Upload
ashish-yadav
View
220
Download
0
Embed Size (px)
Citation preview
8/3/2019 Administering the Compensation Program
1/14
Administering the Compensation Program
8/3/2019 Administering the Compensation Program
2/14
Objectives
Maintain internal equity Within the parameters ofdiscipline, function, and responsibilities, employees shallbe paid similarly for similar work.
Maintain external competitiveness through a salarystructure .
For higher education related positions.
Base salary increase decisions on recognizingperformance, retaining our best employees, maintainingmarket alignment and supporting internal equity.
Create compensation structures and strategies thatrespond to and support organization priorities, changes,and needs.
For all other staff positions, the market is based on thelocal, regional, and/or national markets, depending on the
position.
8/3/2019 Administering the Compensation Program
3/14
Process
8/3/2019 Administering the Compensation Program
4/14
Classification of rewards
Total compensation
Financial(extrinsic rewards)
Non -Financial(intrinsic rewards)
Satisfactionderived from jobIndirectDirect
Praise andRewards
8/3/2019 Administering the Compensation Program
5/14
Components of Financial Compensation
Direct
Base pay
Wages Salaries
Benefits
Variable Pay
Incentives
-Individual-Group/team-organizational
voluntaryMandatory
SecurityPlans
PensionsEducationalassistance
Recreationalprograms
Vacations Breaks Holidays
Provident FundGratuityMaternity LeaveHealth plansMedical leave
Indirect
8/3/2019 Administering the Compensation Program
6/14
Base pay
The direct financial compensation an individualreceives based on the time worked
Two bases of calculation
- Hourly/wage: payment for the number of hoursworked
- Salaried : receive consistent payments at theend of specific period regardless of number of
hours worked
8/3/2019 Administering the Compensation Program
7/14
Variable pay - any plan that ties pay to productivity or
profitability.
(i.e)The standard by which managers tiecompensation to employee effort and
performance.- it is linked to individual, group, or organizational
performance and not to time worked
Incentive Pay Programs
Establish a performance threshold to qualify forincentive payments.
Emphasize a shared focus on organizationalobjectives.
Create shared commitment in that every
8/3/2019 Administering the Compensation Program
8/14
Types of incentives
Individual Incentives
Group/team Incentives
Organizational Incentives
8/3/2019 Administering the Compensation Program
9/14
VOLUNTARY BENEFITS Educational benefits
- Employees spouse education assistance(Motorola on international assignments ).
- ONGC,NIIT ,ADITYA BIRLA GROUP, HLLsabbaticals (paid/non-paid) are provided toemployees who wish to study.
- Meritorious Children of employees are provided
opportunity of higher education with loan benefitsin BPCL, CPCL etc
8/3/2019 Administering the Compensation Program
10/14
Family
- Paternity leave in HLL, HCL Tech, Yes Bank,Genpact etc.,
- Wedding anniversary allowance in NIIT, SPIC etc.,- Joyful Working Team and Happy MomentsBoard- LG
Electronics
- Family day at office- Bharti telecom.
8/3/2019 Administering the Compensation Program
11/14
Non financial compensation Components
1. Intrinsic motivators are worthwhile as financialpackage
2. Organization reward high performing employees
3. Psychological rewards that employees receivein recognition of their skills and contributions
8/3/2019 Administering the Compensation Program
12/14
Types
Awards
Often used to recognize productivity gains,special contributions or achievements, andservice to the organization.
Employees feel appreciated when employers tieawards to performance and deliver awards in atimely, sincere and specific way.
Rooms of offices are named after the employees
in NIIT Recognition awards
Recognition has a positive impact onperformance, either alone or in conjunction with
financial rewards
8/3/2019 Administering the Compensation Program
13/14
Day-to-day recognition from supervisors, peers,and team members is important.
Best performer of the month awards in Blue Dart,ALACTEL,XANSA etc.,
Service awards
- Award for the length of service and exactly not onperformance
- IBM: thanks award- IDEA: appreciation card
8/3/2019 Administering the Compensation Program
14/14
Case Study on TCS TCS was established in 1968 with its
headquarters in Mumbai.
It was formed as a division of Tata Sons Limited(TSL), one of India's largest business
conglomerates, and was called 'Tata ComputerCenter.' F C Kohli (Kohli) was appointed as thefirst General Manager in 1969.