~ 1~ Reference No: 9800210045 Project on Compensatation and Benefit Scheme in Faculty-Education Sector, for Management Faculty-MBA Dr. M M Bagali, PhD in Management Dean- Dean-Acharya MBA Institutions, Bangalore
~ 2~ March, 2010Dr. M M Bagali, Benefits SchemeCompensation and Benefits Scheme in EducationSector Education in India andelsewhere has always been the prime concern for all. It couldbe in terms of establishing Institutes, starting new course, anddesigning new areas of learning, apart from looking at centrefor excellence and providing innovation in education. Evenmost of the government concern is to see that, best educationis imparted and all care is taken to get the best teachers towork in these institutes. Teachers play an important role inimparting education. The interest level, the knowledge base,the learning experience, the aptitude and attitude towardsteaching, and moreover, the passion with which they work willgo a long way in building a good future society. The issue ofattracting best talent to teach depends on the REWARD systemand benefit practices, per se. The compensation and benefit
~ 3~structure and system is what is crucial and makes best brainsto join the teaching profession. Thus, it becomes primeconcern to have the compensatation and benefit in its placeand look at the best model to attrack, retain and motivatepeople to be with teaching profession. At various points indiscussion, it is debated that, compensation and benefits forteaching community is a point of discussion at various level.Even, the government (UGC) came out with the solution ofattracting best talent for teaching field by formulating andimplementing the latest Pay Scales par with any of the otherprofession.
~ 4~ Standing of educational Institute Factors effecting C+B 23 Identifying the basiccomponents of Salary structure, and designing an Ideal rewardsystem and practice for teaching Profession reflect the kind ofpeople who join this Profession. An attractive Salary packagewith all the possible benefits in its place is challenging andcrucial. The project would focus in addressing this issue. It
~ 5~tries to identify the ideal pay structure for the teachingcommunity, with most benefits attached to it. The objectives of presentproject would be two-fold: 1. To identify the basic components of salary structure 2. To design the grades of jobs to be included based on JOB Grading, and defining the JD and the competency level required. 1. The present project would focus in the education sector, preferably the job and salary structure for MBA – Management course faculty. 2. What are the factors affecting Job grading to be identified.
~ 6~ 3. The salary structure would be designed based on job grades of the probable level that are ideal in any of the graded management institutes. 4. The grade level, grade description and the jobs to be included in each grade will be worked out. Basic Component of SalaryStructure:Basic component of an Ideal Salary structure for teachingincludes the Basic (base pay), DA, CCA, HRA, Medical, TA,Research and Training allowance, Periodical and BookAllowance, Faculty development allowance, and Special MeritAllowance. The deductions would be in terms of PF andProfessional Tax.Table No : 01 DESCRIPTION OF A FEW COMPONENTS OFSALARY Basic salary The basic salary component could form about 30 to 40% of the total CTC. The base pay is given to all level of faculty, which is given monthly in terms of Salary.
~ 7~Provident Fund The PF has two components. One is employers’ contribution and the other is employees’ contribution. Each is 12% of the basic salary.House Rent Allowance HRA is one of the allowances where an employee can save on tax.Dearness Allowance DA is the allowance given in percentage against the base pay. It varies from Institutions to inst policy, but a percentage of 90-100% is given.CCA This is given as city compensatory allowance, and depends on the level( tier) city classified as 1/2/3…TA Travelling Allowance is the allowance for traveling from and to the workplace. Either vehicle I provided or the allowance is included.Research and training Certain allowance is assigned to how or have expensesAllowance incurred for research and training of the faculty. An amount is assigned for research and training work.Faculty development This is assigned for the faculty to spend on ones careerAllowance advancement.
