清华大学MBA人力资源管理课件.ppt

CompensationManagement:ToolsandTechniques,LeeKokWaiLectures4and5,StrategicPartner,AdministrativeExpert,EmployeeRelationsExpert,ChangeAgent,HRs4Rolesorinter-companycoordinationofatacticalfunctionIV.BroadIntegrationofthemajorfunctionsinanoperatingcompany;orgroup-widecoordinationofastrategicfunctionaffectingpolicyformationV.TotalThemanagementofstrategicfunctionsandpolicyformation,TheGuide-ChartProfileMethod:Know-How,HumanRelationsSkills1.BasicOrdinarycourtesyandeffectivenessindealingwithothers2.ImportantUnderstandingandinfluencingpeople,importantbutnotover-ridingconsiderations3.Over-ridingSkillsindevelopingandmotivatingpeopleareover-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-ChartProfileMethodProblem-Solving,ThinkingEnvironmentA.Detailedrulesand/orrigidsupervisionB.Standardinstructionsand/orcontinuousclosesupervisionC.Well-definedprocedures,somewhatdiversifiedand/orsupervisedD.Substantiallydiversifiedestablishedcompanyprocedures,andgeneralsupervisionE.Clearlydefinedcompanypolicies,principlesandspecificobjectivesunderreadilyavailabledirectionF.Broadpoliciesandobjectives,undergeneraldirectionG.Generalpolicies,principlesandgoalsunderguidanceH.Businessphilosophyand/orprinciplescontrollinghumanaffairs,TheGuide-ChartProfileMethodProblem-Solving,ThinkingChallengeI.RepetitiveIdenticalsituationsrequiringsolutionbysimplechoiceofthingslearnedII.PatternedSimilarsituationsrequiringsolutionbydiscriminatingchoiceofthingslearnedIII.VariableDifferingsituationsrequiringsearching,findingandselectingsolutionswithintheareaofthingslearnedIV.AdaptiveSituationsrequiringanalyticalinterpretiveand/orconstructivethinking.JudgmentisrequiredV.CreativeNovelornon-recurringpath-findingsituationsrequiringthedevelopmentofnewconceptsandimaginativeapproaches,Guide-ChartProfileMethod:Accountability,WhatisAccountability?Theanswerabilityforactionandfortheconsequencesthereof.Itisthemeasuredeffectofthejobonendresultsoftheorganization.Ithasthreedimensions:FreedomtoAct-istheextentofpersonal,procedural,orsystematicguidanceorcontrolofactionsinrelationtotheprimaryemphasisofthejobJobImpactonEndResultsistheextenttowhichjobcandirectlyaffectsactionsnecessarytoproduceresultswithinitsprimaryemphasis.Magnitudeistheportionofthetotalorganizationencompassedbytheprimaryemphasisofthejob.Thisisusuallybutnotnecessarily,reflectedbytheannualrevenueorexpensedollarsassociatedwiththeareainwhichthejobhasitsprimaryemphasis.,TheGuide-ChartProfileMethod-Accountability,FreedomToActA.PrescribedDirectanddetailedinstructions,andclosesupervisionB.ControlledEstablishedworkroutinesandclosesupervisionC.StandardisedStandardisedpracticesandprocedures,generalworkinstructionsandsupervisionofprogressandresultsD.GenerallyregulatedPracticesandprocedureswhichhaveclearprecedentsE.DirectedBroadpracticeandprocedurescoveredbyfunctionalprecedentsandpoliciesandmanagerialdirectionF.OrientedDirectionFunctionalpoliciesandgoals,andgeneralmanagerialdirectionG.SeniorGuidanceInherentlyandprimarilytodirecttopmanagementguidanceH.OwnershipGuidanceOnlytoownershipreviewandpublicrecreation,ImpactI.VerySmall(underUS$1M)II.Small(BetweenUS$1MtoUS$10M)III.Medium(BetweenUS$10MtoUS$100M)IV.Large(MorethanUS$100M),TheGuide-ChartProfileMethod-Accountability,Environment1.RemoteGivinginformationonotherincidentalservicesforusebyothersinvolvedintheaction2.ContributoryInterpreter,advisoryorfacilitatingservicestothoseinvolvedintheaction3.SharedParticipatingwithothers(exceptsuperiorsandsubordinates)intakingaction4.PrimeWhollyresponsible,