1. Compensation Management :
Tools and TechniquesLee Kok Wai Lectures 4 and 5
2. Day-to-Day Operational FocusFuture/Strategic FocusPeopleProcessesStrategic HR PlanningHR as Business PartnerCulture and ImageStrategic
PartnerStaffingOrganizational
DesignSuccession
PlanningPerformance MeasurementTraining & DevelopmentEmployee RelationsLabor RelationsEnvironment, Health, Safety & SecurityVOW Survey Action PlanCompensationBenefitsHR Information SystemsComplianceAdministrative ExpertEmployee Relations ExpertChange AgentHR’s 4 Roles & Key Accountabilities
3. Managing Human Resources in COMPAQCompensation Mgt.
T-Comp philosophy & design
T-Comp planning & admin.
Incentive plans (MIPs/LTB)
Profit-sharing scheme
Reward & recognition prog.
Expatriate mgt.Manpower Mgt.
Headcount management
Recruitment strategies
Sources of labor supply
Selection process & tools
Retention strategies & plans
Staff deployment
Staff orientation Employee Relations Mgt.
Benefits administration
Code of conduct & ethics
Employee discipline
Employee communications
Staff social, sports & recreation
Community services & relationsEHS&S Mgt.
Environment mgt.
Employee wellness
Employee health services
Loss prevention
Asset management
Safety mgt. Culture/Values Mgt.
Corporate vision
Corporate mission
Culture building
Teambuilding
Habits buildingPerformance Mgt. (HRD)
Staff training & development
Succession planning
Career planning
Coaching & counseling
Appraisal review/ranking
Organization development
Leadership developmentHuman Resource Admin.
Records & information mgt.
Personnel research
HR policy review
HR process improvements
HR performance stds & audit
Legal compliance
Document control
4. Strategic Components of Human Resources COMPENSATION MANAGEMENT
We believe in paying competitive wages that commensurate with job size and individual performance
WELFARE MANAGEMENT
We believe in being a firm, fair and caring employer. We strive to make employees value their jobs and want to remain in the organization based on their abilities to contribute and grow.
PERFORMANCE MANAGEMENT
We believe in equipping employees with the necessary skills to do a good job, providing them with the tools, the environment, the support and the information needed to excel in their jobs.
CAREER MANAGEMENT
We believe in matching employees’ strengths and aptitudes to available jobs, developing them to their highest potential and offering them opportunities to advance in their careers.
CULTURE/VALUE MANAGEMENT
We believe in instilling our corporate core values and promoting a corporate culture that emphasizes results, teamwork, learning, sharing, service quality and work excellence.
5. Internal
equityExternal
equityEmployee
equityAdministrationConceptsCompensation TechniquesPlanning, Budgeting, Monitoring, EvaluatingJob
AnalysisJob
DescriptionJob
EvaluationJob
GradesMarket
DefinitionsSalary
SurveysPolicy
LinesPay
StructuresSeniority
IncreasesPerformance
EvaluationIncrease
GuidelinesCompensation ObjectivesRole clarity and accountability.
Facilitates administration and
performance management.
Competitive wage policies and
practices.
Influence employees’ work
attitudes and behaviour.
Attract talents.
Retain talents.
Motivate employees.
Comply with regulations.
Consistency in policy
administration.The Strategic Compensation Model
6. What is Job Evaluation?Job evaluation is a decision process of comparing one job with another job with the aim of establishing the relative importance of jobs within the organization.
Job evaluation will provide an internally logical ranking of all jobs which will form the basis of the company’s salary structure
7. Principles For Job EvaluationEvaluating the job, not the job-holder
Evaluating the present job, not the future job
Job is being carried out in a fully acceptable and competent manner
Process of evaluation is based on given facts in the job descriptions.
Evaluate the job based on the “primary responsibilities” and ignore the “special personal-to-holder responsibilities.”
