3.6 b Task 4 - Compensation Management
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Transcript of 3.6 b Task 4 - Compensation Management
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8/12/2019 3.6 b Task 4 - Compensation Management
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Todays Agenda
Completion of last Task of Compensation Management
Role Play on BARS Method - To be done by you
Presentation on Use of Tax planning in compensation
managementTo be done by you
Any Questions - ?
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Road map
Statutory provision governing different components of
reward system
Working of different institutions related to reward
system like Wage boards, pay commissions
Role of trade unions in compensation management
Tax planning
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Statutory provision governing different
components of reward system
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Different Components
ofReward System - I
http://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20REWARD%20SYSTEM%20-%20I.bmp -
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Different Components
ofReward System - II
http://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_8/COMPONENTS%20OF%20REWARD%20SYSTEM%20-%20II.bmp -
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Working of different institutions
related to reward system
Parameters Wage Board Pay Commissions
Sectors Private Public
Employees Limited range Wide range
Pay Structure of
Employees
Recommended by Owner Recommended by Government
Pay Set at irregular intervals Set at regular intervals
Function Statutory and Non-statutory Non-statutory
Commission Comparison within
employees
Equal pay for equal work within
employeesTypes of Pay
Commission Plans
No First, Second, Third, Fourth, Fifth
and Sixth
Reward System Performance driven COLA
Egs Newspaper establishments
and working journalists
Nationalized Banks and Industrial
establishments
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Role of trade unions incompensation management
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Trade Unions
"Trade Unions" means any combination, whether temporaryorpermanent, formed primarily for the purpose of regulating the
relations between workmen and employers or between workmen
and workmen, or between employers and employers, or for
imposing restrictive conditions on the conduct of any trade or
business
A trade unions may be defined as an organization of employees
formed on a continuous basis for the purpose of securinga
diverserange ofbenefits
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Trade Unions
Trade unions are formed toprotectand
promote the interests of their members.
Their primary functionis to protect the
interests of workers against discriminationand unfairlabor practices
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Role of trade unions in
compensation management
By helping in the recruitmentand selectionof workers
By maintaining disciplineamong the workforce
By enabling settlement of industrial disputesin a rational manner
By helping social adjustments
Workers have to adjustthemselves to the new working conditions, the new rulesand policies
Workers coming from different backgroundsmay become disorganized,unsatisfied and frustrated. Unionshelp them in such adjustment.
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Taxplanning
Contributionto State
revenue legallylevied
on person, property,business, etc
Tax return is declaration
of income etc for
taxation purposes
Parameters for Tax Planning
Age (Senior Citizen..)
Income level (Slab level) Financial goals (depends on
situation)
Risk appetite (More Benefit
and Less risk) Awareness about tax
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Use of Tax Planning in
Compensation
Presentation should be done by you..
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You are working as HR Manager in ABC
Consultant. Your employer / supervisor isnot happy with the implementation of
current performance management system.
You are told to write a letterto youremployer / supervisor describing about the
improvement of Performance Management
System.
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The income tax rates for Individuals and HUFs for
FY 2010-11 are as follows
Net Taxable Income (in `) Rate
Upto 1,60,000 Nil
Upto 1,90,000 (for women)
Upto 2,40,000 (for senior citizens 65/>)
1,60,001 to 5,00,000 10%
5,00,001 to 8,00,000 20%8,00,001 & above 30%
Moreover you would also have to pay an education
cess @ 3% on your tax liability computed.
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The income tax rates for Individuals and HUFs
for FY 2011-12 are as follows
Net Taxable Income Rate
Upto 1,80,000 Nil
Upto 1,90,000 (for women)
Upto 2,50,000 (for senior citizens 60/>)
1,60,001 to 5,00,000 10%
5,00,001 to 8,00,000 20%
8,00,001 & above 30%
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www.youtube.com/watch?v=hbkJ5MKEVEE
(Behavioral Economics of Intrinsic
Motivation)
http://www.youtube.com/watch?v=vRTPeQZfp
_A(HR Management: Compensation &
Incentives )
http://www.youtube.com/watch?v=hbkJ5MKEVEEhttp://www.youtube.com/watch?v=vRTPeQZfp_Ahttp://www.youtube.com/watch?v=vRTPeQZfp_Ahttp://www.youtube.com/watch?v=vRTPeQZfp_Ahttp://www.youtube.com/watch?v=vRTPeQZfp_Ahttp://www.youtube.com/watch?v=hbkJ5MKEVEE -
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