Maintenance and Rewarding

Employees
 Compensating Human resources
The concept and definition of reward
management

Reward: Something that increases the frequency of an employee's

action; thus, increases the chances that performance will be repeated.

Reward management is defined as “the strategies, policies, and

processes required to ensure that the value of people and the
contribution they make to achieving organization, departmental and
team goals is recognized and rewarded.
 Compensating Human resources
The concept and definition of reward
management
These systems cover measures for evaluating the importance of jobs through

job evaluation and market pricing, the design and management of grade and

pay structures, performance management processes, schemes for rewarding

and recognising people according to their individual performance or

contribution and/or team or organisational performance, and the provision of

employee benefits
 Main components of Compensation:
1. Direct Compensation

paid to the employee in exchange for his work. It includes:
- consist of cash directly

a.Base Pay- the hourly wage or weekly/monthly salary earned.

b.Base Pay Progression- the movement of base pay over time, from year to

year.

c.Variable Pay- incentive or bonus pay that does not fall into base pay.
 Main components of Compensation:
3. Indirect Compensation

(non-monetary). It includes:
- Quality of work life

a. Organizational Culture- norms and values defining appropriate behavior in

the organization.

Intrinsic Value - Rewards inherent in the work itself came from the act of

performing.

Career Opportunity- the prospects for development of growth.

 Main components of Compensation:
2. Benefits and perquisites

- indirectly cash or benefits that have a monetary value. Examples include:

1. Medical coverage

2. Dental insurance.

3. Vision insurance.

4. Life insurance policies.

5. Prescription and pharmacy benefits.

 Note:
“Wages- refer to hourly compensation paid to skilled and unskilled workers

or those performing blue-collar jobs, with time as the basis in the

computation.

Salary- income paid to an individual not on the basis of time but on the

basis of the performance, given to professional and managerial employees

or to those who are performing white collar jobs.”

 Employee Benefits and Services
Monthly salary components
HR maintenance: is the process of designing safety, medical care plans, and welfare
actions
HR maintenance system consists of following actions:

Preventive actions: these actions are plans for employees’ safety in the
workplace. They try to decrease some hazards that relate to work.

Medical care actions: these actions are plans to make better diseases that create
due to work conditions.
 Employee Benefits and Services
Human resource maintenance
HR maintenance: is the process of designing safety, medical care plans, and welfare
actions
HR maintenance system consists of following actions:

Preventive actions: these actions are plans for employees’ safety in the
workplace. They try to decrease some hazards that relate to work.

Medical care actions: these actions are plans to make better diseases that create
due to work conditions.
 Employee Benefits and Services
Human resource maintenance
Welfare services: these services do not relate to individual jobs and they consist
of consultants, social and sports activities, and so on (Armstrong, 2006).

Retirement actions: they are actions and plans after employees’ retirement to a
better life.

Insurance actions: these actions are included financial support such as accident
insurance, life insurance, and so on (Syedjavadin, 2002)
 Employee Benefits and Services

Perhaps the most critical aspect of the definition of benefits is that they are a form
of indirect compensation.

The concept of “indirect” suggests that these are things purchased for employees,
but it also implies that these are forms of compensation that are not related to the
production of products or the delivery of services but are calculated
independently of these outcomes.
 Referencess

·hr-maintenance-a-vital-factor-to-promote-job-commitment.pdf (hrmars.com)

·MAINTENANCE AND REWARDING OF EMPLOYEES by michelle rose pepito

(prezi.com)

·Labor Management Relations in the Philippine (slideshare.net)