19 bb08 hrm module 3

19BB08
Human Resource Management
Module III
Department of MBA - HRM- Mod III
Prepared by
Kanimozhi.T , Assistant Professor

MODULE-III
Compensation –Job Evaluation:
Identifying compensable factors,
Establishing Pay rates, Competency based
pay, Variable pay and Incentives, Benefits
and Services. Employee Relations –
Nature, Importance, Approaches, Role of
Trade Unions- Grievances – Causes –
Implications – Redressal methods-Ethics in
HR. Emerging Trends in HR -Managing HR
in Small and Medium Enterprises -
Managing Employees in the Global Context
– IT for HR, Employee Engagement
Practices and Retention Management in
2
Department of MBA - HRM - MOD 3

JOB EVALUATION
A job evaluation is a systematic way of
determining the value/worth of a job in relation to
other jobs in an organization. It tries to make a
systematic comparison between jobs to assess
their relative worth for the purpose of establishing
a rational pay structure.
3

FEATURES OF JOB EVALUATION
 Tries to assess jobs ,not people
 Standards are relative
 Basis of job evaluation is job analysis
 Carried on by groups not individuals
 Degree of subjectivity always present
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METHODS OF JOB EVALUATION
5

Compensation
 Compensation is a systematic approach to
providing monetary value to employees in
exchange for work performed. Compensation may
achieve several purposes assisting in recruitment,
job performance, and job satisfaction.
6

The components of a compensation system
include
 Job Descriptions
 Job Analysis
 Job Evaluation
 Pay Structures
 Salary Surveys .
 Policies and Regulations
7

Different types of compensation include
 Base Pay
 Commissions
 Overtime Pay
 Bonuses, Profit Sharing, Merit Pay
 Stock Options
 Travel/Meal/Housing Allowance
 Benefits including: dental, insurance, medical,
vacation, leaves, retirement, taxes.
8

Rewards and incentives
 Rewards and incentives in the workplace have
benefits for both employees and employers. When
recognized for stellar performance and
productivity, employees have increased morale,
job satisfaction and involvement in organizational
functions
9

Monetary
 Monetary incentives reward workers for
performance and productivity through money.
These incentives include employee stock options,
profit sharing plans, paid time off, bonuses and
cash awards. Additional monetary incentives
include annual or semi-annual bonuses, such as
mid-year and end-of-year rewards. These
incentives encourage friendly competition
between associates when linked to job
performance. Monetary rewards motivate
employees to produce optimally.
10

Non-Monetary
 Non-monetary incentives reward employee
performance through perks and opportunities. These
rewards include flexible work hours, training
opportunities and the ability to work independently.
The rewards and incentives are valuable to an
employee because they allow workers to learn new
skills and pursue advancement opportunities. For
example, a recent graduate may view an exemplary
training program within an organization as more
valuable than a higher base salary because he feels the
learning opportunity will benefit his career.
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LABOUR WELFARE
 Labour Welfare includes various services, benefits
and facilities offered to employees by the
employer. The welfare amenities are extended in
addition to normal wages and other economic
rewards available to employees as per the legal
provisions.
 Welfare measures may also be provided by the
government, trade unions and non-government
agencies in addition to the employer
16

Need
 Enables workers to have a richer and more satisfactory
life
 Raises the standard of living of the workers
 It will enhance their efficiency and productivity
 Absorbs the shocks injected by industrialization and
urbanization
 Promoting the sense of belonging among the
employees
 Preventing the social evils like alcoholism, gambling
etc.
17

Statutory and Non-Statutory
 The Factories Act, 1948
 The Platinum Labour Act, 1951
 The mines Act, 1951
 The Motor Transport Workers Act, 1961
 The Contract Labour Act, 1970
18

Industrial Relations Definitions
 The collective relationships between management &
employees in an industrial organisation.
 The relationship between employees & the management
in the day-to-day working of industry.
 It is a complex of interrelations among workers,
management & Govt.
 IR refers to a set of relations arising out of the employer–
employee relationship in the modern Industrial society
19

Objectives
 To maintain congenial relations between employees
& employer.
 To promote & develop congenial labour management
relations.
 To enhance economic status of workers by improving
wages and benefits.
 To regulate production by minimising industrial
conflicts.
 To provide opportunity to workers to have a say in
the management and decision making.
20

Factors that influence IR
 Institutional – Policy
Labour Legislation
Collective Agreement
Social Institutions
 Economic Capitalist
Communist
Mixed
 Technology Mechanisation
Automation
21

Industrial Dispute
 As per the Industrial Disputes Act 1947 Sec 2 (k),
“Industrial disputes mean any dispute or difference
between employers and employers or between
employers and workmen or between workmen and
workmen, which is connected with the
employment or non-employment or terms of
employment or with the conditions of labour of any
person.”
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Essentials of Disputes
1 The Dispute must affect a large group of workmen.
2 It should invariably be taken up by the industry union
or by an appreciable number of workmen.
3 There must be a concerted demand by the workers
for redress.
4 The parties to the dispute must have direct and
substantial interest in the dispute.
5 An indl workman to raise an ID with regard to
termination, dismissal or retrenchment of service.
23

Causes of disputes
 Psychological
 Institutional
 Economical
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Psychological
 Clash of personality
 Authoritative leadership
 Self respect
 Strict discipline
25

Institutional
 Non recognition of union
 Collective bargaining
 Unfair practices
 Pressing not to become members
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Economical
 Terms and conditions- hrs of work, Shift, lay off
 Working conditions- Environment
Layout
Machinery
Product
Wages and other benefits- Inadequate
Poor fringe benefits
No bonus
27

Settlement Machineries
 Collective Bargaining
 Trade unions
 Joint Consultations: a) works committee b) Joint
Management Councils
 Standing orders
 Code of discipline
28

Recent Trends in HRM
 Globalization and its implications
 Work-force Diversity
 Corporate downsizing
 Corporate downsizing
 Continuous improvement programs
 Re-engineering work processes for improved
productivity
 Contingent workforce
 Decentralized work sites
 Employee involvement
29

Future trends in HRM
 Career starters outnumbered by new retirees
 The war for talent goes global
 Work-life balance is more important than status
 The era of post-permanent employees is on the
horizon
 Conflicts caused by constant availability
 It supports cultural diversity
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Why SIHRM?
 Competitive Analysis
 Measure and reward managers for good people
management
 Pay for performance
 Post Mortems
 Smoke detectors
 Plans
 Bad management Identification Programmes
31

Strategic International HRM
Traditional hierarchical SIHRM Evolving network hierarchy SIHRM
 Agency Stewardship
 Control/monitoring Trust/commitment build
 Information asymmetry Knowledge sharing
 Unidirectionality Reciprocity
 Structure-oriented Process-oriented
 Behavioural consistency Cognitive reference
 Fit Flexibility
 Hierarchy Heterarchy
 Oriented towards cost Oriented towards value
 Formal rules Informal norms
 HQ initiatives Subsidiary initiatives
 Functionalism Cross-functionalism
 Administrative spirit Entrepreneurial spirit
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33 Department of MBA - HRM - MOD 3

19 bb08 hrm module 3

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