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Human resource management

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Title: Human resource management


1
Human resource management
2
Syllabus
  • Manpower Planning, Job Analysis, Job Description,
    Scientific Recruitment and Selection Methods.
  • Motivating Employees ? Motivational Strategies,
    Incentive Scheme, Job-enrichment, Empowerment ?
    Job satisfaction, Morale, Personnel Turnover.
  • Performance Appraisal Systems ? MBO Approach,
    Performance Counseling, Career Planning.
  • Training and Development ? Identification or
    Training Needs, Training Methods, Management
    Development Programmes.

3
Reference Text
  • Human Resource Management ? P. Subba Rao
  • Personnel Management ? C. B. Mammoria
  • Dessler Human Resource Management (Prentice
    Hall India)
  • Personnel / Human Resource Management DeCenzo
    Robbins (Prentice Hall India)
  • D. K. Bhattacharya Human Resource Management
    (Excel)
  • VSP Rao ? Human Resource Management (Excel)
  • Gomez Managing Human Resource (Prentice Hall
    India)

4
Presentation Topics
  1. Role of Internet in HRM
  2. Twitter A Popular Recruitment Tool
  3. Performance Management A Necessary Evil
  4. Manage Men Tactfully Management
  5. The New Age of Working through Virtual Teams
  6. Managing Stress in Changing Times
  7. Integrating Six Sigma and HR
  8. Employee Retention An Art of Keeping People Who
    keep You in Business
  9. Promoting Innovation The Role of HR
  10. Exit Interview A Tool to Reduce Employee
    Turnover
  11. Talent Management An Agile Edge Over Competition

5
Presentation Topics
  1. Employee Involvement An Approach to
    Organisational Development and Change
  2. A Human Resource Perspective on Importance of
    Global Managers in a Post Merger Scenario
  3. Corporate CEOs
  4. Diverse Skills of a Manager

6
Manpower Planning Employee Recruitment
7
Definition of Manpower Planning
  • Process by which an organization ensures that it
    has the right number kind of people at the
    right place and at the right time, capable of
    effectively and efficiently completing those
    tasks that help the organization achieve its
    overall objectives.

8
Manpower Planning
Company Strategy
Job Analysis
  • Performance Appraisal
  • Company Databanks
  • Training
  • Employee Management and Development

What staff do we need to do the job?
What staff is available within our organization?
Is there a match??
What is the impact on Wage and Salary program
If not, what type of people do we need, and how
should we recruit them?
9
Job Analysis
  • Job analysis is a formal and systematic process
    used for obtaining information about the job.
  • It is an investigation of duties and
    responsibilities necessary to do a job
  • Determination of tasks which comprise the job and
    of skills, knowledge, abilities and
    responsibilities required of the worker for a
    successful performance and which differentiates
    one job from all others.

Job Description
Job Analysis
Job Specification
10
Uses of Job Analysis
  • Planning
  • Recruitment and Selection
  • Training
  • Performance Appraisal
  • Job Design
  • Job Evaluation

11
Methods of collecting Job analysis data
  • Personal Observation
  • Interview of Employee and Supervisors
  • Put the worker at ease
  • Make the purpose of interview clear
  • Phrase question in such a way that the answer
    will be in YES or NO
  • Summarize the information obtained before closing
    the interview
  • Panel of Experts
  • Diary Method
  • Questionnaire Method

12
Impact of behavioural factors on Job analysis
  • Exaggerate he Facts
  • Employee Anxieties
  • Resistance to change

13
Job description
  • It defines the purpose and scope of a job.
  • Describes what job is all about, what are job
    content, environment and conditions of
    employment.
  • Contents A job description usually covers the
    following information
  • Designation
  • Corporate Grade
  • Reporting To
  • Position Reporting to
  • this Position
  • Qualifications
  • Experience
  • Job Summary
  • Main Responsibilities

Sample Job Description 1 Sample Job Description 2
14
Problems with job description
  • It is not easy to reduce all the essential
    components of the job in the form of a clear and
    precise document.
  • Job description are sometimes not updated as the
    job duties change
  • The can limit he scope of activities of the job
    holder, reducing organizational flexibility.

