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Compensation

Management

:Tools

and

TechniquesLee

Kok

WaiLectures

4

and

5Day-to-Day

Operational

FocusFuture/Strategic

FocusPeopcessesStrategic

HR

PlanningCulture

and

ImageStrategicPartnerHR

as

Business

PartnerStaffingOrganizationalDesignSuccessionPlanningPerformanceMeasurementTraining

&DevelopmentEmployeeRelationsRelationsEnvironment,Health,

Safety

&SecurityVOWSurveyAction

PlanLaborCompensationBenefitsComplianceHR

InformationSystemsAdministrativeExpertEmployeeRelationsExpertChangeAgentHR’s

4

Roles

&

Key

AccountabilitiesManaging

Human

Resources

in

COMPAQCompensation

Mgt.T-Comp

philosophy

&

designT-Comp

planning

&

admin.Incentive

plans

(MIPs/LTB)Profit-sharing

schemeReward

&

recognition

prog.Expatriatemgt.Manpower

Mgt.Headcount

managementRecruitmentstrategiesSources

of

labor

supplySelection

process

&

toolsRetention

strategies

&

plansStaffdeploymentStaff

orientationEmployee

Relations

Mgt.Benefits

administrationCode

of

conduct

&

ethicsEmployee

disciplineEmployee

communicationsStaff

social,

sports

&

recreationCommunity

services

&

relationsEHS&

S

Mgt.Environment

mgt.Employee

wellnessEmployee

health

servicesLosspreventionAsset

managementSafetymgt.Culture/ValuesMgt.Corporate

visionCorporate

missionCulture

buildingTeambuildingHabits

buildingPerformance

Mgt.

(HRD)Staff

training

&

developmentSuccession

planningCareer

planningCoaching

&

counselingAppraisal

review/rankingOrganizationdevelopmentLeadership

developmentHuman

Resource

Admin.Records

&

informationmgt.Personnel

researchHR

policy

reviewHR

process

improvementsHR

performance

stds

&

auditLegal

complianceDocument

controlStrategic

Components

of

Human

ResourcesCOMPENSATION

MANAGEMENTWe

believe

in

paying

competitive

wages

that

commensurate

withjob

size

andindividual

performanceWELFARE

MANAGEMENTWe

believe

in

being

a

firm,

fair

and

caring

employer.

We

strive

to

make

employees

vtheir

jobs

and

want

to

remain

in

the

organization

based

on

their

abilities

to

contand

grow.PERFORMANCE

MANAGEMENTWe

believe

in

equipping

employees

with

the

necessary

skills

to

doagood

job,

provthem

with

the

tools,

the

environment,

the

support

and

the

informationneeded

to

extheir

jobs.CAREER

MANAGEMENTWe

believe

in

matching

employees’

strengths

and

aptitudes

to

available

jobs,

devthem

to

their

highest

potential

and

offering

them

opportunities

to

advance

in

thecareers.CULTURE/VALUE

MANAGEMENTWe

believe

in

instilling

our

corporate

core

values

andpromotinga

corporate

cultemphasizes

results,teamwork,learning,

sharing,

service

quality

and

work

excellInternalequityExternalequityEmployeeequityAdministrationConceptsCompensation

TechniquesPlanning,

Budgeting,

Monitoring,

EvaluatingJob

Job

Job

JobAnalysis

DescriptionEvaluation

GradesMarket

SalaryDefinitionsSurveysPolicyLinesPayStructuresSeniority

Performance

IncreaseIncreases

Evaluation

GuidelinesCompensation

ObjectivesRole

clarity

and

accountability.Facilitates

administration

andperformance

management.Competitive

wage

policies

andpractices.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

decision

process

ofcomparing

one

job

with

another

jobwith

the

aim

of

establishing

therelative

importance

of

jobs

within

theorganization.Job

evaluation

will

provide

an

internallylogical

ranking

of

all

jobs

which

willform

the

basis

of

the

company’ssalary

structurePrinciples

For

Job

Evaluation❏Evaluating

the

job,

not

the

job-holder❏Evaluating

the

present

job,

not

the

future

job❏Job

is

being

carried

out

in

a

fully

acceptableand

competent

manner❏Process

of

evaluation

is

based

on

given

factsin

the

job

descriptions.❏Evaluate

the

job

based

on

the

“primaryresponsibilities”

and

ignore

the

“specialpersonal-to-holder

responsibilities.”Job

Evaluation

:

3

Main

Methods❏Qualitative

Method

(an

example

is

theJob

Classification

Method

and

the

JobComparison

Method)❏Quantifying

the

Qualitative

Method

(anexample

is

the

Point

Method)❏Quantitative

Method

(an

example

is

theGuide

Chart

Profile

Method)Job

Classification

Method

adopted

byAcademic

Institutions

such

as

Universities❏

Job

Class

A

:

Doctorate

Degree

with

at

least

10years

post

doctoral

experience

plus

relevantmanagement

experience

(Faculty

Head)❏

Job

Class

B

:

Doctoral

Degree

with

at

least

5

to

10years

post

doctoral

experience

(Full

Professor)❏

Job

Class

C

:

Doctoral

Degree

with

less

than

5years

post

doctoral

experience

or

Masters

Degreewith

over

10

years

post

graduate

experience(Associate

Professor

and

Senior

Lecturer)❏

Job

Class

D

:

Masters

Degree

with

5

to

10

yearspost

graduate

experience

(Lecturer)❏

Job

Class

E

:

Masters

Degree

with

3

to

5

yearsexperience

(Assistant

Lecturer)❏

Job

Class

F

:

Masters

Degree

with

less

than

3years

experience

(Teaching

or

Research

Assistant)Job

Evaluation:

The

Point

MethodJob

Evaluation

ProcessForm

a

Job

Evaluation

Steering

CommitteeDraw

up

a

workplan

for

the

exerciseDecide

on

the

benchmark

jobsDecide

on

the

job

factors

for

the

evaluationDeterminenumber

of

degrees

for

each

factorPrepare

job

descriptions

based

on

job-factor

formatAnalyse

each

benchmark

job

in

terms

of

factors

and degreesDecide

on

the

weights

of

each

factorDetermine

the

weighted

score

for

each

benchmark

jobSlot

in

all

other

jobs

into

the

job

gradesThe

Point

MethodForm

the

Job

Evaluation

(JE)

SteeringCommitteeThe

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.If

an

external

consultant

is

employed

to

assist

i the

exercise,

then

he

should

be

designated

as

the

advisor

to

the

Steering

Committee.

The

HR Manager

should

then

double-up

as

the

counterpartfor

internal

skills

transfer.Job

Factor

Score

Sheet:

Job

#

12FactorABCDEEducation20406080100Experience306090120150Interpersonal

Skills1020304050Problems

Encountered306090120150Size

of

unit

supervised1020304050Decision

Making306090120150Work

Environment1020304050Impact

of

errors306090120150Contacts/Committees1020304050AssetsControlled

($)20406080100Total

Score

=

440

pointsThe

Point

MethodSlot

all

other

jobs

into

thejob

gradesFrom

the

clusters,

decide

on

thenumber

of

job

grades

to

adopt.Slot

in

all

other

jobs

into

thejob

gradadopted.The

Guide-Chart

Profile

:

Hay

MethodThis

method,

first

developed

by

Dr

EdwardN.Hay

in

the

early

1950s,

is

essentiallyconcerned

with

decision

making

andresponsibility. GuideChartswere

created

in1951

in

client

situations.Emphasis

was

placed

on

answerability

for

theconsequences

of

decisions,

the

degree

offreedom

to

take

decisions

and

bring

them

tofruition,

the

degree

to

which

there

is

primeaccountability,

as

compared

to

shared

orcontributory

accountability

in

a

job.The

Guide-Chart

Profile

:

4

Critical

Observations❏The

most

significant

factor

could

be

grouped

asrepresenting

the

knowledge

required

to

do

a

job,

thekind

of

thinking

needed

to

solve

the

problemscommonly

faced,

and

the

responsibilities

assigned.❏Jobs

could

be

ranked

not

only

in

the

order

ofimportance

within

the

organization,

but

the

distancebetween

the

ranks

could

be

determined.❏The

factors

appeared

in

certain

kinds

of

patternsthat

seemed

to

be

inherent

to

certain

kinds

of

jobs❏The

focus

of

the

process

of

job

evaluation

must

beon

the

nature

and

requirements

of

the

job

itself,

noton

the

skills

or

background

or

characteristics

or

payof

the

job

holder.The

Guide-Chart

Profile

:

Hay

MethodThere

are

Three

Factors

with

atotal

of

eight

elements

whichdetermine

the

value

of

differentjobs.

They

are:Know-HowProblem-SolvingAccountabilityThe

Guide-Chart

Profile

Method

:

Know-HowWhat

is

Know-How❏

Know-How

is

the

total

of

every

kind

of

skillrequired

for

average

acceptable

jobperformance.

It

is

knowledge

and

experiencein

professional,

managerial

and

humanRelations

activities

necessary

to

fulfill

thejob.❏

Know-How

is

measured

indepthby

eightdegrees

and

in

breadth

by

five

degreesThe

Guide-Chart

Profile

Method

:

Know-HowThe

three

dimensions

of

Know-How

are:❏

Practical

procedures,

specialized

techniques

andknowledge

within

occupational

fields,

commercialfunctions,

and

professional

or

scientific

disciplinThis

is

commonly

referred

to

as

the

Depth

of

Know-

How.❏

Integrating

and

harmonizing

simultaneousachievements

of

diversified

functions

withinmanagerial

situations

occurring

in

operating,technical,

support

or

administrative

fields.