~ 8~Special merit allowance Assigned if the faculty has done/worked/undertaken some Quality Standard works in Research/ Some teaching Awards/ Career Awards/ Young Scientist Awards If we look at the competencyand skills that are required as a teacher could be at two-fold:a) The knowledge Base; and, b) The Behavioral Skills. Theknowledge base competency includes knowledge of subject,research acumen, consultancy, mentoring, counseling; and theBehavioral skills includes Intelligent Quotation; EmotionalQuotation; Leadership Quotation; Communication Quotation;Interpersonal and relationship building, per se. Infact, thecompetency can be divided into : a) Core competency : whichare rare; b) Level competency: which are essential; and, c) Role competencycompetency: which are non-substitutable.competency
~ 9~The core competencies are the ones which are essentially can’tbe copied or easily transferred. They are core to the individualand shall be with them. Example could be: a faculty good isorganizing the case discussion, can run it very successfullywithout a single error or confusing or ambiguity. The levelcompetencies are the ones which are essential and each as afaculty should possess. Example could be in the area ofcreativity and innovation in teaching ones own subject,tolerance, patience, updating the knowledge domain, etc. rolecompetency is the one, which you cant substitute, and it couldbe your area of teaching specialization of subjects. The facultygood in HR, Finance or Mkt has to be competent enough andthose skills which he is good at these subjects can’t substitutethe knowledge base to others. Factors effecting JobGrading:Depending on the level/grade that the faculty is positioned,following factors affect Job grading. Those include workexperience; job knowledge; Risk sharing and level; skill
~ 10 ~required; type of mental activity/involvement, creative extent;revenue generation; no. of reporting people; business impact;client interaction; efforts required; working conditions;admissions impact/ target; corporate impact; job task; workcontent; subject mastery; administrative mastery; level ofengagement in academic and administration; level ofresponsibility; and the service delivery.Let us look into few of these areas in length and what theysignify for the faculty with each factor, per se. Stands for the work experience in that particular area ofExperience subject. If its HR domain, the experience that the person has either in teaching, research or worked in core HR area, per se.
~ 11 ~Teaching Stands for handling subjects related to HRD/ HRM/IR/PM/IHRM/OB/OD/ Leadership/ Performance Management, and the like.Revenue Generation We necessarily mean it in terms of Research Projects, Joint research proposals, research papers, patient, IPR, consultancy, conducting FDP’s/MDP’s/ and mentoring for the clients, where revenue in what ever form( Quantum) is generated.Corporate Impact Focus on the number of invitations received by Corporate groups to conduct MDP’s/ Projects/ Expert Opinions/ Member on the Advisory Board/ or any such committee of the corporate.Level of Engagement Level of engagement in academic and administration is in terms of various committees / councils/ team/ group/ that are part of your work. Performance ManagementSystems:Systems:While monitoring of faculty performance forms the part ofacademic enhancement and enrichment, a system will be
~ 12 ~followed for getting and evaluating the PMS. It could be asfollows: 1. Name : Performance Management System 2. Once in 3-4 months, depends of semester type 3. Parameters like : Teaching/ behaviour/ Updating the knowledge/Q-A handling/ Syllabus coverage/ conduct/ discipline/punctuality/ passion, and the like 4. PMI data could be taken by all the stake holders like Students/ peer group/alumina/ staff/ management/ and the like
~ 13 ~The Project:The following levels of Job form the teaching area inmanagement institutes, and have been identified for JobGrading. Teaching Associates TA Research Associates RA Lecturer Lec Senior lecturer Sr.Lec Assistant Professor AP Associate Professor Ass Prof Additional Professor Addi Prof Professor Prof Deputy Director / Dean Dy Dir/ Dean Director DirNote: PRO, Placement, Corporate relations and TechnicalPersonnel are not included for reasons of not directly having
~ 14 ~impact on/in teaching regularly. This also includes ProfessorEmeritus, and Professor for the Chair, in case the chair isinstituted, and adjunct Professor level. Also there could beAccredited and Non Accredited Teacher, Associate andAssistant Dean, Instructors, which are not included here. Job Profile of Each Grade: Teaching Associate and Research Associate: To assist the faculty in preparing the course material, lesson plans, ppts, case study, distribution of the same during the class session, taking and putting grades (point) during the discussion in sessions, taking back the course work. Case analysis in class, and assisting the faculty to put the grades at the end of the course. Also, involve data collection for faculty; do research and assist in writing papers, and class seminar and workshop. Research Associates may involve in their Research, if they have registered for PhD/ M.Phil degree. Their term of appointment is purely on contract basis (2-3 years). Lecturer and Senior Lecturer:
~ 15 ~To take course (teaching), involve in Research and take-up One–Two Academic Improvement activity. AssistSenior Faculty in MDP program, guide and mentorstudents in academic activity. Also, to design one coursematerial, prepare syllabus in consultation with seniorfaculty. Any extra academic and administrative workunder the consultation and guidance of Senior Facultyand Director.Assistant and Associate Professor:Involve in teaching, research, MDP, and extension work,apart from CSR. To design MDP’s, guide researchstudents and publish papers, including working papersfor the institute. Apart from this, should involve inIndustry-Institute interface activity, conduct seminars,conference and workshop. Also, to present papers at peergroup conferences. Involve in administrative work likePlacement committee, Exams committee, Admissionscommittee, Research committee, alumina and the like.Additional Professor and Professor:
~ 16 ~The work will be divided into Teaching (20%); Research(30%); MDP’s (30%); and collaborations and MOU’s withAcademic –Professional bodies of repute (20%). GuidingPhD work, Publishing Books, IPR, Patent, writing papersand designing conferences, seminars and workshop,apart from consultancy will be part of the job. PostDoctoral work is desirable.Dy Director-Dean/ DirectorInvolves managing and running the institute with majorwork to be administrative in nature. The work could bedivided into Academic (15%); researchpaper/book/IPR/Patent/ PhD guidance (30%);collaborations and MOU (40%); and students mentoring,teachers guidance would be (15%). Flair for leadershipand management is essential. Direct contact with thepublic, brand building and branding of the institute andprogram including the faculty, called as faculty Branding.Benefits for Faculty:Increments @what rate@what level@what%
~ 17 ~1) Each annual increment shall be equivalent to 3% of the sum total of Net/ Gross/ Base pay in the relevant Pay band.2) Incentives could also be for paper publication in lead peer journals, NGO activity,Academic Benefits: There could be additional academicbenefits depending on the faculty making efforts in areaof International Conference paper presentation; taking upadditional certification course (Market Merit FixedScheme); award of M.Phil / PhD degree, or any other validcertified skill enhancements, career enrichment,organizing International Training Programme, per se.Pension and Family Pension: The pension and familypension, which is in force, shall be available, if they are inpension scheme.Gratuity:Facilities of gratuity shall be extended to the entirefaculty, but will not be for TA/RA.Ex-Ex-Gratia Compensation:Families of teachers who die in performance of their bonafide duties shall be compensated.
~ 18 ~ Fund:Provident FundThe contributory PF shall be followed Transport:Housing and TransportDepending on the level and availability of the housing,the scheme will be extended. A 10% cut as rent in Net/Gross salary would be deducted. Likewise, depending onthe grade level, transport facility would be extended. Thiscould be free/ shared/ or minimum payments as part ofservice. facilities:Other facilities:Facilities could also be in terms of telephones, Internet,Medical, leave travel, Career end bonus, loyalty toorganisation bonus, and the like
~ 19 ~ Job Grading:There could be five grades identified, based on the role,responsibility, mental activity, function and the impact onthe education business, per se.Grade level Jobs included in the GradeGS 1 Teaching Associates and Research AssociatesGS 2 Lecturer and Senior LecturerGS 3 Assistant and Associate ProfessorGS 4 Additional Professor and ProfessorGS 5 Dy Director/ Dean and Director.
~ 20 ~Grade level: GS 1Grade Description: Includes those classes of positions,the duties of which are to be performed under variousfaculties, following almost all the instructions given byhigher-ups, with little or less exercise of independentjudgment or taking any sort of decision. They have noscope to act, but to follow the code defined. They supportthe faculty under which they are assigned in areas ofteaching, research, consultancy, and the work related toacademic.Jobs included in the Grade: Teaching Associates andResearch AssociatesGrade level: GS 2Grade Description: Includes those classes of positions,the duties of which are to be performed independently inthe subject/course of given responsibility; noindependence in any of the administrative work, and hasto work under Senior. They have scope to work and actindependently in their respective subjects, and also to
