Current Issues on Compensation
-
Upload
aldreena-dsouza -
Category
Documents
-
view
220 -
download
0
Transcript of Current Issues on Compensation
-
7/29/2019 Current Issues on Compensation
1/21
Presented by:Supriya
-
7/29/2019 Current Issues on Compensation
2/21
What iscompensation
-
7/29/2019 Current Issues on Compensation
3/21
-
7/29/2019 Current Issues on Compensation
4/21
Internal equity versus external equity
Fixed pay versus variable pay
Performance versus membership
Job versus individual pay
-
7/29/2019 Current Issues on Compensation
5/21
Elitism versus egalitarianism
Below market vs above market compensation
Monetary vs non monetary rewards
Open vs secret pay
Centralisation vs decentralisation of paydecisions
-
7/29/2019 Current Issues on Compensation
6/21
Despite high pay, employees will continue toleave
Pay has substantive and symboliccomponents. Its important to balance both
Time to think whether remuneration should
be made transparent to all.
-
7/29/2019 Current Issues on Compensation
7/21
INDIVIDUAL INCENTIVES GROUP INCENTIVES
TIME BASED OUTPUT BASED
HALSEY PLAN
ROWAN PLAN
EMERSON PLAN
BEDEAUX PLAN
TAYLOR PLAN
MERRICKS PLAN
GANTT PLAN
PRIESTMEN PLAN
SCANLON PLAN
-
7/29/2019 Current Issues on Compensation
8/21
Merits:
-simple
-regular and fixed income-good quality-Avoids wasteful handling of materials and
machine-equality
-
7/29/2019 Current Issues on Compensation
9/21
Demerits:
-Not encouraging to efficient worker
-rigid supervision required-no rewards linked to performance
-
7/29/2019 Current Issues on Compensation
10/21
TOTAL WAGE = T*R+50%(S-T)*Rmerits: - simple
- beneficial
- guaranteed minimum wage- workers become efficient
Demerits:- std based on past perfomance
-half the benefit-quality may suffer-much clerical work
-
7/29/2019 Current Issues on Compensation
11/21
TOTAL WAGES= T*R+[T*R*(time saved/stdtime)]
Merits:-guaranteed minimum wage
-beneficial-check against overspeeding wrk
Demerits:- difficult to understand
-discouraged to save more half the stdtime
-
7/29/2019 Current Issues on Compensation
12/21
TOTAL WAGE= T*R+ (% OF BONUS*T*R) EFFICIENCY LEVEL= (Std time/time
taken)*100Bonus- increases beyond the prescribed levelusually 66.67%
Merits:-guaranteed wage-fair rate of bonus-bonus begins at 66.67%
-
7/29/2019 Current Issues on Compensation
13/21
Demerits:- employer may fix the std time at alower
-create jealousy and disunity-lots of clerical work involved-not flexible.
-
7/29/2019 Current Issues on Compensation
14/21
Std time represented in terms of B 75% of wage for time saved paid as bonus to
worker and 25% to foremen TOTAL WAGES= S*R + 75% OF R(S-T)Merits: -minimum wages guaranteed
-foremen is motivateddemerits:- workers may resent sharing
-calculations are complex
-
7/29/2019 Current Issues on Compensation
15/21
Merits:
- direct relation between efforts and rewards
- Encouragement to efficient worker- Just and fair to all- Increase productivity- Less Supervision cost
-
7/29/2019 Current Issues on Compensation
16/21
Demerits:- Deteriorate quality- Industrial disputes
- Wastage of material- Create jealousy among worker
-
7/29/2019 Current Issues on Compensation
17/21
Two rates are set: Lower rate & Higher ratemerits: - sufficient incentives to efficient worker
-inefficient worker penalised- need not share bonus with foremanDemerits:- no guarantee wage
-deterioration in quality-employer may fix very high stds
-
7/29/2019 Current Issues on Compensation
18/21
Three rates:-
-
7/29/2019 Current Issues on Compensation
19/21
Std time fixed for the task Who do not complete the task paid the basic
rate Who completes the task within specified time
minimum paid with bonus varying from 20%to 50%
-
7/29/2019 Current Issues on Compensation
20/21
TYPES:
-Priestman bonus plan
-Townes gain sharing plan
-Scanlon plan
-
7/29/2019 Current Issues on Compensation
21/21