1、Compensation Management:Tools and TechniquesDay-to-Day Operational FocusFuture/Strategic FocusPeopleProcessesStrategic HR PlanningHR as Business PartnerCulture and ImageStrategicPartnerStaffingOrganizationalDesignSuccessionPlanningPerformance MeasurementTraining&DevelopmentEmployee RelationsLabor Re
2、lationsEnvironment,Health,Safety&SecurityVOW Survey Action PlanCompensationBenefitsHR Information SystemsComplianceAdministrative ExpertEmployee Relations ExpertChange AgentCompensation Mgt.T-Comp philosophy&design T-Comp planning&admin.Incentive plans(MIPs/LTB)Profit-sharing scheme Reward&recogniti
3、on prog.Expatriate mgt.Manpower Mgt.Headcount management Recruitment strategies Sources of labor supply Selection process&tools Retention strategies&plans Staff deployment Staff orientation Employee Relations Mgt.Benefits administration Code of conductðics Employee discipline Employee communicati
4、ons Staff social,sports&recreation Community services&relationsEHS&S Mgt.Environment mgt.Employee wellness Employee health services Loss prevention Asset management Safety mgt.Culture/Values Mgt.Corporate vision Corporate mission Culture building Teambuilding Habits buildingPerformance Mgt.(HRD)Staf
5、f training&development Succession planning Career planning Coaching&counseling Appraisal review/ranking Organization development Leadership developmentHuman Resource Admin.Records&information mgt.Personnel research HR policy review HR process improvements HR performance stds&audit Legal compliance D
6、ocument controlCOMPENSATION MANAGEMENTWe believe in paying competitive wages that commensurate with job size and individual performanceWELFARE MANAGEMENTWe believe in being a firm,fair and caring employer.We strive to make employees value their jobs and want to remain in the organization based on th
7、eir abilities to contribute and grow.PERFORMANCE MANAGEMENTWe believe in equipping employees with the necessary skills to do a good job,providing them with the tools,the environment,the support and the information needed to excel in their jobs.CAREER MANAGEMENTWe believe in matching employees streng
8、ths and aptitudes to available jobs,developing them to their highest potential and offering them opportunities to advance in their careers.CULTURE/VALUE MANAGEMENTWe believe in instilling our corporate core values and promoting a corporate culture that emphasizes results,teamwork,learning,sharing,se
9、rvice quality and work excellence.InternalequityExternalequityEmployeeequityAdministrationConceptsCompensation TechniquesPlanning,Budgeting,Monitoring,EvaluatingJobAnalysisJobDescriptionJobEvaluationJobGradesMarketDefinitionsSalarySurveysPolicyLinesPayStructuresSeniorityIncreasesPerformanceEvaluatio
10、nIncreaseGuidelinesCompensation ObjectivesRole clarity and accountability.Facilitates administration and performance management.Competitive wage policies and practices.Influence employees workattitudes and behaviour.Attract talents.Retain talents.Motivate employees.Comply with regulations.Consistenc
11、y in policyadministration.The Strategic Compensation ModelJob evaluation is a decision process of comparing one job with another job with the aim of establishing the relative importance of jobs within the organization.Job evaluation will provide an internally logical ranking of all jobs which will f
12、orm the basis of the companys salary structure qEvaluating the job,not the job-holderqEvaluating the present job,not the future jobqJob is being carried out in a fully acceptable and competent mannerqProcess of evaluation is based on given facts in the job descriptions.qEvaluate the job based on the
13、“primary responsibilities”and ignore the“special personal-to-holder responsibilities.”qQualitative Method(an example is the Job Classification Method and the Job Comparison Method)qQuantifying the Qualitative Method(an example is the Point Method)qQuantitative Method(an example is the Guide Chart Pr
14、ofile Method)qJob Class A:Doctorate Degree with at least 10 years post doctoral experience plus relevant management experience(Faculty Head)qJob Class B:Doctoral Degree with at least 5 to 10 years post doctoral experience(Full Professor)qJob Class C:Doctoral Degree with less than 5 years post doctor
15、al experience or Masters Degree with over 10 years post graduate experience(Associate Professor and Senior Lecturer)qJob Class D:Masters Degree with 5 to 10 years post graduate experience(Lecturer)q Job Class E:Masters Degree with 3 to 5 years experience(Assistant Lecturer)q Job Class F:Masters Degr
16、ee with less than 3 years experience(Teaching or Research Assistant)Job Evaluation Process1.Form a Job Evaluation Steering Committee2.Draw up a workplan for the exercise3.Decide on the benchmark jobs4.Decide on the job factors for the evaluation5.Determine number of degrees for each factor6.Prepare
17、job descriptions based on job-factor format7.Analyse each benchmark job in terms of factors and degrees8.Decide on the weights of each factor9.Determine the weighted score for each benchmark job10.Slot in all other jobs into the job gradesForm the Job Evaluation(JE)Steering Committeea.The Steering C
