Management Consulting/INTERNATIONAL HUMAN RESOURCE MANAGEMENT
1. Elucidate the concept of quality of work life. Compare the work family conflicts of police professional and nurses.
2. Enumerate the critical factors which influence the functions of wage and salary structure in Indian Industry. Justify your views by cross cultural examples. Do you endorse the pay discrimination policy? If yes, Justify.
Request your help on high priority. Thanks in advance.
Elucidate the concept of quality of work life. Compare the work family conflicts of police professional and nurses.
QWL services address the key areas of Work-Life Balance, Health Promotion and Wellness, and Staff Appreciation and Recognition.
WORK LIFE BALANCE — Manage the competing demands of home and work.
FLEXIBLE WORK OPTIONS offer creative solutions to help you balance work and family demands.
DAY CHILD CARE is available when public schools close due to inclement weather (pre-enrollment required).
WORK AND FAMILY SERVICE provide support for dependent care issues, including school strikes, elder care challenges, and more.
EDUCATIONAL WORKSHOPS cover a variety of topics, from finance to family relationships.
HEALTH PROMOTIONS AND WELLNESS— Improve your physical and emotional health and wellbeing.
EMPLOYEE ASSISTANCE PROGRAM provides free, 24/7 resources for you and your family, including counseling, referrals and information about personal or professional concerns.
ANNUAL HEALTH FAIRS held each year in April feature free health screenings and a wealth of information.
FLU SHOTS are available to faculty and staff every fall.
DISCOUNT FITNESS CLUB PROGRAM offers discounted memberships to local health clubs.
WELLNESS WORKSHOPS explore nutrition, lifestyle, exercise and other health-related topics.
RECREATING PROGRAM provides group exercise classes, personal training, gym membership and more at attractive rates.
WALKING PROGRAM makes walking, jogging or running a part of your routine by tracking your progress and keeping you motivated.
WEIGHT REDUCTION PROGRAMS helps members shed excess pounds with on-campus meetings.
WEIGHT MAINTENANCE gives you the support you need to avoid gaining weight during the holiday season.
SMOKING CESSATION PROGRAM can help you kick the habit.
STAFF RECOGNITION/ REWARDS Enjoy recognition and appreciation of your contributions to Penn's mission.
LENGTH OF SERVICE REWARDS reward long-standing commitment to Penn.
EXCELLENCE AWARDS honor achievements by individuals or teams who go above and beyond the call of duty.
FAMILY DAY is an annual celebration of the Penn community, featuring food, fun and football.
Quality of Worklife programs are constantly evolving.
WHAT ARE FLEXIBLE WORK OPTIONS
Flexible work options offer creative approaches for completing work while promoting balance between work and personal commitments. These approaches involve use of non-traditional work hours, locations, and/or job structures, flexible work arrangements, time worked does not equate to achieved outcomes. Outcomes are based on the staff member's achievement of results and use of competencies critical to achieving those results. Except in the case of conversion from full-time to a less-than-full time schedule, such as for a part-time assignment or job share, the total numbers of hours worked and expected productivity remain the same.
Typical flexible work options are:
FLEXTIME :The most requested, easiest to manage and the most affordable FWO, flextime offers flexibility in arrival, departure and/or lunch times, typically with a designated core-time mid-day during which all staff are present.
FLEXPLACE :This arrangement allows for a portion of the job to be performed off-site, on a regular, recurring basis. The majority of work time is spent at the office and the off-site work typically is done at home. It may be the most complicated flexible work option to arrange since it generally requires electronic equipment and technological support.
COMPRESSED WORK SCHEDULE :A traditional 35-40 hour work week is condensed into fewer than five days of work. This option is more easily applied to non-exempt (weekly paid) staff for whom maximum work hours are identified, but it is not ruled out for monthly paid staff who may work more than 40 hours during the work week. The Fair Labor Standards Act requires weekly paid staff to be paid overtime if they work over 40 hours in a work week.
