1. Evaluasi Prendidikan dan Kinerja

  EVALUASI PENDIDIKAN DAN EVALUASI PENDIDIKAN DAN KINERJA KINERJA STIMA IMMI STIMA IMMI J A k a r t a J A k a r t a

  

EVALUASI

EVALUASI sebagai dasar FUNGSI MANAJEMEN Prinsip dari Manajemen pengelolaan berbasis pada SISTEM

  • Seimbang>-Proses -Terdiri dari sub sistem -Output sinerqi - Whole (bagean satu merupakan keseluruhan)
  • Sistem dari sub sistem

  EVALUASI langkahnya mengukur, menilai, membandingkan sesuatu dengan satu ukuran Mengukur mengambil suatu keputusan Menilai

PENDIDIKAN

  

PENDIDIKAN sebagai belajar untuk menjadi orang beriman

dan bertakwa pada Tuhan YME , beraklag mulia, sehat,

berilmu, cakap, kreatif, mandiri yang demokratis dan

bertanggung jawab. (TUJUAN PENDIDIKAN NAsIONaL) PENDIDIKAN misi

  • Psiko pedagogic
  • Sosio pedagogic

PENDIDIKAN adalah suatu proses terjadinya perubahan pada

  

perilaku diri individu, perubahan tidak hanya aspek kognitif

saja tapi aspek afektif serta psikomotorik

PERUBAHAN perilaku yang terjadi pada individu karena adanya

  interaksi antara dirinya dengan LINGKUNGAN, bersifat cukup permanen.

  

Planning Objectives and Evaluation

  

Equal Employment Opportunity

  

Job Analysis

  

HR Planning and Recruitment

   Job Design, HR Planning Traffic and Air Controller Tujuan Pengajaran

Tujuan Pengajaran

  

The Comparative Approach in education HRM

   Process-System View

  2. Assess Conditions

  2. Assess Conditions

  

External conditions

  

Organization conditions

   Education in Changing Environment Tujuan Pengajaran

Tujuan Pengajaran

  

Employee conditions

  

Competitive Advantage Through HR

   Equal Employment Opportunity factor in organization, performance, and motivasi kinerja individu & kelompok

  3. Planning and Setting

  3. Planning and Setting Objectives Objectives

  

Planning Objectives and Evaluation

  

Equal Employment Opportunity

  

Job Analysis

  

HR Planning and Recruitment

   Job Design, HR Planning Traffic and Air Controller Tujuan Pengajaran

  4. External Staffing

  4. External Staffing

  

External Recruiting

  

External Employee Selection

  

Employee Separation

  

Work Force Reduction and Retention

  

Personnel Selection

  

Employment Interview

  

Recruitment and Selection

   Career Transitions Tujuan Pengajaran

  5. Employee Development

  5. Employee Development

Tujuan Pengajaran

  

Internal Staffing & Career Development

  

Training, Orientation and Development

  

Organizational Training Career Development

  

Performance Appraisal

   Skills, Training, Management & Career Development

  5. Education Activites &

  5. Education Activites & Compensation Compensation

Tujuan Pengajaran

  

Compensation External & Internal Comparison

  

Paying Individual Employees, Benefits

  

Direct & Indirect Compensation

   Pay for Performance

  6. Education Activites

  6. Education Activites

Tujuan Pengajaran

  

Compensation External & Internal Comparison

  

Paying Individual Employees, Benefits

  

Direct & Indirect Compensation

   Pay for Performance

  

Tujuan Pengajaran

Employee/Labor Relations

   Employee Realitions

Collective Bargaining

  

Labor Relations, Objectives & Evaluating

   Strategies for Improving Quality, Productivity and QWL

Labor relations, Collective Bargaining, Employee Health and Safety

  

Measurement Issues in HRM

  

Assessment Guidelines and Assessment Forms

for Self, Peer and Designated Assessors

  Human resource planning gathers and uses information to support decisions about investing resources in HR activities.

