method Factor Comparison Method QualitativeRanking Method Job Classification or Job Grading Method

6. Wage and Salary Administration Base wages and salaries are defined as the hourly, weekly and monthly pay that employees receive for their work in an organisation. The system of compensating employees in a fair manner, maintaining the principle of equity and matching employee expectancy is called Compensation Management.

7. Purpose of Wage and Salary Administration Attracting talented resources Retaining and motivating employees Financial Management Legal Requirements

8. Concepts of different wages Minimum wage Fair wage Living wage

9. Basic wage plans 1)Time wage plan 2)Piece wage plan 3)Skill-based pay 4)Competency-based pay 5)Broad banding

10. Types of Compensations Variable Compensation Executive Compensation

11. Concept of Rewards Extrinsic Intrinsic

12. Types of Incentive Plans Short Term Plans Long Term Plans

13. Short Term Incentive Plans 1.Halsey Plan Plan Percentage * Time Saved * Hourly Rate 2.Rowan Plan (Time Saved * Time Taken * Hourly Rate)/ Standard Time 3.Barth System Wages =  ( Standard Time * Time Taken) * Hourly Rate 4.Task Bonus System 5.Point-rating System 6.Progressive Bonus

14. Long Term Incentive Plans 1)Annual Bonus 2)Profit Sharing a.Distribution Plan b.Deferred Plan c.Combination Plan 3)Gain Sharing 4)Employee Stock Option Plans a.Employee Stock Purchase Plan(ESPP) b.Restricted Stock Plan c.Employee Stock Option Scheme(ESOS) d.Stock Appreciation Rights e.Phantom Stock f.Premium-priced options

15. Non-Monitory Incentives

16. Employee Benefits Objectives of Employee Benefits Modern Concepts in Employee benefit scheme Golden Parachute Cafeteria benefit plan