15
Job specification
  • Job specification summarizes the characteristics
    needed for completing a job.
  • It spells out the important attributes of a
    person in terms of education, experience, skills,
    knowledge and abilities to perform a particular
    job.
  • This helps the organization to determine what
    kind of persons are needed to take up specific
    jobs.
  • Job specifications can be classified into three
    categories
  • Essential Attributes
  • Desirable Attributes
  • Contra-Indicators

16
Job evaluation
  • Job analysis also helps in finding the relative
    worth of a job based on criteria such as
  • Degree of difficulty in the work
  • Type of work done by the employee
  • Skills and knowledge needed
  • This, in turn, assists in designing proper wage
    policies, with internal pay equity between jobs.

17
Importance of Manpower planning
  • Talent pool
  • Prepare people for future
  • Smooth transition during expansion
  • Succession Planning
  • Support to overall business strategy

18
Process of HRP
19
Factors of Manpower Planning
Factors in forecasting Personnel Requirements
Quality and Nature of your Employees (in relation
to what you see as the changing needs of your
organisation)
Projected Turnovers (as a result of resignation
and terminations)
The financial resources available to your
organisation
20
Techniques to determine no. of recruits
Trend Analysis
Ratio Analysis
21
Recruitment from external resources
  • Recruiting new staff from external sources will
    be
  • influenced by several factors

Macro Economic Conditions of a Nation
22
Recruitment from external resources
Availability of Manpower in Desired Sector
Company Reputation
23
recruitment
24
definition
  • Recruitment is a process of locating and
    encouraging potential applicants to apply for
    existing or anticipated job openings.
  • Recruitment aims at
  • Attracting a large no. of qualified applicants
    who are ready to take up the job if its offered
  • Offering enough information for unqualified
    persons to self-select themselves out

25
Constraints and challenges
  • Poor image
  • Unattractive jobs
  • Limited budgetary support
  • Restrictive policies of government
  • Compensation not matching as per the industry
    standard
  • Economic Environment
  • Social Environment

26
Methods of Recruitment
Methods of Recruitment
27
Methods of recruitment
  • Internal Method
  • Promotions and Transfers
  • Job Posting
  • Employee Referrals
  • Direct Method
  • Campus Recruitment
  • Indirect Method
  • Advertisement
  • Private Employment Search firms
  • Internet Recruitment

28
Effectiveness of recruitment process
  • Cost per hire
  • Time-lapse between recruitment and placement
    ratio
  • Applicants performance
  • Turnover

29
Selection
30
definition
  • To select means to choose.
  • Selection is the process of picking individuals
    who have relevant qualifications to fill jobs in
    an organization.
  • The basic purpose is to choose the individual who
    can most successfully perform the job, from the
    pool of qualified candidates.
  • How well an employee is matched to a job is very
    important because it directly affects the amount
    and quality of the employees work.

31
Selection Process
Application / Resume
Screening Interview
Aptitude Test
Group Discussion
Selection Interview
Reference Checks
32
Basic Concept of selection test
  • The quality of an employee selection test is
    determined by the three main factors
  • Criterion Validity A type of validity based on
    showing that scores on the test (predictors) are
    related to the job performance (criterion).
  • Content Validity Test that contains fair sample
    of tasks and skills actually needed for the job.
  • Reliability The consistency of scores obtained
    by same person when retested with identical or
    equivalent test.

