DHR11
Wages & Salary Administration
Assignment - I
Assignment Code: 2016DHR11B1 Last Date of Submission: 15th November 2016
Maximum Marks: 100
Note:
1. This assignment is divided in two sections, each of 50 marks.
2. Section A has two essay type questions, each of 25 marks.
3. Section B has a Case Study. Attempt all the questions given at the end of the case. All questions carry equal marks.
Section A
1. i) Discuss the various factors that may influence an organization's compensation strategy.
ii) Explain what is meant by equity and how it is an important consideration in compensation.
(15+10 Marks)
2. i) Discuss the concept of job evaluation, including the most common methods used by
organizations.
ii) Explain the philosophical basic assumptions behind variable pay plans.
(15+10 Marks)
Section B
Case Study:
In a speech to the employees, the chairman of Praveen Metals said that to survive in the dynamic market, they must be able to switch gears and perform differently in response to change. According to him, traditional job titles and descriptions indicated a restricted set of work duties. Paying employees according to these structured duties led to rigidity during times of change. Paying employees according to their competencies seemed to be a more rational approach, allowing the organization to speedily change employee assignments and motivate their employees to gain skills and become more valuable. The workers would be motivated as they were being paid according to their skill sets.
The chairman felt that by doing this, the employees would gain some control over their pay. All in all, such a pay system had the potential of being more motivating as well as of retaining employees. More motivated and performance-oriented employees would be drawn to such a system because it allowed them to realize their potential. Such people were often the high achievers and effective employees.
The management initiated skill-based pay in the organization, replacing the earlier system of job grades based pay. During this transition, employees assisted in writing skill definitions and benchmarking skills. Jobs, based on job scope and complexity, defined the benchmarked competencies. The company conducted training sessions and made sure that employees understood the new system.
Supervisors and team leaders assessed employee application of knowledge. If employees were applying skills beyond their designated skill base pay level, the supervisors initiated certification and approval processes to promote them to the next higher level. If employees’ performance was below the standard, their pay remained the same. However, the supervisor and the employee were required to establish a training plan of action.
After a year of operation, employees were asked to provide inputs in three areas: (1) access to training and job rotation, (2) how well they understood the new plan, and (3) their view of advancement under the new plan. After the implementation, the following results were identified. Employees who had a positive perception of their access to training and job rotation during the first year of the new pay plan, were also satisfied with their skill based pay in the second year. Employees who understood the new plan in year one were also satisfied with their skill based pay benefits in year two. Overall, these employees felt that the system was fair. So, from these findings, the management found that both employee understanding of the pay system and their being able to affect their pay through access to training and job rotation were important for the success of the skill-based pay plan.
Questions:
a) The chairman suggested the replacement of job grades. Can you suggest some of the modern approaches to wages and compensation determination?
b) According to the Chairman, employees do not have control over their pay by using the traditional approach. Is it possible for employees to have control over their pay?
(25+25 Marks)
DHR11
Wages & Salary Administration
Assignment - II
Assignment Code: 2016DHR10B2 Last Date of Submission: 15th November 2016
Maximum Marks: 100
Note:
1. This assignment is divided in two sections, each of 50 marks.
2. Section A has two essay type questions, each of 25 marks.
3. Section B has a Case Study. Attempt all the questions given at the end of the case. All questions carry equal marks.
Section A
1. i) Briefly outline the steps involved in developing a pay structure..
ii) What are the key components of group level diagnosis? Discuss how the absence of any one of these components can impact outputs. (15+10 Marks)
2. i) Explain how executive compensation differs from the compensation packages provided for other employees in the organization. Identify the major criticism regarding executive compensation in India today.
ii) Under what conditions are customer-centric structures appropriate? What challenges does this type of organization structure face and why? (15+10 Marks)
Section B
Case Study:
The northern division of Gautam Appliances met every month to analyze its targets and the actual sales. Shravan Kumar, a jovial and friendly manager who was respected by all the sales personnel headed the meeting. His suggestions and other contributions during the meetings always helped sales personnel exceed their targets. He also gave a patient listening to employee problems and suggestions. During one such review meeting, one of the sales executives, Pavan Kumar, raised the issue of the uniform compensation system being implemented by the management. He felt that despite their achieving a greater percentage of the sales than the southern division, they were not being compensated appropriately. The incentives being received by the employees of both the regions were also the same. There were times when the northern division achieved double the sales of the southern division. But, the management did not recognize or acknowledge this. Pavan felt that it was demotivating for them to work hard and put in extra effort when the other division was not matching their performance, but were getting the same compensation.