18、ommittee should be chaired by the CEO with functional Managers/Heads as members.The HR Manager should be the Secretary of the JE Steering Committee.b.If an external consultant is employed to assist in the exercise,then he should be designated as the advisor to the Steering Committee.The HR Manager s
19、hould then double-up as the counterpart for internal skills transfer.FactorABCDEEducation20406080100Experience306090120150Interpersonal Skills1020304050Problems Encountered306090120150Size of unit supervised1020304050Decision Making306090120150Work Environment1020304050Impact of errors306090120150Co
20、ntacts/Committees1020304050Assets Controlled($)20406080100Slot all other jobs into the job gradesa.From the clusters,decide on the number of job grades to adopt.b.Slot in all other jobs into the job grades adopted.This method,first developed by Dr Edward N.Hay in the early 1950s,is essentially conce
21、rned with decision making and responsibility.Guide Charts were created in 1951 in client situations.Emphasis was placed on answerability for the consequences of decisions,the degree of freedom to take decisions and bring them to fruition,the degree to which there is prime accountability,as compared
22、to shared or contributory accountability in a job.qThe most significant factor could be grouped as representing the knowledge required to do a job,the kind of thinking needed to solve the problems commonly faced,and the responsibilities assigned.qJobs could be ranked not only in the order of importa
23、nce within the organization,but the distances between the ranks could be determined.qThe factors appeared in certain kinds of patterns that seemed to be inherent to certain kinds of jobsqThe focus of the process of job evaluation must be on the nature and requirements of the job itself,not on the sk
24、ills or background or characteristics or pay of the job holder.There are Three Factors with a total of eight elements which determine the value of different jobs.They are:1.Know-How2.Problem-Solving3.Accountability What is Know-HowqKnow-How is the total of every kind of skill required for average ac
25、ceptable job performance.It is knowledge and experience in professional,managerial and human Relations activities necessary to fulfill the job.qKnow-How is measured in depth by eight degrees and in breadth by five degrees The three dimensions of Know-How are:qPractical procedures,specialized techniq
26、ues and knowledge within occupational fields,commercial functions,and professional or scientific disciplines.This is commonly referred to as the Depth of Know-How.qIntegrating and harmonizing simultaneous achievements of diversified functions within managerial situations occurring in operating,techn
27、ical,support or administrative fields.This is referred to as the Breadth of Know-HowqActive,practicing person-to-person skills in work with other people.This is referred to as the Human Relations Skill.Depth Of Know-HowA.Education to post primary levelB.Practiced in standard work routines and/or use
28、 of simple equipment and machinesC.Procedural or systematic efficiency and use of specialized equipmentD.Specialized skill gained by on-the-job experience or through part professional qualification E.Understanding of theoretical principles normally gained through professional qualification or throug
29、h a detailed group of involved practices and proceduresF.Seasoned proficiency in a highly specialized field,gained through experience built on theories or a broad and deep understanding of complex practicesG.Mastery of principles,practices and theories gained through wide experience and/or special d
30、evelopmentH.Unique command of principles,theories and practices Breadth Of Know-HowI.Non or minimal Performance or supervision of jobs which have closely specified objectivesII.Homogeneous Integration of operations which are homogeneous in nature and objective,and coordination with associated functi
31、onsIII.Heterogeneous Integration or coordination of diverse functions or sub-functions in a company;or inter-company coordination of a tactical functionIV.Broad Integration of the major functions in an operating company;or group-wide coordination of a strategic function affecting policy formationV.T
32、otal The management of strategic functions and policy formation Human Relations Skills1.Basic Ordinary courtesy and effectiveness in dealing with others2.Important Understanding and influencing people,important but not over-riding considerations3.Over-riding Skills in developing and motivating peopl
33、e are over-riding considerations Human RelationsDiverse123123123123123A5057667687100115132152175200230264304350Primary57667687100115132152175200230264304350400667687100115132152175200230264304350400460B7687100115132152175200230264304350400460528Elementary87100115132152175200230264304350400460528608V
