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1、Compensation Management :Tools and TechniquesLee Kok Wai Lectures 4 and 5Day-to-Day Operational FocusFuture/Strategic FocusPeopleProcessesStrategic HR PlanningHR as Business PartnerCulture and ImageStrategicPartnerStaffingOrganizationalDesignSuccessionPlanningPerformance MeasurementTraining & Develo

2、pmentEmployee RelationsLabor RelationsEnvironment, Health, Safety & SecurityVOW Survey Action PlanCompensationBenefitsHR Information SystemsComplianceAdministrative ExpertEmployee Relations ExpertChange AgentHRs 4 Roles & Key AccountabilitiesManaging Human Resources in COMPAQCompensation Mgt. T-Comp

3、 philosophy & design T-Comp planning & admin. Incentive plans (MIPs/LTB) Profit-sharing scheme Reward & recognition prog. Expatriate mgt.Manpower Mgt. Headcount management Recruitment strategies Sources of labor supply Selection process & tools Retention strategies & plans Staff deployment Staff ori

4、entation Employee Relations Mgt. Benefits administration Code of conduct & ethics Employee discipline Employee communications Staff social, sports & recreation Community services & relationsEHS&S Mgt. Environment mgt. Employee wellness Employee health services Loss prevention Asset management Safety

5、 mgt. Culture/Values Mgt. Corporate vision Corporate mission Culture building Teambuilding Habits buildingPerformance Mgt. (HRD) Staff training & development Succession planning Career planning Coaching & counseling Appraisal review/ranking Organization development Leadership developmentHuman Resour

6、ce Admin. Records & information mgt. Personnel research HR policy review HR process improvements HR performance stds & audit Legal compliance Document control Strategic Components of Human Resources COMPENSATION MANAGEMENTWe believe in paying competitive wages that commensurate with job size and ind

7、ividual performanceWELFARE MANAGEMENTWe believe in being a firm, fair and caring employer. We strive to make employees value their jobs and want to remain in the organization based on their abilities to contribute and grow.PERFORMANCE MANAGEMENTWe believe in equipping employees with the necessary sk

8、ills to do a good job, providing them with the tools, the environment, the support and the information needed to excel in their jobs.CAREER MANAGEMENTWe believe in matching employees strengths and aptitudes to available jobs, developing them to their highest potential and offering them opportunities

9、 to advance in their careers.CULTURE/VALUE MANAGEMENTWe believe in instilling our corporate core values and promoting a corporate culture that emphasizes results, teamwork, learning, sharing, service quality and work excellence.InternalequityExternalequityEmployeeequityAdministrationConceptsCompensa

10、tion TechniquesPlanning, Budgeting, Monitoring, EvaluatingJobAnalysisJobDescriptionJobEvaluationJobGradesMarketDefinitionsSalarySurveysPolicyLinesPayStructuresSeniorityIncreasesPerformanceEvaluationIncreaseGuidelinesCompensation ObjectivesRole clarity and accountability.Facilitates administration an

11、d performance management.Competitive wage policies and practices.Influence employees workattitudes and behaviour.Attract talents.Retain talents.Motivate employees.Comply with regulations.Consistency in policyadministration.The Strategic Compensation ModelWhat is Job Evaluation?Job evaluation is a de

12、cision process of comparing one job with 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 EvaluationEval

13、uating the job, not the job-holderEvaluating the present job, not the future jobJob is being carried out in a fully acceptable and competent mannerProcess of evaluation is based on given facts in the job descriptions.Evaluate the job based on the “primary responsibilities” and ignore the “special pe

14、rsonal-to-holder responsibilities.” Job Evaluation : 3 Main MethodsQualitative 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 C

15、lassification Method adopted by Academic Institutions such as UniversitiesJob 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 Professo

16、r)Job Class C : Doctoral Degree 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

17、 3 to 5 years experience (Assistant Lecturer) Job Class F : Masters Degree with less than 3 years experience (Teaching or Research Assistant) Job Evaluation: The Point MethodJob Evaluation Process1. Form a Job Evaluation Steering Committee2. Draw up a workplan for the exercise3. Decide on the benchm

18、ark jobs4. Decide on the job factors for the evaluation5. Determine number of degrees for each factor6. Prepare job descriptions based on job-factor format7. Analyse each benchmark job in terms of factors and degrees8. Decide on the weights of each factor9. Determine the weighted score for each benc

