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CompensationManagement ToolsandTechniques StrategicPartner AdministrativeExpert EmployeeRelationsExpert ChangeAgent HR s4Roles KeyAccountabilities ManagingHumanResourcesinCOMPAQ CompensationMgt T Compphilosophy designT Compplanning admin Incentiveplans MIPs LTB Profit sharingschemeReward recognitionprog Expatriatemgt ManpowerMgt HeadcountmanagementRecruitmentstrategiesSourcesoflaborsupplySelectionprocess toolsRetentionstrategies plansStaffdeploymentStafforientation EmployeeRelationsMgt BenefitsadministrationCodeofconduct ethicsEmployeedisciplineEmployeecommunicationsStaffsocial sports recreationCommunityservices relations EHS SMgt Environmentmgt EmployeewellnessEmployeehealthservicesLosspreventionAssetmanagementSafetymgt Culture ValuesMgt CorporatevisionCorporatemissionCulturebuildingTeambuildingHabitsbuilding PerformanceMgt HRD Stafftraining developmentSuccessionplanningCareerplanningCoaching counselingAppraisalreview rankingOrganizationdevelopmentLeadershipdevelopment HumanResourceAdmin Records informationmgt PersonnelresearchHRpolicyreviewHRprocessimprovementsHRperformancestds auditLegalcomplianceDocumentcontrol StrategicComponentsofHumanResources COMPENSATIONMANAGEMENTWebelieveinpayingcompetitivewagesthatcommensuratewithjobsizeandindividualperformanceWELFAREMANAGEMENTWebelieveinbeingafirm fairandcaringemployer Westrivetomakeemployeesvaluetheirjobsandwanttoremainintheorganizationbasedontheirabilitiestocontributeandgrow PERFORMANCEMANAGEMENTWebelieveinequippingemployeeswiththenecessaryskillstodoagoodjob providingthemwiththetools theenvironment thesupportandtheinformationneededtoexcelintheirjobs CAREERMANAGEMENTWebelieveinmatchingemployees strengthsandaptitudestoavailablejobs developingthemtotheirhighestpotentialandofferingthemopportunitiestoadvanceintheircareers CULTURE VALUEMANAGEMENTWebelieveininstillingourcorporatecorevaluesandpromotingacorporateculturethatemphasizesresults teamwork learning sharing servicequalityandworkexcellence Internalequity Externalequity Employeeequity Administration Concepts CompensationTechniques Planning Budgeting Monitoring Evaluating JobAnalysis JobDescription JobEvaluation JobGrades MarketDefinitions SalarySurveys PolicyLines PayStructures SeniorityIncreases PerformanceEvaluation IncreaseGuidelines CompensationObjectives Roleclarityandaccountability Facilitatesadministrationandperformancemanagement Competitivewagepoliciesandpractices Influenceemployees workattitudesandbehaviour Attracttalents Retaintalents Motivateemployees Complywithregulations Consistencyinpolicyadministration TheStrategicCompensationModel WhatisJobEvaluation Jobevaluationisadecisionprocessofcomparingonejobwithanotherjobwiththeaimofestablishingtherelativeimportanceofjobswithintheorganization Jobevaluationwillprovideaninternallylogicalrankingofalljobswhichwillformthebasisofthecompany ssalarystructure PrinciplesForJobEvaluation Evaluatingthejob notthejob holderEvaluatingthepresentjob notthefuturejobJobisbeingcarriedoutinafullyacceptableandcompetentmannerProcessofevaluationisbasedongivenfactsinthejobdescriptions Evaluatethejobbasedonthe primaryresponsibilities andignorethe specialpersonal to holderresponsibilities JobEvaluation 3MainMethods QualitativeMethod anexampleistheJobClassificationMethodandtheJobComparisonMethod QuantifyingtheQualitativeMethod anexampleisthePointMethod QuantitativeMethod anexampleistheGuideChartProfileMethod JobClassificationMethodadoptedbyAcademicInstitutionssuchasUniversities JobClassA DoctorateDegreewithatleast10yearspostdoctoralexperienceplusrelevantmanagementexperience