15-11-2012, 05:01 PM
Compensation Management
Compensation Structure.ppt (Size: 297.5 KB / Downloads: 18)
The Pay Model
Business Strategy – This defines the direction in which organization is going in relation to its environment in order to achieve its objectives.
Compensation Philosophy – Consists of a set of beliefs which underpin the reward/compensation strategy of the organization and govern the reward policies that determine how reward processes operate
Compensation Strategy – defines the intentions of the organization on reward policies, processes and practices required to ensure that it has the skilled, competent and well-motivated workforce it needs
to achieve its business goals
A strategic perspective on compensation takes the position that how employees are compensated can be a source of sustainable competitive advantage
Definitions
Job - Consists of a group of tasks that must be performed for an organization to achieve its goals
Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization
Job Analysis
The systematic, formal study of the duties and responsibilities that comprise job content.
The process seeks to obtain important and relevant information about the nature and level of the work performed
Job Description
A summary of the most important features of a job, including the general nature of the work performed (duties and responsibilities) and level (i.e., skill, effort, responsibility and working conditions) of the work performed.
Typically includes job specifications that include employee characteristics required for competent performance of the job.
Should describe and focus on the job itself and not on any specific individual who might do the job.
Types Of Job Analysis Information
Considerable information is needed, such as:
Worker-oriented activities
Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles
Work performance
Job content
Personal requirements for the job
How Do You Assign Point Values to the Entire System?
The maximum number of points assigned is a fairly arbitrary judgment (500-3000 is common)
The number must be large enough to allow sufficient differentiation among the jobs to be evaluated.
If there is a very wide spread between the current wages of the highest paid job and the lowest paid job, the maximum number of points will need to be higher
If you choose more than one pay system, the number of points or the actual factors themselves do not have to be the same in each one.
SUGGESTION /THUMB RULE: Have no fewer than 1000 points and no more than 2000.