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Golden Handcuffs: - Different Contractual Arrangements Tailor Made For Each Employee
Golden Handcuffs: - Different Contractual Arrangements Tailor Made For Each Employee
Golden Handcuffs: - Different Contractual Arrangements Tailor Made For Each Employee
GOLDEN HANDCUFFS
- a phrase first recorded in 1976,
refers to financial allurements and
benefits that have the objective to
encourage highly compensated
employees to remain within a
company or organization instead
of moving from company to
company (or organization to
organization).
There is penalty clause in these contracts which can be leaving stock options offered.
Golden Handcuff on one hand offer big financial benefits such as stock options and on
other side binds employee by non-compete clause, non-disclosure agreement.
Dr. Isa Mishra
JOB EVALUATION
Finding the job to be evaluated – Key jobs from every department which
aptly represent the core job of the department.
Analyzing & preparing Job Description – Job Analysis of the job has to be
available.
Classifying jobs - The relative worth of jobs is ascertained using criteria like :
• skill requirements,
• experience needed,
• conditions under which job is performed,
• type & extent of responsibilities to be shouldered,
• degree of supervision needed,
• amount of stress caused by the job
Qualitative Method
• Ranking or Job Comparison
• Grading or Job Classification
Quantitative Method
• Point Rating
• Factor Comparison
Simplest form
Each job as a whole is compared with another and this comparison of jobs
goes on until all the jobs have been evaluated and ranked.
All jobs are ranked in the order of their importance from the simplest to the
hardest or from the highest to the lowest
1. Simple
2. Fast
3. Most commonly used
DIS-ADVANTAGES :
DIS-ADVANTAGES :
Jobs are broke down based on various identifiable factors such as skill, effort,
training, knowledge, hazards, responsibility, etc. Thereafter, points are
allocated to each of these factors.
Weights are given to factors depending on their importance to perform the
job.
The sum of points gives an index of the relative significance of the jobs that
are rated.
Degree Define
1 Able to carry out simple calculations
2 Basic MS Office
3 Adept in MS Office
4 Adept in MS Office, Handles mails
5 Adept in MS Office, Handles mails, Does
work independently
Point Range Daily Wage rate (Rs.) Job Grades of key bank officials
500-599 30000-39999 Officer
600-699 40000-49999 Junior Manager
700-799 50000-59999 Asst. Manager
800-899 60000-69999 Dy. Manager
900-1000 70000-89999 Manager
DIS-ADVANTAGES :
Select the key jobs (15 to 20) across the organization, representing all
departments.
Find factors for evaluating the job like skill, physical effort, mental effort,
responsibility, etc.
Rank selected job under each factor (done by job evaluation committee
members).
Assign money value and determine the wage rates
For painter who is similar to electrician in effort (11), to fitter in mental effort
(10), to welder in skill (8), cleaner in responsibility (6) and labor in working
conditions (5); the wage rate is (11+10+8+6+5) = Rs. 40.
DIS-ADVANTAGES :
Point Compensable Jobs are compared with Quantita Accurate & Complex;
method job factors standardized tive stable over Cannot accord
descriptions of degrees time; points to jobs
of compensable factors Analytical; which cannot
Systematic be quantified
fully
Factor Compensable Jobs graded by ref to Quantita Easy to use; Market rate
Comparis job factors market rate data & tive Analytical, info may be
on direct comparison with Realistic, difficult to
jobs at or near same Practical obtain
level within org Dr. Isa Mishra
JOB EVALUATION - LIMITATIONS