34、ocational100115132152175200230264304350400460528608700C 115132152175200230264304350400460528608700805Vocational132152175200230264304350400460528608700152175200230264304350400460528608700D175200230264304350400460528608700Advanced200230264304350400460528608700Vocational230264304350400460528608700E2643
35、04350400460528608700Basic 304350400460528608700Professional,etc 350400460528608700F400460528608700Seasoned 460528608700Professional,etc 528608700G608700Professional700Mastery805HUnique AuthorityVTable 1:Matrix Of Depth And Breadth Of Management Know-HowIIIHeterogeneousIVBroadINone or MinimalIIHomoge
36、neousWhat is Problem SolvingqThe use of Know-How required by the job to identify,define,and resolve problems.“You think with what you know.”This is even true for the most creative work.The raw material of any thinking is knowledge of facts,principles and means.For that reason,Problem Solving is meas
37、ured as a percentage of Know-How.qProblem Solving has two dimensions:nThe environment in which the thinking takes placenThe challenge presented by the thinking to be done Thinking Environment A.Detailed rules and/or rigid supervisionB.Standard instructions and/or continuous close supervisionC.Well-d
38、efined procedures,somewhat diversified and/or supervisedD.Substantially diversified established company procedures,and general supervisionE.Clearly defined company policies,principles and specific objectives under readily available directionF.Broad policies and objectives,under general directionG.Ge
39、neral policies,principles and goals under guidanceH.Business philosophy and/or principles controlling human affairsThinking ChallengeI.Repetitive Identical situations requiring solution by simple choice of things learnedII.Patterned Similar situations requiring solution by discriminating choice of t
40、hings learnedIII.Variable Differing situations requiring searching,finding and selecting solutions within the area of things learnedIV.Adaptive Situations requiring analytical interpretive and/or constructive thinking.Judgment is requiredV.Creative Novel or non-recurring path-finding situations requ
41、iring the development of new concepts and imaginative approaches What is Accountability?qThe answerability for action and for the consequences thereof.It is the measured effect of the job on end results of the organization.It has three dimensions:qFreedom to Act-is the extent of personal,procedural,
42、or systematic guidance or control of actions in relation to the primary emphasis of the jobqJob Impact on End Results is the extent to which job can directly affects actions necessary to produce results within its primary emphasis.qMagnitude is the portion of the total organization encompassed by th
43、e primary emphasis of the job.This is usually but not necessarily,reflected by the annual revenue or expense dollars associated with the area in which the job has its primary emphasis.Freedom To ActA.Prescribed Direct and detailed instructions,and close supervisionB.Controlled Established work routi
44、nes and close supervisionC.Standardised Standardised practices and procedures,general work instructions and supervision of progress and resultsD.Generally regulated Practices and procedures which have clear precedentsE.Directed Broad practice and procedures covered by functional precedents and polic
45、ies and managerial directionF.Oriented Direction Functional policies and goals,and general managerial directionG.Senior Guidance Inherently and primarily to direct top management guidanceH.Ownership Guidance Only to ownership review and public recreationImpactI.Very Small(under US$1M)II.Small(Betwee
46、n US$1M to US$10M)III.Medium(Between US$10M to US$100M)IV.Large(More than US$100M)Environment1.Remote Giving information on other incidental services for use by others involved in the action2.Contributory Interpreter,advisory or facilitating services to those involved in the action3.Shared Participa
47、ting with others(except superiors and subordinates)in taking action4.Prime Wholly responsible,with little or no shared responsibility Hay Point RangeMedian Salary Formula200-300129.46*HP-1386301-400155.27*HP-9127401-500167.24*HP-13,916501-600159.47*HP-10,033601-700172.55*HP-17,881701-800150.75*HP-26
48、21Hay Point RangeUpper Quartile(Q3)Salary Formula200-300144.89*HP-1648301-400165.55*HP-7845401-500195.67*HP-19,893501-600176.16*HP-10,140601-700194.51*HP-21,145701-800168.63*HP-3029InternalequityExternalequityEmployeeequityAdministrationConceptsCompensation TechniquesPlanning,Budgeting,Monitoring,Ev
49、aluatingJobAnalysisJobDescriptionJobEvaluationJobGradesMarketDefinitionsSalarySurveysPolicyLinesPayStructuresSeniorityIncreasesPerformanceEvaluationIncreaseGuidelinesCompensation ObjectivesRole clarity and accountability.Facilitates administration and performance management.Competitive wage policies
50、 and practices.Influence employees workattitudes and behaviour.Attract talents.Retain talents.Motivate employees.Comply with regulations.Consistency in policyadministration.The Strategic Compensation ModelThe fundamentals of salary administrationSalary administration is concerned with deciding how a
