Description
The PPT explains about Compensation Management including different types of compensation and fringe benefits
Compensation Management : Types of compensation and fringe benefits
Contents:
? Objectives ? Classificatory variables ? SEC ? Power consumption ? Data variables
Factors affecting compensation
• •
External factors Internal factors
External Factors
• • • • • • •
Labour demand and supply Cost of living Labour market Labour unions Labour laws Society Economy
Internal Factors
• • •
Business strategy Performance appraisal Other employee related factors
Incentives
? Incentives are variable rewards granted to employees
according to variations in their performance ? Payment by Results
Prerequisites
? Cooperation of Workers
? Scientific work measurement ? Indirect workers involvement ? Cost and Time / Benefit ? Greater need for planning (e.g. SAIL) ? Appropriate – Type of work ? Provisions for Amending
Types
Incentive Schemes
Earnings=O/P Earnings<O/P Earnings>O/P Earnings differ with O?P
Straight Piece Work
Halsey Plan
High Piece Rate
Taylors Model
Standard Hour
Rowan Plan
High Standard Hour
Merrick Model
Barth Scheme
Gantt Task System
Bedaux Plan
Emersons Model
Straight Piece Work
? Rate per unit=10 Paise ? Total O/P=100 units ? Earnings=100*0.10=Rs10.00
Standard Hour
? Standard Time=10hrs
? Rate per Hours= Rs 1 ? Case 1 ? Time Taken=8hrs ? Earnings=10*1=Rs10.00 ? Case 2 ? Time Taken=12 hrs ? Earnings=10*1=Rs10.00
Halsey Plan
? Standard Time =10hrs ? Rate per hour= Re 1 ? Case 1
? Time Taken = 10 hrs ? Earnings=10*1=Rs 10.00
? Case 2
? Time Taken=12 hrs ? Earnings = 12 *1 =Rs 12.00
? Case 3
? Time Taken =8 hrs ? Earnings:
?
? ?
Time Wages = 8*1=Rs 8.00 Bonus= (50%) * (10-8) * 1=Rs1 Total=Rs 9.00
Rowan System
? Standard Time = 10hrs ? Rate per hour = Re 1 ? Case1
? Time Taken =10 hrs ? Earnings=10*1=Rs10
? Case2
? Time taken =12hrs ? Earnings=12*1=Rs12
? Case3
? ? ? ?
Time taken =8 hrs Earnings=8*1=Rs8 Bonus=(2/10)*8=Rs1.6 Total=Rs9.6
Barth Variable Sharing System
? Standard Time=10hrs ? Rate per hour=Re 1 ? Case1 ? Time taken=12hrs ? Earnings=sqrt(12*10) *1=Rs10.95 ? Case2 ? Time taken=10hrs ? Earnings=sqrt(10*10)*1=Rs10 ? Case3 ? Time taken=8hrs ? Earnings=sqrt(8*10)*1=Rs8.94
Bedaux System
? Standard time=10 hrs ? Rate per hour=Re 1 ? Case 1 ? Actual Time =12hrs ? Earnings=12*1=Rs12 ? Case 2 ? Actual Time=8hrs ? Earnings : time wages=8*1=8.00 ? Bonus:
?
?
?
Standard Bs=10*60=600 Saved Bs=120 Bonus=(75%) (120/60)*1=1.50
Taylor Differential Piece Rate System
? Standard O/P=100 units
? Rate per unit=10 Paise ? 120 percent of piece rate at or above the standard ? 80 percent of piece rate when below the standard
Merrick Differential Piece Rate System
? Straight piece rate up to 83% ? 10% for 83% to 100% ? 120% for above standard
Gantt Task System
? High piece rate=Re.10 ? 20% of O/P when standard is met ? When more than 100% ? E.g. 110%
?
