PERFORMANCE AND COMPENSATION MANAGEMENT (FINAL TERM)
Question #1: JOB EVALUATION
OBJECTIVES OF JOB EVALUATION (6 Points)
Question #2: JOB EVALUATION
IMPORTANCE/ SIGNIFICANCE OF JOB EVALUATION
1. Assist in employee’s selection:
2. Specialization:
3. Develop harmonious relations among manager and employees:
4. Avoids inequalities in salary structure:
5. Prevents conflicts within organization:
Question #3: JOB EVALUATION
PRINCIPLES OF JOB EVALUATION (6 Points)
Question #4: JOB EVALUATION
MERITS OF JOB EVALUATION (8 Points)
Question #5: JOB EVALUATION
DEMERITS OF JOB EVALUATION (10 Points)
Question #6: JOB EVALUATION
DIFFERENT DIMENSIONS OF JOB EVALUATION
1. Selection of employees:
2. Training and development:
3. Standardization of wage structure:
4. Settlement of disputes:
5. Determination of an equitable wage and salary structure: (2 points)
Question #7: JOB EVALUATION
JOB EVALUATION PROCESS
1. Gaining Acceptance:
2. Creating Job Evaluation Committee:
3. Finding the Jobs to be evaluated:
4. Analysing and Preparing Job Description:
5. Selecting the Method of Evaluation:
6. Classifying Jobs:
7. Reviewing Periodically:
Question #8: JOB EVALUATION
NON-ANALYTICAL METHOD OF JOB EVALUATION
a. Ranking Method
Advantages:
Disadvantages:
b. Grading or Job Classification Method
Advantages:
Disadvantages:
Question #9: JOB EVALUATION
ANALYTICAL METHOD OF JOB EVALUATION
a. Point Rating
Factors:
Advantages:
Disadvantages:
b. Factor Comparison
Factors:
Advantages
Disadvantages
Question #10: JOB EVALUATION COMMITTEE and explain it’s
Duties
Responsibilities
Committee Members
Committee Meetings
Committee Voting
Agenda & Minutes of Meeting
Committee Evaluation
Question #11: FACTOR EVALUATION SYSTEM (FES)
FES FACTORS (9 Factors)
Question #12: FACTOR EVALUATION SYSTEM (FES)
CHARACTERISTICS OF FACTOR EVALUATION SYSTEM (5 characteristics)
Question #13: WAGES
OBJECTIVES OF WAGES (8 Objectives)
Question #14: WAGES AND SALARY
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION
1. Preserving real income:
2. Labour productivity:
3. The capacity of business to afford wage increases:
4. The capacity of the Economy to absorb wage increases:
5. Supply and Demand of labour:
6. Prevailing Market rate:
7. Living wage:
8. Managerial Attitudes:
9. Psychological and social factors:
Question #15: WAGES
NORMS FOR FIXATION OF WAGES IN INDUSTRY (5 Points)
Question #16: WAGES AND SALARY
THE GUIDELINES FOR ADMINISTRATION OF WAGES AND SALARY (9 Points)
Question #17: WAGES
Wages Fund Theory
Assumptions (5 Points)
OR Criticisms (5 Points)
Question #18: SUBSISTENCE THEORY, its Criticisms (5 Points) and THE SURPLUS
VALUE THEORY OF WAGES
Question #19: MARGINAL PRODUCTIVITY THEORY
Assumptions (6 Points)
OR Criticisms (7 Points)
Question #20: THE BARGAINING THEORY OF WAGES,
CHAMBERLAIN MODEL and its Feature (6 Features)
HICKS BARGAINING MODEL
NEGOTIATING MODELS:
1. Distributive bargaining:
2. Integrative bargaining:
3. Attitudinal structuring:
4. Intra organizational bargaining:
Question #21: RESIDUAL CLAIMANT THEORY, Its Criticism (4 Points),
BEHAVIOURAL THEORIES OF WAGES
• Equity Theory
• Expectancy theory
Question #22: WAGES STRUCTURE IN INDIA
• Basic Wage
• Dearness Allowance
• Overtime Payment
• Annual Bonus
• Incentive Systems
• Fringe Benefits
Question #23: DETERMINATION OF WAGES AND SALARY STRUCTURES
1. Determination of Wages and Salary
• Cost of Living:
• Productivity:
• Prevailing Wage Rate:
• Ability to Pay:
• Attraction and Retention of Employees:
2. Wage/Salary Structure
• Salary Progression
• Broad banding
Question #24: BASIS FOR COMPENSATION FIXATION
1. Preserving real income
2. Labour productivity
3. The capacity of business to afford wage increases
4. The capacity of the Economy to absorb wage increases
5. Supply and Demand of labour
6. Prevailing Market rate
7. Living wage
8. Managerial Attitudes
Question #25: COMPONENTS OF WAGES
1. Fixing of minimum wages
2. Working hours
3. Overtime
4. Employers’ obligation
5. Exemptions
6. Content of minimum wages
7. Different categories
8. Payment of minimum bonus
