REMUNERATION MODEL

sunandaC

New member
REMUNERATION MODEL

Job Descriptions: Job descriptions are crucial in designing pay systems, for, they help lo identify important job characteristics. They also help determine, define and weigh compensable factors (factors for which an organisation is willing to pay-skill, experience, effort and working environment).

Job Evaluation: The next step in pay fixation is to establish relative worth of jobs by employing job evaluation. As explained in chapter 10, a number of techniques are available to evaluate jobs. For example, in the point-ranking method of job evaluation, each job is analyzed and defined in terms of the compensable factors an organisation has agreed to adopt. Points are assigned to each degree of a compensable factor, such as responsibility.

Job Hierarchy: The points assigned to all compensable factors are aggregated. The total points scored will help to establish the hierarchy of job worth, starting from the highest point total to the lowest point total.

Pay Surveys: Job hierarchy being established, the next step is to establish
pay differentials. Before fixing wage and salary differentials, prevailing wage and salary rates in the labour market need to be ascertained. Hence the relevance of pay surveys.


One way of collecting pay details is to conduct a survey. This requires that a sample of key jobs and a sample of companies need to he selected. Questionnaires could be mailed to select companies, requesting them to furnish pay details relating to key jobs. Information can also be collected over the telephone.


There are also other sources of collecting pay details. Labour departments of the government, trade unions, and professional bodies, and consulting firms provide copious amount o!' information about the prevailing wage and salary rates.

Pricing Jobs: In pricing jobs, the job evaluation worth is matched with the

Labour-market worth. Two activities need to be performed:

(i) Establishing the appropriate pay level for each job, and

(ii) Grouping the different pay levels into pay grades.
 

jiten005

Banned
REMUNERATION MODEL

Job Descriptions: Job descriptions are crucial in designing pay systems, for, they help lo identify important job characteristics. They also help determine, define and weigh compensable factors (factors for which an organisation is willing to pay-skill, experience, effort and working environment).

Job Evaluation: The next step in pay fixation is to establish relative worth of jobs by employing job evaluation. As explained in chapter 10, a number of techniques are available to evaluate jobs. For example, in the point-ranking method of job evaluation, each job is analyzed and defined in terms of the compensable factors an organisation has agreed to adopt. Points are assigned to each degree of a compensable factor, such as responsibility.

Job Hierarchy: The points assigned to all compensable factors are aggregated. The total points scored will help to establish the hierarchy of job worth, starting from the highest point total to the lowest point total.

Pay Surveys: Job hierarchy being established, the next step is to establish
pay differentials. Before fixing wage and salary differentials, prevailing wage and salary rates in the labour market need to be ascertained. Hence the relevance of pay surveys.


One way of collecting pay details is to conduct a survey. This requires that a sample of key jobs and a sample of companies need to he selected. Questionnaires could be mailed to select companies, requesting them to furnish pay details relating to key jobs. Information can also be collected over the telephone.


There are also other sources of collecting pay details. Labour departments of the government, trade unions, and professional bodies, and consulting firms provide copious amount o!' information about the prevailing wage and salary rates.

Pricing Jobs: In pricing jobs, the job evaluation worth is matched with the

Labour-market worth. Two activities need to be performed:

(i) Establishing the appropriate pay level for each job, and

(ii) Grouping the different pay levels into pay grades.

Hi dear, thanks for your contribution and i am really glad to see that you shared such a nice report on REMUNERATION MODEL. BTW, i am also adding some more detailed information on REMUNERATION MODEL.
 

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