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.Influenceemployeesworkattitudesandbehaviour.Attracttalents.Retaintalents.Motivateemployees.Complywithregulations.Consistencyinpolicyadministration.,TheStrategicCompensationModel,CompensationManagement,ThefundamentalsofsalaryadministrationSalaryadministrationisconcernedwithdecidinghowandwhatstaffshouldbepaidandwiththetechniquesandproceduresfordesigningandmaintainingsalarystructures,rewardingstaffandexercisingsalarycontrol.,AimsOfSalaryAdministration,Thebasicaimsofsalaryadministrationaretoattract,retainandmotivatestaffbydevelopingandmaintainingacompetitiveandequitablesalarystructure.Toensurethatasufficientnumberofsuitablestaffisattractedtojointheorganization;Toencouragesuitablestafftoremainwiththeorganization;Todevelopandmaintainalogicalsalarystructurewhichachievesequityinthepayforjobsofsimilarresponsibilityandconsistencyinthedifferentialsbetweenjobsinaccordancewiththeirrelativevalues;Toensurethatsalarylevelsmatchmarketrates;Tokeepthesalarylevelsadjustedinlinewithincreasesinthecostofliving;,AimsOfSalaryAdministration,Tomaintainconsistencyinmethodsusedtofixandreviewsalarylevelsanddifferentials;Toprovideforprogressionwithinthesalarystructureinaccordancewithperformanceandlevelofresponsibility;Tooperatethesalarysystemfairlyandconvincethestaffthatthesystemisfair;Tomaintainaflexiblesalarysystemwhichwillaccommodatechangesinthemarketratesfordifferentskillsandinthecompanysorganizationstructure;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.Thejobsallocatedtoasalarygradeareassumedtobebroadlyofthesamelevelnormallythesameminimumandmaximumrates,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,Thelearningzonecoverstheperiodwhenapersonisonhislearningcurve,familiarizinghimselfwiththeknowledgeandskillsrequiredifheistobecomefullycompetent.Thelengthoftimetogothroughthiszonewillvaryaccordingtotheindividualsexperience,competenceandabilitytolearn.Itwouldbeacceptedthatsomeonemightentertherangeatanypointinthiszone,frombottomtotop,dependingonexperience.,TheLearningZone,Thequalifiedzonecoverstheperiodwhenthejobholdercontinuestoincreasehiscapacitytodotheworkandtoimprovehisperformance.Theminimumsalaryinthiszoneshouldbethemarketrateforthejob,sofarasthiscanbeascertained,theassumptionbeingthatthemarketrateisthesalarylevelrequiredtoattractacompetentindividualfromanotherjobtojointhecompany.Themid-pointinthiszone,whichisalsothemid-pointofthegrade,isthesalarylevelwhichallcompetentemployeeswouldbeexpectedtoachieve.Thisisabovethemarketrateinordertoretaintheseindividuals.Anemployeewhoisnomorethancompetentcouldstopatthispoint,butmostwouldcontinuetoadvanceuntiltheyreachthetopofthequalifiedzone,whichwouldberegardedasthenormalmaximumforthejob.Manysuchemployeeswouldinanycasebepromotedtoahighergradebeforetheyreachtheupperlimitofthiszone.,TheQualifiedZone,Thepremiumzoneisreservedforthoseemployees,especiallyinthehighergradejobs,whoachieveexceptionalresultsbutforwhomsuitablepromotionopportunitiesdonotexist.Thiszoneenablesoutstandingstafftobegivenadditionalrewardsandencouragement.Insomesalarystructures,thepublishedsalarygradesforeachjobonlycoverthelearningandqualifiedzones,thepremiumzonebeingreservedforuseinspecialcases.Progressionthroughthatzonewouldnotberegardedasnormalbymanagementorstaff.,ThePremiumZone,Make-upofaSalaryRange,RelationshipsBetweenGrades,20%,20%,GradedSalaryStructures,Therangemaybedefinedintermsofthedifferencebetweenthelowestandhighestpointsintherange,usingtheminimumastheanchor(Maxminratiomethod):MinMidpointMaxMaxmin$20,000$24,000$30,0001:50$20,000$25,000$32,0001:60