PART-TIME WORK ---is a regular arrangement for between 17.5 and 28 hours a week. This is different from a temporary work assignment where an employee is expected to have a temporary, non-recurring relationship to the workplace and does not receive paid time off.
JOB-SHARING : allows two staff members to share the responsibilities of one full-time position, typically with a prorated salary and paid time off. This is not the same as a part-time job. Each staff member shares a specific proportion of a full-time position. Creative and innovative schedules can be designed to meet the needs of the job sharers and the office. Note: If one position is scheduled for less than 17.5 hours a week, it becomes temporary and cannot retain regular part-time status.
Creating an Employee Supportive
Workplace . Achieving Work-Life Quality and Balance
Work-Life quality and balance have become the most pressing
issues experienced by workers today. This program is based
upon the premise that we cannot manage time but we can
manage our most important workplace activities, when they are
clearly identitified and prioritized.
Achieving work-life quality and balance requires the
complementary efforts of:
• An Organizational Support System
and implementation of:
• Manager/Supervisor/Employee-Designed Work-Life Process
The Organizational Support System consists of:
. Program support
. Leadership support
. Cultural Transformation
The Manager/Supervisor/Employee Designed Work-Life
Process consists of:
• Personal Work-Life Plan
• Implementation Process
Creating an Employee Supportive Workplace
Achieving Work-Life Quality and Balance
An Organizational Support System
Program Support: This component involves the various unique
programs offered by an organization to their employees. These
programs include, but are not limited to:
1. Family-Friendly Initiatives
2. Child Care
3. Elder Care
5. Family Leave
6. New Mothers
7. Family Education Expenses
8. Employee Assistance Programs
9. Personal Problems
10. Financial, Mental, Health, and Chemical Dependency
11. Work-friendly Programs
12. Flexibility in Work Hours
13. Telecommuting or working at home
14. Zero Tolerance Harassment (including race, color, sex, etc.)
15. Disability and Religious Accommodation
16. Anti-harassment Training, Prevention, and Procedures
17. Pay Equity Evaluations and Adjustments
18. Employee Satisfaction Survey
19. Disability Strategy
20. Retirement Planning Program
Creating an Employee Supportive Workplace
Achieving Work-Life Quality and Balance
26. On-site summer camp
27. Workshops or seminars for quality, balance, and work-life issues
28. Diversity training
29. Manager/supervisor work-life appraisals
30. Career counseling programs
31. Wellness programs for employees and their families
32. 401(k) or 403(b) individual retirement plan
21. Reduced schedules
22. Family leave for childbirth or adoption
23. Job sharing
24. Leave for school/childcare functions
25. Childcare near or at worksite
POLICE/NURSE JOB STRESS AND STRESS REDUCTION/COPING
The findings indicate that high level of stress experienced in the
job is positively, strongly and significantly associated with the
dependent variable. Moreover, when the officer used stress
reduction/coping programs (SRCPs), the better gets the
relationship with his/her spouse. Interestingly, higher level of
education increases the likelihood of the spousal relational
problems. At the end, several suggestions were made to the police
departments in terms of helping the officers that are affected
adversely by job stress.
…the price of job stress may not be limited to the costs incurred
when recruiting and training replacements; there may also be an
emotional price tag paid by the worker and his or her family. Upon
arriving home at the end of the workday, emotionally exhausted
police officers/NURSES are more likely to bring with them the tensions
caused by their jobs. According to their wives’ reports,
emotionally exhausted officers are likely to return from work upset
or angry, tense and anxious, and in a complaining mood; despite
their apparent physical exhaustion, they have difficulty sleeping at
night. In addition to the symptoms experienced by the officer
himself, the family suffers. Women married to emotionally burned
out officers were less satisfied with their husbands’ jobs, as were
the officers themselves…Besides being less involved with friends,
the depersonalizing officer is less involved with his own family
and tends to spend his off-hours away from home
Police/NURSE Job Stress and Stress Reduction/Coping Programs:
When compared to the other occupations, police job is considered
As stated, “Stress is an integral part of the life of a professional police officer. Police often encounter stressful situations in their daily work, and these stressors have cumulative effects” .