FacultyHead JobClassB DoctoralDegreewithatleast5to10yearspostdoctoralexperience FullProfessor JobClassC DoctoralDegreewithlessthan5yearspostdoctoralexperienceorMastersDegreewithover10yearspostgraduateexperience AssociateProfessorandSeniorLecturer JobClassD MastersDegreewith5to10yearspostgraduateexperience Lecturer JobClassE MastersDegreewith3to5yearsexperience AssistantLecturer JobClassF MastersDegreewithlessthan3yearsexperience TeachingorResearchAssistant JobEvaluation ThePointMethod JobEvaluationProcess1 FormaJobEvaluationSteeringCommittee2 Drawupaworkplanfortheexercise3 Decideonthebenchmarkjobs4 Decideonthejobfactorsfortheevaluation5 Determinenumberofdegreesforeachfactor6 Preparejobdescriptionsbasedonjob factorformat7 Analyseeachbenchmarkjobintermsoffactorsanddegrees8 Decideontheweightsofeachfactor9 Determinetheweightedscoreforeachbenchmarkjob10 Slotinallotherjobsintothejobgrades ThePointMethod FormtheJobEvaluation JE SteeringCommitteea TheSteeringCommitteeshouldbechairedbytheCEOwithfunctionalManagers Headsasmembers TheHRManagershouldbetheSecretaryoftheJESteeringCommittee b Ifanexternalconsultantisemployedtoassistintheexercise thenheshouldbedesignatedastheadvisortotheSteeringCommittee TheHRManagershouldthendouble upasthecounterpartforinternalskillstransfer JobFactorScoreSheet Job 12 TotalScore 440points ThePointMethod Slotallotherjobsintothejobgradesa Fromtheclusters decideonthenumberofjobgradestoadopt b Slotinallotherjobsintothejobgradesadopted TheGuide ChartProfile HayMethod Thismethod firstdevelopedbyDrEdwardN Hayintheearly1950s isessentiallyconcernedwithdecisionmakingandresponsibility GuideChartswerecreatedin1951inclientsituations Emphasiswasplacedonanswerabilityfortheconsequencesofdecisions thedegreeoffreedomtotakedecisionsandbringthemtofruition thedegreetowhichthereisprimeaccountability ascomparedtosharedorcontributoryaccountabilityinajob TheGuide ChartProfile 4CriticalObservations Themostsignificantfactorcouldbegroupedasrepresentingtheknowledgerequiredtodoajob thekindofthinkingneededtosolvetheproblemscommonlyfaced andtheresponsibilitiesassigned Jobscouldberankednotonlyintheorderofimportancewithintheorganization butthedistancesbetweentherankscouldbedetermined ThefactorsappearedincertainkindsofpatternsthatseemedtobeinherenttocertainkindsofjobsThefocusoftheprocessofjobevaluationmustbeonthenatureandrequirementsofthejobitself notontheskillsorbackgroundorcharacteristicsorpayofthejobholder TheGuide ChartProfile HayMethod ThereareThreeFactorswithatotalofeightelementswhichdeterminethevalueofdifferentjobs Theyare 1 Know How2 Problem Solving3 Accountability TheGuide ChartProfileMethod Know How WhatisKnow HowKnow Howisthetotalofeverykindofskillrequiredforaverageacceptablejobperformance Itisknowledgeandexperienceinprofessional managerialandhumanRelationsactivitiesnecessarytofulfillthejob Know Howismeasuredindepthbyeightdegreesandinbreadthbyfivedegrees TheGuide ChartProfileMethod Know How ThethreedimensionsofKnow Howare Practicalprocedures specializedtechniquesandknowledgewithinoccupationalfields commercialfunctions andprofessionalorscientificdisciplines ThisiscommonlyreferredtoastheDepthofKnow How Integratingandharmonizingsimultaneousachievementsofdiversifiedfunctionswithinmanagerialsituationsoccurringinoperating technical supportoradministrativefields ThisisreferredtoastheBreadthofKnow HowActive practicingperson to personskillsinworkwithotherpeople ThisisreferredtoastheHumanRelationsSkill DepthOfKnow HowA Educationtopost primarylevelB Practicedinstandardworkroutinesand oruseofsimpleequipmentandmachinesC ProceduralorsystematicefficiencyanduseofspecializedequipmentD