  This information includes future objectives, trends, and gaps between desired and actual outcomes

PLANNING IS DIAGNOSTIC DECISION MAKING

  Decision are choices based in information. Every decision involves expending resources, usually to achieve some goal.

THE FOUR PLANNING QUESTION

  1. Where Are We Now ?

  2. Where Do We Want to Be ?

  3. How Do We Get from Here to There ?

  4. How Did We Do ?

  The Planning Process at the Heart of the Diagnostic Approach Planning Question

  Diagnostic Approach Assessing external and

  Where Are We Now ? organizational conditions and employee characteristics Set Human Resource Objectives, based on efficiency and equity, Where Do We Want to Be ? according to dimensions that matter to the key stakeholder

  Chose human resource activities and expend resources How Do We Get from Here to There ? necessary

  Evaluate results by assessing new How Did We Do ? conditions according to the objectives

  Where Are We Now ? and start the process again

  

Human resources decisions are choice about how to expend

  resources on HR activities aimed at meeting objectives. Decisions require (1) Objective, which establish the gaps to be reduced; (2) Alternative which are the available choices, each requiring resources and producing an anticipated set of outcomes; (3)

  

Attributes, which are the characteristics of the alternatives that

  relate to the objectives and are compared in choosing among alternatives; and (4) Evaluation standards, which are the outcomes measured to assess success that should reflect the original objectives

  

A human resources plan specifies the alternatives

selected through HR decisions, and the attributes of the

standards that are used to evaluate them.

   PLANNING LINKS ACTIONS AND CONSEQUENCES

   CALCULATING THE RETURN ON INVESTMENT IN HUMAN

   RESOURCES

  • Quantity - Quality - Cost PLANNING INTEGRATES HUMAN RESOURCES ACTIVITIES

  

  

CAN HUMAN RESOURCES PROVIDE A COMPETITIVE ADVANTAGE ?

Sustainable competitive advantage

  occurs when an organization is implementing a value creating strategy that is not being implemented simultaneously by any current or potential competitors, and when other organizations are incapable of duplicating the benefits of that advantage Sustainable competitive advantage is caused by resources that :

  1. Add value to the organization

  2. Are unique or rare among competitors

  3. Cannot be perfectly imitated by others

  4. Cannot be substituted by resources that others process

   Planning from Mars  The Environment

   The Organization Level  Human Resources Quantity and Deployment

   Human Resources Department/Function Level  Specific Human Resources Management Activities

Employment planning aims to get the right numbers and types of employees doing the right work at right time. Employment planning

  involves three basic phases: (1) analyzing HR demand, (2) analyzing HR supply, (3) reconciling important discrepancies between demand and supply by maintaining or changing HR activities

   SUPPLY DEMAND ANALYSIS : WHERE DO WE WANT TO BE ?

  HOW TO MEASURE EDUCATION RESOURCE DEMAND AND

   INTERNAL SUPPLY ANALYSIS : WHERE ARE WE NOW? WHERE

   WILL WE BE ? EXTERNAL SUPPLY ANALYSIS : WHO IS JOINING THE

   ORGANIZATION ? WHO WILL BE JOINING ?

  Demand analysis Organizational conditions Marketing plans Finance plans Operating plans Technology plans Forecast demand Quantity Experience Capability Diversity Costs

  Employee quantity changes Promotion Demotion Transfers Quits Layoffs Retirements Dismissals

  Employee activity change Compensation Training Job design Communication

  Forecast internal available supply? Quantity Experience Capability Diversity Costs

  Forecast external supply? Quantity Experience Capability Diversity Costs Attracting candidates Selecting new hires

  

Current Inventory

analysis

Internal

  Compare with External Supply Analysis

  

3. EMPLOYEE CHARACTERISTICS

  

3. EMPLOYEE CHARACTERISTICS

Tujuan Pengajaran

  

Employee conditions

  

Competitive Advantage Through HR

   Equal Employment Opportunity factor in organization, performance, and motivasi kinerja individu & kelompok

Performance

  Performance reflects the organization’s success, so it is perhaps the most obvious employee characteristic to measure. Employee performance is fundamental to other HR

activities, such as who to hire, promote, lay off and reward

Attitudes and Opinions

  Performance reflects mainly the efficiency objectives of the organizations, but equity objectives are also key to the diagnostic approach is the process that measure employee performance.