As a matter of fact, every person is subject to stress, but
police officers are at greater risk than other people . Factors like, dangerous missions, overloaded shift hours,
hierarchical and disciplined structure etc., affect police psychology,
physiology, and of course, his/her family relations.
the police officers have serious
stress problems, and their families are suffering the effects of it. Further,
it can adversely influence the job performance , as well.
For instance, “If a worker’s job has a strong, negative impact on
family life, as might be the case when job stress is ‘taken home’, the
worker may consider giving up the job preserve the family. An
alternative is to relinquish family and continue the job” .
The stress does not only affect the officers, but also their families, as well . The law enforcement officers suffer
relatively high rates of suicide, and high divorce rates
Therefore, “the stressful nature of police work, along with other occupational demands, can have a great impact on the
family life of police officers” . As stated “both the
manifestations and effects of police stress can be dangerous to the
individual officer, his or her family and department, and the community
at large” (). Moreover, broken marriages can also be a
result of the job stress .
This study will examine the effects of job stress and the stress
reduction/coping programs (SRCPs) on spousal relationship. Some
pertinent questions associated with this analysis include: Do the job stress
and working conditions influence the officer’s relationship with his/her
spouse? Does it make any change whether the officer is highly/lowly
educated? Do attitudes of the spouse to the officer matter? How about if
the officer uses stress reduction/coping programs?
Police job stress is believed to be one of the most stressful jobs and the
officers are under the risk of psychosocial work stress. As stated, “This police work stress can adversely impact the delivery of effective law
enforcement, as well as pose a threat to the safety of police officers, their
coworkers, their family and friends, and the general public” .
officers are 4 times more likely to commit domestic violence. Further,
they found that gender matters in domestic violence, as the male officers
are more inclined to commit domestic violence compared to female
officers. Finally, when officers are involved in negative and critical
situations at work, they are more likely to act violently at home.
Gul (2008) studied law enforcement officers’ depression on their
profession and examined the stressors in policing. He found that officers
that make violent arrests were more likely to feel negative/depressed
about their work. In addition, he found that officers who attended a police
funeral were more likely to feel negative/depressed about their profession
and African American officers were less likely to feel negative or
depressed about their jobs than whites. Finally, patrol officers were more
likely to feel negative/depressed about their work compared to other
Buker and Wiecko (2007) conducted a survey research on civilian
officers, police officers, and mid-level supervisors (a total number of 811
respondents) working for the Turkish National Police Organization. They
found that the organizational factors are the most stressful ones among
other causes of stress. Moreover, there are differences in some stressors
depending on the size and structure of the department.
, found that bad administration
policies, job conflict, moonlighting, underload-overload work, shift work
and line-of-duty situations, courts, and negative public image are some
important factors and stressors which affect police family life negatively.
Barling (1990) studied the relationship between job experiences and
marital functioning and found that positive work experiences (i.e., job
satisfaction) are associated with positive marital functioning, whereas
negative work experiences (i.e., work stress) are associated with marital
dysfunction. Mauno and Kinnunen (1999) examined the relationship
between the job stressors and marital satisfactions. They state that “the
effects of job stressors on marital functioning are primarily indirect”
(891). Thus, their results are paralleling several other studies, which
particularly focused on the indirect nature of the relationship between
negative work experiences and marital functioning
found in one of their models that
“psychological distress resulting from work-family conflict influences
marriage negatively by increasing hostility and decreasing warmth and
supportiveness in marital interaction”. Lord (1996) found that work and
non-work (i.e. spousal support) support have a helpful impact on the
officer’s attitude and performance. In his study, Jackson (1992) found
that support from spouses did not have any buffering effect on the
relationship between marital and parental stress, whereas it has effect on
the negative effect of work stress. In addition, “Long irregular hours,
being on call, safety concerns…have all been postulated as reasons for
the marital difficulties experienced by police officers”.
