HR Assignment - Compensation
HR Assignment - Compensation
HR Assignment - Compensation
A1.
NEW SCALES OF PAY AND ALLOWANCES
4% of the Basic Salary(Basic Pay + Grade Pay)with compounding effect for 2 years
for a select few 25% in the Pay Band Rs. 15600-39100 on the basis of better
teaching and research performance. Fresh appraisals are be made after two years.
Stagnation Removal
An incumbent after reaching the top of the scale in the pay band shall move to the
next pay band without any change in the grade pay.
Three advance increments instead of present two to an M.Phil degree holder at the
time of recruitment as Assistant Professor.
30% of basic salary for Category X cities (A-1 earlier) population 50 lakhs and
above)
20% of basic salary for Category Y cities (A, B-1, B-2 earlier) population between 5
and 50 lakhs)
10% of basic salary for Category Z cities (C and unclassified earlier) (population
below 5 lakhs)
Transport Allowance
Rs. 3200/-plus DA thereon per month for A-1/A Class cities (13 notified cities)
Rs. 1000/- per child per month for upto a maximum of two children
Rs 3000/- per child per month for those residing in hostel, for upto two children.
However, both hostel subsidy and children education allowance cannot be availed of
concurrently.
Academic Allowance
Rs. 1500/- per month for Assistant Professor, Assistant Professor(Senior Scale),
Assistant Professor(Selection Grade)
Rs. 1200/- per month for Associate Professor, Senior Associate Professor, Professor
and Professor.
The Committee recommends a Special (Duty) Allowance at the rate of 12.5% on pay
plus grade pay to teachers serving in these areas as applicable to Central
Government employees.
Leave Travel concession
LTC travel to Home Town three times in a four year block, not exceeding once in a
year.
LTC may be allowed for any place in India once in a block of four years. Thus four
LTC in a block of 4 years but not exceeding one in any one year.
Traveling Allowance
TA rules admissible to central Government employees wherein all those with grade
pay of Rs. 5400 and above have been allowed air travel may also be extended to
teachers as well. Teachers may also be allowed TA/DA as admissible from time to
time to Central / State Government employees, as the case may be.
Medical Insurance
Medical Insurance for all teachers with a teacher contributing 30% of the premium
and the rest to be contributed by the employer. UGC to negotiate with leading
medical insurance companies to get a better all India deal.
Group Insurance
Consultancy
This arrangement should work for five years thereafter it should be reviewed in view
of future developments.
The age of superannuation of all college and university teachers throughout India to
be 65 years.
Reemployment of Teachers
Pension
Teachers should be eligible for full pension after 20 years of qualifying years .
UGC should take up the matter of restoring triple benefit scheme for teachers
employed after 2004 with the Central Government.
The revised rates of family pension to the family of the deceased employeeminimum
of Rs. 3500/- per month and a maximum of 30% of the highest pay in the
Government of India should be extended to teachers as well.
Provident Fund
Gratuity
The upper limit of gratuity to be paid to teachers should be revised to Rs. Ten lakhs
from present three and half lakhs as has been done for central Government
employees by the government of India.
Contract Teachers
The fixed emoluments to be paid per month to a teacher on contracts should not be
less than the monthly gross salary of a regularly appointed teacher.
The process of promotion of a teacher under CAS should be started at least three
months before s/he becomes eligible for promotion.
For College teachers, greater emphasis should be laid on class room teaching,
holding tutorials, conducting examinations and evaluating answer scripts and less on
research work while considering their cases for promotion under CAS.
The duration of leave admissible to teachers under FIP for pursuing a Ph.D
programme may be increased from present three years( two +one) to four years
(three+ one)
Also restricting such leave up to the age of 45 years should be removed. A teacher
may be able to get this leave any time in her/his career till five years before the
superannuation.
Both university and college teachers should be entitled to Sabbatical leave which
should be available to any teacher for a year after six years of teaching or for a
semester after three years of teaching.
A teacher should be entitled for sabbatical for only two years or four semesters
during her/his entire career.
There should be no bar on a teacher getting both sabbatical and study leave against
approved research projects.
Maternity leave may be granted to a female teacher for 180 days and twice in one’s
career.
Child care leave for 2 years (730 days) may be granted to a female teacher.
Q2. What are the four Policies issues in a Pay Model. What purpose do
the Objectives in the Pay Model serve.
A2.
1. Compensation objectives
2. The strategic policies that form the foundation of compensation system
3. The techniques of compensation.
Every employer must address the policy decision shown on the left side of the pay:
1. Internal consistency,
2. External competitiveness,
3. Employee contribution
4. Administration of the pay system.
These strategic policies form the buildings blocks with regard to which the pay system is
founded.
Internal consistency:-
It refers to comparison amongst jobs or skill levels inside a single organization. Jobs and
skills are compared in terms of their relative contributions to the organizations objectives.
Internal consistency becomes a factor in determining the pay rates both for employees doing
equal work and for those doing dissimilar work.
Internal consistency policies affect all the three compensation objectives. Pay relationship
within the organization effect employee decisions to stay with the organization, to become
more flexible by investing in additional training. By motivating them for increased training
pay relationship indirectly affect the efficiency of the workforce and hence, the effectiveness
of the total organization.
