Job evaluation is used to determine the relative worth of different jobs in an organization. It analyzes and assesses the content of jobs to rank them and provide a basis for fair compensation. The document discusses various job evaluation methods including analytical methods that break jobs down into factors and comparison methods that rank or classify jobs. It also covers concepts related to compensation including direct compensation like salary and allowances, and indirect compensation like benefits. Key aspects of payroll management and incentives are explained as well.

1. Managing Compensation

2. Job Evaluation
 Determine the worth of one job in relation to that
of another without regard to the personalities.
 It analyses & accesses the content of jobs, to
place them in some standard rank order.
 It is used as a basis for a fair and logical
remuneration system.

3. Importance
 To decide salary
 Level of job
 Importance of job
 To reduce loss of time due to wage negotiation &
disputes.

4. Process
Job Analysis
Objective
Job Description Job Specification
Job Evaluation
Programme
Wage Survey
Fixing monetary value

5. JOB EVALUATION METHODS
Comparison Method Analysis Method
Entire Job Job Factors
Job Against Scale
Job Against Job
Classification Point Method
Ranking
Factor
Comparison

6. Comparison Method…
 Ranking Method : on the basis of its title
 Classification Method : on the basis of job as a
whole (degree of skill, responsibilities, physical
work & other job characteristics.)

7. Analytical Method…
 Point Ranking Method : Job is broken down into
its component factors and then evaluated
separately rather than evaluating the job as a
whole.
 Factor Comparison Method : Five factor are
mental requirements, skill requirements, physical
requirements, responsibilities & working
condition.

8. Compensation, Employee Payroll &
Incentive Management

9. Concepts of Wages
 Minimum Wages
 Fair Wages
 Living Wages

10. Equity Theory
Perceptions of
Fairness
Individual
Equity
External
Equity
Internal Equity
Performance
Commitment
Motivation

11. Compensation Management
 Compensation provided to employees can direct in
the form of monetary benefits and/or indirect in the
form of non-monetary benefits known as perks, etc.
 Compensation does not include only salary but it is
the sum total of all rewards and allowances provided
to the employees in return for their services.

12. Types of Compensation
• Direct Compensation
• Indirect Compensation

13. Direct Compensation
Direct compensation refers to monetary benefits
offered and provided to employees in return of
the services they provide to the organization.

14. Direct Compensation

15. Components in Direct Compensation
 Basic Salary
 HRA (House Rent Allowance)
 CA (Conveyance Allowance)
 LTA (Leave Travel Allowance)
 Medical Reimbursement
 Bonus (Salary Bonus)
 SA (Special Allowance)

16. Components in Direct Compensation
1) HRA (House Rent Allowance):
Organizations either provide accommodations to
its employees who are from different state or
country or they provide house rent allowances to
its employees

17. Components in Direct Compensation
2) Conveyance :
Organizations provide for cab facilities to their
employees. Few organizations also provide
vehicles and petrol allowances to their employees
to motivate them.

18. Components in Direct Compensation
3) Leave Travel Allowance:
 These allowances are provided to retain the best
talent in the organization.
 The employees are given allowances to visit any
place they wish with their families.
 The allowances are scaled as per the position of
employee in the organization.

19. Components in Direct Compensation
4) Medical Reimbursement :
 Organizations also look after the health
conditions of their employees.
 The employees are provided with medi-claims for
them and their family members.
 These medi-claims include health-insurances
and treatment bills reimbursements

20. Components in Direct Compensation
5) Bonus:
 Bonus is paid to the employees during festive
seasons to motivate them and provide them the
social security .
 The bonus amount usually amounts to one
month’s salary of the employee.

21. Components in Direct Compensation
6) Special Allowance :
 Special allowance such as overtime, mobile
allowances, meals, commissions, travel
expenses, reduced interest loans; insurance, club
memberships, etc are provided to employees for
motivation and company’s productivity.

22. Indirect Compensation
 Indirect compensation refers to non-monetary
benefits offered and provided to employees in lieu
of the services provided by them to the
organization.
 They include Leave Policy, Overtime Policy, Car
policy, Hospitalization, Insurance, Leave travel
Assistance Limits, Retirement Benefits, Holiday
Homes.