With respect to education, it is found that officers with more education
are more likely to report more organizational work events and greater
stress (Patterson, 2002). The paramilitary model of the organization is
also the source of stress for highly educated officers that may feel that
they are not given the opportunity to take part in decision making and
contribute in the development (Goldstein, 1990). Similarly, the higher
ranking officers have reported more stress and working condition events.
This might be because “Higher ranking officers have more administrative
duties and supervise low ranking officers, while at the same time
experiencing their own share of organizational events and situations, and
consequently they experience more events and greater perceptions of
stress” (Patterson, 2002:615).
Looking at the issue from a different angel, “Because so many police
families are adversely affected by an officer’s profession, [stress coping]
programs in home and family life” (Sewell, 1984:521) can be helpful.
“One of the basic issues in the occupational stress domain concerns
coping, or ways in which the individual can attempt to deal with the job
stressors to ward off the aversive strains” (Beehr et al., 1985:3).
Therefore, stress management programs can be helpful for police officers
Stress-related disorders “can
be reduced if a person understands the function of stressors, how these
stressors can damage him or her physically and emotionally, and how he
or she can cope with stressors to reduce stress”
Quality of work life (QWL) is viewed as an alternative to the control approach of managing people. The QWL approach considers people as an ‘asset’ to the organization rather than as ‘costs’. It believes that people perform better when they are allowed to participate in managing their work and make decisions.
This approach motivates people by satisfying not only their economic needs but also their social and psychological ones. To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work. Further, today’s workforce is realizing the importance of relationships and is trying to strike a balance between career and personal lives.
Successful organizations support and provide facilities to their people to help them to balance the scales. In this process, organizations are coming up with new and innovative ideas to improve the quality of work and quality of work life of every individual in the organization. Various programs like flex time, alternative work schedules, compressed work weeks, telecommuting etc., are being adopted by these organizations.
Technological advances further help organizations to implement these programs successfully. Organizations are enjoying the fruits of implementing QWL programs in the form of increased productivity, and an efficient, satisfied, and committed workforce which aims to achieve organizational objectives. The future work world will also have more women entrepreneurs and they will encourage and adopt QWL programs.
'I like my job, I have wonderful kids and a supportive spouse, but I feel that I am stretched to the limit. I never seem to have enough hours in the day to get my work done and still have time for family let alone friends or the things I really want to do'.
They are not alone. High levels of stress are often associated with conflicting demands of work and home. Even though job satisfaction may be high, a majority of workers rate balancing work and family as more important that any other employment factors. One of the greatest challenges to balancing work and home life is job demands. Job demands include "time pressures and deadlines, long hours, unclear or conflicting duties, having too much responsibility, or work that is too tiring or boring".
Work/life balance initiatives can help to bridge the gap between work and home responsibilities.
work/life balance initiatives
Simply put, work/life balance initiatives are any benefits, policies, or programs that help create a better balance between the demands of the job and the healthy management (and enjoyment) of life outside work.
Work/life initiatives can potentially deal with a wide range of issues including:
• on-site childcare,
• emergency childcare assistance,
• seasonal childcare programs (such as March break or Christmas),
• eldercare initiatives (may range from referral program, eldercare assessment, case management, a list of local organizations or businesses that can help with information or products, or seminars and support groups),
• referral program to care services, local organizations, etc.,
• flexible working arrangements,
• parental leave for adoptive parents,
• family leave policies,
• other leaves of absence policies such as educational leave, community service leaves, self funded leave or sabbaticals,
• employee assistance programs,
• on-site seminars and workshops (on such topics as stress, nutrition, smoking, communication etc),
• internal and/or external educational or training opportunities, or
• fitness facilities, or fitness membership assistance (financial).
workplace consider these programs
The need for balance is essential.
When employees are "out of balance", they experience more stress and fatigue and tend to be absent from work more often due to these reasons. They have less focus while at work because they are worried about issues at home and they are also more distracted at home because work matters weigh on their minds. The end result is that neither situation is healthy or productive; in short, it's a lose/lose situation for employees, their families and their employer.