33
Selection testing
  • Intelligence Test / Aptitude Test
  • Personality Test
  • Confidence, Emotional balance, behavioral
    pattern, interpersonal skills, motivation level
    etc.
  • Simulation tests
  • Assessment Centre
  • Interview

34
Types of interview
  • Several types of interviews are commonly used
    depending on the nature and importance of the
    position to be filled
  • Non-directive / Unstructured Interview
  • Directive / Structured Interview
  • Situational Interview
  • Behavioural Interview STAR Technique
  • Stress Interview
  • Panel Interview

35
Interviewing Mistakes
  • Not asking right question and hence not getting
    relevant responses
  • Snap Judgments
  • May allow ratings to be influenced by his own
    likes and dislikes
  • May have forgotten the interviews content after
    its conclusion
  • Unduly influenced by person origin, cultural
    background etc.
  • Halo Affect Positive
  • Horn Affect Negative
  • Have been under pressure to hire candidates at
    short notices

36
Induction
37
Meaning and Objective
  • Meaning
  • Induction means the task of introducing the new
    employees to the organization and is policies,
    procedures and rules.
  • Objective
  • Remove fears
  • Creates good impression
  • Acts as a valuable source of information

38
Information to be provided
  • Explain about the company
  • Show the department
  • Introduce with the colleagues
  • Introduction with the reporting heads
  • Overview of the Job responsibilities, Seating
    place and relationship with other job
  • Give the companys manual to the new recruits
  • Company policies, rules and disciplinary
    procedure
  • Give the details about pay, benefits, holidays,
    leave, etc.
  • Idea about work culture
  • Future training opportunities
  • Career Path

39
Performance Appraisal
40
What is performance appraisal
  • Performance Appraisal (PA) refers to all those
    procedures/tools that are used to evaluate
    employees
  • Personality
  • Performance
  • Potential of employees
  • PA is the method of evaluating the behaviour of
    the employees in the workplace, normally
    including both quantitative and qualitative
    aspect of the job
  • How the employee is performing
  • How the employee can develop others
  • Planning and organising skills
  • Initiative

41
Objective of Performance Appraisal
  • Provide information about performance ranks
  • Provide a basis for promotion and increments.
  • Enhances employees effectiveness by helping to
    identify their strengths and weaknesses
  • Informs about expected levels of performance
  • Identify Training and Development needs
  • Remove work alienation Counseling Employees
  • Develop Inter-personal relationship
  • Career planning decisions

42
Process of performance Appraisal
43
Methods of performance appraisal
  • Individual Evaluation Method
  • Confidential report
  • Essay evaluation
  • Critical Incidents
  • Graphic Rating Scale
  • 360 Degree Feedback
  • Behaviorally Anchored Rating Scale
  • MBO

44
Methods of performance appraisal
  • Multiple Person evaluation Method
  • Ranking
  • Paired comparison

45
1. Confidential Report
  • Descriptive report
  • Prepared at the end of the year
  • Prepared by the employees immediate supervisor
  • The report highlights the strengths and
    weaknesses of employees
  • Prepared in Government organizations
  • Does not offer any feedback to the employee

46
2. Essay evaluation
  • The rater is asked to express the strong as well
    as weak points of employees behavior
  • The rater considers the employees
  • Job knowledge and potential
  • Understanding of companys programs, policies,
    objectives etc
  • Relation with co-workers and supervisors
  • Planning, organizing and controlling ability
  • Attitude and perception

47
2. Essay evaluation
  • This method has the following limitations
  • Highly subjective
  • Supervisor may write biased essay
  • Difficult to find effective writers
  • A busy appraiser may write the essay hurriedly
    without assessing properly the actual performance
    of the worker
  • If the appraiser takes a long time it becomes
    uneconomical from the view point of the firm

48
3. Critical Incident technique
  • Manager prepares lists of statements of very
    effective and ineffective behavior of an employee
  • These critical incidents represent the
    outstanding or poor behavior of the employees
  • The manager periodically records critical
    incidents of employees behavior

49
3. Critical Incident technique
  • Limitation of this technique are
  • Negative incidents may be more noticeable than
    positive incidents.
  • Supervisors have a tendency to unload a series of
    complaints about incidents.
  • Results in very close supervision which may not
    be liked by the employee.
  • The recording of incidents may be a chore for the
    manager concerned who may be too busy or forget
    to do it.