Earnings=110*.1=Rs11
Emerson Plan
? Below 67%
? Greater than 100% ? One percent increase for every one percent increase in efficiency ? Above 67% and less than 100% ? 20% of wage
Thankyou !!
doc_314446285.ppt
The PPT explains about Compensation Management including different types of compensation and fringe benefits
Compensation Management : Types of compensation and fringe benefits
Contents:
? Objectives ? Classificatory variables ? SEC ? Power consumption ? Data variables
Factors affecting compensation
• •
External factors Internal factors
External Factors
• • • • • • •
Labour demand and supply Cost of living Labour market Labour unions Labour laws Society Economy
Internal Factors
• • •
Business strategy Performance appraisal Other employee related factors
Incentives
? Incentives are variable rewards granted to employees
according to variations in their performance ? Payment by Results
Prerequisites
? Cooperation of Workers
? Scientific work measurement ? Indirect workers involvement ? Cost and Time / Benefit ? Greater need for planning (e.g. SAIL) ? Appropriate – Type of work ? Provisions for Amending
Types
Incentive Schemes
Earnings=O/P Earnings<O/P Earnings>O/P Earnings differ with O?P
Straight Piece Work
Halsey Plan
High Piece Rate
Taylors Model
Standard Hour
Rowan Plan
High Standard Hour
Merrick Model
Barth Scheme
Gantt Task System
Bedaux Plan
Emersons Model
Straight Piece Work
? Rate per unit=10 Paise ? Total O/P=100 units ? Earnings=100*0.10=Rs10.00
Standard Hour
? Standard Time=10hrs
? Rate per Hours= Rs 1 ? Case 1 ? Time Taken=8hrs ? Earnings=10*1=Rs10.00 ? Case 2 ? Time Taken=12 hrs ? Earnings=10*1=Rs10.00
Halsey Plan
? Standard Time =10hrs ? Rate per hour= Re 1 ? Case 1
? Time Taken = 10 hrs ? Earnings=10*1=Rs 10.00
? Case 2
? Time Taken=12 hrs ? Earnings = 12 *1 =Rs 12.00
? Case 3
? Time Taken =8 hrs ? Earnings:
?
? ?
Time Wages = 8*1=Rs 8.00 Bonus= (50%) * (10-8) * 1=Rs1 Total=Rs 9.00
Rowan System
? Standard Time = 10hrs ? Rate per hour = Re 1 ? Case1
? Time Taken =10 hrs ? Earnings=10*1=Rs10
? Case2
? Time taken =12hrs ? Earnings=12*1=Rs12
? Case3
? ? ? ?
Time taken =8 hrs Earnings=8*1=Rs8 Bonus=(2/10)*8=Rs1.6 Total=Rs9.6
Barth Variable Sharing System
? Standard Time=10hrs ? Rate per hour=Re 1 ? Case1 ? Time taken=12hrs ? Earnings=sqrt(12*10) *1=Rs10.95 ? Case2 ? Time taken=10hrs ? Earnings=sqrt(10*10)*1=Rs10 ? Case3 ? Time taken=8hrs ? Earnings=sqrt(8*10)*1=Rs8.94
Bedaux System
? Standard time=10 hrs ? Rate per hour=Re 1 ? Case 1 ? Actual Time =12hrs ? Earnings=12*1=Rs12 ? Case 2 ? Actual Time=8hrs ? Earnings : time wages=8*1=8.00 ? Bonus:
?
?
?
Standard Bs=10*60=600 Saved Bs=120 Bonus=(75%) (120/60)*1=1.50
Taylor Differential Piece Rate System
? Standard O/P=100 units
? Rate per unit=10 Paise ? 120 percent of piece rate at or above the standard ? 80 percent of piece rate when below the standard
Merrick Differential Piece Rate System
? Straight piece rate up to 83% ? 10% for 83% to 100% ? 120% for above standard
Gantt Task System
? High piece rate=Re.10 ? 20% of O/P when standard is met ? When more than 100% ? E.g. 110%
?
Earnings=110*.1=Rs11
Emerson Plan
? Below 67%
? Greater than 100% ? One percent increase for every one percent increase in efficiency ? Above 67% and less than 100% ? 20% of wage
Thankyou !!
doc_314446285.ppt