Shravan explained his inability to provide a solution to the problem as it was an organizational issue. He told the employees that despite his suggesting to the management that they adopt the performance-based variable pay system, they had not considered it. He said the management believed in the standard pay system based on the number of days the employees worked. However, he assured the employees that he would put forward this suggestion to the top management at the next meeting. The meeting was adjourned and the sales personnel left the room in a state of hope.
After a month, when the staff assembled again for the review meeting, Shravan was not his usual jovial self. The employees realized that the management had not reacted positively to the idea of performance-based compensation packages. Shravan tried to convince the employees that the management was looking into this issue and would resolve it as quickly as possible. However, even two months later the sales personnel did not receive any information from the management on this issue. The next two months saw a very high employee turnover rate in the northern division of Gautam Appliances. The employees who remained also did not put in their best efforts. Their sales performance came down drastically. At the monthly meetings, the top management questioned Shravan about the poor performance and the high employee turnover. Shravan made it clear to the management that even at this stage if they did not consider rewarding the employees for their performance, they would be losing a valuable employee base. He suggested that they should at least consider giving employees incentives to reward their performance. After two days, Shravan was called and asked to present his views on designing an appropriate performance-based compensation system for the organization.
Questions:
(a) The organization was following the traditional method of compensation. What are these
methods and how do they function?
(b) Shravan requested the manager to provide the employees with at least incentives based on
the targets being achieved. What are the various incentive schemes that can be implemented? (25+25 Marks)
Wages & Salary Administration
Assignment - I
Assignment Code: 2016DHR11B1 Last Date of Submission: 15th November 2016
Maximum Marks: 100
Note:
1. This assignment is divided in two sections, each of 50 marks.
2. Section A has two essay type questions, each of 25 marks.
3. Section B has a Case Study. Attempt all the questions given at the end of the case. All questions carry equal marks.
Section A
1. i) Discuss the various factors that may influence an organization's compensation strategy.
ii) Explain what is meant by equity and how it is an important consideration in compensation.
(15+10 Marks)
2. i) Discuss the concept of job evaluation, including the most common methods used by
organizations.
ii) Explain the philosophical basic assumptions behind variable pay plans.
(15+10 Marks)
Section B
Case Study:
In a speech to the employees, the chairman of Praveen Metals said that to survive in the dynamic market, they must be able to switch gears and perform differently in response to change. According to him, traditional job titles and descriptions indicated a restricted set of work duties. Paying employees according to these structured duties led to rigidity during times of change. Paying employees according to their competencies seemed to be a more rational approach, allowing the organization to speedily change employee assignments and motivate their employees to gain skills and become more valuable. The workers would be motivated as they were being paid according to their skill sets.
The chairman felt that by doing this, the employees would gain some control over their pay. All in all, such a pay system had the potential of being more motivating as well as of retaining employees. More motivated and performance-oriented employees would be drawn to such a system because it allowed them to realize their potential. Such people were often the high achievers and effective employees.
The management initiated skill-based pay in the organization, replacing the earlier system of job grades based pay. During this transition, employees assisted in writing skill definitions and benchmarking skills. Jobs, based on job scope and complexity, defined the benchmarked competencies. The company conducted training sessions and made sure that employees understood the new system.
Supervisors and team leaders assessed employee application of knowledge. If employees were applying skills beyond their designated skill base pay level, the supervisors initiated certification and approval processes to promote them to the next higher level. If employees’ performance was below the standard, their pay remained the same. However, the supervisor and the employee were required to establish a training plan of action.
