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PRESENTATION ON:PRESENTATION ON:

COMPENSATIONCOMPENSATIONMANAGEMENTMANAGEMENT

PRESENTED BY:PRESENTED BY:GROUP NUMBERGROUP NUMBER-- 0808

INDERPREETINDERPREET SINGHSINGH-- 022022KAUSHIK BOSEKAUSHIK BOSE--040040

PANKAJ WADHAVANPANKAJ WADHAVAN--5757

SAKSHI SIDANASAKSHI SIDANA--076076

VIDUSHEE DUTTAVIDUSHEE DUTTA--097097

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JOB EVALUATIONJOB EVALUATION

Job Evaluation is the evaluation or rating of jobs todetermine their position in the job hierarchy. The

evaluation may be achieved through assignment of

points or use of some other systematic method

for essential requirements such as skill, experience

and responsibility.

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Features of Job EvaluationFeatures of Job Evaluation

It is a systematic process

Analyze and evaluate jobs

Determine the relative worth of each jobInfluence on employee morale and

satisfaction

Primary objective of job evaluation

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Techniques of Job EvaluationTechniques of Job Evaluation

Non-quantitative techniques:

Ranking

Job classification or job grading

Quantitative Methods:

Point rating method

Factor Comparison method

Decision Band Method

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Wage and Salary AdministrationWage and Salary Administration

Base wages and salaries:

hourly, weekly and monthly pay

foundation of the employee pay structure

total compensation calculated after these are

fixed

Compensation Administration

compensating the employees in fair manner maintaining the principle of equity

matching employee expectancy

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Concepts of different wagesConcepts of different wages

Minimum wages

Fair Wage

Living Wage

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Basic Wage plansBasic Wage plans

Time wage plan

Piece Rate-

oTaylor's differential piece rate system

oMerricks multiple piece rate

Skill Based Pay

Merit Based Pay

Competency based pay

Broad Banding

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Variable CompensationVariable Compensation

Designed to pay employees in accordance with their

performance .

Designed to motivate individuals and groups

Helps in improving the performance of the employees

Examples: Production incentives, profit sharing, gain

sharing, bonus, etc.

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Executive CompensationExecutive Compensation

It is the compensation paid to the top

Executives of an Organization.

It is so designed to attract and retain

their chief executives

Competence, expertise and

temperamental ability to lead an

organization

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Choices in Designing aChoices in Designing a

Compensation SystemCompensation SystemCompensation System should be in tune withthe culture and unique character of the firm

Allow a firm to achieve its strategic goals

Following are the different compensationsystems

Internal and External Pay

Fixed Vs. Variable Pay

Performance Vs. Membership

Job Vs. Individual Pay

Below Market and Above Market Compensation

Open Vs. Secret Pay

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CONCEPT OF REWARDSCONCEPT OF REWARDS

What are rewards?

Can be extrinsic(tangible-promotion orbonus) or intrinsic(informal recognition

etc.),financial or non financialRewards results in:

Improved job satisfaction

Increased loyalty and commitment of theemployees

Improved performance

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So What are incentives?So What are incentives?

Reward over and above the base

wages/salaries(ESOPs)

Incentive plans:Short term :

Halsey plan(standard output fixed for a prescribed time)

Rowan plan(minimum wage guaranteed)

Progressive bonusLong term : Annual bonus,Profit sharing,Esops etc.

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Examples from corporate worldExamples from corporate world

AccentureAccentureCash compensation:

rewards in your paycheck, including base salary,variable pay (bonuses and incentives), overtime payand any other cash payments you may earn

Non-cash compensation: Accenture equityacquired through share option grants anddiscounted share purchases

In the Consulting and Enterprise workforces,executives are eligible for the Global Variable Pay

program, which is a cash payment plan linked toboth company and individual performance

CapgeminiCapgeminiCash compensation

Deferred or incentive compensation

Benefits

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Flexible benefit plan - FBP

Flexible Benefits Plan empowers you to make responsible choices in order to derive maximum value for yourCompensation

HRA

Leave Travel Allowance (LTA)

Conveyance Allowance or Fuel expense and Vehicle maintenance Reimbursement

Driver's Salary

Medical Expense Reimbursement

Program What it is Who gets it

Base Pay Regular pay; your "annual salary" All employees

Variable Pay Annual "bonus" depending on

company, group and individual

performance criteria

All non-incentive plan employees

are eligible; actual pay will vary

based on performance of the

individual and his/her unit

Commission and Incentive Pay For sales employees, portion of

total compensation varies on

specific sales goals and objectives

Sales employees and executives

on incentive and commission

programs

Stock Options Recipients are granted the

"option" to buy stock at a locked in

price

Program is very limited and

focuses on retention by awarding

options to key employees in

critical job categories

Awards and Recognition Various individual and group

awards designed to recognize very

specific and extraordinary

accomplishments

All employees are eligible

depending on the nature of the

award and any relevant

restrictions

IBMIBM

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Intel's goal is to pay above-average total cash compensation

Base Pay

In addition, based on job and function, employees may also be eligible forCommission :base salary +commission-eligible employees' cash compensation

Shift and/or overtime premiums : 24 hour-a-day operations seven days a week

Overtime Premiums: overtime is paid according to the laws that govern the site

in which the employee works.

StockDelivering stock is an important part of our employees overall pay and benefits

packageRestricted Stock Units (RSUs) or, depending on grade level

BonusEmployee Cash Bonus Plan

Employee Bonus

Benefits

Medical BenefitsRetirement

Life and Accident Insurance

Paid Time Off

Other Benefits

Other Benefits:

Employee Assistance ProgramRecreation

IntelIntel

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THANKYOU