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Pricing Managerial and Professional Jobs

This power point presentation discusses compensation plans for managers and professional employees. It outlines the basic aims of compensation plans, which are to attract good employees and maintain their commitment. It describes different methods for evaluating managerial jobs, including ranking, classification, and point-based systems. The five basic elements of a manager's compensation package are discussed as salary, benefits, short-term incentives, long-term incentives, and perquisites. Different methods for evaluating jobs, such as ranking, classification, and point-based systems, are also summarized.

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5K views27 pages

Pricing Managerial and Professional Jobs

This power point presentation discusses compensation plans for managers and professional employees. It outlines the basic aims of compensation plans, which are to attract good employees and maintain their commitment. It describes different methods for evaluating managerial jobs, including ranking, classification, and point-based systems. The five basic elements of a manager's compensation package are discussed as salary, benefits, short-term incentives, long-term incentives, and perquisites. Different methods for evaluating jobs, such as ranking, classification, and point-based systems, are also summarized.

Uploaded by

prakashreddy_mca
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT or read online on Scribd
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POWER POINT PRESENTATION

CHALLENGERS
Submitted By,
KAVIYARASU. C
KUPPUSAMY. P
SRINIVASULU
VENUGOPAL
SRAVANI
Compensating Managers
Compensating Professional Employees
The basic aims of the plan is to attract good
employees and maintain their commitment.
The basic methods of job evaluation-
classifying jobs, ranking them, or assigning
points to them. For Managerial and
professional jobs, job evaluation provides
answer to the question of how to pay the
employees. There is also tendency to pay
managers and professionals based on
ability-based on their performances.
Basic compensation elements
Managerial job evaluation
There are five elements in a manager’s
compensation package:

Salary
Benefits


Short-term incentives

Long-term incentives
perquisites
Salary is cornerstone of executive
compensation. Managers are paid depends
on the value of the person’s work to the
organization. It is on this elements that the
others are layered, with benefits incentives
and perquisites normal awarded some
proportion to the manager’s base pay.
Benefit is the Indirect financial payments
given to employee. They may include the off
with pay, health care, employee services,
survivor’s protection, life insurance,
vacation, pension, education plans,
retirement coverage and company products
for instance.
Plans are that are designed to motivate
short-term performance of managers and are
tide to company profitability. Short-term
incentives are designed managers for attaining
short-term goals.
Types of three basic issues :
• Eligibility
•Fund-size determination

•Individual awards.
Long term-incentives most often reserved
for senior executives. Long-Term
Incentives aimed at rewarding the person
for long-term performance. In terms of
increase market share and the like.
Types of Capital accumulation programs:

• Stock options
• Stock appreciation rights
• Performance achievement plans
• Restricted stock plans
• Phantom stock plans
• Book value plans
Begin where benefits leave off and are
usually given to only a select few executives
based on organizational level and past
performance perks include use of company
cars, yachts, and executive dining rooms.
The executive compensation tends to
emphasize incentives than do other employees
pay plans since organizational results are little
to reflect contributions of executives more
directly than those of low echelon employees.
The level of executive responsibility as
measured by total assets, total corporate
profits . This is not an important variable in
terminating executive compensation. That
there are rational, acceptable and abiding
principles that govern the total cash
compensation of top executive in
manufacturing firms.
The basic approach used by most large
companies to ensure some degree of equity
among various divisions and departments
is to classify all executive and management
positions into a series of grades, to which a
series of salary ranges is attached.
Methods of managerial job evaluation:

• Ranking method
• Classification method
• Point method
• Factor comparison method
Ranking method:
2. The various jobs in an enterprise will
be ranked in the order of their
importance , responsibility and duties
involved for the purpose of employees
Eg: The job of junior clerk may be
compared with senior clerk
4. This method is unsuitable if the jobs to
be compared are totally unrelated to
dissimilar.
Eg: The job of machine workers and that
department manager cannot be ranked.
Classification Method:
In this case the various jobs in an
organization are classified under certain
catagories
Eg: In Banks there are clerks, probationary
officers & Managers.
Point Method:
In the case of the point method the
requirement of the each job in terms of
educational qualification, experience
desired, physical requirements, duties
and responsibilities involved in the first
identified.
The job evaluation process begins with
securing information about jobs.

Failure to secure complete job facts has been


cited as a primary reason for job evaluation
failure.

Information about jobs is obtained through a


process called job analysis.

The goal of this process is to secure whatever


job data are needed.
As with non managerial jobs, one
alternative is to rank the executive and
management positions in relation to each
other, grouping those of equal value. The job
classification and point evaluation methods
are also used, with compensable factors like
position scope, complexity, difficulty, and
creative demands.
Compensating non supervisory employees
like engineers and scientists presents unique
problems. Analytical jobs put a heavy
premium on creativity and problem solving,
compensable factors not easily compared or
measured.
The compensable factors here tend to focus
on problem solving, creativity, job scope, and
technical knowledge and expertise. Both the
point method and factor comparison
methods have been used, although the job
classification method seems most popular.
It is simply not possible to identify factors
and degrees of factors which meaningfully
differentiate among the values of
professional work.
“Knowledge and the skill of applying it,” as
one expert notes, “are extremely difficult to
quantity and measure.
THANK YOU

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