COMPONENTS OF A COMPENSATION SYSTEM
THE COMPONENTS OF A COMPENSATION SYSTEM :-
Compensation will be perceived by employees as fair if based on systematic components.
Compensation systems are designed keeping in minds the strategic goals and business objectives.
Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities.
Various compensation systems have developed to determine the value of positions. These systems utilize many similar components including
Job descriptions,
Job Analysis, Job Evaluation, Pay Structure, Salary Surveys
Policies & Regulations.
Jobanalysis
Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.
Importance of Job Analysis
Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand-supply analysis, recruitments, compensation management, and training need assessment and performance appraisal.
Components of Job Analysis
Job analysis is a systematic procedure to analyze the requirements for the job role and job profile. Job analysis can be further categorized into following sub components
Job Analysis
JobPosition
Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees receive greater pay scale than non-managerial employees. The non-monetary benefits offered to two different levels in the organization also vary.
Compensation will be perceived by employees as fair if based on systematic components.
Compensation systems are designed keeping in minds the strategic goals and business objectives.
Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities.
Various compensation systems have developed to determine the value of positions. These systems utilize many similar components including
Job descriptions,
Job Analysis, Job Evaluation, Pay Structure, Salary Surveys
Policies & Regulations.
Jobanalysis
Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.
Importance of Job Analysis
Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand-supply analysis, recruitments, compensation management, and training need assessment and performance appraisal.
Components of Job Analysis
Job analysis is a systematic procedure to analyze the requirements for the job role and job profile. Job analysis can be further categorized into following sub components
Job Analysis
JobPosition
Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees receive greater pay scale than non-managerial employees. The non-monetary benefits offered to two different levels in the organization also vary.