8. Job Evaluation : 3 Main MethodsQualitative Method (an example is the Job Classification Method and the Job Comparison Method)
Quantifying the Qualitative Method (an example is the Point Method)
Quantitative Method (an example is the Guide Chart Profile Method)
9. Job Classification Method adopted by Academic Institutions such as UniversitiesJob Class A : Doctorate Degree with at least 10 years post doctoral experience plus relevant management experience (Faculty Head)
Job Class B : Doctoral Degree with at least 5 to 10 years post doctoral experience (Full Professor)
Job Class C : Doctoral Degree with less than 5 years post doctoral experience or Masters Degree with over 10 years post graduate experience (Associate Professor and Senior Lecturer)
Job Class D : Masters Degree with 5 to 10 years post graduate experience (Lecturer)
Job Class E : Masters Degree with 3 to 5 years experience (Assistant Lecturer)
Job Class F : Masters Degree with less than 3 years experience (Teaching or Research Assistant)
10. Job Evaluation: The Point MethodJob Evaluation Process
1. Form a Job Evaluation Steering Committee
2. Draw up a workplan for the exercise
3. Decide on the benchmark jobs
4. Decide on the job factors for the evaluation
5. Determine number of degrees for each factor
6. Prepare job descriptions based on job-factor format
7. Analyse each benchmark job in terms of factors and degrees
8. Decide on the weights of each factor
9. Determine the weighted score for each benchmark job
10. Slot in all other jobs into the job grades
11. The Point MethodForm the Job Evaluation (JE) Steering Committee
a. The Steering Committee should be chaired by the CEO with functional Managers/ Heads as members. The HR Manager should be the Secretary of the JE Steering Committee.
b. If an external consultant is employed to assist in the exercise, then he should be designated as the advisor to the Steering Committee. The HR Manager should then double-up as the counterpart for internal skills transfer.
12. Job Factor Score Sheet : Job # 12FactorABCDEEducation20406080100Experience306090120150Interpersonal Skills1020304050Problems Encountered306090120150Size of unit supervised1020304050Decision Making306090120150Work Environment1020304050Impact of errors306090120150Contacts/Committees1020304050Assets Controlled ($)20406080100Total Score = 440 points
13. The Point MethodSlot all other jobs into the job grades
a. From the clusters, decide on the number of job grades to adopt.
b. Slot in all other jobs into the job grades adopted.
14. The Guide-Chart Profile : Hay MethodThis method, first developed by Dr Edward N. Hay in the early 1950s, is essentially concerned with decision making and responsibility. Guide Charts were created in 1951 in client situations.
Emphasis was placed on answerability for the consequences of decisions, the degree of freedom to take decisions and bring them to fruition, the degree to which there is prime accountability, as compared to shared or contributory accountability in a job.
15. The Guide-Chart Profile : 4 Critical ObservationsThe most significant factor could be grouped as representing the knowledge required to do a job, the kind of thinking needed to solve the problems commonly faced, and the responsibilities assigned.
Jobs could be ranked not only in the order of importance within the organization, but the distances between the ranks could be determined.
The factors appeared in certain kinds of patterns that seemed to be inherent to certain kinds of jobs
The focus of the process of job evaluation must be on the nature and requirements of the job itself, not on the skills or background or characteristics or pay of the job holder.
16. The Guide-Chart Profile : Hay MethodThere are Three Factors with a total of eight elements which determine the value of different jobs. They are:
1. Know-How
2. Problem-Solving
3. Accountability
17. The Guide-Chart Profile Method : Know-HowWhat is Know-How
Know-How is the total of every kind of skill required for average acceptable job performance. It is knowledge and experience in professional, managerial and human Relations activities necessary to fulfill the job.
Know-How is measured in depth by eight degrees and in breadth by five degrees
18. The Guide-Chart Profile Method : Know-HowThe three dimensions of Know-How are:
Practical procedures, specialized techniques and knowledge within occupational fields, commercial functions, and professional or scientific disciplines. This is commonly referred to as the Depth of Know- How.
Integrating and harmonizing simultaneous achievements of diversified functions within managerial situations occurring in operating, technical, support or administrative fields. This is referred to as the Breadth of Know-How
Active, practicing person-to-person skills in work with other people. This is referred to as the Human Relations Skill.
