CompensationManagement:ToolsandTechniquesLeeKokWaiLectures4and5Day-to-DayOperationalFocusFuture/StrategicFocusPeopleProcessesStrategicHRPlanningHRasBusinessPartnerCultureandImageStrategicPartnerStaffingOrganizationalDesignSuccessionPlanningPerformanceMeasurementTraining&DevelopmentEmployeeRelationsLaborRelationsEnvironment,Health,Safety&SecurityVOWSurveyActionPlanCompensationBenefitsHRInformationSystemsComplianceAdministrativeExpertEmployeeRelationsExpertChangeAgentHR’s4Roles&KeyAccountabilitiesManagingHumanResourcesinCOMPAQCompensationMgt.T-Compphilosophy&designT-Compplanning&admin.Incentiveplans(MIPs/LTB)Profit-sharingschemeReward&recognitionprog.Expatriatemgt.ManpowerMgt.HeadcountmanagementRecruitmentstrategiesSourcesoflaborsupplySelectionprocess&toolsRetentionstrategies&plansStaffdeploymentStafforientationEmployeeRelationsMgt.BenefitsadministrationCodeofconductðicsEmployeedisciplineEmployeecommunicationsStaffsocial,sports&recreationCommunityservices&relationsEHS&SMgt.Environmentmgt.EmployeewellnessEmployeehealthservicesLosspreventionAssetmanagementSafetymgt.Culture/ValuesMgt.CorporatevisionCorporatemissionCulturebuildingTeambuildingHabitsbuildingPerformanceMgt.(HRD)Stafftraining&developmentSuccessionplanningCareerplanningCoaching&counselingAppraisalreview/rankingOrganizationdevelopmentLeadershipdevelopmentHumanResourceAdmin.Records&informationmgt.PersonnelresearchHRpolicyreviewHRprocessimprovementsHRperformancestds&auditLegalcomplianceDocumentcontrol

StrategicComponentsofHumanResources

COMPENSATIONMANAGEMENTWebelieveinpayingcompetitivewagesthatcommensuratewithjobsizeandindividualperformanceWELFAREMANAGEMENTWebelieveinbeingafirm,fairandcaringemployer.Westrivetomakeemployeesvaluetheirjobsandwanttoremainintheorganizationbasedontheirabilitiestocontributeandgrow.

PERFORMANCEMANAGEMENTWebelieveinequippingemployeeswiththenecessaryskillstodoagoodjob,providingthemwiththetools,theenvironment,thesupportandtheinformationneededtoexcelintheirjobs.

CAREERMANAGEMENTWebelieveinmatchingemployees’strengthsandaptitudestoavailablejobs,developingthemtotheirhighestpotentialandofferingthemopportunitiestoadvanceintheircareers.

CULTURE/VALUEMANAGEMENTWebelieveininstillingourcorporatecorevaluesandpromotingacorporateculturethatemphasizesresults,teamwork,learning,sharing,servicequalityandworkexcellence.

InternalequityExternalequityEmployeeequityAdministrationConceptsCompensationTechniquesPlanning,Budgeting,Monitoring,EvaluatingJobAnalysisJobDescriptionJobEvaluationJobGradesMarketDefinitionsSalarySurveysPolicyLinesPayStructuresSeniorityIncreasesPerformanceEvaluationIncreaseGuidelinesCompensationObjectivesRoleclarityandaccountability.Facilitatesadministrationandperformancemanagement.Competitivewagepoliciesandpractices.Influenceemployees’workattitudesandbehaviour.Attracttalents.Retaintalents.Motivateemployees.Complywithregulations.Consistencyinpolicyadministration.TheStrategicCompensationModelWhatisJobEvaluation?Jobevaluationisadecisionprocessofcomparingonejobwithanotherjobwiththeaimofestablishingtherelativeimportanceofjobswithintheorganization.Jobevaluationwillprovideaninternallylogicalrankingofalljobswhichwillformthebasisofthecompany’ssalarystructure

PrinciplesForJobEvaluationEvaluatingthejob,notthejob-holderEvaluatingthepresentjob,notthefuturejobJobisbeingcarriedoutinafullyacceptableandcompetentmannerProcessofevaluationisbasedongivenfactsinthejobdescriptions.Evaluatethejobbasedonthe“primaryresponsibilities”andignorethe“specialpersonal-to-holderresponsibilities.”