Studies on work/life balance programs have reported such benefits as:
• Attracts new employees,
• Helps to retain staff,
• Builds diversity in skills and personnel,
• Improves morale,
• Reduces sickness and absenteeism,
• Enhances working relationships between colleagues,
• Encourages employees to show more initiative and teamwork,
• Increases levels of production and satisfaction, and
• Decreases stress and burn-out.
workplace implement work/life balance initiatives
Work/life balance initiatives can be part of a complete health and safety and/or a health promotion program in the workplace. The initiatives can be written as part of existing health and safety policy, or particular guidelines can be referenced in the overall company human resources policy or the collective agreement (if applicable).
Meeting both the employees' and overall business needs requires a significant commitment from senior management. Each workplace should tailor its work/life policies to suit their own particular needs and corporate culture. This 'best fit' should be done with frequent consultation with employees. As with other health and safety programs, for work/life initiatives to be successful and sustainable, both employers and employees must take responsibility for making the program work effectively. An evaluation or feedback systems should also be part of that process.
It is very important to remember that for many workers balancing work/life demands is just one of the many challenges they face on a regular basis. While most people would agree that these issues should be addressed, they may not know where they can be resolved. A program dealing with work/life issues could, for example, be part of a complete health and safety program. However, it should not take away resources or distract attention from addressing other health and safety concerns or hazards that may be present in the workplace.
steps to take when setting up a program
When starting, it is best to appoint an individual or in some cases, form a joint work/life committee. To research needs and to implement the program, suggested steps to take are as follows:
1. Assess the workplaces' current situation and objectives.
• Survey employees, supervisors, and managers.
• Ask about needs, concerns, etc. Find out about bottom line or underlying concerns (e.g., employees report not being able to cope with workplace stress. What is the true source of this stress?)
2. Get buy-in from all levels. Educate all members of the company about the benefits and challenges of introducing these programs. Be clear on the intentions and goals of the program. Provide any necessary training and/or education to help these address concerns.
Some common concerns or challenges that may need to be addressed include the misconceptions that:
• people should keep their personal lives at home,
• being present equals being productive/ hours at work equals performance/results,
• benefit programs can make people happier, but not more productive,
• family-friendly policies are soft human resources issues, mainly for women,
• management will lose control,
• it's only for non-managerial positions,
• one program is good for everyone, or
• participation will be a career-limiting move.
3. Be clear how hours, productivity and deadlines will be monitored. Address fears and apprehension expressed by both employees and managers. Be sure that workload issues are resolved and set realistic targets.
4. Create a policy or guideline:
• Clearly state its use and purpose.
• Be clear about the impact on vacation time, compensation and other benefits, if any.
5. Initiate a trial period and/or pilot studies.
6. Monitor, re-survey, and make any adjustments that are necessary.
• Act on recommendations for modification or for further enhancements.
3. Enumerate the critical factors which influence the functions of wage and salary structure in Indian Industry. Justify your views by cross cultural examples. Do you endorse the pay discrimination policy? If yes, Justify.
Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men.
Land, Labor, Capital and Organization are four major factors of production.
Every factor contributes to the process of production/business. It expects return from the business process such as Rent is the return expected by the Landlord. similarly Capitalist expects Interest and Organizers i.e Entrepreneur expects profits. The labour expects wages from the process.
It is evident that other factors are in-human factors and as such labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process.
Advantages of Fair Compensation System:
Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following:
1. If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen.
2. Such system will encourage the normal worker to perform better and achieve the standards fixed.
3. this system will encourage the process of job evaluation. It will also help in setting up an ideal job evaluation, which will have transparency, and the standards fixing would be more realistic and achievable.
4. Such a system would be well defined and uniform. It will be apply to all the levels of the organization as a general system.
5. The system would be simple and flexible so that every worker/recipient would be able to compute his own compensation receivable.
6. Such system would be easy to implement, so that it would not penalize the workers for the reasons beyond their control and would not result in exploitation of workers.
7. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.