19. Depth Of Know-How
A. Education to post –primary level
B. Practiced in standard work routines and /or use of simple equipment and machines
C. Procedural or systematic efficiency and use of specialized equipment
D. Specialized skill gained by on-the-job experience or through part professional qualification
E. Understanding of theoretical principles normally gained through professional qualification or through a detailed group of involved practices and procedures
F. Seasoned proficiency in a highly specialized field, gained through experience built on theories or a broad and deep understanding of complex practices
G. Mastery of principles, practices and theories gained through wide experience and/or special development
H. Unique command of principles, theories and practices
The Guide-Chart Profile Method : Know-How
20. Breadth Of Know-How
I. Non or minimal – Performance or supervision of jobs which have closely specified objectives
II. Homogeneous – Integration of operations which are homogeneous in nature and objective, and coordination with associated functions
III. Heterogeneous – Integration or coordination of diverse functions or sub-functions in a company; or inter-company coordination of a tactical function
IV. Broad – Integration of the major functions in an operating company; or group-wide coordination of a strategic function affecting policy formation
V. Total – The management of strategic functions and policy formation
The Guide-Chart Profile Method : Know-How
21. Human Relations Skills
1. Basic – Ordinary courtesy and effectiveness in dealing with others
2. Important – Understanding and influencing people, important but not over-riding considerations
3. Over-riding – Skills in developing and motivating people are over-riding considerations
The Guide-Chart Profile Method : Know-How
22. The Guide-Chart Profile Method : Know-How
23. Guide-Chart Profile Method : Problem SolvingWhat is Problem Solving
The use of Know-How required by the job to identify, define, and resolve problems. “You think with what you know.” This is even true for the most creative work. The raw material of any thinking is knowledge of facts, principles and means. For that reason, Problem Solving is measured as a percentage of Know-How.
Problem Solving has two dimensions:
The environment in which the thinking takes place
The challenge presented by the thinking to be done
24. The Guide-Chart Profile Method – Problem-SolvingThinking Environment
A. Detailed rules and/or rigid supervision
B. Standard instructions and/or continuous close supervision
C. Well-defined procedures, somewhat diversified and/or supervised
D. Substantially diversified established company procedures, and general supervision
E. Clearly defined company policies, principles and specific objectives under readily available direction
F. Broad policies and objectives, under general direction
G. General policies, principles and goals under guidance
H. Business philosophy and/or principles controlling human affairs
25. The Guide-Chart Profile Method – Problem-SolvingThinking Challenge
I. Repetitive – Identical situations requiring solution by simple choice of things learned
II. Patterned – Similar situations requiring solution by discriminating choice of things learned
III. Variable – Differing situations requiring searching, finding and selecting solutions within the area of things learned
IV. Adaptive – Situations requiring analytical interpretive and/or constructive thinking. Judgment is required
V. Creative – Novel or non-recurring path-finding situations requiring the development of new concepts and imaginative approaches
26. Guide-Chart Profile Method : AccountabilityWhat is Accountability?
The answerability for action and for the consequences thereof. It is the measured effect of the job on end results of the organization. It has three dimensions:
Freedom to Act - is the extent of personal, procedural, or systematic guidance or control of actions in relation to the primary emphasis of the job
Job Impact on End Results – is the extent to which job can directly affects actions necessary to produce results within its primary emphasis.
Magnitude – is the portion of the total organization encompassed by the primary emphasis of the job. This is usually but not necessarily, reflected by the annual revenue or expense dollars associated with the area in which the job has its primary emphasis.
27. The Guide-Chart Profile Method - AccountabilityFreedom To Act
A. Prescribed – Direct and detailed instructions, and close supervision
B. Controlled – Established work routines and close supervision
C. Standardised – Standardised practices and procedures, general work instructions and supervision of progress and results
D. Generally regulated – Practices and procedures which have clear precedents
E. Directed – Broad practice and procedures covered by functional precedents and policies and managerial direction
F. Oriented Direction – Functional policies and goals, and general managerial direction
G. Senior Guidance – Inherently and primarily to direct top management guidance
H. Ownership Guidance – Only to ownership review and public recreation
28. Impact
I. Very Small (under US$1M)
II. Small (Between US$1M to US$10M)
III. Medium (Between US$10M to US$100M)
IV. Large (More than US$100M)The Guide-Chart Profile Method - Accountability
29. Environment
1. Remote – Giving information on other incidental services for use by others involved in the action
2. Contributory – Interpreter, advisory or facilitating services to those involved in the action
3. Shared – Participating with others (except superiors and subordinates) in taking action
4. Prime – Wholly responsible, with little or no shared responsibility The Guide-Chart Profile Method - Accountability
30. Salary Survey based on Hay MethodHay Point RangeMedian Salary Formula200 - 300129.46 * HP - 1386301 - 400155.27 * HP - 9127401 - 500167.24 * HP - 13,916501 - 600159.47 * HP - 10,033601 - 700172.55 * HP - 17,881701 - 800150.75 * HP - 2621