7 july mc session 5-6 prof.nn akhouri june-sept 2011
Post on 07-Mar-2015
36 Views
Preview:
TRANSCRIPT
11
Managerial CompensationManagerial Compensation
Sessions 5-6Sessions 5-6
Prof. Narendra Nath AkhouriProf. Narendra Nath Akhouri
8 7 2011
What is the art of giving feedback?
Feedback
22
Feedback is an important communicationtool that can improve the way we work witheach other
Feedback is a 2-way process
We may avoid words, that express judgment(controlling parent) like “good”,” bad”, ‘should”Or “must” become prescriptive and not constructive
33
Address the personalityAddress the issue
What would you prefer a feedback to be?
Create bad bloodCreate good feeling
Use of You statementUse of I statement
Settling a personal scoreDirected at modifiable behaviour
Destroy performanceImprove performance
PrescriptiveDescriptive
DemolishingEmpowering
44
Class Exercise: HUL
Discuss in your Group and prepare for Unilever India (HUL) Exempt Staff a detail Report of your Recommendation:Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in India?
55
JapanBMW
GermanyMercedes
FrancePEPSI
USCOKE
ChinaP & G
IndiaHUL
Class Exercise
66
Engagement Strategy – Hero Honda Way Engagement Strategy – Hero Honda Way
Hero Honda believes that the employee life cycle in the organization consists of…….
Starts the New job with enthusiasm
Evaluates the job roles,
peers, bosses in real time
Tries to see the
Bright side of things
Passively seeks for new
jobs
Tries to change things
or seeks change
Actively seeks new job
Moves to a NewJob
Is under-assigned, can’t integrate, finds unconducive
work env.
DISENGAGEDENGAGED
ACTIVE DAMAGE IN THE JOB
PASSIVE DAMAGE IN THE JOB
ZONE FOREENGAGEMENT STRATEGIES
Modified version of, ‘7 Hidden Reasons why employees leave,” Leigh Branham
MONITORED THROUGH FORMAL (Q12) AND INFORMAL MEANS
77
How to calculate Compa Ratio?
The compa-ratio is the average of the employee's actual pay divided by the pay range midpoint within the job grade
Salary ranges provide a minimum and a maximum range for salaries within a specific pay grade
88
Find the Compa Ratio
Salary Range
Grade 1 : $20,000 to $30,000
Grade 2: $30,000 to $40,000
Grade 3: $40,000 to $50,000
You are being asked to find an appropriate salary for someone who is
moving from Grade 1 to Grade 2 pay grade. Her current salary is $24,500 What would be her compa ratio %
99
Implication of the Compa ratio
Most organizations provide a recommended course of action to take if the compa ratio falls within a certain percentile range. For example, if the ratio percentage falls between 0 to 33 percent, the result is a grade demotion. If the ratio falls between 34 and 66 percent, the result is a lateral movement andif it falls between 67 and 100 percent, the action is a promotion. Following this guidance, our example would result in a promotion recommendation.
1010
Factors affecting International HRMFactors affecting International HRM
Human Resource Management
CultureEducation- HumanCaptital
Political-Legal System
EconomicSystem
1111
Influence of Nation’s CultureInfluence of Nation’s Culture
Prof. Geert Hofstede conducted perhaps the most Prof. Geert Hofstede conducted perhaps the most comprehensive study of how values in the workplace are comprehensive study of how values in the workplace are influenced by cultureinfluenced by culture..