23. Indirect Compensation

24. Components in Indirect
Compensation
 Leave Policy
 Overtime Policy
 Hospitalization
 Insurance
 Leave Travel
 Retirement Benefits
 Holiday Homes
 Flexible Timings

25. Components in Indirect
Compensation
1) Leave Policy:
 It is the right of employee to get adequate
number of leave while working with the
organization.
 The Leave Policy differs in every organization.
 The organizations provide for paid leaves
such as, casual leaves, medical leaves (sick
leave), and maternity leaves, statutory pay,
etc.

26. Components in Indirect
Compensation
2) Overtime Policy :
 Employees should be provided with the adequate
allowances and facilities during their overtime, if
they happened to do so, such as transport
facilities,etc.

27. Components in Indirect
Compensation
3) Hospitalization :
 The employees should be provided allowances to
get their regular check-ups, say at an interval of
one year.
 Even their dependents should be eligible for the
medi-claims that provide them emotional and
social security.

28. Components in Indirect
Compensation
4) Insurance :
 Organizations also provide for accidental
insurance and life insurance for employees.
 This gives them the emotional security and they
feel themselves valued in the organization.

29. Components in Indirect
Compensation
5) Leave Travel :
 The employees are provided with leaves and
travel allowances to go for holiday with their
families. Some organizations arrange for a tour
for the employees of the organization.
 This is usually done to make the employees
stress free.

30. Components in Indirect
Compensation
6) Retirement Benefits :
 Organizations provide for pension plans and
other benefits for their employees which benefits
them after they retire from the organization at the
prescribed age.

31. Components in Indirect
Compensation
7) Holiday Homes :
 Organizations provide for holiday homes and
guest house for their employees at different
locations.
 These holiday homes are usually located in
hill station and other most wanted holiday
spots.
 The organizations make sure that the
employees do not face any kind of difficulties
during their stay in the guest house.

32. Components in Indirect
Compensation
8) Flexible Timings :
 Organizations provide for flexible timings to the
employees who cannot come to work during
normal shifts due to their personal problems and
valid reasons.

33. Payroll Management

34. Payroll Management
 Payroll refers to the administration of
employees' salaries, wages, bonuses, net
pay, and deductions.
 It consist of the employee ID, employee
name, date of joining, daily attendance record,
basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays,
vacations and sickness, value of meals and
lodging etc.
 There are some deductions such as PF,
taxes, loan installments or advances taken by
employee.

35. Components of Monthly Payroll of an
Employee

36. Payroll Management
 Deductions such as tax and loan/advances
taken by the employee from organizations are
deducted only where applicable.
 Dearness Allowance and House rent
allowance is provided at a fixed rate stated by
the employment law.
 Provident fund is deducted from the gross
salary of employee on the monthly basis as
per the employment law, which is provided
later to the employee.
 Organizations also contribute the same
amount to the provident fund of the employee.

37. Annual Payroll Management
What is Annual Payroll?
 Annual payroll consists of leave travel
allowances, incentives, annual bonuses, meal
vouchers/reimbursements, and medical
reimbursements.

38. Components of Annual Payroll

39. Incentive Management

40. Incentive Management
 In today’s strategic compensation systems,
incentives forms an integral part of the
performance based compensation packages.
 It is a challenge for organizations to formulate
strategies to maintain the internal equity and
external equity and provide the most
competitive compensation packages to attract
and retain the talented workforce

41. Incentive Management
 For the purpose effective incentives programs are
undertaken. Employees are involved in the
process so as to deliver un-biased packages to
all the employees.
 The compensation strategies should be effective.
 All the employees should be aware of the
organizational goals and objectives.

42. Benefits of Incentives

43. Benefits of Incentives
 Deserving employees should receive
significant rewards .
 Incentives accounts for employees’ high
productivity.
 Today youngsters believe in performance
based pay, thus incentives will help to
motivate them to produce more.
 In the hospitality and retail industry it is the
incentive that accounts for the overall
package of the employee.

44. Thank You

45. COMPENTENCY MAPPING
 Competency mapping is a way of assessing the
strengths and weaknesses of a worker or
organization.
 It's about identifying a person's job skills and
strengths in areas like teamwork, leadership, and
decision-making.
 Work History

46.  Strengths in two major areas :
 Functional – Practical Knowledge
 Behavioral- Personal Skills

47. Benefits
 Businesses – Employees performance, increase
productivity
 Individuals – Personal Growth

48. Techniques
 360 degree Feedback
 Assessment Centre