After a year of operation, employees were asked to provide inputs in three areas: (1) access to training and job rotation, (2) how well they understood the new plan, and (3) their view of advancement under the new plan. After the implementation, the following results were identified. Employees who had a positive perception of their access to training and job rotation during the first year of the new pay plan, were also satisfied with their skill based pay in the second year. Employees who understood the new plan in year one were also satisfied with their skill based pay benefits in year two. Overall, these employees felt that the system was fair. So, from these findings, the management found that both employee understanding of the pay system and their being able to affect their pay through access to training and job rotation were important for the success of the skill-based pay plan.
Questions:
a) The chairman suggested the replacement of job grades. Can you suggest some of the modern approaches to wages and compensation determination?
b) According to the Chairman, employees do not have control over their pay by using the traditional approach. Is it possible for employees to have control over their pay?
(25+25 Marks)
DHR11
Wages & Salary Administration
Assignment - II
Assignment Code: 2016DHR10B2 Last Date of Submission: 15th November 2016
Maximum Marks: 100
Note:
1. This assignment is divided in two sections, each of 50 marks.
2. Section A has two essay type questions, each of 25 marks.
3. Section B has a Case Study. Attempt all the questions given at the end of the case. All questions carry equal marks.
Section A
1. i) Briefly outline the steps involved in developing a pay structure..
ii) What are the key components of group level diagnosis? Discuss how the absence of any one of these components can impact outputs. (15+10 Marks)
2. i) Explain how executive compensation differs from the compensation packages provided for other employees in the organization. Identify the major criticism regarding executive compensation in India today.
ii) Under what conditions are customer-centric structures appropriate? What challenges does this type of organization structure face and why? (15+10 Marks)
Section B
Case Study:
The northern division of Gautam Appliances met every month to analyze its targets and the actual sales. Shravan Kumar, a jovial and friendly manager who was respected by all the sales personnel headed the meeting. His suggestions and other contributions during the meetings always helped sales personnel exceed their targets. He also gave a patient listening to employee problems and suggestions. During one such review meeting, one of the sales executives, Pavan Kumar, raised the issue of the uniform compensation system being implemented by the management. He felt that despite their achieving a greater percentage of the sales than the southern division, they were not being compensated appropriately. The incentives being received by the employees of both the regions were also the same. There were times when the northern division achieved double the sales of the southern division. But, the management did not recognize or acknowledge this. Pavan felt that it was demotivating for them to work hard and put in extra effort when the other division was not matching their performance, but were getting the same compensation.
Shravan explained his inability to provide a solution to the problem as it was an organizational issue. He told the employees that despite his suggesting to the management that they adopt the performance-based variable pay system, they had not considered it. He said the management believed in the standard pay system based on the number of days the employees worked. However, he assured the employees that he would put forward this suggestion to the top management at the next meeting. The meeting was adjourned and the sales personnel left the room in a state of hope.
After a month, when the staff assembled again for the review meeting, Shravan was not his usual jovial self. The employees realized that the management had not reacted positively to the idea of performance-based compensation packages. Shravan tried to convince the employees that the management was looking into this issue and would resolve it as quickly as possible. However, even two months later the sales personnel did not receive any information from the management on this issue. The next two months saw a very high employee turnover rate in the northern division of Gautam Appliances. The employees who remained also did not put in their best efforts. Their sales performance came down drastically. At the monthly meetings, the top management questioned Shravan about the poor performance and the high employee turnover. Shravan made it clear to the management that even at this stage if they did not consider rewarding the employees for their performance, they would be losing a valuable employee base. He suggested that they should at least consider giving employees incentives to reward their performance. After two days, Shravan was called and asked to present his views on designing an appropriate performance-based compensation system for the organization.
Questions:
(a) The organization was following the traditional method of compensation. What are these
methods and how do they function?
(b) Shravan requested the manager to provide the employees with at least incentives based on
the targets being achieved. What are the various incentive schemes that can be implemented? (25+25 Marks)
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