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Compensation Management
1.
Submitted to: Mr.
Ubaidullah Memon Presenters: Mr. Adeel Ahmed Mr. Arif Taj Mr. Muhammad Farhan COMPENSATION MANAGEMENT & ITS IMPACTS ON EMPLOYEES
2.
OUTLINE
3.
4.
WHAT IS COMPENSATION?
5.
6.
Compensation System Components
Pay Benefits
7.
8.
9.
10.
11.
COMPENSATION SYSTEM Rs.
12.
13.
HR Management Strategy
Model HR Strategy Desired Results Attract Retain Engage Select Develop Rewards
14.
EMPLOYEE COMPENSATION
15.
16.
Compensation system consist
of following elements:
17.
Compensation of
Employees Extrinsic Rewards Hourly Wages Salary Monetary Bonuses Rewards Commissions Pay Incentives Insurance Retirement Paid Vacations Benefits Food Services Credit Union Recreation Recognition Intrinsic Promotion Opportunities Rewards Working Conditions Interesting Work
18.
REWARD STRATEGY
19.
Effective Reward Strategy
20.
Balanced, Practical Reward
Strategy Model EMPLOYER’S PERSPECTIVE EMPLOYEE’S PERSPECTIVE Organization Capabilities Business Strategy Organization Structure Competencies Demographics Values Improved Business Results & Aligned Employee Behaviours Employment Deal Total Reward Strategy Pay Benefit Learning & Work Development Environment
21.
22.
CONSEQUENCES OF PAY
DISSATISFACTION
23.
Performance Strikes Grievances
Search for job Absenteeism Turnover Absenteeism Psychological Withdrawal Dispensary Visits Poor Mental Health Desire for more Pay Pay Dissatisfaction Lower Attractiveness of job Job Dissatisfaction
24.
25.
PHASES OF COMPENSATION
MANAGEMENT
26.
27.
OBJECTIVES OF EFFECTIVE
COMPENSATION MANAGEMENT
28.
29.
30.
STEPS FOR ESTABLISHING
PAY RATES
31.
32.
Pay Grade Structure
for Job-Based System Rs 10,000 Rs 30,000 Rs 50,000 Corporate Policy Line Midpoint 250 350 450 550 650 Job Evaluation Points Maximums Pay Grade Width Monthly Pay
33.
WHAT DETERMINES HOW
MUCH YOU PAY?
34.
35.
36.
EQUITY THEORY
37.
38.
Equity Perceptions Self
Other
39.
40.
EQUITY THEORY PREDICTIONS
41.
Outputs Inputs <
Outputs Inputs Outputs Inputs = Outputs Inputs Outputs Inputs > Outputs Inputs Under-reward Equity Over-reward Person B Person A
42.
43.
44.
45.
46.
MANAGERS AND COMPENSATION
47.
48.
49.
PACKAGES PRIVATE LIMITED
50.
51.
52.
53.
54.
55.
MANAGEMENT OF COMPENSATION
AND BENEFIT AT PACKAGES
56.
57.
58.
ESTABLISHING PAY RATES
AT PACKAGES
59.
60.
61.
62.
63.
INCENTIVE OR VARIABLE
PAY PLANS AT PACKAGES
64.
65.
66.
67.
68.
69.
SHORT TERM INCENTIVES
AT PACKAGES
70.
71.
72.
73.
74.
DIRECT & INDIRECT
FINANCIAL REWARDS AT PACKAGES
75.
76.
77.
78.
BENEFITS AT PACKAGES
79.
80.
81.
82.
83.
84.
85.
86.
87.
EMPLOYEES WELFARE SCHEMES
88.
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