1473110_634779257210790000
Transcript of 1473110_634779257210790000
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5th module presentation
On
Compensation for management staff(Service organization and nonprofit organization)
Subject: - Management control system
Guided by: - Ms. Ripal Madhani
Mr . Nilesh Movalia
Prepared by: - Gohil Ajaysinh p. (33)
Talaviya yogesh c. (14)
Academic year: - 2011-2013
K. K. Parekh Institute of Management Studies Amreli.Piyoosh Bajoria
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Compensation for management staffIntroduction:-
Compensation Management is an integral part of themanagement of the organization. Compensation
Management contributes to the overall success of the
organization in several ways.
Compensation management helps to determine the relative
worth of a job in an organization in a systematic, consistentand accurate manner. It also helps in estimating the basic
pay for each job in accordance with the importance of the
job in the organizational hierarchy.
Definition:-
Compensation management is a strategic activity that
helps an organization improves the effectiveness of its
employee reward processes.
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CONTComponents of Compensation System
Components of a compensation system are as follows:
Basic Wage and salary plans.
Incentives
Employee benefits. Performance-based pay
Job analysis
importance of compensation management
To worker
To employer
To government
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SERVICE ORGANISATIONTATA CONSULTANCY SERVICES (TCS)
Types of CompensationDirect Compensation
Wages
Salaries
Commissions, Bonuses, Gainsharing, Profit Sharing
Indirect Compensation
Pay for Time Not Worked (vacation, sick leave, holidays,
etc.)
Insurance Coverage (medical, dental, life, etc.)
Income Security (pensions and disability)
Services(education assistance, child care, recreation,
discounts, etc.)Piyoosh Bajoria
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EVA compensation model for TCSTCS (Tata consultancy service) adopted EVA aimed at creating
economic value byconcentrating on long term continuous improvement.
This model measured operating and financial performance
of the organization.
Basis for giving compensation to employees.
To assess employees contribution, at the company.
Component of fixed and variable pay were determined
Fixed Pay- wages, pension.
Variable Pay- bonus, profit sharing and stock options.
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Eva model by TCScompenstion management
Piyoosh Bajoria
FIXED VARIABLE
STOCK OPTION
PROFIT SHARING
BONUS
PENSION
WAGE
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Types of Organizational RewardsGiven by TCS
Membership
& SeniorityTask
Performance Competency Job
Status
Organizational Rewards
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Membership & Seniority Based Rewards
Rewards depends upon the firm which he orshe joins and the time spent in it.
Attract job applicants
Reduce turnover
May not directly motivate job performance
May fail to motivate achievers to perform
better
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Job Status Based Rewards
Depends upon the Status of the Job which is
determined with the help of job evaluation.
Maintains the feeling of Equity
Fail to motivate achievers to perform better
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Competency Based Rewards
Rewards are linked to the competencies of
employees.
Also called Skill Based Reward System.
Motivates employees to acquire additional
skills
Master of All Trades Improved Service Quality
Expensive
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Performance Based Rewards
Linked to performance rather than seniority or
membership.
Organizational Rewards
Profit Sharing
Stock Options Team Rewards
Gain Sharing
Special Bonuses
Individual Rewards
Piece Rate
Commission
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Pay and Performance Relationship
Employeeexpects
Pay
Performanceis
evaluated
Employee
considers equityof performance,
pay
Employee
performs
job
Employee sets new
expectations
based on previous
experiences
Feedback to employee
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Effective Incentive Plans
1.Incentive plan should be linked to employee performance.
2.It should be communicated to the employees clearly .
3.Employee suggestions and inputs should be valued and
rewarded.
4.The incentive plan should include both monetary and non-
monetary incentives for employees.
5. The incentive plan should be minimally affected byexternal factors.
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Objectives of employees benefit
programTata consultancy the benefits that company offers to its
Employee are:
1. Common benefits: Like Hospitalization insurance,
Parivar Raksha Yojna, Employee Referrals, Car lease,
Transport etc
2. Performance incentives: Like project completion
incentives, Best project award, Outstanding
performance bonus & Spot awards
3. Special benefits: Tax planning consultancy, Retrial
benefits, Special young genius award for dependent
children
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TCS
Employee satisfaction
Won best employer award by CNBC
Lowest attrition rate
Performance Improvement Plans was employed
EVA increased transparency
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ESOPs and EVA
ESOPs' was offered to only few employees
According to TCS ,objective of
Valuecreation
EVALong Termrewards
Commitment
ESOP
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