1、Compensation Management : Tools and Techniques,Lee Kok Wai Lectures 4 and 5,Strategic Partner,Administrative Expert,Employee Relations Expert,Change Agent,HRs 4 Roles & Key Accountabilities,Managing Human Resources in COMPAQ,Compensation Mgt.T-Comp philosophy & designT-Comp planning & admin.Incentiv
2、e plans (MIPs/LTB)Profit-sharing schemeReward & recognition prog.Expatriate mgt.,Manpower Mgt.Headcount managementRecruitment strategiesSources of labor supplySelection process & toolsRetention strategies & plansStaff deploymentStaff orientation,Employee Relations Mgt.Benefits administrationCode of
3、conduct & ethicsEmployee disciplineEmployee communicationsStaff social, sports & recreationCommunity services & relations,EHS&S Mgt.Environment mgt.Employee wellnessEmployee health servicesLoss preventionAsset managementSafety mgt.,Culture/Values Mgt.Corporate visionCorporate missionCulture building
4、TeambuildingHabits building,Performance Mgt. (HRD)Staff training & developmentSuccession planningCareer planningCoaching & counselingAppraisal review/rankingOrganization developmentLeadership development,Human Resource Admin.Records & information mgt.Personnel researchHR policy reviewHR process impr
5、ovementsHR performance stds & auditLegal complianceDocument control,Strategic Components of Human Resources,COMPENSATION MANAGEMENT We believe in paying competitive wages that commensurate with job size and individual performanceWELFARE MANAGEMENT We believe in being a firm, fair and caring employer
6、. We strive to make employees value their jobs and want to remain in the organization based on their abilities to contribute and grow. PERFORMANCE MANAGEMENT We believe in equipping employees with the necessary skills to do a good job, providing them with the tools, the environment, the support and
7、the information needed to excel in their jobs. CAREER MANAGEMENT We believe in matching employees strengths and aptitudes to available jobs, developing them to their highest potential and offering them opportunities to advance in their careers. CULTURE/VALUE MANAGEMENT We believe in instilling our c
8、orporate core values and promoting a corporate culture that emphasizes results, teamwork, learning, sharing, service quality and work excellence.,Internal equity,External equity,Employee equity,Administration,Concepts,Compensation Techniques,Planning, Budgeting, Monitoring, Evaluating,Job Analysis,J
9、ob Description,Job Evaluation,Job Grades,Market Definitions,Salary Surveys,Policy Lines,Pay Structures,Seniority Increases,Performance Evaluation,Increase Guidelines,Compensation Objectives,Role clarity and accountability.Facilitates administration and performance management.Competitive wage policie
10、s and practices.Influence employees work attitudes and behaviour.Attract talents. Retain talents. Motivate employees.Comply with regulations. Consistency in policy administration.,The Strategic Compensation Model,What is Job Evaluation?,Job evaluation is a decision process of comparing one job with
11、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 form the basis of the companys salary structure,Principles For Job Evaluation,Evaluating the job, not the job-holder Evalu
12、ating the present job, not the future job Job is being carried out in a fully acceptable and competent manner Process of evaluation is based on given facts in the job descriptions. Evaluate the job based on the “primary responsibilities” and ignore the “special personal-to-holder responsibilities.”,
13、Job Evaluation : 3 Main Methods,Qualitative Method (an example is the Job Classification Method and the Job Comparison Method) Quantifying the Qualitative Method (an example is the Point Method) Quantitative Method (an example is the Guide Chart Profile Method),Job Classification Method adopted by A
14、cademic Institutions such as Universities,Job Class A : Doctorate Degree with at least 10 years post doctoral experience plus relevant management experience (Faculty Head) Job Class B : Doctoral Degree with at least 5 to 10 years post doctoral experience (Full Professor) Job Class C : Doctoral Degre
15、e with less than 5 years post doctoral experience or Masters Degree with over 10 years post graduate experience (Associate Professor and Senior Lecturer) Job Class D : Masters Degree with 5 to 10 years post graduate experience (Lecturer)Job Class E : Masters Degree with 3 to 5 years experience (Assi
16、stant Lecturer)Job Class F : Masters Degree with less than 3 years experience (Teaching or Research Assistant),Job Evaluation: The Point Method,Job Evaluation Process 1. Form a Job Evaluation Steering Committee 2. Draw up a workplan for the exercise 3. Decide on the benchmark jobs 4. Decide on the j
17、ob factors for the evaluation 5. Determine number of degrees for each factor 6. Prepare job descriptions based on job-factor format 7. Analyse each benchmark job in terms of factors and degrees 8. Decide on the weights of each factor 9. Determine the weighted score for each benchmark job 10. Slot in