Employee performance is the degree to which employees accomplish work requirements

  Six Key Questions in Performance Assessment Why assess performance ? What performance assess ? How to assess performance ? Who should assess performance ?

  

How to communicate performance assessments ?

  

Why Measure Performance, a “Deadly Disease”?

Value Added: Integrating HR Activities

  Performance information can serve four general purpose; (1) providing feedback about strengths and weakness; (2) distinguishing between individuals to allocate reward; (3) evaluating and maintaining the human resource systems of the organizations; and (4) creating a paper trail to document the reason for certain action, such as dismissing an employee

Potential Conflict

  Individual Goals Individual Goals Purpose Organization Goals Purpose Organization Goals

  High pay Allocating rewards

  Pay for performance Career progress and opportunities

  Promote most qualified Job security

  Weed out unsatisfactory workers Within-organization

  Within-organization conflict conflict

  Individual-organization conflict Providing

  Help employee improve Discuss difficulties feedback and

  Identify training needs Locate assistance counseling

  Improve communication Share ideas

What Performance to Measure Citizenship Counterproductivity

Organization Citizenship reflect helpful and cooperative behaviors that go beyond the specific tasks of the job

  including (1) helping other, (2) sharing and creating new ideas, (3) being dependable and reliable, (4) defending and promoting the organization’s goal

Example of Performance Criteria Skills/Abilities/Needs/ Skills/Abilities/Needs/ Traits Traits Behaviors Behaviors Result Result

  Customer satisfaction

  Social needs

  Social needs

  Attend regularly

  Attend regularly

  Customers served

  Customers served

  Dependability

  Dependability

  Submit suggestions

  Submit suggestions

  Customer satisfaction

  Loyalty

  Equipment repairs

  Loyalty

  Smoking abstinence

  Smoking abstinence

  Honestly

  Honestly

  Drug abstinence

  Drug abstinence

  Creativity

  Creativity

  Leadership

  Leadership

  Equipment repairs

  Job knowledge

  Job knowledge

  Licenses

  Perform tasks

  Perform tasks

  Sales

  Sales

  Strength Strength Obey instructions Obey instructions Production levels Production levels Eye-hand coordination

  Eye-hand coordination

  Report problems

  Report problems

  Production quality

  Production quality

  Licenses

  Maintain equipment

  Follow rules

  Maintain equipment

  Wastage/scrap

  Wastage/scrap

  Business knowledge

  Business knowledge

  Maintain records

  Maintain records

  Accidents

  Accidents

  Desire to achieve

  Desire to achieve

  Follow rules

How to Measure Performance Comparing to Objectives: MBO

Some companies encourage supervisors and employees to set goals that are SMART :

  S pecific results are obtained M easurable in quantity, quality, and impact A ttainable, challenging yet within view R elevant to the work unit, organization, career, and so forth T ime-specific, with deadlines to expect a result

Performance Assessment Comparisons Comparison to Agree Comparison to Agree Objectives Objectives Comparison to Comparison to Job Standards Job Standards Comparison between Comparison between Individuals Individuals

  Critical incidents

  Essays/diaries

  Essays/diaries

  Scale (BARS)

  Scale (BARS)

  Anchored Rating

  

Anchored Rating

  Behaviorally

  Behaviorally

  Critical incidents

  Management by objectives

  Management by objectives

  Rating sales

  Forced distribution

  Forced distribution

  Checklists

  Checklists

  Banking

  Banking

  Physical observation

  Physical observation

  Rating sales

ABSENTEEISM

  Absenteeism is the frequency and/or duration of work time lost when employees don’t come to work.