$20,000$26,000$34,0001:70Alternatively,therangemaybedefinedasapercentageofthemidpointusingthemidpointastheanchor(Salarydispersionmethod):MinMidpointMaxDispersionMaxPoint(100%)PointRatio$20,000(80%)$25,000(100%)$30,000(120%)+20%1.50$18,750(75%)$25,000(100%)$31,250(125%)+25%1.67$17,500(70%)$25,000(100%)$32,5000(130%)+30%1.85,Themidpointoftherangeisregardedasthe“targetsalary”forthegrade,whichwouldbetheaveragesalaryofthestaffinthegrade.ThetargetsalaryisthesalarythatyouwillpaytoafullycompetentprofessionaldoingthejobonthatgradeThemidpointisusuallyalignedtothemarketratesforjobsinthegrade.Thesalarypolicyoftheorganizationdetermineswhetherthemidpointisequatedtothemedianmarketrateorwhetheritisrelatedtoanotherpoint.egupperquartile,GradedSalaryStructures,Therateofsalaryprogressionthrougharangeisdetermineby:-timeorlengthofservice(serviceincrements)-individualperformance(variableormeritincrements)Thenumberofsalaryrangesrequireddependon:-theupperandlowersalarylevelsofthejobstobecoveredbythestructure,whichgivetheoverallrangeofsalarieswithinwhichtheindividualsalaryrangeshavetobefitted-thenumberofdistinctlevelsofresponsibilityinthehierarchywhichneedstobecateredforbyseparategrades-thesizeofthedifferentialsbetweeneachsalaryrange.,GradedSalaryStructures,GradedSalaryStructures,Thereisadifferentialbetweenthemidpointsofeachsalaryrangewhichprovidesadequatescopeforrewardingincreasedresponsibilityonpromotion.Itdoesnotcreatetoowideagapbetweenadjacentgradesorreducetheamountofflexibilityavailableforgradingjobs.Thesalaryrangesaresufficientlywidetoallowrecognitionofthefactthatpeopleinsamejobgradecanperformdifferently,fromsatisfactoryperformancetooutstandingperformance.Thereisanoverlapbetweentwoconsecutivesalarygradeswhichacknowledgesthatanexperiencedpersonshouldbeofmorevalueonthecurrentgradethananewcomerinthenexthighergrade.,DesigningtheSalaryStructure,Step1Conductmarketratesurveysforexistingjobs.Reviewexistingsalarystructuresanddifferentialsbetweenthesalarylevelsofthemostseniorandjuniorjobstobecoveredbythenewstructure.Identifykeyproblemareas(ifany)inexistingstructures.Step2Conductanupdateofthejobevaluationexercise,takingintoconsiderationallchangestojobssincethelastjobevaluationreviewStep3Obtainmarketratedatafortheevaluatedjobs,bearinginmindthatthereislikelybearangeofmarketratesratherthanaprecisefigure.Preferablythemarketratedatashouldbebasedonasimilarjobevaluationsystemforcomparability.,DesigningtheSalaryStructure,Step4Drawupasalarygradestructurebetweentheupperandlowerlimits,accordingtopoliciesfordifferentials,thewidthofsalarygradesandthesizeofoverlapbetweentwoconsecutivegrades.Step5Slotalljobsintogradestructureinaccordancewiththeresultsofboththejobevaluationsandthemarketratesurveys.Step6Identifyallcasesthatarebelowthesalaryrangeandcasesthathaveexceededthesalaryrange(max-outcases)andreviewtheirjobevaluationscoresandgrades,AdvantagesofGradedStructures,Therelativelevelsofjobsindifferentfunctionscanbereadilyassessedandrecognized.Consistentmethodsofgradingjobsandestablishingdifferentialsbetweenthemcanbemaintained.Awell-definedandcomprehensibleframeworkexistswithinwhichsalaryandcareerprogressioncanbeplannedandcontrolled.Bettercontrolcanbeexercisedoversalariesfornewhires,meritincrementsandpromotionincreases.Gradedstructuresfacilitateorder,consistencyandcontrol.,DisadvantagesofGradedStructures,Itcanbeinflexibleattimes,unlessperiodicreviewiscarryoutevery3yearsorso.Fixedgradesmakeitmoredifficulttoaccommodatethemanychangestowhichrewardstructuresaresubjectbecauseofinternalandexternalpressures.Thesortofpeopletheyemploycannotbeconfinedwithinrigidrangeboundaries,unlessincentiveschemesareavailable.Itbringspeopletothetopoftherangebarrierswheretheybecomestuckiftherearenoopportunitiesforpromotiontothenextgrade.,KeytopicscoveredMinimumPointofSalaryRangeMaximumPointofSalaryRangeEntryPointfornewstaffAnnualincrementsSalaryadjustmentsPromotionincrementsLumpsumpaymentsIncentiveschemesFlexiblebenefits,SalaryAdministration,60,CurrentandProposedSalaryStructureMidpoints,MarketAverage,andCompanyAverageSalary,JobGradesorwheretheadoptionofothernewandkeyvaluesshouldberewarded.Discriminateconsistentlyandbeequitableonthedistributionofrewardstoemployeesaccordingtotheirperformanceresultsandcontributions.,ObjectivesofPerformance-RelatedPay(PRP),Deliverapositivemessageaboutperformanceexpectationsofthecompanyfocusesattentiononkeyperformanceissues.Directattentionandendeavourbyspecifyingtheorganizationsperformancegoalsandstandards.Emphasizeindividualperformanceorteamworkasappropriate.Improvetherecruitmentandretentionofhigh-qualitystaff.PRPcostswillbeinlinewithcompanyperformance.,KeyFactorstoConsiderWhenIntroducingPRP,MatchingtheculturesuccessfulPRPschemesneedtomatchthecultureandcorevaluesoftheorganization.LinkingPRPtobusinessstrategythefocusneedstobeonstrategicbusinessissueswhichemergefromthebusinessplanningprocess.BalancingquantitativeandqualitativemeasureswhilemostPRPschemesrelyonquantitativemeasuresofperformance,qualitativefactorsneedtobeintroducedforthemeasurementofindividualbehaviouregbalancedscorecardsTheneedforflexibilityflexibilityinmakingmilestonepaymentswhichconveytherightmessagesforthefuture.Theneedtopromoteteamworktheimportanceofteamworkshouldberecognizedinstructuringtheschemeanddefiningcriticalsuccessfactorsandperformanceindicators.,KeyFactorstoConsiderWhenIntroducingPRP,Theneedtoavoidshort-termthinkingsettinglong-termaswellasshort-termgoals,anddiscussingshort-termobjectivesintheiroverallcontext.InvolvementinthedesignprocessdesigningPRPschemesshouldbeaniterativeprocess:tryingandtestingideasonmeasuresandstructureswiththosewhowilleventuallybeinvolvedinascheme.GettingthemessageacrossalltypesofPRPareverypowerfulformsofcommunication.Togettherightmessagesacrossforanyscheme,onemustmakekeydecisionsonthefollowing:Howcantheschemeachievethebestpossiblelaunch?Isitbettertogivenopay-outratherthanalowpay-out?Whatisthebestpsychologicalmomentforpay-out?Whatcommunicationsshouldbeusedtogainmaximummotivationalimpactfrompayment?Howshouldcommunicationsbehandledwhentheschemerequireschanges?,Competencebands,Excellent,Good,Satisfactory,PerformanceLevels,Performing,Learning,CompetenceandPerformance-RelatedPayCurve,Salary($),Exceeding,Directlylinkindividualperformancewithsalaryprogression.Provideindividualizedprogressionrates.Recognizeincreasingcompetencegainedthroughexperience.,AdvantagesofindividualMeritPaymentScheme,DisadvantagesofIndividualMeritPaymentScheme,Dependentonthequalityofperformanceappraisal;whichcanbearbitrary,subjectiveorinconsistent.Unlesscarefullyconceivedandmanaged,itcandemotivatepeoplewho,althoughnotbedeliveringspectacularresultsarestillimportant.Meritpayment,asdistinctfrombonuses,createextrapayrollcostswhenbenefitssuchaspensionsarerelatedtobasepay.Ameritpaymentis,ineffect,apermanentincreaseinsalary,yetthequalityofperformanceinfutureyearsmaynotjustifythispayment.Meritpaycanresultinanupwarddriftinpayrollcostswithoutacommensurateimprovementinperformance.Meritpayiseffectiveasamotivatoronlyifrewardsareclearlyrelatedtoperformanceandareofasignificantvalue.,SalesIncentivePlan,BusinessObjectives,MarketingStrateg