18、 all other jobs into the job grades,The Point Method,Form the Job Evaluation (JE) Steering Committee a. The Steering Committee 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
19、 employed to assist in the exercise, then he should be designated as the advisor to the Steering Committee. The HR Manager should then double-up as the counterpart for internal skills transfer.,Job Factor Score Sheet : Job # 12,Total Score = 440 points,The Point Method,Slot all other jobs into the j
20、ob grades a. From the clusters, decide on the number of job grades to adopt. b. Slot in all other jobs into the job grades adopted.,The Guide-Chart Profile : Hay Method,This method, first developed by Dr Edward N. Hay in the early 1950s, is essentially concerned with decision making and responsibili
21、ty. 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 to shared or contributory accountabil
22、ity in a job.,The Guide-Chart Profile : 4 Critical Observations,The 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. Jobs could be ranked not only in the o
23、rder of importance within the organization, but the distances between the ranks could be determined. The factors appeared in certain kinds of patterns that seemed to be inherent to certain kinds of jobs The focus of the process of job evaluation must be on the nature and requirements of the job itse
24、lf, not on the skills or background or characteristics or pay of the job holder.,The Guide-Chart Profile : Hay Method,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,The Guide-Chart Profile Me
25、thod : Know-How,What is Know-How Know-How is the total of every kind of skill required for average acceptable job performance. It is knowledge and experience in professional, managerial and human Relations activities necessary to fulfill the job. Know-How is measured in depth by eight degrees and in
26、 breadth by five degrees,The Guide-Chart Profile Method : Know-How,The three dimensions of Know-How are: Practical procedures, specialized techniques and knowledge within occupational fields, commercial functions, and professional or scientific disciplines. This is commonly referred to as the Depth
27、of Know- How. Integrating and harmonizing simultaneous achievements of diversified functions within managerial situations occurring in operating, technical, support or administrative fields. This is referred to as the Breadth of Know-How Active, practicing person-to-person skills in work with other
28、people. This is referred to as the Human Relations Skill.,Depth Of Know-How A. Education to post primary level B. Practiced in standard work routines and /or use of simple equipment and machines C. Procedural or systematic efficiency and use of specialized equipment D. Specialized skill gained by on
29、-the-job experience or through part professional qualification E. Understanding of theoretical principles normally gained through professional qualification or through a detailed group of involved practices and procedures F. Seasoned proficiency in a highly specialized field, gained through experien
30、ce built on theories or a broad and deep understanding of complex practices G. Mastery of principles, practices and theories gained through wide experience and/or special development H. Unique command of principles, theories and practices,The Guide-Chart Profile Method : Know-How,Breadth Of Know-How
31、 I. Non or minimal Performance or supervision of jobs which have closely specified objectives II. Homogeneous Integration of operations which are homogeneous in nature and objective, and coordination with associated functions III. Heterogeneous Integration or coordination of diverse functions or sub
32、-functions in a company; or inter-company coordination of a tactical function IV. Broad Integration of the major functions in an operating company; or group-wide coordination of a strategic function affecting policy formation V. Total The management of strategic functions and policy formation,The Gu
33、ide-Chart Profile Method : Know-How,Human Relations Skills 1. Basic Ordinary courtesy and effectiveness in dealing with others 2. Important Understanding and influencing people, important but not over-riding considerations 3. Over-riding Skills in developing and motivating people are over-riding con
34、siderations,The Guide-Chart Profile Method : Know-How,The Guide-Chart Profile Method : Know-How,Guide-Chart Profile Method : Problem Solving,What is Problem Solving The use of Know-How required by the job to identify, define, and resolve problems. “You think with what you know.” This is even true fo
35、r the most creative work. The raw material of any thinking is knowledge of facts, principles and means. For that reason, Problem Solving is measured as a percentage of Know-How. Problem Solving has two dimensions: The environment in which the thinking takes place The challenge presented by the think
36、ing to be done,The Guide-Chart Profile Method Problem-Solving,Thinking Environment A. Detailed rules and/or rigid supervision B. Standard instructions and/or continuous close supervision C. Well-defined procedures, somewhat diversified and/or supervised D. Substantially diversified established compa
37、ny procedures, and general supervision E. Clearly defined company policies, principles and specific objectives under readily available direction F. Broad policies and objectives, under general direction G. General policies, principles and goals under guidance H. Business philosophy and/or principles
38、 controlling human affairs,The Guide-Chart Profile Method Problem-Solving,Thinking Challenge I. Repetitive Identical situations requiring solution by simple choice of things learned II. Patterned Similar situations requiring solution by discriminating choice of things learned III. Variable Differing
39、 situations requiring searching, finding and selecting solutions within the area of things learned IV. Adaptive Situations requiring analytical interpretive and/or constructive thinking. Judgment is required V. Creative Novel or non-recurring path-finding situations requiring the development of new
40、concepts and imaginative approaches,Guide-Chart Profile Method : Accountability,What is Accountability? The 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: Freedom to Act - is the extent of p
41、ersonal, procedural, or systematic guidance or control of actions in relation to the primary emphasis of the job Job Impact on End Results is the extent to which job can directly affects actions necessary to produce results within its primary emphasis. Magnitude is the portion of the total organizat
42、ion encompassed by the 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.,The Guide-Chart Profile Method - Accountability,Freedom To Act A. Prescribed Direct and deta
43、iled instructions, and close supervision B. Controlled Established work routines and close supervision C. Standardised Standardised practices and procedures, general work instructions and supervision of progress and results D. Generally regulated Practices and procedures which have clear precedents
44、E. Directed Broad practice and procedures covered by functional precedents and policies and managerial direction F. Oriented Direction Functional policies and goals, and general managerial direction G. Senior Guidance Inherently and primarily to direct top management guidance H. Ownership Guidance O
45、nly to ownership review and public recreation,ImpactI. Very Small (under US$1M)II. Small (Between US$1M to US$10M)III. Medium (Between US$10M to US$100M)IV. Large (More than US$100M),The Guide-Chart Profile Method - Accountability,Environment 1. Remote Giving information on other incidental services
46、 for use by others involved in the action 2. Contributory Interpreter, advisory or facilitating services to those involved in the action 3. Shared Participating with others (except superiors and subordinates) in taking action 4. Prime Wholly responsible, with little or no shared responsibility,The G
47、uide-Chart Profile Method - Accountability,Salary Survey based on Hay Method,Salary Survey based on Hay Method,Internal equity,External equity,Employee equity,Administration,Concepts,Compensation Techniques,Planning, Budgeting, Monitoring, Evaluating,Job Analysis,Job Description,Job Evaluation,Job G
48、rades,Market Definitions,Salary Surveys,Policy Lines,Pay Structures,Seniority Increases,Performance Evaluation,Increase Guidelines,Compensation Objectives,Role clarity and accountability.Facilitates administration and performance management.Competitive wage policies and practices.Influence employees
49、 work attitudes and behaviour.Attract talents. Retain talents. Motivate employees.Comply with regulations. Consistency in policy administration.,The Strategic Compensation Model,Compensation Management,The fundamentals of salary administrationSalary administration is concerned with deciding how and
50、what staff should be paid and with the techniques and procedures for designing and maintaining salary structures, rewarding staff and exercising salary control.,Aims Of Salary Administration,The basic aims of salary administration are to attract, retain and motivate staff by developing and maintaini
51、ng a competitive and equitable salary structure.To ensure that a sufficient number of suitable staff is attracted to join the organization;To encourage suitable staff to remain with the organization;To develop and maintain a logical salary structure which achieves equity in the pay for jobs of similar responsibility and consistency in the differentials between jobs in accordance with their relative values; To ensure that salary levels match market rates; To keep the salary levels adjusted in line with increases in the cost of living;,