Specializedskillgainedbyon the jobexperienceorthroughpartprofessionalqualificationE UnderstandingoftheoreticalprinciplesnormallygainedthroughprofessionalqualificationorthroughadetailedgroupofinvolvedpracticesandproceduresF Seasonedproficiencyinahighlyspecializedfield gainedthroughexperiencebuiltontheoriesorabroadanddeepunderstandingofcomplexpracticesG Masteryofprinciples practicesandtheoriesgainedthroughwideexperienceand orspecialdevelopmentH Uniquecommandofprinciples theoriesandpractices TheGuide ChartProfileMethod Know How BreadthOfKnow HowI Nonorminimal PerformanceorsupervisionofjobswhichhavecloselyspecifiedobjectivesII Homogeneous Integrationofoperationswhicharehomogeneousinnatureandobjective andcoordinationwithassociatedfunctionsIII Heterogeneous Integrationorcoordinationofdiversefunctionsorsub functionsinacompany orinter companycoordinationofatacticalfunctionIV Broad Integrationofthemajorfunctionsinanoperatingcompany orgroup widecoordinationofastrategicfunctionaffectingpolicyformationV Total Themanagementofstrategicfunctionsandpolicyformation TheGuide ChartProfileMethod Know How HumanRelationsSkills1 Basic Ordinarycourtesyandeffectivenessindealingwithothers2 Important Understandingandinfluencingpeople importantbutnotover ridingconsiderations3 Over riding Skillsindevelopingandmotivatingpeopleareover ridingconsiderations TheGuide ChartProfileMethod Know How TheGuide ChartProfileMethod Know How Guide ChartProfileMethod ProblemSolving WhatisProblemSolvingTheuseofKnow Howrequiredbythejobtoidentify define andresolveproblems Youthinkwithwhatyouknow Thisiseventrueforthemostcreativework Therawmaterialofanythinkingisknowledgeoffacts principlesandmeans Forthatreason ProblemSolvingismeasuredasapercentageofKnow How ProblemSolvinghastwodimensions TheenvironmentinwhichthethinkingtakesplaceThechallengepresentedbythethinkingtobedone TheGuide ChartProfileMethod Problem Solving ThinkingEnvironmentA Detailedrulesand orrigidsupervisionB Standardinstructionsand orcontinuousclosesupervisionC Well definedprocedures somewhatdiversifiedand orsupervisedD Substantiallydiversifiedestablishedcompanyprocedures andgeneralsupervisionE Clearlydefinedcompanypolicies principlesandspecificobjectivesunderreadilyavailabledirectionF Broadpoliciesandobjectives undergeneraldirectionG Generalpolicies principlesandgoalsunderguidanceH Businessphilosophyand orprinciplescontrollinghumanaffairs TheGuide ChartProfileMethod Problem Solving ThinkingChallengeI Repetitive IdenticalsituationsrequiringsolutionbysimplechoiceofthingslearnedII Patterned SimilarsituationsrequiringsolutionbydiscriminatingchoiceofthingslearnedIII Variable Differingsituationsrequiringsearching findingandselectingsolutionswithintheareaofthingslearnedIV Adaptive Situationsrequiringanalyticalinterpretiveand orconstructivethinking JudgmentisrequiredV Creative Novelornon recurringpath findingsituationsrequiringthedevelopmentofnewconceptsandimaginativeapproaches Guide ChartProfileMethod Accountability WhatisAccountability Theanswerabilityforactionandfortheconsequencesthereof Itisthemeasuredeffectofthejobonendresultsoftheorganization Ithasthreedimensions FreedomtoAct istheextentofpersonal procedural orsystematicguidanceorcontrolofactionsinrelationtotheprimaryemphasisofthejobJobImpactonEndResults istheextenttowhichjobcandirectlyaffectsactionsnecessarytoproduceresultswithinitsprimaryemphasis Magnitude istheportionofthetotalorganizationencompassedbytheprimaryemphasisofthejob Thisisusuallybutnotnecessarily reflectedbytheannualrevenueorexpensedollarsassociatedwiththeareainwhichthejobhasitsprimaryemphasis TheGuide ChartProfileMethod