50
4. Graphic Rating Scale
  • This is the oldest and most widely method used
    for performance appraisal.
  • The appraiser has to rate the appraisee in
    different parameter on a scale of 5.
  • Job Knowledge as a parameter might be rated 1
    (poorly informed about work duties) to 5 (has
    complete mastery of all phases of the job).

51
Graphic Rating Scale Employee Name................
... Job title ................. Department
......................... Rate ............... Dat
a ..................................
Quantity of work Volume of work under normal working conditions Unsatisfactory (1) Fair (2) Satisfactory (3) Good (4) Out Standing (5)
Quality of work Neatness, thoroughness and accuracy of work Knowledge of job          
A clear understanding of the factors connected with the job          
Attitude Exhibits enthusiasm And cooperativeness on the job          
52
Behaviourally anchored rating scale (BARS)
  • Combination of Rating Scale and Critical
    Incidents Techniques of employees performance
    evaluation.
  • The critical incidents serve as anchor statements
    on a scale of ratings.
  • Rating forms usually contains six to eight
    specifically defined performance dimensions.

53
How to construct (BARS)
  • Emphasis is pinpointed on pooling the thinking of
    people who will use the scales as both evaluators
    and evaluees.
  • Step I Collect Critical Incidents from Job
    Holders Supervisors.
  • Step II Identify performance dimensions
    Technical competence, Relationship with
    customers, relationship with peers, meeting day
    to day deadline etc.

54
How to construct (BARS)
  • Step III Reclassification of Incidents Another
    group of participants are asked to retranslate
    the critical incidents
  • Step IV Assigning scale values to the incidents.
    Mean and standard deviation are calculated for
    the scale value assigned to each incident.
  • Step V Producing final instrument. Each incident
    is positioned on the scale according to its mean
    value.

55
Advantages limitations of BARS
  • Increased acceptance by supervisors and superiors
  • Job specific
  • Identifies observable and measurable behaviour
  • Reliable and valid method
  • Lack of result orientation
  • Time consuming and expensive to create BARS
  • Several appraisal forms for different types of
    Job

56
5. 360 Degree Feedback
360 Degree Feedback is a multi - rater feedback
system where an individual is assessed by a
number of assessors including his boss,
subordinates, colleagues, internal customers and
external customers.
57
What is 360 DF?
Feedback collected from
Boss
Internal Customers
Peers
Self
Team Members
External Customers
58
6. Management by objectives (MBO)
  • MBO emphasizes to set specific, measurable goals
    with each employee and then periodically discuss
    the employees progress towards these goals.
  • The technique emphasises on setting goals
    collectively by superior and subordinates.
  • MBO focuses attention on what must be
    accomplished (goals) rather than how it is to be
    accomplished.
  • It is a kind of goal setting and appraisal
    program.

59
Steps involved in mbo
  • Set Organisational goals
  • Set Departmental goals
  • Discuss Departmental goals
  • Define expected results
  • Performance Reviews
  • Provide feedback

60
Ranking method
  • Ranking of an employee in a work group is done
    against that of another employee.
  • Employees are ranked according to their relative
    levels of job performance
  • In practice, its is very difficult to compare
    individuals possessing varied behavioural traits.
  • It does not tell how much better / worse an
    employee is when compared to another employee.
  • No systematic procedure for ranking individuals
    in the organisation

61
Paired comparison method
  • Each worker is compared with all the other
    employees in the group.
  • The comparison is done for every trait.
  • Cant be applicable when the group is large.

