2. 3 p consists of 3 parameters that are
considered by the management of any
organization while deciding the salary as well
as the incentives
Pay for position
Pay for person
Pay for performance
3. Is the payment for a person by virtue of being in that position/ designation.
Pay for position relates to the width of the pay grade
Pay structure is a comprehensive framework which consists of a horizontal
dimension and vertical dimension. Horizontal dimension is call pay grade and
vertical dimension is called pay range.
Pay grade is consist of the jobs which require similar skills and competences.
Put in other words all the jobs which require similar skills and competence
are put in one pay grade. It may provide for a single rate for a pay grade or
arrange of pay within pay grade.
Pay range is the range within which the pay varies for a particular pay grade.
It has the provision for recognizing the individual differences in pay. It has the
midpoint pay, maximum and minimum pay.
Focus is on the determination of a job structure by Job evaluation, grouping
similar job into similar grades & determining pay ranges
Pay grade is a unit in the system of monetary compensation which is
prevalent in both Public and private sector undertaking
4. Width of a pay grade is the extent to which jobs
of diffrent sizes are put in one pay grade.
Wider the pay grade, lesser importance is given
to the positions in it since many jobs of varying
sizes are incorporated in a single pay grade. In
such cases other factors such as person’s
competency or capability (pay for person) or
individual achievement of organizational
objective(pay for performance) will have an
impact in the total pay level.
Narrower the pay grade , more important the
position in it since a small change in
responsibility may place the person in the next
grade.
5. Focus on the pay structure and determining
pay grades and pay ranges
The whole process starts with the internal
position evaluation (IPE) for finding out
different positions in the organization
How many ee
groups are
there in the
organization
How many levels
are there in each
ee groups?
6. Internal position evaluation
Group similar jobs into similar category in a
grade
Grade
Width of a grade
Wider grade
indicate less
importance to
position
Determining Pay ranges for each
grade
Single rate
Min-maxi
Ref salary
JE
7.
8. One hardest and subjective part of
Compensation management.
Takes into account capabilities, skills or
competences of the person for adequqtely
compensating him/her.
Associated with competency based pay and
market based pay.
Determining position competency profile
for each position.
Take into consideration org philosophy,
image, value, identity.
9. 3 P competency profile are designed to
ensure that competencies are carefully
identified, defined and weighed for specific
culture and need for the organization.
Each person and position has got its own
profile
10. Pay for position determines the pay grade and the
pay range
Pay for person determines the exact or actual salary
to be given to the employee.
The actual salary varies from the reference salary on
the basis of the employees competence.
The linchpin between the pay for position and pay for
person is the reference salary which is the market
competitive pay for someone who fulfills the position
requirements for competency and experience.
In 3 p system, the actual salary varies relative to the
reference salary based on the position/person ratio
and the number of years that individual has been in
the position.
Position person ratio also provides an idea about the
title, guidance and training to be given to the
selected employees.
11. Capa
bility
Position
/person ratio
Pay for
person
Title Training Dev
Maximu
m
Demonstrate
unique
capabilities for
selected
position
Pay slightly
> than
reference
salary
Sr. Title Enrich &
broaden
capabilities
Explore
promotion
options
Meets
require
ments
Demonstrate
necessary
level of
competency
for the selected
position
Pay slightly
equal to or
slightly
below the
RS
Generic title
Ex.
engineer
Focus on
new training
or dev
capabilities
tom or dev
capabilities
upto position
requirements
New dev
plans
Minimum Demonstrate a
need to improve
in some areas
Pay at lower
end of
person pay
range
Jr. title Train in
areas that
are far below
position
requirements
Identify the
hidden
talents
12. Pay for performance is the philosophy of the
organization to compensate the employees
on the basis of the results/ outputs produced
by them.
Incentives, variable pay. (Students may
explain the in detail the various incentives
here)
14. Base pay (Basic pay) is the salaries and wages provided to the
employees. It is normally constant at a given amount irrespective
of the difference in work performance.
It is the rate of the job as determined by external and internal
parity. External parity is the level of pay for similar jobs in the
external labour market. It is established by compensation
surveys.
Internal parity is the comparison of the jobs of relative worth
within the organization. Internal parity is established by job
evaluation.
If the compensation for employees performance and competence
is included in the basic pay, it becomes a true reflection of the
remuneration or pay that employee is ought to get and it
becomes pay for person and pay for performance.
15. Pay structure: Pay surveys and Job evaluation
provides data for the design and
management of pay structure. Pay structure
says the limit within which the employees
salary can progress within the grade and how
this progression takes place. This can vary in
accordance with the assessment of
performance, competence or skill.
16. Variable pay( contingency pay or differential
pay) is the pay which is influenced by the
performance of the individual, teams or the
organization. It is Payment by result
Employee benefits (fringe benefits) are also
elements of remunerations since it could be
expressed in the form of cash. Ex. pension,
compensation on death in service, sick pay,
company cars, health insurance, annual
holidays, child care provision, maternity
leave, subsidized meals, soudexo coupens
17. Total remuneration is the sum of the base
pay, variable pay and the fringe benefits.
This represents the complete worth of the
financial rewards to the individuals.
This financial rewards and the non financial
rewards leads to improved performance by
the employees.
20. As a Googler hired into our Bangalore engineering centre
you will take on projects that match your background and
interests and will work with peers in other Google offices.
Those who join us can expect an outstanding work
environment and the satisfaction of tackling some of the
most intersecting challenges in computing today.
Benefits of working at Google includes
1. Medi-claim insurance
2. Life insurance
3. Business travel/personal accident insurance
4. Provident fund
5. Vacation holidays
6. Sick time, maternity leave, paternity leave and family
care leave.
* ** students are supposed to learn the case to reproduce
the same for exam
21. Health and wellness:
Mediclaim insurance: Cash hospitalization benefits include
coverage provided through insurance policy. Hospitalization
coverage upto 5 lakh is available to cover the cost of
hospitalization and treatment. Google pays 100% of the cost of
hospitalization for the employee and their eligible dependents.
Coverage is provided for you and your dependents; dependent
parents are eligible for health care coverage
Life insurance: Coverage at 2 times the basic earnings. Google
pays 100% o the cost of this benefits
Business travel accident(BTA): Coverage 2 times the basic
earning to a maximum of 5 lakh US dollars. Covers emergency
medical treatment for the sudden onset of illness or injury while
travelling outside of india as well as worldwide assistance
service, repatriation, medical evacuation and lost baggage and
cash
Personal accident insurance: Coverage 2 times the base earnings.
The face value of this benefit is also payable in the event of
either total or partial permanent disablement or temporary and
total disablement. Google pays 100% of the cost of this benefit.
22. Retirement and Savings:
Provident fund: Google provide a 12%
employer contribution on all basic earnings.
Vacation: 20 days per year
Holidays: 12 paid holidays
Sick leave:12 days per year
23. Pay model with the diagram-ref:
compensation, George T Milkovich, Jerry M
Newman,C.S. Venkata Ratnam,9e,tatamc
grawhill