~ 21 ~receive guidance and mentoring from the seniors. Amyinvolve in independent research or in collaboration withseniors.Jobs included in the Grade: Lecturer and Senior Lecturer GSGrade level: GS 3Grade Description: Includes those classes of positions,the duties of which are to be performed independently inthe subject of given responsibility; guiding the juniorincumbent and assisting them in the defined area ofteaching and research. They have scope to act and workindependently in their respective subjects, and alsoreceive guidance and mentoring from seniors. To alsoinvolve in academic – administrative work. Take one-twoinstitute responsibility which enhances the academicactivity.Jobs included in the Grade: Assistant and Associate includedProfessorGrade level: GS 4Grade Description: Includes those classes of positions,the duties of which are to be performed independently in
~ 22 ~the subject of given responsibility; guiding the juniorincumbent and assisting them in the defined area ofteaching and research. They have scope to act and workindependently in their respective subjects, and alsoreceive guidance and mentoring from seniors. To alsoinvolve in academic – administrative work. To focus morein Research and academic development; guide andsupervise junior faculty research work; PhD work; Projectformulation/ execution brand building, linkage withexternal organization/institute, MDP’s ;corporate trainingand establishing centre for Research activity/ excellence.Also to involve in new course introduction, syllabuspreparation.Jobs included in the Grade: Additional Professor andProfessorGrade level: GS 5Grade Description: Includes those classes of positions,the duties of which are to be performed independently inthe subject of given responsibility; guiding the juniorincumbent and assisting them in the defined area ofteaching and research. To focus more in Research and
~ 23 ~ academic development; guide and supervise junior faculty research work; PhD work; brand building, linkage with external organization/ institute, MDP’s corporate training and establishing centre for Research activity. Includes difficult and most responsible work; broad knowledge of administrative work; academic development; Research promotion, linkage, collaborations, MOU’s, brand building, development and establishment of new courses, promotion of the institute and courses, Placements efforts; Industry-Institute linkage, bringing quality and accreditation into system establishing of Centre of Excellence, CSR, and the like. Jobs included in the Grade: Dy Director/ Dean and Director. The Matrix: The Qualification and Experience and Scale of Pay----------------------------------------------------------------------------------- Sl.No Grade Qualification Experience Scale AGP Remarks/ Net Salary------------------------------------------------------------------------------------- 1. TA /RA PG 0-1 Consolidated Rs. 8000 - 2. Lecturer PG 1-2 Rs.15600-Rs.39100 Rs.6000 Rs.38,000
~ 24 ~ 3. Sr. Lecturer PG 2-3 Rs.15600-Rs.39100 Rs.6500 Rs.38,000 4. Asst Prof PG/ PhD 3-5 Rs.15600-Rs.39100 Rs.7000 Rs.46,000 5. Asso Prof PG/PhD 5-8 Rs.37400-Rs.67000 Rs.7500 Rs.98,300 6. Add Prof PG/PhD 8-10 Rs.37400-Rs.67000 Rs.8000 Rs.98,300 7. Prof PG/PhD 10+ Rs.37400-Rs.67000 Rs.10000 Rs.98,300 8. Dy Dir/ DEAN PG/PhD 10+ Rs.37400-Rs.67000 Rs.12000 Rs.98,300 9. Director PG/PhD 10+ Rs.37400-Rs.67000 Rs.13000 Rs.98,300 ---------------------------------------------------------------------------- # Special Allowance: Dy Dir/ Dean: Rs. 2000 / Director: Rs. 4000[Based on Hard Ship; Responsibility; Extra mile to work; etc] Total / Gross Salary: L-Sl= Rs.40,000; Sr-Asst Pro=Rs.48,000; Asso till Director: Rs.98,300. TDS, Professional Tax are deducted. All figures are rounded. AGP: The Academic Grade Pay makes the difference in Gross / NET salary payment. AGP is given if the faculty has gained grade points in terms of PhD; PhD guided; Certifications; Publications; Design of New courses; foreign visits; Overseas Conference participation, designing workshop and conferences, books published/ written; Research Projects, Awards, Patents, IPR, collaborations; etc. TA/RA/ Senior Lecturer: M.Phil could be added advantage for certain financial allowances. # Direct appointment of Professor scale may vary, which is not shown here.The SCALE for SalarySl.No Level Basic DA HRA CCA TA Res/Tg Med Gross PF IT NetLecturer 15600 15600 2800 1000 2000 2000 1000 40000 800 1200 38000
~ 25 ~Sr. Lecturer 15600 15600 2800 1000 2000 2000 1000 40000 800 1200 38000Asst Prof 15600 15600 4800 2000 4000 4000 2000 48000 800 2200 46000Asso Prof 15600 15600 4800 2000 4000 4000 2000 48000 800 2200 46000Add Prof 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300Prof 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300Dy Dir/ DEAN 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300Director 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300 The possible outcome of theproject could be to identify the basic component of salarystructure for teaching community; the grading of differentlevel in teaching, with the level of competency that is required.Further, how one can be placed at different pay band with payto scale based on their impact on education business andknowledge generation. It may further add to the knowledge forManagement institutes to look at the project for their B-School, while compensatation and benefits are decided.
~ 26 ~Dr MM Bagali,PhD, Dean, Acharya Institute of Technology,MBA Institutions,Soldevanahalli, Hesaraghatta, Bangalore firstname.lastname@example.orgemail@example.com