A Good Compensation System Should Be Able To Attract & Retain Employees,give Them A Fair Deal,keep The Organization Competitive & Motivate Employees To Perform Their Best

Compensation Management: A good compensation system should be able to attract & retain employees,give them a fair deal,keep the organization competitive & motivate employees to perform their best.

JOB EVALUATION. 1.It

is a systematic process of analyzing & evaluating jobs to determine the relative worth of each job in an organization. It forms the basis for designing the compensation management system in an organization.

Factors Determining the compensation system:  1.Size

& structure of the organization.  2.Industry in which it operates.  3.The strength of employee unions.  4.The position of the person & his importance to the organization.  5 The Demand for particular skill sets in the industry. 

Process Of Job Evaluation:  1.Preparation

of a Job Evaluation

Plan.  2.Job Analysis.  3.Job Description & Job Specification.  4.Selection of Job Dimensions  5.Classification of Jobs.  6.Implementstion of the evaluation.  7.Maintenance.

Techniques of Job Evaluation. 1.Quantitative

Techniques. Point Rating Method. Factor Comparison Method. 2.Non Quantitative Techniques. Ranking Method. Job Classification or Job Grading Method.

Wage & Salary administration: 1.Attracting Talented Resources. 2.Retaining & motivating employees. 3.Financial Management. 4.Legal requirements.

Concepts of Different Wages: 1.Minimum wage. 2.Fair wage. 3.Living wage.

Basic Wage Plans:  1.Time

Wage Plan.  2.Piece wage Plan.  3.Skill based pay.  4.Competency based pay.  5.Broadbanding  6.Variable Compensation.  7.Executive compensation.  8.National Wage Policy.

Concept Of Rewards:  1.Extrinsic

Rewards & Intrinsic

Rewards.  2.Financial & Non Financial Rewards.  3.Incentives:Performance Based Rewards.  Ex:Annual Performance incentives ( monetary) and ESOP (Employee Stock Option Plans)  Benefits-Rewards an employee receives for his employment & position in the organization.

Types Of Incentives Plans: 1.Short

Term Incentive Plans. 1.Halsey Plan,Rowan Plan,Barth System of wages,Task Bonus System,Point Rating system,Progressive Bonus. 2.Long Term Incentive Plans. Annual Bonus,Profit sharing,Gain Sharing,Employee Stock Plans.

Employee Benefits:  Free/Subsidized

Lunches,Medical Facilities,Paid vacation to the employee,Retiral benefits like PF & gratuity,Employee Insurance,Maternity Leave,Child care centers,Educational allowance,company accomodation,company transportation facilitiesetc.

Some Modern Concepts in Employee Benefit Schemes: 1.Golden

Parachute. 2.Cafeteria Benefit Plan.