As compared to A B C D E
A _ _
B _ _
C _ _
D _ _ _
E _ _
62
Providing feedback
  • Adequate Preparation
  • Describe Behavior
  • Acts, Not attitude
  • Listen to recipient
  • Data based feedback
  • Suggestive
  • Reinforcement
  • Continuous
  • Proper Timing
  • Help the appraisee

63
Problems with performance appraisal
  • Judgement Errors
  • Primacy Effect
  • Halo Effect
  • Horn Effect
  • Leniency
  • Central Tendency
  • Recency Effect
  • Poor appraisal forms
  • Lack of Rater preparedness

64
Employee Type
  • Low potential Low Performance
  • Low potential High Performance
  • Low performance High Potential
  • High performance High potential

65
Training and Development
66
Training
  • Any attempt to change an employees current and
    future performance by changing his knowledge,
    skills and attitude can be termed as training

67
Importance Need of training
  • Aids in new entrants attaining role clarity
  • To bridge gap between skills requirement and
    skills availability
  • Promotions
  • Improves quality and productivity
  • Meet organizational objectives
  • Improves organizational climate
  • To support personal growth and development

68
Then why is training often neglected?
69
Training Cycle
70
Training need Assessment
  • Organisational Analysis
  • Analysis of Organization's Objectives
  • Resources utilization analysis
  • Environmental Scanning
  • Organisational Climate analysis
  • Task or Role Analysis
  • Performance Standards
  • The task they have to discharge
  • Person Analysis

71
Implementation
  • Selecting the Trainees
  • Selecting the Trainer
  • Selecting the Venue
  • Developing Training Program
  • Required arrangements before the training session

72
Evaluation
  • Levels of evaluation
  • How did participants react?
  • What did participants learn?
  • How did participants behaviour change?
  • What organisational goals were affected?
  • Cost Benefit Analysis

73
Management Development Program
74
What is MDP need for MDP
  • Is the process of a conscious and systematic
    improvement of managerial effectiveness within
    the organisation, to achieve organizational goals
    and strategies
  • Need for MDP
  • Skills of executives may become redundant
    without training and development
  • Change in business environment
  • Conglomeration and integration
  • Interpersonal skills

75
MDP process
Design an apt Management devt team
No action to Be taken
Desired output generated
yes
output
No
Management skill Only need improvement
Problem exists
how to overcome the problem?
Restructure organization elements
Both managerial Skills and organizational Element
s need improvement
Either Or all
Which of the two Can be improved easily
Either managerial skill or organizational
elements need improvement
Organizational elements only need improvement
76
Need Analysis
  • What type of managers are needed today ?
  • What type of managers will we need tomorrow ?
  • Insight may be drawn from
  • Organisation structure
  • Business strategy
  • Collect information like education, experience,
    training, special knowledge, skills, and personal
    traits required for each job

77
Current Appraisal
  • Current profiles based on
  • education,
  • experience,
  • training,
  • special knowledge,
  • skills, and
  • personal traits
  • Competency Mapping ???

78
Competency mapping Matrix
Strengths
Position Competency
Personal Competency
Development Areas
A B C D E F
79
Employee Motivation
80
Motivation
  • Motivation refers to set of forces that cause
    people to behave in certain ways
  • Performance of an individual depends on his or
    her ability backed by Motivation
  • Performance f (ability X motivation)
  • It is essential to offer highly motivated
    employees to the organisation
  • Its a tough challenge because there is no one
    fit approach to motivation
  • To which stimulus employee respond, how they
    respond and what behavioural outcomes do hey
    exhibit is difficult to say.