  Attendance, the opposite of absenteeism, is how often an employee is available for work

The formula for absence used by the Bureau of National Affairs (BNA) is :

  Worker days lost through job absence during the month Average number of employees X Number of work day in month

A Diagnostic Model of employee Attendance

  Attendance barriers Illness and accidents Family responsibility Transportation problems

  Perceived ability Organizational to attend practices

  Absence Attendance Attendance culture motivation

  Employee attitude, values, and goals

Job satisfaction

  is a pleasurable or positive emotional reaction to a person’s job experiences

  

Organizational commitment is a strong belief in the

  organization’s goals and values, a willingness to exert considerable effort on behalf of the organization, and a strong desire to remain a member of the organization

Employee opinions

  are personal evaluation of specific organizational characteristic, such as policies, procedure and relationships

  Perceived justice

  reflects employee beliefs that the procedure, outcomes and interactions at work are fair

Tujuan Pengajaran

  

Employee conditions

  

Competitive Advantage Through HR

   Equal Employment Opportunity factor in organization, performance, and motivasi kinerja individu & kelompok

Performance

  Performance reflects the organization’s success, so it is perhaps the most obvious employee characteristic to measure. Employee performance is fundamental to other HR

activities, such as who to hire, promote, lay off and reward

Attitudes and Opinions

  Performance reflects mainly the efficiency objectives of the organizations, but equity objectives are also key to the diagnostic approach is the process that measure employee performance.

Employee performance is the degree to which employees accomplish work requirements

  Six Key Questions in Performance Assessment Why assess performance ? What performance assess ? How to assess performance ? Who should assess performance ?

  

How to communicate performance assessments ?

  

Why Measure Performance, a “Deadly Disease”?

Value Added: Integrating HR Activities

  Performance information can serve four general purpose; (1) providing feedback about strengths and weakness; (2) distinguishing between individuals to allocate reward; (3) evaluating and maintaining the human resource systems of the organizations; and (4) creating a paper trail to document the reason for certain action, such as dismissing an employee

Potential Conflict

  Individual Goals Individual Goals Purpose Organization Goals Purpose Organization Goals

  High pay Allocating rewards

  Pay for performance Career progress and opportunities

  Promote most qualified Job security

  Weed out unsatisfactory workers Within-organization

  Within-organization conflict conflict

  Individual-organization conflict Providing

  Help employee improve Discuss difficulties feedback and

  Identify training needs Locate assistance counseling

  Improve communication Share ideas

What Performance to Measure Citizenship Counterproductivity

Organization Citizenship reflect helpful and cooperative behaviors that go beyond the specific tasks of the job

  including (1) helping other, (2) sharing and creating new ideas, (3) being dependable and reliable, (4) defending and promoting the organization’s goal

Example of Performance Criteria Skills/Abilities/Needs/ Skills/Abilities/Needs/ Traits Traits Behaviors Behaviors Result Result

  Customer satisfaction

  Social needs

  Social needs

  Attend regularly

  Attend regularly

  Customers served

  Customers served

  Dependability

  Dependability

  Submit suggestions

  Submit suggestions

  Customer satisfaction

  Loyalty

  Equipment repairs

  Loyalty

  Smoking abstinence

  Smoking abstinence

  Honestly

  Honestly

  Drug abstinence

  Drug abstinence

  Creativity

  Creativity

  Leadership

  Leadership

  Equipment repairs

  Job knowledge

  Job knowledge

  Licenses

  Perform tasks

  Perform tasks

  Sales

  Sales

  Strength Strength Obey instructions Obey instructions Production levels Production levels Eye-hand coordination

