Building Internally Consistent Compensation System by Dr. G C Mohanta

  • 477 views
Uploaded on

Building Internally Consistent Compensation System

Building Internally Consistent Compensation System

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
477
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
18
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Building Internally Consistent Compensation System Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt) Professor Al-Qurmoshi Institute of Business Management Hyderabad 1
  • 2. Components of Compensation System 2
  • 3. Types of Equity  Internal Equity - Fairness of the pay structure, relationship among jobs within a single organization  External Equity - Comparisons of similar jobs in different organizations  Individual Equity - Comparisons among individuals in the same job within the same organization 3
  • 4. Equity Theory 4
  • 5. Creating Internal Equity through Job Analysis and Job Evaluation 5
  • 6. Internal Equity in Practice Job analysis Collecting data about jobs Job evaluation Valuing jobs 6
  • 7. Job Analysis  The systematic, formal study of the duties and responsibilities that comprise the job  The process seeks to obtain important and relevant information about the nature and level of the work performed  It Can be used to identify/determine: • Skill levels • Compensable job factors • Work environment (e.g., hazards; attention; physical effort) • Responsibilities (e.g., fiscal; supervisory) • Required level of education Wednesday, October 09, 2013 7
  • 8. Types of Data Collected Through Job Analysis  Work Activities – work activities and processes; activity records; procedures used; personal responsibility  Worker-oriented activities – human behaviours, such as, physical actions and communications on the job; elemental motions for methods analysis; personal job demands, such as, energy expenditure Wednesday, October 09, 2013 8
  • 9. Types of Data Collected Through Job Analysis (Contd.)  Machines, tools, equipment, and work aids used  Job-related tangibles & intangibles – knowledge dealt with or applied; materials processed; products made or services performed Wednesday, October 09, 2013 9
  • 10. Types of Data Collected Through Job Analysis (Contd.)  Work performance – error analysis; work standards; work measurements, such as, time taken for a task  Job context – work schedule; financial and nonfinancial incentives; physical working conditions; organizational and social contexts  Personal requirements for the job – personal attributes, such as, personality and interests; education and training required; work experience Wednesday, October 09, 2013 10
  • 11. Job Analysis Result • Job Description – Job based – Tasks – Work performed • Job Specification – Employee based – Knowledge, skills & abilities – Experience 11
  • 12. Job Description  Output from job analysis used to develop job description and job specification  It defines the responsibilities, requirements, functions, duties, location, environment, conditions and other aspects of jobs  It may be developed for jobs individually or for the entire job families  It describes and focuses on job itself and not on any specific individual who might do the job Wednesday, October 09, 2013 12
  • 13. Job Specification  It defines worker characteristics (i.e., knowledge, skills and abilities) required to perform the job competently Wednesday, October 09, 2013 13
  • 14. Job Evaluation  Methods and practices for ordering jobs or positions with respect to their value or worth to the organization  A system for comparing jobs for purpose of determining appropriate compensation levels for individual jobs or job elements 14