19、hmark job10. Slot in all other jobs into the job gradesThe Point MethodForm the Job Evaluation (JE) Steering Committeea. 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 extern

20、al consultant is 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 # 12FactorABCDEEducation20406080100Experience306090120150Inter

21、personal Skills1020304050Problems Encountered306090120150Size of unit supervised1020304050Decision Making306090120150Work Environment1020304050Impact of errors306090120150Contacts/Committees1020304050Assets Controlled ($)20406080100Total Score = 440 pointsThe Point MethodSlot all other jobs into the

22、 job gradesa. 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 MethodThis method, first developed by Dr Edward N. Hay in the early 1950s, is essentially concerned with decision making and responsibility

23、. 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 accountability

24、 in a job. The Guide-Chart Profile : 4 Critical ObservationsThe 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 order

25、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 jobsThe focus of the process of job evaluation must be on the nature and requirements of the job itself, not

26、 on the skills or background or characteristics or pay of the job holder.The Guide-Chart Profile : Hay MethodThere 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 Method : Kn

27、ow-HowWhat is Know-HowKnow-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 breadth by

28、five degrees The Guide-Chart Profile Method : Know-HowThe 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 of Know- How.I

29、ntegrating 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-HowActive, practicing person-to-person skills in work with other people. This is

30、referred to as the Human Relations Skill. Depth Of Know-HowA. Education to post primary levelB. Practiced in standard work routines and /or use of simple equipment and machinesC. Procedural or systematic efficiency and use of specialized equipmentD. Specialized skill gained by on-the-job experience

31、or through part professional qualification E. Understanding of theoretical principles normally gained through professional qualification or through a detailed group of involved practices and proceduresF. Seasoned proficiency in a highly specialized field, gained through experience built on theories

32、or a broad and deep understanding of complex practicesG. Mastery of principles, practices and theories gained through wide experience and/or special developmentH. Unique command of principles, theories and practices The Guide-Chart Profile Method : Know-HowBreadth Of Know-HowI. Non or minimal Perfor

33、mance or supervision of jobs which have closely specified objectivesII. Homogeneous Integration of operations which are homogeneous in nature and objective, and coordination with associated functionsIII. Heterogeneous Integration or coordination of diverse functions or sub-functions in a company; or

34、 inter-company coordination of a tactical functionIV. Broad Integration of the major functions in an operating company; or group-wide coordination of a strategic function affecting policy formationV. Total The management of strategic functions and policy formation The Guide-Chart Profile Method : Kn

35、ow-HowHuman Relations Skills1. Basic Ordinary courtesy and effectiveness in dealing with others2. Important Understanding and influencing people, important but not over-riding considerations3. Over-riding Skills in developing and motivating people are over-riding considerations The Guide-Chart Profi

36、le Method : Know-HowThe Guide-Chart Profile Method : Know-HowGuide-Chart Profile Method : Problem SolvingWhat is Problem SolvingThe use of Know-How required by the job to identify, define, and resolve problems. “You think with what you know.” This is even true for the most creative work. The raw mat

37、erial 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 placeThe challenge presented by the thinking to be done The Guide-Chart Profile M

38、ethod Problem-SolvingThinking Environment A. Detailed rules and/or rigid supervisionB. Standard instructions and/or continuous close supervisionC. Well-defined procedures, somewhat diversified and/or supervisedD. Substantially diversified established company procedures, and general supervisionE. Cle

39、arly defined company policies, principles and specific objectives under readily available directionF. Broad policies and objectives, under general directionG. General policies, principles and goals under guidanceH. Business philosophy and/or principles controlling human affairsThe Guide-Chart Profil

40、e Method Problem-SolvingThinking ChallengeI. Repetitive Identical situations requiring solution by simple choice of things learnedII. Patterned Similar situations requiring solution by discriminating choice of things learnedIII. Variable Differing situations requiring searching, finding and selectin

41、g solutions within the area of things learnedIV. Adaptive Situations requiring analytical interpretive and/or constructive thinking. Judgment is requiredV. Creative Novel or non-recurring path-finding situations requiring the development of new concepts and imaginative approaches Guide-Chart Profile

42、 Method : AccountabilityWhat 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 personal, procedural, or systematic guidance or control of

43、actions in relation to the primary emphasis of the jobJob 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 organization 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 - AccountabilityFreedom To ActA. Prescribed Direct and detailed

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