9. Payment of maximum bonus
10. Computation of working days
11. Special provisions for new establishments
Question #26: BASIS FOR WAGE CALCULATION
1. Time Rate Wages
• Advantages of Time Rate System (5 points)
• Disadvantages of Time Rate System (6 points)
2. Efficiency Based Wages
• Advantages of Efficiency Based Wages (3 points)
• Disadvantages of Efficiency Based Wages (3 points)
Question #27: INCENTIVE SCHEME
STEPS TO SETTING UP AN INCENTIVE SCHEME
• Step-1: Identify the scheme's objectives
• Step-2: Consult with staff and trade unions
• Step-3: Relate the scheme to the business' remuneration system
• Step-4: Establish any tax implications for your staff
• Step-5: Run a pilot scheme
Question #28: BONUS SCHEMES
1. Individual Bonus Scheme
Types of Individual Bonuses
• Productivity Bonus:
• Quality Bonus:
• Targets:
2. Team Bonus Schemes
3. Company Bonus Schemes
Question #29: BONUS SCHEME OPTIONS
i) Cash Bonus:
ii) Gift Vouchers:
iii) Share Schemes:
iv) Corporate Gifts:
Question #30: PERFORMANCE MANAGEMENT CYCLE
1. Performance Management Planning
2. Performance Management Monitoring
3. Performance Management Reviewing and Evaluating
• Potential Appraisal:
• Performance counselling:
Question #31: IMPORTANCE OF PERFORMANCE MANAGEMENT
1. Feedback to the employee:
2. Training and development:
3. Helps to decide promotion:
4. Supporting the selection process:
5. Deciding transfers & lay off of the worker:
6. Human resource planning& career development:
Question #32: PRINCIPLES OF PERFORMANCE MANAGEMENT
1. Transparency:
2. Employee development and empowerment:
3. Values:
4. Congenial work environment:
5. External environment:
Question #33: PERFORMANCE MANAGEMENT PROCESS
• Step-1: Establishing Prerequisites
• Step-2: Planning performance
• Step-3: Executing performance
• Step-4: Assessing performance
• Step-5: Reviewing performance
Question #34: OBJECTIVES OF PERFORMANCE APPRAISAL
i) To provide feedback
ii) To improve communication
iii) To clarify expectations
iv) To allocate rewards
Question #35: TRADITIONAL METHOD OF PERFORMANCE APPRAISAL
1. Forced Choice Method
2. Graphic Rating Scales
3. Comparative Evaluation Approach
4. Grading Method
5. Forced Distribution Method
6. Checklist Method and Weighted Checklists
7. Critical Incident Method
8. Free Essay Method
9. Group Appraisal
10. Field Review
11. Nominations
12. Work Sample Tests
13. Confidential Reports
Question #36: MODERN METHOD OF PERFORMANCE APPRAISAL
1. Assessment Centre
2. Human Resource Accounting
3. Behaviorally Anchored Rating Scales (BARS)
4. Management By Objectives (MBO)
5. 360 Degree Appraisals
Question #37: SOURCES OF PERFORMANCE APPRAISAL
1. The immediate supervisor
2. Peers Group Appraisal
3. Subordinates Review
4. Self-rating appraisal
5. Rating Committees
Question #38: PROCESS OF PERFORMANCE APPRAISAL
• Step-1: Establishing Performance Standards
• Step-2: Communicating the Standards
• Step-3. Measuring the Actual Performance
• Step-4: Comparing the Actual With the Desired Performance
• Step-5: Discussing Results
• Step-6: Decision Making
Question #39: ESSENTIALS OR REQUISITES FOR EFFECTIVE APPRAISAL
1. Documentation
2. Standards/Goals
3. Practical and Simple Format
4. Evaluation Technique
5. Communication
6. Feedback
7. Personal Bias
8. Mutual Trust and Confidence
9. Validity
10. Reliability
11. Standardization
Question #40: LIMITATIONS OF PERFORMANCE APPRAISAL
1. Halo Error
2. Central Tendency
3. Leniency or Strictness
4. Spill over Effect
5. Primacy and Recency Efforts
6. Perceptual Set
7. Rater Effect
8. Status Effect
Question #41: TYPES OF FEEDBACK BASED ON TONE
1. Positive feedback
2. Positive feedforward
3. Negative feedback
4. Negative feedforward
5. Constructive feedback
6. Destructive feedback
Question #42: TYPES OF FEEDBACK AT THE WORKPLACE
1. Praise (Appreciation)
2. Criticism
3. Evaluation
4. Coaching
5. Encouragement
Question #43: ETHICS IN PERFORMANCE APPRAISAL
1. Use Uniform Evaluation Criteria
2. Remove Personal Prejudice
3. Unethical approach
4. Eliminate the Friendship Factor
5. Defer Evaluations