  Eye-hand coordination

  Report problems

  Report problems

  Production quality

  Production quality

  Licenses

  Maintain equipment

  Follow rules

  Maintain equipment

  Wastage/scrap

  Wastage/scrap

  Business knowledge

  Business knowledge

  Maintain records

  Maintain records

  Accidents

  Accidents

  Desire to achieve

  Desire to achieve

  Follow rules

How to Measure Performance Comparing to Objectives: MBO

Some companies encourage supervisors and employees to set goals that are SMART :

  S pecific results are obtained M easurable in quantity, quality, and impact A ttainable, challenging yet within view R elevant to the work unit, organization, career, and so forth T ime-specific, with deadlines to expect a result

Performance Assessment Comparisons Comparison to Agree Comparison to Agree Objectives Objectives Comparison to Comparison to Job Standards Job Standards Comparison between Comparison between Individuals Individuals

  Critical incidents

  Essays/diaries

  Essays/diaries

  Scale (BARS)

  Scale (BARS)

  Anchored Rating

  

Anchored Rating

  Behaviorally

  Behaviorally

  Critical incidents

  Management by objectives

  Management by objectives

  Rating sales

  Forced distribution

  Forced distribution

  Checklists

  Checklists

  Banking

  Banking

  Physical observation

  Physical observation

  Rating sales

ABSENTEEISM

  Absenteeism is the frequency and/or duration of work time lost when employees don’t come to work.

  Attendance, the opposite of absenteeism, is how often an employee is available for work

The formula for absence used by the Bureau of National Affairs (BNA) is :

  Worker days lost through job absence during the month Average number of employees X Number of work day in month

A Diagnostic Model of employee Attendance

  Attendance barriers Illness and accidents Family responsibility Transportation problems

  Perceived ability Organizational to attend practices

  Absence Attendance Attendance culture motivation

  Employee attitude, values, and goals

Job satisfaction

  is a pleasurable or positive emotional reaction to a person’s job experiences

  

Organizational commitment is a strong belief in the

  organization’s goals and values, a willingness to exert considerable effort on behalf of the organization, and a strong desire to remain a member of the organization

Employee opinions

  are personal evaluation of specific organizational characteristic, such as policies, procedure and relationships

  Perceived justice

  reflects employee beliefs that the procedure, outcomes and interactions at work are fair

  7. HRM Activities &

  7. HRM Activities & Compensation Compensation

Tujuan Pengajaran

  

Compensation External & Internal Comparison

  

Paying Individual Employees, Benefits

  

Direct & Indirect Compensation

   Pay for Performance

  Includes financial returns and tangible service and benefits employees receive as part of an employment relationship Pays systems can be designed to achieve a number of objectives, including:

  1. Improve productivity and customer satisfaction

  2. Control costs

  3. Treat employees fairly

  4. Comply with laws

  5. Enhance individual and/or team performance

External competitiveness

  refers to the pay relationships among organizations. The heart of the concept of external competitiveness is its relative nature: comparisons with other employers External competitiveness focuses on three key issues:

  1. Measuring the market (what competitors are paying)

  2. Setting a pay level relative to competitors that reflects external competitiveness policy

  3. Implementing programs to achieve that targeted pay level

Pay level

  refers to the average of the array of rates paid by an employer

Pay level

  focus on two objectives

  1. Attracting and retaining employees

  2. Controlling labor costs

Calculating Labor Costs

  Average Average

  • + Labor costs Employment

  =

  X Cash compensation Benefit cost Core Based pay Contingent

  Variable pay

Conducting a Survey

  Pay surveys are conducted by employers. Either individually or in associations, by consulting firm, and by government agencies

  

Wage surveys report rates paid by relevant competitors for

  specific jobs

  Relevant market

  • Keys job
  • The work content is relatively stable over time
    • A large number of employees hold them
    • They are common across a number of different employers
    • They are free of discriminatory employment patterns
    • They are not subject to recent shortages or surpluses in the marketplaces

  Survey Results

  Key decision includes :

