Employee reward processes can benefitconsiderably from the use of computers toprovide administrative support and to assist indecision making.Uses for computers are: Providing an employee reward database Pay review modeling Job evaluation, and Pay structure
Employee reward database: The employee reward database allows data on employees pay, earnings and benefits to be held , processed and communicated as information to user. The data base consists of systematically organized and interrelated sets of files. It allows for combinations of data to selected as required by different users.
Benefits of database:Produced listing of employees by job category, jobgrade, rate of pay, position in range and size in actualor percentage terms of the last increase and , ifrequired, previous individual performance payincreases.Generate reports analyzing distribution as a whole,to assist in managing and auditing the rewardsystem.Initiate and print notifications of pay increase andupdate the payroll database.Use electronic mail facilities to transmit data.
Limitation:In using database and distributing data thepersonnel function must, however, ensure that theprovisions of the data protection act 1984 are met. Ifdata are going to be downloaded it will be essential tocontrol who gets what.
Pay review modeling:General pay reviews require information on the cost ofacross the board increases in terms of increases in basicpayroll costs and the knock-on effects of such increaseson the other pay and employment costs performancepay,pensions,etc.., Alternative scenarios may have to bemodeled to assess the costs of different levels of increaseas under.a. Central datab. Departmental datac. Checking and monitoringd. Use of spread sheete. Software packages
a. Central data: individual pay reviews require information at the centre on the aggregate costs of the total review. Again “what if "calculations may be require to estimate the costs of different levels and distribution of rewards .Variables for the estimation may include:Alternative budget costs for the whole organization includingboth basic payroll increase and knock-on effects.The costs of different distributions of award in relations toalternative distributions of ratings.The costs of performance related pay increase in relation tobudget.Different configurations of a pay matrix and the compa-rations of individuals in each grade.
b.Departmental data: line managers can be provided with programs which enablethem to manipulate the pay data for members of theirdepartment and calculate the costs of alternative distributionsawards within their budgets. The data for these what ifcalculations can be downloaded from the central database.c.Checking and monitoring proposal: To assist in conducting and monitoring departmental reviewsscatter grams can be produced showing the distribution bygrade of the current rates for example highlighting anyirregularity which may have to be dealt with.
d.Use of spreadsheet : spreadsheets such as lotus 1-2-3 and excel can be usedfor pay review modeling. They provide the user with aworksheet divided into cells, into which can be inserted text,numbers or formulate. This allows the user to carryoutcomplex what if analysis and gives the flexibility to makeadjustments in accordance with alternative levels anddistributions of awards and policy changes on budgets ordistributions. Analysis can be saved as a separate file for futurerecall when the proposals are approved. Spreadsheets can bereport or graphical form.
e.Software package:Micro- based software packages have been developed to carry- out the various processes referred to above. Proprietary software is usually designed as a standard software shell within there are a number of functions that allow users to customize the system to meet their own needs.
Computer assisted job evaluation:Computer assisted job evaluation supports job evaluation in twoways:It helps with the administration and maintenance of a jobevaluation scheme keeping evaluation records and auditing theoperation of scheme.It helps with the whole process of evaluating jobs rather thansimply administering the scheme.Aims of CAJE:Set-up and maintain a database of job analysis andevaluations.Help to achieve consistency in evaluation judgments byreference to the database of previous evaluations.Speed-up the process of evaluation.
Pay structure modeling:Software package can be developed which use the output from a computerized job evaluation exercise as contained in the database it model alternative grade structure by reference to the distribution of points scores. The computer analysis where existing employees would be placed in the proposed grade structure and produces a report which assesses the cost of increasing the pay of those who are under grade following the evaluation up to the minimum of some other designated point the new grade.