Accountability FreedomToActA Prescribed Directanddetailedinstructions andclosesupervisionB Controlled EstablishedworkroutinesandclosesupervisionC Standardised Standardisedpracticesandprocedures generalworkinstructionsandsupervisionofprogressandresultsD Generallyregulated PracticesandprocedureswhichhaveclearprecedentsE Directed BroadpracticeandprocedurescoveredbyfunctionalprecedentsandpoliciesandmanagerialdirectionF OrientedDirection Functionalpoliciesandgoals andgeneralmanagerialdirectionG SeniorGuidance InherentlyandprimarilytodirecttopmanagementguidanceH OwnershipGuidance Onlytoownershipreviewandpublicrecreation ImpactI VerySmall underUS 1M II Small BetweenUS 1MtoUS 10M III Medium BetweenUS 10MtoUS 100M IV Large MorethanUS 100M TheGuide ChartProfileMethod Accountability Environment1 Remote Givinginformationonotherincidentalservicesforusebyothersinvolvedintheaction2 Contributory Interpreter advisoryorfacilitatingservicestothoseinvolvedintheaction3 Shared Participatingwithothers exceptsuperiorsandsubordinates intakingaction4 Prime Whollyresponsible withlittleornosharedresponsibility TheGuide ChartProfileMethod Accountability SalarySurveybasedonHayMethod SalarySurveybasedonHayMethod Internalequity Externalequity Employeeequity Administration Concepts CompensationTechniques Planning Budgeting Monitoring Evaluating JobAnalysis JobDescription JobEvaluation JobGrades MarketDefinitions SalarySurveys PolicyLines PayStructures SeniorityIncreases PerformanceEvaluation IncreaseGuidelines CompensationObjectives Roleclarityandaccountability Facilitatesadministrationandperformancemanagement Competitivewagepoliciesandpractices Influenceemployees workattitudesandbehaviour Attracttalents Retaintalents Motivateemployees Complywithregulations Consistencyinpolicyadministration TheStrategicCompensationModel CompensationManagement ThefundamentalsofsalaryadministrationSalaryadministrationisconcernedwithdecidinghowandwhatstaffshouldbepaidandwiththetechniquesandproceduresfordesigningandmaintainingsalarystructures rewardingstaffandexercisingsalarycontrol AimsOfSalaryAdministration Thebasicaimsofsalaryadministrationaretoattract retainandmotivatestaffbydevelopingandmaintainingacompetitiveandequitablesalarystructure Toensurethatasufficientnumberofsuitablestaffisattractedtojointheorganization Toencouragesuitablestafftoremainwiththeorganization Todevelopandmaintainalogicalsalarystructurewhichachievesequityinthepayforjobsofsimilarresponsibilityandconsistencyinthedifferentialsbetweenjobsinaccordancewiththeirrelativevalues Toensurethatsalarylevelsmatchmarketrates Tokeepthesalarylevelsadjustedinlinewithincreasesinthecostofliving AimsOfSalaryAdministration Tomaintainconsistencyinmethodsusedtofixandreviewsalarylevelsanddifferentials Toprovideforprogressionwithinthesalarystructureinaccordancewithperformanceandlevelofresponsibility Tooperatethesalarysystemfairlyandconvincethestaffthatthesystemisfair Tomaintainaflexiblesalarysystemwhichwillaccommodatechangesinthemarketratesfordifferentskillsandinthecompany sorganizationstructure Toachievesimplicityinoperationsasanaidtostaffunderstandingandtominimizeadministrativeeffort Tooperateeffectivesystemsofcontrollingsalarycostsandtheadministrativeproceduresrequiredtoachievetheaboveaimsattheleastcosttotheorganization ComponentsOfSalaryAdministration Thestartingpointofsalaryadministrationisthedeterminationofsalarylevelsbyjobevaluation Thereafter salaryadministrationisconcernedwith Thedesignandmaintenanceofsalarystructures Theoperationofsalaryprogressionsystems Theadministrationandcontrolofsalaryreviews Thedesignandoperationofbonusschemes