  2. Whether to base the structure on jobs, skills, competencies, or the market

  3. How to meld the internal structure with external pay data

  Pay structures

  are the pay relationships among different jobs within a single organization

Result Internal Structures – Job, Skill, and Competency based

  Vice President Division general managers Managers

  Project Leaders Supervisors Head/Chief scientist Senior associate scientist Associate scientist

  Scientist Technician Assembler I Inspector I

  Packer Materials handler Inspector II Assembler II

  Drill press operator Rough grinder Machinist I Core maker

  Administrative assistant Principal administrative secretary

  Administrative secretary Word processor Clerk/messenger

  Job evaluation Competency based

  Skill based Job evaluation

  Managerial group Technical group

  Manufacturing group Administrative group

Designing a Job-Based Structure: Job Evaluation Job Evaluation

  systematically assesses jobs as a basis for deciding pay. It includes assessing job duties and responsibilities, the skills required to perform jobs, and relative contribution of each job to the organization’s objectives

Point Methods: The Most Common Job Evaluation Method

  Point methods have three common features :

  1. Compensable factors

  2. Numerically scaled factor degrees

  3. Weight reflecting the importance of each factor

  

Compensable factors, is a work-related job attribute of value to

  the organization that provides a basis for comparing relative worth

  To be useful, compensable factors should be:

  • Based on the work performed
  • Based on the strategy and values of the organization
  • Acceptable to those affected by the resulting pay structure

Skill-Based Structures

  Skill-based plan can be grouped into two type:

  1. Knowledge-based plans link pay to depth of knowledge related to one job

  2. Multi skill-based plans link pay to the number of different jobs (breadth) an employee is certified to perform Skill analysis is a systematic process of collecting information about the knowledge or skills require to perform work in an organization

Contrasting Approaches Criteria Criteria Job evaluation Job evaluation Skill Based Skill Based Competency Competency based based

  Advantages Advantages

  Vague; hard to Vague; hard to define of measure, define of measure, can become can become obsolete obsolete

  Can become Can become expensive and/or expensive and/or bureaucratic; can bureaucratic; can become obsolete become obsolete

  Potential, Potential, bureaucracy; bureaucracy; inflexible inflexible

  Disadvantages Disadvantages

  Flexibility, rewards Flexibility, rewards development development

  Flexibility, reduce Flexibility, reduce workforce rewards workforce rewards continuous continuous learning learning

  Pay based on Pay based on value of work value of work performed performed

  What is valued What is valued Compensable Compensable factors factors

  Skill blocks Skill blocks Competencies Competencies Quantity the value Quantity the value

  Certification and Certification and market pricing market pricing

  Assign points that Assign points that reflect criterion reflect criterion pay structure pay structure

  Mechanisms to Mechanisms to translate into pay translate into pay

  Levels Levels

  Competencies Competencies

  Skill levels Skill levels

  Factor degree and Factor degree and weight weight

  Certification and Certification and market pricing market pricing

Three basic issue are :

  1. Why should employees be paid differently ?

  2. How to do it ?

  3. Does it really matter ? Many employers pay different rates to employees doing the same job. According to the pay model, these differences certainly reflect

  external competitive

  differences in policies (lead, match, lag

  internal alignment

  competitors’ pay) and differences in policies (how valuable the jobs to each organization’s objectives). Their differences in pay may also reflect manager’s decisions to pay for employee

  contributions

  (performance and/or experience)

Flat Rates

  Some managers pay a flat rate for a job (or skill level) and then attach a bonus or incentive to recognize performance differences.

  Gainsharing plans follow this logic. Under these plans, differences in team or unit performance, rather than individual differences, are recognized with pay.

Pay Ranges

  The logic is that the value of employees contributions on a job can range between some minimum and some maximum.

  1. Develop grades

  2. Design midpoints, maximums, and minimums

  Boardbanding The variety of available plans using the following two dimensions:

  1. Determine the level at which performance is measured; that is, decide if individual performance or group performance determines pay increases

  2. Determine whether the performance payment increases base pay

Merit pay: Individual Employees Matter

  Merit pay combines the following three elements, the first two of which have already been discussed :

  1. Individual performance evaluation

  2. Pay ranges designed to reflect differences in performance and/or experience that managers with recognize with pay

  3. Merit increase guidelines that translate a specific performance rating and position in the pay range to a percent merit increase

Pay-for-Performance Plan Decisions Decision Decision Merit Merit Gainsharing Gainsharing Profit Sharing Profit Sharing Objectives Objectives and and philosophy philosophy

  All employees Team members

  Unit level financials Unit level financials (return on asset, return (return on asset, return on capital) on capital)

  Team level Team level measures (Costs, measures (Costs, quality, quantity) quality, quantity)

  Performance Performance measures measures Performance Performance appraisal ratings appraisal ratings

  Variable Variable

  

Variable

Variable

  Increase fixed costs costs

  Cost effects Cost effects Increase fixed

  Professionals and managers managers

  Team members Professionals and

  Signals meritocracy Signals meritocracy

  Individual Individual contributions contributions matter matter

  Control costs Control costs

  Short time Short time

  Total unit membership Total unit membership matters matters

  Signals performance Signals performance philosophy philosophy

  Control costs Control costs

  Short time Short time

  Team contributions Team contributions

matter

matter

  Signals performance Signals performance philosophy philosophy

  Control costs Control costs

  Support longer Support longer term commitment term commitment

  Eligibility Eligibility All employees

  Decision Decision Merit Merit Gainsharing Gainsharing Profit Sharing Profit Sharing Threshold Threshold Minimum

  Form of pay Form of pay Cash spread over

  Communication participation participation

  Communication participation participation Communication

  Communication Communication

  Manage plan Manage plan and change and change Communication

  Cash lump Cash lump

  Cash lump Cash lump

  Cash spread over budget cycle budget cycle

  By performance achieved By performance achieved

  Minimum performance performance appraisal rating appraisal rating Minimum cost,

  By performance By performance achieved

achieved

  Merit grid Merit grid

  Ceiling on payouts Award Award schedule (size schedule (size and timing) and timing)

  Ceiling on payouts Ceiling on payouts

  Merit budget Ceiling on payouts

  Cap Cap Merit budget

  Minimum financial return required required

  Minimum cost, quality, quantity quality, quantity required required Minimum financial return

  Pay-for-Performance Plan Decisions

Gainsharing

  According to its advocates, gainsharing is more than a group incentive scheme. It’s part of a total management approach or philosophy Gainsharing

  Quality Shop supplies Productivity

  • =

  bonus (Scarp savings) (Cost savings)

  (Labor costs)

  

DOES PAYING FOR EMPLOYEE CONTRIBUTIONS PAY OFF ?

Pay for Performance Affects Equity

  Leverage is the ratio of variable pay base pay

Risk is the probability that an employee will get an increase

  commensurate with his or her effort

  

Procedural justice refers to the fairness of the process by which the

  plan is designed an managed

Pay for Performance Affects Efficiency

  One of the key reasons for being systematic about pay decisions is to control costs. A simple model shows the three main factors that determine labor costs:

  Costs = Employment x (Cash compensation + Benefits) where

  • Employment includes both number of employees and number of hours worked
  • Cash compensation includes wages and variable pay
  • Benefit costs includes health and life insurance, pensions, and the like

  • - Gaining acceptance - Ensuring Legal Compliance - Comparable Worth - Special Group

Gaining acceptance

  One common approach to gaining acceptance, understanding, and valuable idea from managers and employees is by using compensation committees that include key managers, nonmanagerial employees, and/or union officials

  Ensuring Legal Compliance No matter its form, pay systems must comply with legislation.

  If an employer is operation in several different countries, there are several different sets of legislation to comply with

  • Wages and Hour Regulation -

  Exemptions

  • Minimum Wages - Prevailing Wages Laws - Overtime pay - Wages control and Gridlines - Child labor prohibition

Comparable Worth

  Equal work is defined by four factors: (1) equal skills, (2) equal effort, (3) equal responsibility, and (4) equal working condition.