JobEvaluation:3MainMethodsQualitativeMethod(anexampleistheJobClassificationMethodandtheJobComparisonMethod)QuantifyingtheQualitativeMethod(anexampleisthePointMethod)QuantitativeMethod(anexampleistheGuideChartProfileMethod)

JobClassificationMethodadoptedbyAcademicInstitutionssuchasUniversitiesJobClassA:DoctorateDegreewithatleast10yearspostdoctoralexperienceplusrelevantmanagementexperience(FacultyHead)JobClassB:DoctoralDegreewithatleast5to10yearspostdoctoralexperience(FullProfessor)JobClassC:DoctoralDegreewithlessthan5yearspostdoctoralexperienceorMastersDegreewithover10yearspostgraduateexperience(AssociateProfessorandSeniorLecturer)JobClassD:MastersDegreewith5to10yearspostgraduateexperience(Lecturer)JobClassE:MastersDegreewith3to5yearsexperience(AssistantLecturer)JobClassF:MastersDegreewithlessthan3yearsexperience(TeachingorResearchAssistant)

JobEvaluation:ThePointMethodJobEvaluationProcess1.FormaJobEvaluationSteeringCommittee2.Drawupaworkplanfortheexercise3.Decideonthebenchmarkjobs4.Decideonthejobfactorsfortheevaluation5.Determinenumberofdegreesforeachfactor6.Preparejobdescriptionsbasedonjob-factorformat7.Analyseeachbenchmarkjobintermsoffactorsanddegrees8.Decideontheweightsofeachfactor9.Determinetheweightedscoreforeachbenchmarkjob10.SlotinallotherjobsintothejobgradesThePointMethodFormtheJobEvaluation(JE)SteeringCommitteea.TheSteeringCommitteeshouldbechairedbytheCEOwithfunctionalManagers/Headsasmembers.TheHRManagershouldbetheSecretaryoftheJESteeringCommittee.b.Ifanexternalconsultantisemployedtoassistintheexercise,thenheshouldbedesignatedastheadvisortotheSteeringCommittee.TheHRManagershouldthendouble-upasthecounterpartforinternalskillstransfer.JobFactorScoreSheet:Job#12FactorABCDEEducation20406080100Experience306090120150InterpersonalSkills1020304050ProblemsEncountered306090120150Sizeofunitsupervised1020304050DecisionMaking306090120150WorkEnvironment1020304050Impactoferrors306090120150Contacts/Committees1020304050AssetsControlled($)20406080100TotalScore=440pointsThePointMethodSlotallotherjobsintothejobgradesa.Fromtheclusters,decideonthenumberofjobgradestoadopt.b.Slotinallotherjobsintothejobgradesadopted.TheGuide-ChartProfile:HayMethodThismethod,firstdevelopedbyDrEdwardN.Hayintheearly1950s,isessentiallyconcernedwithdecisionmakingandresponsibility.GuideChartswerecreatedin1951inclientsituations.Emphasiswasplacedonanswerabilityfortheconsequencesofdecisions,thedegreeoffreedomtotakedecisionsandbringthemtofruition,thedegreetowhichthereisprimeaccountability,ascomparedtosharedorcontributoryaccountabilityinajob.TheGuide-ChartProfile:4CriticalObservationsThemostsignificantfactorcouldbegroupedasrepresentingtheknowledgerequiredtodoajob,thekindofthinkingneededtosolvetheproblemscommonlyfaced,andtheresponsibilitiesassigned.Jobscouldberankednotonlyintheorderofimportancewithintheorganization,butthedistancesbetweentherankscouldbedetermined.ThefactorsappearedincertainkindsofpatternsthatseemedtobeinherenttocertainkindsofjobsThefocusoftheprocessofjobevaluationmustbeonthenatureandrequirementsofthejobitself,notontheskillsorbackgroundorcharacteristicsorpayofthejobholder.TheGuide-ChartProfile:HayMethodThereareThreeFactorswithatotalofeightelementswhichdeterminethevalueofdifferentjobs.Theyare:1.Know-How2.Problem-Solving3.AccountabilityTheGuide-ChartProfileMethod:Know-HowWhatisKnow-HowKnow-Howisthetotalofeverykindofskillrequiredforaverageacceptablejobperformance.Itisknowledgeandexperienceinprofessional,managerialandhumanRelationsactivitiesnecessarytofulfillthejob.Know-HowismeasuredindepthbyeightdegreesandinbreadthbyfivedegreesTheGuide-ChartProfileMethod:Know-HowThethreedimensionsofKnow-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,theoriesandpracticesTheGuide-ChartProfileMethod:Know-HowBreadthOfKnow-HowI.Nonorminimal––PerformanceorsupervisionofjobswhichhavecloselyspecifiedobjectivesII.Homogeneous–Integrationofoperationswhicharehomogeneousinnatureandobjective,andcoordinationwithassociatedfunctionsIII.Heterogeneous–Integrationorcoordinationofdiversefunctionsorsub-functionsinacompany;orinter-companycoordinationofatacticalfunctionIV.Broad––Integrationofthemajorfunctionsinanoperatingcompany;orgroup-widecoordinationofastrategicfunctionaffectingpolicyformationV.Total––ThemanagementofstrategicfunctionsandpolicyformationTheGuide-ChartProfileMethod:Know-HowHumanRelationsSkills1.Basic–Ordinarycourtesyandeffectivenessindealingwithothers2.Important–Understandingandinfluencingpeople,importantbutnotover-ridingconsiderations3.Over-riding––Skillsindevelopingandmotivatingpeopleareover-ridingconsiderationsTheGuide-ChartProfileMethod:Know-HowTheGuide-ChartProfileMethod:Know-HowGuide-ChartProfileMethod:ProblemSolvingWhatisProblemSolvingTheuseofKnow-Howrequiredbythejobtoidentify,define,andresolveproblems.“Youthinkwithwhatyouknow.”Thisiseventrueforthemostcreativework.Therawmaterialofanythinkingisknowledgeoffacts,principlesandmeans.Forthatreason,ProblemSolvingismeasuredasapercentageofKnow-How.ProblemSolvinghastwodimensions:TheenvironmentinwhichthethinkingtakesplaceThechallengepresentedbythethinkingtobedoneTheGuide-ChartProfileMethod––Problem-SolvingThinkingEnvironmentA.Detailedrulesand/orrigidsupervisionB.Standardinstructionsand/orcontinuousclosesupervisionC.Well-definedprocedures,somewhatdiversifiedand/orsupervisedD.Substantiallydiversifiedestablishedcompanyprocedures,andgeneralsupervisionE.Clearlydefinedcompanypolicies,principlesandspecificobjectivesunderreadilyavailabledirectionF.Broadpoliciesandobjectives,undergeneraldirectionG.Generalpolicies,principlesandgoalsunderguidanceH.Businessphilosophyand/orprinciplescontrollinghumanaffairsTheGuide-ChartProfileMethod––Problem-SolvingThinkingChallengeI.Repetitive–IdenticalsituationsrequiringsolutionbysimplechoiceofthingslearnedII.Patterned––SimilarsituationsrequiringsolutionbydiscriminatingchoiceofthingslearnedIII.Variable––Differingsituationsrequiringsearching,findingandselectingsolutionswithintheareaofthingslearnedIV.Adaptive–Situationsrequiringanalyticalinterpretiveand/orconstructivethinking.JudgmentisrequiredV.Creative–Novelornon-recurringpath-findingsituationsrequiringthedevelopmentofnewconceptsandimaginativeapproachesGuide-ChartProfileMethod:AccountabilityWhatisAccountability?Theanswerabilityforactionandfortheconsequencesthereof.Itisthemeasuredeffectofthejobonendresultsoftheorganization.Ithasthreedimensions:FreedomtoAct-istheextentofpersonal,procedural,orsystematicguidanceorcontrolofactionsinrelationtotheprimaryemphasisofthejobJobImpactonEndResults––istheextenttowhichjobcandirectlyaffectsactionsnecessarytoproduceresultswithinitsprimaryemphasis.Magnitude––istheportionofthetotalorganizationencompassedbytheprimaryemphasisofthejob.Thisisusuallybutnotnecessarily,reflectedbytheannualrevenueorexpensedollarsassociatedwiththeareainwhichthejobhasitsprimaryemphasis.TheGuide-ChartProfileMethod-AccountabilityFreedomToActA.Prescribed–Directanddetailedinstruction