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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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