Points to be discussed in the Lecture Sessions:
Definition and objectives of Job Evaluation
Process and techniques of Job Evaluation.
Advantages and Limitations of Job Evaluation.
Concept of Wage and Salary Administration.
National Wage Policy.
Concepts of Rewards.
Types of Incentives plans.
JOB EVALUATION is the systematic process of analyzing and
evaluating jobs to determine the relative worth of each job in an
…..Basis for compensation management.
…..Job Evaluation is the rating of jobs to determine their position
in the job hierarchy.
The objectives of JE :
•Determine the positions and place of a job.
•Manage internal and external consistency in the
•Ensure employee satisfaction with respect to the
•Basis for classification of new or changed jobs.
of Job Evaluation.
Preparation of a job Evaluation Plan.
Job Description and Job Specification
Selection of Job Dimensions.
Classification of jobs.
Implementation of the evaluation.
Techniques of Job Evaluation.
Non Quantitative techniques.
Single Factor Ranking.
1. Analyzing Organizational Culture.
2. determining job dimensions.
Job Classification or
3. Defining Job grades.
4. Classifying jobs with the grade
5. Using inputs from employees,
unions etc .
6. Freezing the grades and assigning
monetary value to the key grades.
Point Rating Method.
Identifying a number of Compensable Factors and determining the degree to
which of these factors is present in the job.
Factor Comparison Method.
3. Responsibility 3
4. Working Conditions.
Decision Band Method.
CONCEPT OF WAGE AND SALARY ADMINISTRATION.
The Wage and Salary Administration maintains equity and
competitiveness in the wage market, reinforcing positive employee
behavior, eliminating wage discrepancies, maintaining good relations .
Attracting talented resources.
Retaining and motivating employees.
Concepts of different wages.
• Minimum wage
Basic Wage Plans.
• Time Wage Plan.
•Piece wage plan
•Skill based pay
•Competency based pay.
Variable Compensation Program.
The worker Level-----------Piece rate and time rate systems.
The Managerial Level-----Monetary and non monetary rewards for
achievements of results.
The Group Level-----------Incentives for group performance.
Steps to design an effective executive compensation plan.
i. Review the existing executive compensation plan.
ii. Analyze the organizational Objectives.
iii. Retention Scheme.
iv. Consideration on funding and other factors.
v. The final plan
vi. Information about the compensation plan to the
…….Differences in wages paid for same or similar work because
of various reasons .
• Individual level.
How Wage fixation takes place?? Who decides??
Collective Bargaining or negotiation.
Government Authorities( Pay Commission and Wage Board).
Concept of Reward.
Performance based rewards
Membership based rewards.
Non Monetary Incentives
A challenging assignment.
Free gifts and free vacations.
Long Term Plans.
a. Annual Bonus.
b. Profit Sharing: Distribution plan, Deferred plan,
c. Gain Sharing:
d. Employee Stock Option plans: ESPP, Restricted
Stock Plan, ESOS, Stock appreciation Right, /Phantom
Shares, Phantom Stock, Premium priced options.
• Free or subsidized lunches.
•Medical facilities to the employee
and his family.
•Provident Fund and gratuity.
•Credit Cards and tax
•Child care centres.
•Educational allowances for
•Merit scholarship for employees
•Company accommodation and
•Cafeteria and rest rooms.
•Interest free loans.
Modern Concepts in Employee Benefit Schemes.
Golden Parachute: Continuation of the salary, Bonus and
perquisites, Retirement benefits, Vesting of