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Questions and Answers
What is the primary objective of a good compensation plan?
What is the main difference between wages and salaries?
What is the concept of a 'living wage'?
What is the primary reason for providing compensation to employees?
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What is the term for ensuring that employees receive equal pay for equal work?
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What is the term for the minimum payment that an employee must receive?
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What is the process of searching for candidates for employment?
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What are the three types of recruitment strategies?
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What is the primary purpose of Job Analysis?
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What is the process of choosing qualified individuals to fill a position?
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What is the scope of Human Resource Management (HRM)?
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What is the purpose of collecting information on human behavior, job context, and performance standards during Job Analysis?
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What is the primary purpose of conducting job analysis?
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Which of the following is a component of job analysis?
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Who can conduct job analysis?
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What is the primary purpose of a job description?
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What is the primary purpose of a job specification?
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What is the sequence of HR activities according to the multifaceted nature of job analysis?
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Study Notes
Compensation Management
- Compensation refers to the remuneration received by an employee in return for their contribution, which helps in motivating employees.
- Importance of compensation:
- Recruit and retain good employees
- Increase and maintain morale and satisfaction
- Reward and encourage peak performance
- Reduce turnover and encourage company loyalty
Objectives of a Good Compensation Plan
- Internal equity: ensure more difficult jobs are paid more
- External equity: similar jobs in the industry get similar compensation
- Individual equity: equal pay for equal work
Types of Compensation
- Financial:
- Wages and salaries
- Benefits and services
- Incentives
- Fringe benefits
- Perks
- Non-Financial
Concept of Wages
- Minimum wage: considers education, medical requirements, and amenities
- Fair wage: equal pay for equal work
- Living wage: not only bare essentials but also a degree of comfort
Difference Between Salary and Wage
- Wage earners are paid by the hour, while salary earners are paid by the year
- Salary earners usually receive paid time off when they are not working
- Wage earners often have to give up pay for time off
- Salaries are often calculated as packages
- Wage earners get paid more for working more than 40 hours per week
- Salary workers are rarely offered overtime pay
Human Resource Management (HRM)
- Primitive beginning in 1930s in Western countries
- No written records or documents, concept originated from Greek, Indian, and Chinese philosophies of managing human beings
- Scope of HRM:
- Human Resource Planning
- Design of the Organizational and Job
- Selection and Staffing
- Training and Development
- Organizational Development
- Compensation and Benefits
- Employee Assistance
- Union/Labor Relations
- Personnel Research and Information System
Recruitment
- Process of continuing with the selection of placement of candidates
- Recruiting: discovering of potential applicants
- Definition: "Recruitment is the process of searching for candidates for employment" - Edwin B. Flippo
- Definition: "Recruitment is the activity that links employees to job seekers" - Edwin B. Flippo
- Types of recruitment:
- Planned: needs arising from changes
- Anticipated: movements in personnel; changes of trends
- Unexpected: unexpected needs caused by resignation, deaths, accidents, illness, etc.
Selection
- Process of choosing qualified individuals to fill a position
- Part of recruitment: selecting the best candidates for a specific job
Job Analysis
- Nature of job analysis:
- Job tasks
- Job duties
- Job responsibilities
- Use of job analysis information:
- Recruitment and selection
- Discovering unassigned duties
- Legal compliance
- Compensation
- Performance appraisal
- Training requirements
- Multifaceted nature of job analysis:
- Recruitment
- Selection
- Placement
- Counselling
- Human Resource Planning
- Job Evaluation
- Job Design and Redesign
- Performance Appraisal
- Employee Safety
- Components of job analysis:
- Job description: describing the job
- Job specification: human qualities needed
- Who should conduct job analysis:
- Job incumbents themselves
- Supervisors
- External analysts
- Steps in job analysis:
- Decide how you'll use the information
- Review relevant background information
- Select representative position
- Actually analyze the job
- Verify job analysis
- Develop job description and job specification
- Methods of collecting job analysis data:
- Job performance
- Personal observation
- ...
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Description
This quiz covers the importance of compensation management in human resources, including its role in motivating employees, recruiting and retaining talent, and reducing turnover. It also discusses the objectives of a good compensation plan, including internal and external equity.