81
Motivation framework
Employee
82
Motivational Theories
  1. Maslows Theory of Motivation
  2. Two factor Theory by Fredrick Herzberg
  3. ERG Theory by Alderfer
  4. Achievement Motivation Theory by David C.
    McClelland
  5. Expectancy Theory by Vroom
  6. Equity Theory by Adams

Content Theories
Process Theories
83
2. Two factor Theory
  • Proposed by psychologist Fredrick Herzberg.
  • Survey of factors affecting work motivation
  • Survey of 200 accountant and engineers
  • Respondents were asked essentially two questions
  • When did you feel particularly good about your
    job
  • When did you feel exceptionally bad about your
    job

84
Findings
Hygiene Factors
No Dissatisfaction
Dissatisfaction
Motivators
Satisfaction
No Satisfaction
  • Satisfaction and Dissatisfaction are not opposite
    poles of one dimensions, they are separate
    dimensions.
  • Satisfaction is affected by Motivators and
    dissatisfaction by Hygiene Factors
  • To achieve motivation, managers should cope with
    both satisfiers and dissatisfiers.

85
Hygiene Factors and Motivators
Company Policy and Administration
Hygiene Factors
Motivators
Achievement Recognition Work Itself Responsibility
Growth Advancements
Security
Working Conditions
Status
Salary
86
3. Erg Theory
  • Developed by Alderfer
  • The E, R and G theory stand for Existence,
    Relatedness and Growth the three sets of needs.
  • Needs stated by Alderfer are same as Maslows
    Need and are important determinants of Human
    Behavior
  • However, the ERG theory differs from the Maslows
    theory in three respects
  • Only three needs
  • Maslows theory follows a rigid step like
    progression whereas ERG theory hypothesises that
    more than one need may be operative at the same
    time.
  • Maslow had stated that a person will stay at a
    certain level until that need is satisfied
    whereas ERG theory states that when a higher
    level need is frustrating, the individuals
    desire to increase the lower level needs
    increases.

87
4. Achievement Motivation Theory
  • Developed by David McClelland
  • According to this theory the needs that motivate
    human behavior are Power, Affiliation and
    Achievement
  • This theory envisages that each person has a need
    for all the three, but differ in degree to which
    various needs motivate their behavior.
  • Need for Achievement
  • Derive satisfaction from reaching their goals
  • High achievers prefer immediate feedback on their
    performance
  • Generally undertake task of moderate difficulty
  • They dislike tasks with high risks because they
    get no achievement satisfaction from accidental
    successes
  • They dislike easy tasks because there is no
    challenge to their skills

88
4. Achievement Motivation Theory
  • Need for Power
  • Derive satisfaction from the ability to control
    others
  • Actual achievement of goals are less important
    than the means by which goals are achieved
  • Organisations that fosters power motive tend to
    attract individuals with a high need for power
  • Need for Affiliation
  • Derive satisfaction from social and interpersonal
    activities
  • There is a need to form strong interpersonal ties
    and to get close to people psychologically
  • If asked to choose between working at a task with
    those who are technically competent and those who
    are their friends, high need for affiliation
    individuals will choose their friends

89
Matching Content theories
Achievement Motivation Model
Need Hierarchy
Two Factor Theory
Self Actualisation
ERG Theory
  • Motivators
  • Advancement
  • Growth
  • Achievement

Need for Achievement
Growth
Self Esteem
Need for Power
Relatedness
Affiliation
  • Hygiene
  • Job Security
  • Salary
  • Working Conditions

Need for Affiliation
Security
Existence
Psychological
90
5. Expectancy theory
  • Pioneered by Victor H. Vroom
  • Four important variables of Expectancy Theory
    are
  • First and Second Level of Outcomes
  • Expectancy
  • Instrumentality
  • Valence
  • First and Second Level of Outcomes
  • Performance achieved as a result of efforts is
    first level outcome
  • Performance may be reflected through high
    productivity, quality of work etc.
  • Second level outcomes are the rewards that the
    first level outcome is likely to produce. They
    include pay raise, promotion, peer acceptance and
    job security