8. Such system would help management in complying with the various labor acts.
9. Such system would also bring about amicable settlement of disputes between the workmen union and management.
10. The system would embody itself the principle of equal work equal wages. Encouragement for those who perform better and opportunities for those who wish to excel.
COMPENSATION system usually mean the financial reward on organization gives its employees in return for their labour. While the term COMPENSATION system, not only includes material rewards, but also non-material rewards. The components of a COMPENSATION system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee.
Compensation philosophy is the set of values and beliefs that an organization has in regards to compensation
decision-making. This often is combined with a set of guiding principles that further assist in compensation administration.
The collection of decisions that the firm has
made over a period of time constitutes a compensation set of beliefs and values — a compensation philosophy —
regardless of whether or not the firm has actually committed those ideas to a formal document. Compensation strategy is
used to guide the design of specific compensation decisions.
Differences in compensation philosophies are widespread. Thus, some organizations believe in the widespread use of
incentive compensation, while others only apply incentive compensation to a very narrow group of employees who are
believed to affect the bottom line. Another illustration may be found in the examination of the behavior of firms who seek to apply compensation levels “at the midpoint.” These firms differ philosophically from those firms that seek to pay at the top of the market, thus enabling them to attract the highest caliber employees that they can find. Business settings often explain these differences. Some
firms are proportionally more generous to certain levels of exempt employees, while others believe in principles of
achieving widespread equity across all employees. The openness with which compensation decisions are made, and the
degree of stakeholder involvement in those decisions, is yet another example of philosophical differences that may exist
Needless to say, compensation is a key issue for the high performance organization, as the employee and management
systems utilized by the organization must be reinforced through the rewards structure. Again, our experience is
telling in avoiding making compensation unduly controversial, thus adversely affecting the very heart of the high
Compensation administration includes a collection of activities required to sustain the effectiveness of a compensation
strategy. Thus issues ranging from labor market surveying to performance management to skill certification and peer
review come under this umbrella. Involving stakeholders in compensation administration can reinforce the values and
beliefs underlying the compensation philosophy and strategy.
AS PART OF THE ALIGNING PROCESS, THE FOLLOWING
FACTORS ARE TAKEN INTO CONSIDERATION.
1.Employee Inputs and Preferences
• Perceptions of external pay equity
• Perceptions of internal pay equity
• Pay delivery beliefs
— Form (cash, gainsharing, benefits)
— Method (individual, small group, large group)
• Risk tolerance
• Trust in management
2.Business and Operating Inputs
• Operations and Manufacturing strategy
• Sales development strategy
• Percentage of compensation costs to total product/
• Percentage of compensation costs to controllable
• Existing markets/products
• Potential markets/products
• Anticipated volume
• Reinforce/enhance work design
• Maintain cultural change processes
• Other operating issues
3.Industry and Labor Market Practices
• Availability and quality of work force
• Industry practices
• Retention of work force
• Retention of key contributors
• Wage/salary levels and movement
• Wage/salary delivery charges
4.Compensation Philosophy and Objectives
• How much emphasis should be placed on rewards to
• What issues are to be driven by compensation as
opposed to management practices
• Market definition (exempt and non-exempt)
• Method of delivery
• Targeted position in labor market
• Targeted position in product market
• Relationship within total company
• Relationship to selection and retention
• Portion of pay guaranteed and at risk
• Percentage of workforce bonus eligible
5.Base Pay Delivery
• Method of delivery — Job-based vs. individual-based
• Number of levels
• Structure of levels
• Pricing strategies
• Adjustment method
• Weighting of individual performance
6.Organization Performance or Variable Pay
• Role in total compensation strategy
• Tolerance for pay at risk
• Risk - reward ratios
• Use of other monetary rewards
• Use of non-monetary rewards
• Individual performance recognition
• Usually determined at corporate level; limited scope at
• Tie to business and human resource objectives
• Communications (Purpose - Coverage - Value)
• Stakeholder role in compensation administration
• Performance management & evaluation
• Overtime policy (exempt & non-exempt)
• Shift differentials
• Attendance policynce
• Role of seniority
Compensation decisions should be fully integrated into the organization’s business and operations strategy, through
its compensation philosophy. The design of compensation systems should be subsequent to, and not precede, this key
analysis and decision point. For the high performance firm, an appropriate level of employee involvement can further
reinforce the organization’s general beliefs and values.