He was the HR Director at IBMHe was the HR Director at IBMGeert Hofstede analyzed a large data base of employee Geert Hofstede analyzed a large data base of employee values scores collected by IBM between 1967 and 1973 values scores collected by IBM between 1967 and 1973 covering more than 70 countriescovering more than 70 countries
1212
Cultural Dimension Scores for 10 CountriesCultural Dimension Scores for 10 Countries
1.1. PD=Power DistancePD=Power Distance2.2. ID= IndividualismID= Individualism3.3. MA= MasculinityMA= Masculinity4.4. UA= Uncertainty AvoidanceUA= Uncertainty Avoidance5.5. LT= Long Term OrientationLT= Long Term Orientation
H= Top thirdH= Top thirdM= Median thirdM= Median thirdL= Bottom thirdL= Bottom thirdSample size = 53 countries / regions for first four DimensionsSample size = 53 countries / regions for first four DimensionsSample size = 23 countries / regions for the 5th DimensionSample size = 23 countries / regions for the 5th Dimension
1313
Cultural DimensionCultural Dimension Scores for 10 Countries Scores for 10 CountriesPDPD IDID MAMA UAUA LTLT
U SU S 40 L40 L 91 H91 H 62 H62 H 46 L46 L 29 L29 L
GermanyGermany 35 L35 L 67 H67 H 66 H66 H 65 M65 M 31 M31 M
JapanJapan 54 M54 M 45 M45 M 95 H95 H 92 H92 H 80 H80 H
FranceFrance 68 H68 H 71 H71 H 43 M43 M 86 H86 H 30 L30 L
NetherlandsNetherlands 35 L35 L 80 H80 H 14 L14 L 53 M53 M 44 M44 M
Hon KongHon Kong 68 H68 H 25 L25 L 57 H57 H 29 L29 L 96 H96 H
IndiaIndia 77 H77 H 48 M48 M 56 H56 H 40 L40 L 60 H60 H
West AfricaWest Africa 77 H77 H 20 L20 L 46 M46 M 54 M54 M 16 L16 L
RussiaRussia 95 H95 H 50 M50 M 40 L40 L 90 H90 H 10 L10 L
ChinaChina 80 H80 H 20 L20 L 50 M50 M 60 M60 M 118 H118 H1414
Top, Median and Bottom third in Top, Median and Bottom third in Cultural DimensionCultural Dimension Scores for 10 Scores for 10 CountriesCountries
PDPD IDID MAMA UAUA LTLT
Top thirdTop third RussiaRussia
ChinaChina
IndiaIndia
USUS
NetherlandsNetherlands
FranceFrance
GermanyGermany
JapanJapan
GermanyGermany
USUS
IndiaIndia
JapanJapan
RussiaRussia
FranceFrance
ChinaChina
Hong KongHong Kong
JapanJapan
IndiaIndia
Median thirdMedian third JapanJapan JapanJapan
RussiaRussia
IndiaIndia
ChinaChina
FranceFranceNetherlandsNetherlands
ChinaChinaNetherlandsNetherlands
GermanyGermany
Bottom thirdBottom third GermanyGermany
NetherlandsNetherlands
USUS
IndonesiaIndonesia
ChinaChina
Hong KongHong Kong
NetherlandsNetherlands
RussiaRussiaHong KongHong Kong
IndiaIndia
USUS
RussiaRussia
USUS
1515
Interview Worksheet for International CandidatesInterview Worksheet for International Candidates
MotivationMotivationHealthHealthLanguage abilityLanguage abilityFamily considerationFamily considerationResourcefulness and InitiativeResourcefulness and InitiativeAdaptabilityAdaptabilityCareer planningCareer planningFinancial considerationFinancial consideration
1616
Effective Cross-Cultural TrainingEffective Cross-Cultural Training
Verbal behaviorVerbal behaviorNon-verbal behaviorNon-verbal behaviorAttributionAttributionComprehensionComprehensionDesignDesignMotivationMotivation
1717
Basic Process for HR StrategyBasic Process for HR Strategy
Scan the Externalenvironment
Identify peopleissues
Develop HRstrategy
Communicatethe HRstrategy
Identify strategicBusiness issues
1818
Base SalaryCash AllowancesFixed Bonus
Total Cash
ConveyanceHousingRetiralsLoans
Fixed Pay
Variable Pay
Performance BonusIncentivesCommissions
Total Cost to Company
Total Fixed Pay
Hewitt’s Total Cost to Company ApproachHewitt’s Total Cost to Company Approach
1919
Hero Honda Salary Structure: AGM/DGM
2020
Its given in the excel sheet
Asia Pacific - Salary Increases 2007 - 2008Asia Pacific - Salary Increases 2007 - 2008
4.1
8.3
3.7
2.5
7.5
4.8
7.5
4.2 4.2
5.9
4.6
8.6
4.2
15.1
2.8
6.2 6.5
8.2
4.7 4.6
6.3
4.6
8.7
4.5
2.8
6.76.2
8.4
5 4.7
6.4
14.415.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Australia China Hong Kong India Japan Korea Malaysia Philippines Singapore Taiwan Thailand
(%)
2006 2007 2008 (Proj.)