91
5. Expectancy theory contd
  • Expectancy
  • The belief that particular level of effort will
    be followed by particular level of performance is
    called expectancy
  • Effort to Performance (E P)
  • Instrumentality
  • This is the perception by an individual that
    first level outcomes are associated with second
    level outcomes
  • Performance to Outcome (P O)
  • Valence
  • Valence is an individuals preference for a
    second level outcome.
  • Desired outcomes have positive valence
  • Avoided outcomes have negative valence
  • Outcomes have 0 valence when an individual is
    indifferent about receiving it

92
5. Expectancy theory contd
  • According to Expectancy theory Motivation is
  • Expectancy X Instrumentality X Valence
  • If anyone of these variable is low, motivation is
    likely to be low
  • Managers try to ensure that employees levels of
    expectancy, instrumentality and Valence are high
    so that they will be highly motivated

93
Application of expectancy theory
Variable Objective Application
Expectancies To increase the belief that employees are capable of performing the job successfully Select people with required skills and knowledge
Expectancies To increase the belief that employees are capable of performing the job successfully Provide Training and clarify Job requirements
Expectancies To increase the belief that employees are capable of performing the job successfully Provide performance counseling
Instrumentality To increase the belief that good performance will result in valued outcomes Measure Job performance accurately
Instrumentality To increase the belief that good performance will result in valued outcomes Clearly explain the outcomes that will result from successful performance
94
Application of expectancy theory
Variable Objective Application
Valence of Outcomes To increase the expected value of outcomes resulting from desired performance Distribute rewards that employee value
95
6. Equity theory
  • Person compares their outcome/input ratio with
    others outcome/input ratio.
  • Inputs refers to the characteristics which
    individual bring with them to the job
  • Outcomes refers to what person gets from job in
    terms of pay, promotions benefits and so on.
  • Inequity is defined as the perception that
    persons outcome/input ratio is not equal to
    others outcome/input ratio
  • Negative Inequity
  • Positive Inequity

96
Compensation management
97
Components of remuneration
  • Components of Remuneration are
  • Salary
  • Incentives
  • Fringe benefits
  • Perquisites

98
Incentive Payments
  • Incentives are variable rewards granted to
    employees according to variations in their
    performance.
  • Importance
  • Greater Output
  • Reduced supervision
  • High Efficiency
  • High Motivation
  • Disadvantages
  • Deteriorated Quality
  • Jealousy feeling
  • Unwanted Stock

99
Types of Incentive Schemes
  • Individual Incentive Schemes
  • Group Incentive Schemes
  • Company Wide Incentive Plans

100
Benefits and Services
  • Employee Benefits and Services include any
    benefit that the employee receives in addition to
    direct remuneration.
  • These benefits can be in terms of Fringe Benefits
    or Perquisites
  • Fringe benefits include such benefits which are
    provided to the employees either having long-term
    impact like provident fund, gratuity, pension or
    occurrence of certain events like medical
    benefits, accident relief, health and life
    insurance or facilitation in performance of job
    like uniforms, Canteens, recreation, etc.
  • Administered for a group mostly

101
Benefits and Services
  • These are normally provided to managerial
    personnel either to facilitate their job
    performance or to retain them in the
    organization. Such perquisites include company
    car, club membership, free residential
    accommodation, paid holiday trips, stock options,
    etc.
  • Administered individually mostly

102
Factors Influencing remuneration
  • Internal factors
  • Business Strategy
  • Employee
  • Job Evaluation and Performance Appraisal
  • External factors
  • Labour Market
  • Cost of Living
  • Economy
  • Legislation

103
Importance

Administratively Efficient
Attract talent
Motivate Retain Staff
104
Challenges of remuneration
105
Compensation Matrix
HIGH COMPENSATION LOW COMMITMENT Hired Guns HIGH COMPENSATION HIGH COMMITMENT Professionals
LOW COMPENSATION LOW COMMITMENT Workers as commodity LOW COMPENSATION HIGH COMMITMENT Family oriented organization
106
Remuneration model
Job Evaluation
Job Description
Job Hierarchy
Pay Survey
Pricing Jobs
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