This

ireferred

to

as

the

Breadth

of

Know-How❏

Active,

practicing

person-to-person

skills

in

workwith

other

people.

This

is

referred

to

as

the

Human

Relations

Skill.Depth

Of

Know-HowEducation

to

post

–primary

levelPracticed

in

standard

work

routines

and

/oruse

of

simple

equipment

a machinesProcedural

or

systematic

efficiency

and

use

of

specialized

equipmenSpecialized

skill

gained

by

on-the-job

experience

or

through

part professional

qualificationUnderstanding

of

theoretical

principles

normally

gained

throughprofessional

qualification

or

through

a

detailed

group

of

involvedpractices

and

proceduresSeasoned

proficiency

in

a

highly

specialized

field,gained

throughexperience

built

on

theories

or

a

broad

and

deep

understanding

ofcomplex

practicesMastery

of

principles,

practices

and

theories

gained

through

wide experience

and/or

special

developmentUnique

command

of

principles,

theories

and

practicesThe

Guide-Chart

Profile

Method

:

Know-HowBreadth

Of

Know-HowI.

Non

or

minimal

Performance

or

supervision

of

jobs

which

haveclosely

specified

objectivesHomogeneous

Integration

of

operations

which

are homogeneous

in

nature

and

objective,

and

coordination

with associated

functionsHeterogeneous

Integration

or

coordination

of

diverse

func or

sub-functions

in

a

company;

or

inter-company

coordinatio of

a

tactical

functionBroad

Integration

of

the

major

functions

in

an

operating company;

or

group-widecoordination

of

a

strategicfunction affecting

policy

formationTotal

The

management

of

strategic

functions

and

policy formationThe

Guide-Chart

Profile

Method

:

Know-HowHuman

Relations

SkillsBasic

Ordinary

courtesy

and

effectiveness in

dealing

with

othersImportant

Understanding

and

influencing people,

important

but

not

over-riding considerationsOver-riding

Skills

in

developing

and motivating

people

are

over-riding considerationsThe

Guide-Chart

Profile

Method

:

Know-HowThe

Guide-Chart

Profile

Method

:

Know-HowGuide-Chart

Profile

Method

:

Problem

SolvingWhat

is

Problem

Solving❏

The

use

of

Know-How

required

by

the

job

toidentify,

define,

and

resolve

problems.

“Youthink

with

what

you

know.”

This

iseventruefor

the

most

creative

work.

Therawmaterial

ofany

thinking

is

knowledge

of

facts,

principlesand

means. For

that

reason,

Problem

Solvingis

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

doneThe

Guide-Chart

Profile

Method

Problem-SolvinThinking

EnvironmentDetailed

rules

and/or

rigid

supervisionStandard

instructions

and/or

continuous

close supervisionWell-defined

procedures,

somewhatdiversified

and/or supervisedSubstantially

diversified

established

company procedures,

and

generalsupervisionClearly

defined

company

policies,

principles

and

specific objectives

under

readily

available

directionBroad

policies

and

objectives,

under

general

directionGeneral

policies,

principles

and

goals

under

guidanceBusiness

philosophy

and/or

principles

controlling human

affairsThe

Guide-Chart

Profile

Method

Problem-SolvingThinking

Challenge

Repetitive

Identical

situations

requiring

solutisimple

choice

of

things

learned

Patterned

Similar

situations

requiring

solutiondiscriminating

choice

of

things

learnedVariable

Differing

situations

requiring

searchifinding

and

selecting

solutions

within

the

area

ofthings

learned

Adaptive

Situations

requiring

analytical

interprand/or

constructive

thinking.

Judgment

is

requiredCreative

Novel

or

non-recurring

path-finding situations

requiring

the

development

of

new

concepts and

imaginative

approachesGuide-Chart

Profile

Method

:

AccountabilityWhat

is

Accountability?❏

The

answerability

for

action

and

for

the

consequencethereof.

It

is

themeasured

effect

of

the

job

on

endresults

of

the

organization.

It

has

three

dimensions❏

Freedom

to

Act

-

is

the

extent

of

personal,

proceduraor

systematic

guidance

or

control

of

actions

in

relatto

the

primary

emphasis

of

the

job❏

Job

Impact

on

End

Results

is

the

extent

to

which

jobcan

directly

affects

actions

necessary

to

produceresults

within

its

primary

emphasis.❏

Magnitude

is

the

portion

of

the

total

organizationencompassedby

the

primary

emphasis

of

the

job.This

is

usually

but

not

necessarily,

reflected

by

theannual

revenue

or

expense

dollars

associated

with

thearea

in

which

the

job

has

its

primary

emphasis.The

Guide-Chart

Profile

Method

-

AccountabilityFreedom

To

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