Managing Compensation

Aim of the organisation

Acquire qualified employees

Retain good employee

Reward desirable behaviour

Ensure internal equity

Recognise responsibility

Further administrative efficiency

Control Cost

Comply with legislation

Aim of the individual employee

Individual master has his own special idea worth and have to feel he is being administrative sensibly

Paid by his own validation of worth

Aim of the Trade Union

Essential mark of specialist's organisation is get most limits benefits for their people without unduly prejudicing their future security

PHASE 1 : Job analysis

Job description

Job specification

PHASE 2 : Job evaluation

Ranking

Job grading

Point method

PHASE 3 : Salary survey

Purchased survey

Own survey

PHASE 4 : Pricing job

Job evaluation worth = Labor market worth

Policy area

Pay posture

Influence of market rates

Rewards for performance

Equity

Salary structure

Amount of central control

Total remuneration

Communication

Location

Industry

Organisation size and profitability

Individual salary review

Controls of salary reviews

Keeping pace with market rate

Performance pay problems

Employee on salary maximum

Out-of-date job evaluation schemes

Monitoring external relativiities

Monitoring internal relativities

Grading jobs

Fixing salaries on appointment

Increments upon promotion