External competitiveness:-
It refers to how an employer positions its pay to what competitors are paying. The policy
regarding external competiveness has a twofold effect on objectives:
To ensure that the pay is sufficient to attract and retain employees
To control labour costs so that the organization prices of products or services can remain
competitive.
We can say that external competitiveness directly affects both efficiency and equity.
Employee’s contribution:-
The policy regarding administration of the pay system is the last building block in the
compensation model. It is possible to design a system which has all the above objectives but
these objectives can’t be achieved unless it is managed properly. The managers must plan the
elements of pay which is included in the system, communication with the employees and
judge whether the system is achieving its objectives such information is needed to tuine or
redesign the system, to adjust to changes and to highlight potential areas for further
investigation.
COMPENSATION OBJECTIVES
Compensation systems are designed and managed to attain certain objectives in any
company. The basic objectives include:-
• Efficiency
• Equity
• Compliance with laws and regulations
The efficiency objectives are:-
Equity is the fundamental to compensation system. The equity signifies that offering fair
treatment to all the employees and offering a fair day pay for a fair’s day work. Thus equity
attempts to ensure fair treatment for all the participants.
Conforming to the various central and state wage legislations and regulations.
But regarding these objectives the laws and regulations tend to be changing so the
compensation system is adjusted according to it.
Fundamental objective of pay systems is defining what is fair is often difficult but we believe
it is helpful to routinely question relative fairness of alternatives which does not mean that all
employees will be treated equally but instead treated fairly or with justice in a given
situation.
Q3. Consider your college, what are the compensable factors required
for your college to evaluate jobs.
How good you go about identifying these factors.
Should the college educational mission be reflected in your factors or
are the more generic factors used in a Hay Plan.
A3.
These 10 elements describe the specific job requirements in terms of "compensable factors."
You can use these factors to gauge whether the job description properly captures the job, and
you can use these factors to help gauge the level of compensation that is appropriate, as well
as the exempt/nonexempt status of the position.
Hereare the primary compensable factors:
1. Experience. How long should the incumbent have worked in this job or in closely related
jobs to be fully qualified? Is it important that the experience be within or outside the
organization?
2. Education. What does the job require in terms of formal schooling, training, certification,
or knowledge of a specialized field?
3. Responsibility. Is the employee responsible for the safety of other employees or for the
loss or damage to tools, materials, or equipment? How significant to the employer is the work
the position is responsible for? How big is the budget the incumbent manages?
4. Complexity of duties. Does the job require the incumbent to show judgment and initiative
or to make independent decisions?
6. Supervision exercised. How many people does the incumbent supervise, directly and
indirectly? What responsibility does he or she have for controlling policy decisions, costs, or
work methods?
7. Consequences of error. If the incumbent made an error, what dollar loss would be likely
to result? How often does the possibility of loss or error occur?
9. Mental, physical, and visual demands. What degree of concentration is required? Are
there special physical demands? Is eyestrain likely?
10. Confidential data. To what extent is the incumbent responsible for confidential
information? What would be the consequences of unwarranted disclosure? To what extent are
integrity and discretion important?
A hay plan is a technique that is used to assess a manager’s performance. Managers are
interviewed regarding such issues as their responsibilities and accountabilities. Responses are
analyzed according to four dimensions: objectives, dimensions, nature and scope, and
accountability.
However, it is necessary that the college mission should be reflected in the selected
compensable factors. In some way the objectives help a lot in defining the mission of the
company. As it is already mentioned above, an objective is one of the four dimensions of Hay
plan. Thus, a combination of both will suffice the need for identifying and analyzing
compensable factors.
Q4. How does job evaluation translates internal alignment policies into
practice. What does
• Organization strategy and objective
• Flow of work
• Fairness
• Motivating People’s Behavior towards Organizational objectives
A4.
Internal
alignment Job Job Job Job
Analysis Description Evaluation Structure
The following issues like Organization strategy and objectives, Flow of work, Fairness,
and Motivating People’s Behavior towards Organizational objectives are directly related
to job evaluation
Firstly, the organizational strategy and objectives are internally aligned to find out the
flow of work or job analysis; which consists of Job Description and Job specification.
Thereafter, Job Evaluation is done to find out the relative worth of different jobs so that
equity and fairness (in activities related to the job) can be established.
Finally, when employees see that they are being treated with equity they get really
motivated.
Thus, we can say that all these activities are linked and inter-related to each other.
Q5. What factors determine the relevant market for a survey? Why is the definition
of the relevant market so important?
A5.
The following are some factors determining the relevant market for a survey:
2. Employers who compete for employees within the same geographical area.
The importance of relevant market cannot be under estimated. It is indispensable for any
organization to find out its relevant markets, since it is important to know skills of
employees to be recruited as the Job Description and Job Specification differs for
different categories of employees. A relevant market also facilitates the managers to
know whether there is shortage or surplus of potential employees. Similarly, there
Compensation package is designed keeping in view the prevalent market conditions.
REFERENCES
www.onwardeducation.com/57.html?m10:post=job-descriptions compensable-factors
www.ugc.ac.in/more/pressnote.pdf
en.allexperts.com/q/Human-Resources-2866/2008/2/internal-alignment.htm