The integrated COMPENSATION system includes:
Job evaluation and profiling
• Defining key performance indicators
• Analysis and modification of pay levels and structures to reflect both internal and market relativities
• Designing of performance evaluation processes
• Structuring of individual, team and corporate performance bonuses
Social climate surveys with focus on remuneration
• Designing flexible benefits plans
• Implementation of new reward components in compensation package
• Implementation and assistance in change communications
• Training for internal specialists in reward structure planning and maintenance
Performance Based COMPENSATION is based on the definition of key performance indicators identified as part of job evaluation, and linking these indicators with reward components. A combination of performance measuring system and additional motivational components delivers an integrated performance-based COMPENSATION system.
Flexible Benefit Schemes are a modern approach to the management of budgets for staff remuneration. Employee benefits constitute a considerable portion of staff costs, but they are often expended without the desired effect since employees do not perceive the full value of benefits. This system increases the effectiveness and enable better control.
Why COMPENSATION system is required?
These components will be designed, developed and maintained on the basis of strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims;
1. Improve Organizational Effectiveness: Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage.
2. Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working.
3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.
4. Supportive Managers: Support individual managers in the achievement of their goals.
5. Motivate Employees : Motivate employees to achieve high levels of quality performance.
6. Compete in the Labour Market: Attract and retain high quality people.
7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf.
8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization.
9. Improved Skills : Upgrade competence and encourage personal development.
10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service.
11. Develop team working : Improve co-operation and effective team working at all level.
12. Value for money: Pride value for the money for the organization.
13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department.
14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
the organisation you are referring to
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
THE ORGANIZATION , I ASSOCIATED WITH
HAVE THE FOLLOWING SYSTEM
The Reward systems focus on positive reinforcement. Positive reinforcement is the most effective tool for encouraging desired behavior because it stimulates people to take actions because they want to because they get something of value (internally or externally) for doing it. An effectively designed and managed reward program can drive an organization's change process by positively reinforcing desired behaviors.
The SMART criteria.
These criteria used when designing and evaluating programs. Programs should be:
1 Specific. A line of sight should be maintained between rewards and actions.
2 Meaningful. The achievements rewarded should provide an important return on investment to both the performer and the organization.
3 Achievable. The employee's or group's goals should be within the reach of the performers.
4 Reliable. The program should operate according to its principles and purpose.
*Timely. The recognition/rewards should be provided frequently enough to make performers feel valued for their efforts
The process of performance management reflects how the work gets done and creates the environment in which people feel valued for their achievements. The performance management process includes four critical components:
1 Focus on what is important to change or be improved.
2 Measures to determine whether and how much progress is being achieved.
3 Feedback so that performers will know whether and how much progress is being achieved.
4 Reinforcement so that everyone celebrates achievements as they are unfolding.
Indicators of successful performance management include the following:
1 All measures are understood by the employees, who can describe the importance of their activities to the agency. Measures address results and behaviors/processes.
2 A tracking system is used to monitor performance in the areas identified.
3 The performance measures and progress are displayed in a public area.
4 Data on the performance charts is current.
5 The team leaders/managers are actively engaged in coaching staff members and providing assistance to improve performance.
6 Periodic celebrations mark achievements as they are realized. These celebrations are regarded positively by employees.
7 Data indicate performance is improving.
Recommend that organizations:
1 focus on variables critical to success;
2 create timely, chart-oriented feedback;
3 create celebrations that mean something to the performers;
4 use performance reviews as an opportunity to reflect "how we won" and "how we lost" make them as often as necessary to cement the learning;
5 anchor the memory of achievements achievement-oriented firms measure a lot, accomplish milestones frequently, and do much celebrating;
6 don't rely on annual performance appraisals as the sole source of feedback;
7 when designing programs, avoid copying programs used by other organizations; and
8 don't make the design process into the "let's make a form" game.