Source : Hewitt's 12th Salary Increase Survey 2007-08
2121
Overview of Survey Results Total Cost to Company (TCC)Figures in INR 000's per annum
Min P25 Median Mean P66 P75 P90 Max
Level 1 4 5748 7071 7627 7313 7738 7870 8098 8250
Level 2 10 2742 3996 4664 4523 4753 5058 5702 5825
Level 3 8 2477 2677 3067 3280 3565 3859 4181 4520
Level 4 9 1716 1912 2180 2328 2312 2391 3254 3501
Level 5 10 1367 1610 1743 1892 2050 2103 2420 2650
Level 6 11 927 1157 1375 1458 1632 1745 2052 2063
Level 7 10 769 990 1185 1202 1369 1445 1483 1597
Level 8 11 515 803 866 895 1027 1068 1109 1169
Level 9 11 409 638 719 677 747 754 798 854
Level 10 11 280 476 537 531 615 635 647 682
Level 11 11 237 347 383 406 431 471 525 595
Levels MatchesMarket
Hewitt’s recommendation is that pay should be positioned at least at the Median (P50) of the market
Overview of Survey Results Total Fixed PayFigures in INR 000's per annum
Min P25 Median Mean P66 P75 P90 Max
Level 1 4 5403 5538 5886 5871 6175 6218 6274 6311
Level 2 10 2570 3314 3902 3747 4119 4261 4565 4755
Level 3 8 2124 2333 2460 2757 3069 3420 3508 3526
Level 4 9 1389 1812 1995 2060 2092 2279 2723 2801
Level 5 10 1268 1497 1572 1684 1756 1915 2118 2120
Level 6 11 820 1055 1286 1295 1365 1531 1692 1820
Level 7 10 769 913 1079 1087 1184 1213 1369 1468
Level 8 11 515 719 825 809 906 942 993 1011
Level 9 11 409 596 647 623 682 709 741 751
Level 10 11 280 439 489 489 564 578 602 627
Level 11 11 237 327 348 373 396 437 491 505
Positions MatchesMarket
Given that Fortius Motors is a startup and therefore competitiveness on Total Fixed Pay will be key
Remuneration Framework - As Percentage of Total Cost to Company (TCC)
Base SalaryCash
EmolumentsHousing Conveyance Retirals Loans Variable Pay
Level 1 27% 33% 8% 4% 8% 0% 20%
Level 2 28% 31% 9% 6% 8% 0% 17%
Level 3 26% 35% 7% 8% 8% 0% 16%
Level 4 29% 30% 12% 9% 9% 0% 12%
Level 5 30% 32% 11% 7% 9% 0% 11%
Level 6 30% 34% 11% 5% 9% 0% 11%
Level 7 31% 33% 12% 4% 9% 0% 10%
Level 8 33% 32% 12% 3% 10% 0% 10%
Level 9 34% 33% 13% 1% 10% 0% 8%
Level 10 34% 33% 13% 2% 10% 0% 8%
Level 11 35% 33% 12% 2% 10% 0% 8%
Positions
Basic Salary as a % of TCC is typically in the range of 30-35% across industriesVariable Pay ranges basis line of sight to business goals
GroupsGroups
2525
HUL
P&G
COKE
PEPSI
MECEDES
BMW
1
2
3
4
5
6
Assignment for Sessions 5-6 on 8th July, 2011
The Chapters on Reward Policies, Factors affecting Pay Levels, Motivation and Reward.Readings: Part 1 & 2, Chapters 6-8, Pages 96-134 of the book.
Group COKECase Study 4: The Importance of Pay in Compulsory Competitive Tendering And Case Study 5: Changing the Reward System at Blane and Rivershire Building Society.
Group PEPSICase Study:“Exploring Lawler’s new pay theory through the case of Finbank’s reward strategy for managers”
2626
Class Exercise: P & G
Discuss in your Group and prepare for P & G China Exempt Staff a detail Report of your Recommendation :Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in China?
2727
Class Exercise COKE
Discuss in your Group and prepare for COKE US Exempt Staff a detail Report of your Recommendation :Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in US?
2828
Class Exercise: PEPSI
Discuss in your Group and prepare for PEPSI France Exempt Staff a detail Report of your Recommendation :Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in France?
2929
Class Exercise: Mercedes
Discuss in your Group and prepare for Mercedes Germany Exempt Staff a detail Report of your Recommendation :Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in Germany?
3030
Class Exercise: BMW
Discuss in your Group and prepare for BMW Japan Exempt Staff a detail Report of your Recommendation :Reward StrategyReward PolicyPay progression approachSalary Grade range and how many?Vertical grade structure or Broadband?What would be your motivating approach?Critically examine what Compa Ratio % would your recommend?What is the Cultural imperative for operating in Japan?
3131
Geert Hofstede• Geert Hofstede analyzed a large data base of employee values
scores collected by IBM between 1967 and 1973 covering more than 70 countries
• From this he first used the 40 largest only and afterwards extended the analysis to 50 countries and 3 regions.
• In the editions of GH's work since 2001, scores are listed for 74 countries and regions, partly based on replications and extensions of the IBM study on different international populations.
3232
Subsequent studies validating the earlier results have included commercial airline pilots and students in 23 countries, civil service managers in 14 counties, 'up-market' consumers in 15 countries and 'elites' in 19 countriesFrom the initial results, and later additions, Hofstede developed a model that identifies four primary Dimensions to assist in differentiating cultures: Power Distance - PDI, Individualism - IDV, Masculinity - MAS, and Uncertainty Avoidance - UAI
3333
Geert Hofstede added a fifth Dimension after conducting an additional international study with a survey instrument developed with Chinese employees and managers.That Dimension, based on Confucian dynamism, is Long-Term Orientation - LTO and was applied to 23 countries.These five Hofstede Dimensions can also be found to correlate with other country, cultural, and religious paradigms.
3434
top related