  Differences in pay for equal work are permitted if they result from (1) differences in seniority, (2) differences in quality of performance, (3) differences in quantity and quality of production (incentives), or (4) some factor other them gender or race

  Special Group

  • Executives : A Really Special Group - The Critics: Greed, Sticky Downward, and Trust Gap
  • Comparing Wages and Productivity - Comparing Systems - Global Snapshots - Expatriate pay

Comparing Systems

  • Objectives of pay systems
  • External competitiveness
  • Internal alignment
  • Employee contributions
  • Implementation

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  • - Unions
  • - Contributions versus Entitlements

    - A Benefits Gap
  • - Effects on Costs
  • Effects on Employee Behaviors - Effects on Equity

Employee benefits are the indirect forms of total

  compensation; they include paid time away from work, insurance and health protection, employee services, and retirement income

Contributions versus Entitlements

  

Benefit strategies are mirrored in the specific benefit

decisions managers make.

  

Critics argue that as benefits increase, contributions,

responsibility, and initiative are less and less linked to

compensation and reward.

Decision makers face a basic trade-off between entitlements

and contributions. The trade-off is between the proportion of

total compensation received in the form of benefits

(entitlements) for simply holding a job or belonging to the

organization, and the proportion allocated to increasing unit

productivity, superior performance, innovation, and risk

taking (contributions)

SETTING BENEFIT OBJECTIVES AND STRATEGIES

  Typically, benefits are designed to accomplish three objectives :

  1. Competitiveness, including cost effectiveness

  2. Compliance with legal regulations

  3. Choices tailored to the individual employee, including needs and preferences Cost Comparisons

Comparisons can be made on total benefit costs, costs

per employee, or percentage of payroll.

  • - Civil Right - Fiduciary Responsibility - Mandate Benefits

Civil Right

  1. Plans that require women to contribute a higher premium that men to perceive the same benefits as men, other things being equal

  2. Plains that require women to contribute the same amount but pay them smaller benefits than men, other things being equal For people who work past age 65, however, special rules regarding pensions, life insurance and health care may be

  applied

Fiduciary Responsibility

   Employee Retirement Income Security Act  Eligibility  Vesting and Portability  Funding and Fiduciary Liabilities  Termination responsibilities

   Accounting Regulations Mandate Benefits

   Social Security  Unemployment Compensation

 Workers’ Compensation

 Family Leave

  • - Employer-Purchased Insurance - Paid Time Away from Work
  • Employee Services - Retirement Income

EMPLOYER-PURCHASED INSURANCE

  Three major forms of insurance are common :

  1. Health insurance

  2. Group Life Insurance,

  is one of the oldest and most widely available employee benefits.

  3. Long-term sickness and accident/disability insurance

  protect employees who have accidents at work that leave them unable to work, temporarily or permanently.

RETIREMENT INCOME

  Employees’ retirement income comes from four sources mandated Social Security benefits, private pensions, asset income, and earning. Employers play a role in all of these categorizes

Asset Income

  Asset income is money generate by personal savings and investment. There are a wide variety of employer-assisted savings or capital accumulations plans

Employee Stock Ownership Plans

  Under these plans, employers make payments to a trust, which purchases the employer’s stock, for benefit of employees

  Private Pensions There are two basic types of pensions plans.

  A defined benefit plan pays out a guaranteed amount every month for the life of the retiree.

  Defined contribution plans, which specify the amount of money paid

  

OUTSOURCING is the practice of subcontracting work

outside a company, often to nonunion or foreign

organizations

Effects on Costs

  Effects on Equity an important objective of benefits decisions is to positively affect employees attitudes about the fairness and adequacy of benefits

  Because health care cost have experienced the greatest growth, increasing almost three times faster than overall price increase in the economy, they have received most of the attention