THE REWARD SYSTEM IS TWO-FOLD
1.RECOGNITION FOR PERFORMANCE.
2.PAYMENT. WHICH INCLUDES
-cost of living rise
-merit INCREASE , which is based on
*performance against the KEY PERFORMANCE INDICATORS.
*bonus for exceptional performance with the scope of the job position
Facts About Equal Pay and Compensation Discrimination
The right of employees to be free from discrimination in their compensation is protected under several federal laws, including the following enforced by the Equal Employment Opportunity Commission:.
The law against compensation discrimination includes all payments made to or on behalf employees as remuneration for employment. All forms of compensation are covered, including salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
Equal Pay Act
The Equal Pay Act requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal. It is job content, not job titles, that determines whether jobs are substantially equal. Specifically, the EPA provides that employers may not pay unequal wages to men and women who perform jobs that require substantially equal skill, effort and responsibility, and that are performed under similar working conditions within the same establishment. Each of these factors is summarized below:
Measured by factors such as the experience, ability, education, and training required to perform the job. The issue is what skills are required for the job, not what skills the individual employees may have. For example, two bookkeeping jobs could be considered equal under the EPA even if one of the job holders has a master’s degree in physics, since that degree would not be required for the job.
The amount of physical or mental exertion needed to perform the job. For example, suppose that men and women work side by side on a line assembling machine parts. The person at the end of the line must also lift the assembled product as he or she completes the work and place it on a board. That job requires more effort than the other assembly line jobs if the extra effort of lifting the assembled product off the line is substantial and is a regular part of the job. As a result, it would not be a violation to pay that person more, regardless of whether the job is held by a man or a woman.
The degree of accountability required in performing the job. For example, a salesperson who is delegated the duty of determining whether to accept customers’ personal checks has more responsibility than other salespeople. On the other hand, a minor difference in responsibility, such as turning out the lights at the end of the day, would not justify a pay differential.
• Working Conditions
This encompasses two factors: (1) physical surroundings like temperature, fumes, and ventilation; and (2) hazards.
The prohibition against compensation discrimination under the EPA applies only to jobs within an establishment. An establishment is a distinct physical place of business rather than an entire business or enterprise consisting of several places of business. In some circumstances, physically separate places of business may be treated as one establishment. For example, if a central administrative unit hires employees, sets their compensation, and assigns them to separate work locations, the separate work sites can be considered part of one establishment.
Pay differentials are permitted when they are based on seniority, merit, quantity or quality of production, or a factor other than sex. These are known as “affirmative defenses” and it is the employer’s burden to prove that they apply.
In correcting a pay differential, no employee’s pay may be reduced. Instead, the pay of the lower paid employee(s) must be increased.
THE ACT prohibit compensation discrimination on the basis of race, color, religion, sex, national origin, age, or disability. Unlike the EPA, there is no requirement that the claimant’s job be substantially equal to that of a higher paid person outside the claimant’s protected class, nor do these statutes require the claimant to work in the same establishment as a comparator.
Compensation discrimination can occur in a variety of forms. For example:
• An employer pays an employee with a disability less than similarly situated employees without disabilities and the employer’s explanation (if any) does not satisfactorily account for the differential.
• An employer sets the compensation for jobs predominately held by, for example, women or African-Americans below that suggested by the employer’s job evaluation study, while the pay for jobs predominately held by men or whites is consistent with the level suggested by the job evaluation study.
• An employer maintains a neutral compensation policy or practice that has an adverse impact on employees in a protected class and cannot be justified as job-related and consistent with business necessity. For example, if an employer provides extra compensation to employees who are the “head of household,” i.e., married with dependents and the primary financial contributor to the household, the practice may have an unlawful disparate impact on women.
It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on compensation or for filing a discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the Equal Pay Act.