Final Present COMPEN
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Transcript of Final Present COMPEN
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Presented by:Ahmad Zhafir+Nur Amirah+
Nurul Akmar+Nor Amalina+Muhammad Faiz
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Behaviours that employer care Theory and research say to get the behaviour
Compensation people say to get the behaviour
Total reward system
General comment of compensation motivatebehaviour
Specific comment of compensation motivatebehaviour
Designing a pay for performance plan
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Employer want employees to perform in waythat lead to better organizationalperformance.
Organizational strategy is the guiding forcethat determines what kinds of employeebehaviours are needed
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Employee performance= f(S,K,M)
WhereS = skill and ability to perform task
K = knowledge of fact, rules, principleand procedure
M = Motivation to perform
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Organization
strategy
Corporate
goal
Department
goals
Individual
goals
Employee task
behaviour
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Behaviors that compensation needs to reinforce sufficiently attractive to make recruiting and hiring good
potential employees possible (attraction)
Need to make sure the good employees stay with thecompany (retention)
Need to find ways to motivate employees to perform wellon their jobsto take their knowledge and abilities and
apply them in ways that contribute to organizationalperformance
Performance measurement
Performance management
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How do we get good employment prospectsto joinour company?
How do we ret inthese good employees oncethey join?
How do we get employees to develop skillsfor current and future jobs?
How do we get employees to perform wellontheir current job?
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3 elements of motivation:
What is important to a person? Rewards in exchange of desired
behaviors
Desired behavior
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Pay systems influenced by: individual performance
changes in cost of living
seniority
market rate
e.g : Maslow's need heirarchy & Herzberg's twofactor theory
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MASLOWS THEORY HERZBERGSTHEORY
1. Meaning Based on concept of humanneeds and their satisfaction
Based on the use of motivatorswhich include achievement,recognition and opportunity forgrowth.
2. Basis of
Theory
Hierarchy of human need Hygiene factors and motivating /
satisfiers factors
3. Nature ofTheory
Simple and descriptive More prescriptive
4. Applicability
of Theory
Mostly applicable to poor and
developing countries wheremoneyIs still a big motivating
factor.
Applicability is narrow. It is
applicable to rich and developedcountries where money is lessimportant motivating factor.
5. Motivators Any need can act asmotivator
Hygiene factors (lower level needs)do not act as motivators. Only the
higher order needs (achievement,recognition, challenging work) act
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Not concentrate on needs, but rather focuses on outcomes
1. Expectancy: Effort Performance (EP)
2. Instrumentality: Performance Outcome (PO)3. Valence - V(R)
The theory states that individuals have different sets of goals andcan be motivated if they believe that:
There is a positive correlation between efforts and performance.
Favorable performance will result in a desirable reward.
The reward will satisfy an important need.
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Focus less on need but more on rewards inexchange of desired behaviors
Employer identify important behavoirs &outcome, pay specifically for achievingdesired levels
e.g : Expectancy theory, Equity theory andagency theory
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Emphasis of a large body of goal-settingresearch
How we set goals can influence the performancelevels of employees
e.g : workers assiged "hard" goals do better than
workers told to "do your best"
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Employees learned what behaviours wereimportant as part of the socialization process.
Compensation is designed to support therisk-taking behavior.
Money is great equalizer but isnt everything.
Total reward system Compensation is oneof many rewards that influence employee
behavior.
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1.COMPENSATION 2. BENEFIT3. SOCIAL
INTERACTION
4. SECURITY
5. STATUS /
RECOGNITION6. WORK VARIETY 7. WORKLOAD
8. WORK
IMPORTANCE
9. AUTHORITY \
CONTROL \
AUTONOMY
10.
ADVANCEMENT11. FEEDBACK
12. WORK
CONDITIONs
13.
DEVELOPMENT
OPPORTUNITIES
COMPONENTS OF TOT L REW RDSSYSTEM
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WAGECOMPONENTS 1. BASE PAY -Employees wage package.
2. ACROSS THE BOARD INCREASE wages increase to allemployees regardless of performance.
3. COST OF LIVING INCREASE Based on change in costof living.
4. MERIT PAY Based on employees past performance.
5. LUMP SUM BONUS One-time bonus.
6. INDIVIDUAL INCENTIVE Based on extra individualproduction.
7. SUCCESS SHARING PLANNING Focus only on groupperformance CONSIST OF 2TYPES Profit sharing & Gain sharing
8. RISK SHARINGS PLAN Shares in the success &Panalized during poor performance.
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Join a firm
Stay or leave a firm
Develop job skills Perform better
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Level of pay
Pay system characteristic
Personalities
values
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Development opportunity
Social
Work
Benefits Pay based on individual
performance
Group incentive plans
Employee satisfaction
Pay system
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Pay employees for learning newskills
Skill-based increments
Pay for skill may not increaseproductivity
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Productivity/performanceincrease
Incentive effect
Sorting effect
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Efficiency-strategy
-structure
-standard Equity
Compliance
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Employee performance depend on someblend of skill, knowledge and motivation.
Absence any of the ingredient, performanceis likely to be sub optimal.
Reward must: Help organization attract and retain employees
Make high performance and attractive option foremployees
Encourage employees to build new skill andgradually foster commitment to organization