Theprovisionofemployeebenefitsandotherallowances Thedevelopmentofatotalremunerationpolicy CompensationToolsandTechniques PayStructureSalaryStructurePerformanceRelatedPayMeritPaymentSchemeIncentiveSchemeBenefitPoliciesSalaryReviewGuidelinesCompa ratioSalaryProblems CriteriaforPayStructures Beappropriatetotheneedsoftheorganization intermsofits culture sizeandthedegreeinwhichchangestakeplace needforflexibility typeandlevelofemployeestobecoveredBeflexibleinresponsetointernalandexternalpressures especiallythoserelatedtomarketratesandskillshortages Providescopeforrewardinghigh flyerswhilestillprovidingappropriaterewardsforthemajorityofemployees Ensurethatrewardsaregiveninlinewithperformancesandachievements Provideabasisforcareerplanningwhichwillmotivateambitiousemployeeswithhighpotential Facilitateconsistencyinthetreatmentofvaryinglevelsofresponsibilityandperformance GradedSalaryStructures Alljobsareallocatedintosalarygradewithinthestructureonthebasisofanassessmentoftheirinternalandexternalvaluetotheorganization Eachsalarygradeconsistsofasalaryrangeorband Thejobsallocatedtoasalarygradeareassumedtobebroadlyofthesamelevel normallythesameminimumandmaximumrates whichcorrespondwithgradeboundaries GradedSalaryStructures Atypicalgradedstructureconsistsofasequenceofsalarygradesorranges eachofwhichhasadefinedminimumandmaximum Itisassumedthatallthejobsallocatedintoagradearebroadlyofthesamevalue althoughactualsalariesearnedbyindividualswilldependontheirperformanceorlengthofservice Acrosstheboardcostoflivingormarketrateincreaseswillusuallyresultinanincreasetotheminimaandmaximaofeachgrade Allthejobsinanorganizationmaybecoveredbythesamestructureofsalaryrangesortheremaybedifferentstructuresfordifferentlevelsorcategoriesofjobs Make upofaSalaryGrade Abasicprincipleofasalarystructureisthatindividualsadvancethroughthestructureeitherbyprogressingwithinthesalarygradeforthejobastheyimprovetheirperformance orbypromotion Inthesimpleststructure peoplemovemoreorlesssteadilyfromtheentrypointofthegrade withmightbeabovetheminimumiftheyhavealreadygainedrelevantexperienceelsewhereorwithinthefirm totheupperlimit unlesstheymovetoahighergrade Itispossible however todistinguishthreestagesintowhichthisprogressionisdivided andforsalaryadministrationpurposesitishelpfultodividethegradeintothreezoneswhichcorrespondtothesestages SalaryStructure RatioMethod SalaryStructure RatioMethod SalaryStructure DispersionMethod SalaryStructure DispersionMethod Thelearningzonecoverstheperiodwhenapersonisonhis learningcurve familiarizinghimselfwiththeknowledgeandskillsrequiredifheistobecomefullycompetent Thelengthoftimetogothroughthiszonewillvaryaccordingtotheindividual sexperience competenceandabilitytolearn Itwouldbeacceptedthatsomeonemightentertherangeatanypointinthiszone frombottomtotop dependingonexperience TheLearningZone Thequalifiedzonecoverstheperiodwhenthejobholdercontinuestoincreasehiscapacitytodotheworkandtoimprovehisperformance Theminimumsalaryinthiszoneshouldbethemarketrateforthejob sofarasthiscanbeascertained theassumptionbeingthatthemarketrateisthesalarylevelrequiredtoattractacompetentindividualfromanotherjobtojointhecompany Themid pointinthiszone whichisalsothemid pointofthegrade isthesalarylevelwhichallcompetentemployeeswouldbeexpectedtoachieve Thisisabovethemarketrateinordertoretaintheseindividuals Anemployeewhoisnomorethancompetentcouldstopatthispoint butmostwouldcontinuetoadvanceuntiltheyreachthetopofthequalifiedzone whichwouldberegardedasthenormalmaximumforthejob Manysuchemployeeswouldinanycasebepromotedtoahighergradebeforetheyreachtheupperlimitofthiszone TheQua

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