Non-financial Compensation System
Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)
Professor Al-Qurmoshi Institute of Business
Management Hyderabad
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Non-financial Compensation System
Job & Job characteristicsJob EnvironmentWorkplace Flexibility
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Non-financial Compensation SystemJob
Interesting, challenging & responsibleOpportunity for recognition & advancementFeeling of achievement
Job CharacteristicsSkill VarietyTask IdentityTask SignificanceAutonomyFeedback
Job Environment
Policies, Supervision, Co-workers, Status Symbols, Working Conditions
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Workplace FlexibilityFlextimeCompressed workweekJob sharingFlexible compensation (cafeteria
compensation)TelecommutingPart-time workModified retirement
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FlextimeFlextime- allows employees to have the benefits
of adjusting the time as they come to work. Businesses can offer flexible services to
customers, supervisors are forced to communicate more effectively.
Practice of permitting employees to choose, with certain limitations, their own working hours
Work the same number of hours per day as they would on a standard schedule
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Flexible Time Core TimeFlexible
Time (Lunch)
Core Time Flexible Time
6 a.m. 9 a.m. 6 p.m.3 p.m.Noon
Bandwidth
Compressed Work WeekEmployees have the opportunity to work 4
days a week with longer work hours, usually 10 hours per day.
In return they are able to take one day off a week with out using vacation.
Arrangement of work hours that permits employees to fulfill their work obligation in fewer days than the typical five-day workweek
Provide greater job satisfaction8
Job SharingTwo part-time people split the work
schedule of 40 hours a week. They split the duties of one job in some
agreed-on manner and are paid according to their contributions
Partners must be compatible, have good communication skills and trust must exist between the job sharers and their manager
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Flexible Compensation PlansPermit employees to choose from among
many alternatives in deciding how their financial compensation will be allocated
Determine the compensation package that best satisfies his or her particular needs
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TelecommutingWork arrangement whereby employees,
called teleworkers or telecommuters, are able to remain at home, or otherwise away from the office, and perform their work using computers and other electronic devices that connect them with their offices
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Part-time WorkSome people do not either want or need
full-time employmentAdds many highly qualified individuals to
the labor market by permitting both employment and personal needs to be addressed
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Modified RetirementPermits older employees to work fewer
than regular hours for a certain period of time preceding retirement
Allows an employee to avoid an abrupt change in lifestyle and move gracefully into retirement
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