Download
1 / 22
230 likes | 442 Views
Compensations & Safety. Hosam Sheikh Al- Eid Walaa ’ Musallam. Prepared by:. Reviewed by:. Safaa S.Y. Dalloul. What is Compensation?. Compensation is the total of all rewards provided employees in return for their services.
E N D
Compensations & Safety Hosam Sheikh Al-Eid Walaa’ Musallam Prepared by: Reviewed by: Safaa S.Y. Dalloul
What is Compensation? • Compensation is the total of all rewards provided employees in return for their services. • Compensation administration is one of management’s most difficult and challenging human resource areas, as it contains many elements and has a far-reaching impact on an organization’s strategic totals.
Kinds of compensations • Compensations can be divided into two categories: • Financial compensations: • Direct financial compensations (wages, salaries, commissions and bonuses). • Indirect financial compensations.
Kinds of compensations • Non-financial compensation: • The various rewards comprise a total compensation system. • Historically, compensation practitioners have focused primarily on financial compensation and benefits. • To remain competitive, organizations are increasingly rewarding employee performance that influences their key goals.
Financial Compensation • Kinds of financial compensations • Direct financial compensations: is the pay that a person receives in the form of wages, salary, bonuses and commissions. • Indirect financial compensations (benefits): consists of all financial rewards that are not included in direct compensations.
Equity In Financial Compensations (What) • Equity: is the perception by workers that they are being treated fairly. • Fair pay treatment for employees.
Equity In Financial Compensations (How) • External equity: exists when a firm’s employees receive pay comparable to workers who perform similar jobs in other firms. • Internal equity: exists when employees receive pay according to the relative value of their jobs within the same organization. • Employee equity: exists when individuals performing similar jobs for the same firm receive pay according to factors unique to the employee. • Team equity: is achieved when teams are rewarded based on their group’s productivity.
Equity In Financial Compensations (Why) • Inequity may make employees feel that their compensation is unfair, and then they may leave the firm. A great damage may result for the firm if the employees choose not to leave and to restrict their efforts. • Note: reward and compensation has the same meanings.
Reward (compensation) Objectives • Any organizational reward system has three behavioral objectives: • Membership behavior to recruit and retain a sufficient number of qualified workers • Task behavior to motivate employees to perform to the fullest extent of their capabilities • Compliance behavior to encourage employees to follow workplace rules and undertake special behaviors beneficial to the organizations without direct supervision or instructions.
Reward techniques • Internal equity refers to comparisons between jobs or skill levels inside the organization, to achieve the organization's goals. • Internal equity is established through three reward techniques: • Job analysis • Job evaluation • Appraisal • Now, I am going to discuss the job analysis then Hosam will discuss the job evaluation.
Reward techniques: job analysis • Knowledge on jobs and their requirements is collected through job analysis, which is the systematic process of collecting and evaluating information about the tasks, responsibilities and the context of a specific job. • Job analysis consists of two mains stages: (How) • Data collection (Questionnaire, Interview, Observation, Test…etc) • The application of that data by the preparation of job descriptions, job specifications and job standards.
Reward techniques: Job evaluation • Job evolution is a systematic process designed to determine the relative worth of jobs within a single work organization. The job evolution process comprises of four steps: • Gather data • Select compensable factors • Evaluate the job (ranking, job-grading, factor comparison, point method) • Assign pay to the job
Establishing Pay Levels • Determining the right pay means combining the results of the job analysis and job evolution processes and market pay data. • Although the pay levels within an organization reflect external competitiveness and internal equity considerations, the decision on the final pay level – the organization’s pay policy – will be determined by many factors, including competitive strategy, HR strategy, reward objectives, organizational design and culture.
SafetyHealth Safety and Security • After the attack of 11/9/2001, the world has hanged a great deal and it becomes necessary for organizations to be prepared to assure a safe and secure workplace.
Health Safety and Security • Procedures may be used to ensure safe and secure workplace include the following: • Selection of people responsible for implementing evacuation plans. • Training of key personnel. • A communication system for alerting employees. • A plan informing employees including disabilities of what actions to be taken. • A description of work –site details; its capabilities and systems.
Health Safety and Security • Safety: the protection of employees from injuries caused by work-related accidents. • Health: an employee's freedom form physical or emotional illness. • Security: protection of employer facilities and equipment from unauthorized access and protection of employees while on work premises or work assignments.
