Career & Performance

Management

Sonalee Srivastava,
Lecturer,
SMS,Varanasi
Career Planning
 Career- It is a sequence of separate but related work
activities that provides continuity ,order & meaning in a
person’s life-Edwin B.Flippo

 Career as an individually perceived sequence of attitudes

& behaviors associated with work related, experiences &
activities over the span of the person’s life-Douglas
T.Hall.
Career Stages
 Exploration. (mid-twenties-transition from college to
work)
 Establishment. (career stage one begins to search for
work)
 Mid-Career Stage. (continuous improvement in
performance, remaining productive at work is a
major challenge of career at this stage)
 Late Career. (in which one is no longer learning
about job.)
 Decline. (person’s attention may turn towards
retirement)
 Exploration Establishment Mid-Career Late Career Decline
High

Perform
ance

From college First job& Will performance The elder Preparing

To work Being Increase or state person For
accepted Begin to decline retirement

Low 25 35 50 60 70
Career Planning
 Career Planning is the deliberate
process by which one selects career
goals & the path to these goals.
 Career planning refers to planned and
systemized progression of events and
development in the field of work or
vocation of individuals during the
employable periods of their life.
Objective/Needs of Career
Planning
 Attract & retain talent by offering careers, not
jobs.
 Use human resources effectively & achieve
greater productivity.
 Reduce employee turnover.
 Improve employee morale & motivation.
 Meet the immediate & future HR needs of the
organization on a timely basis.
Process/Steps of Career
Planning
 Identifying individual needs & aspirations
(what kind of work would suit the employee most)

 Analyzing career opportunities. (org. has to

provide career progression possibilities to
employee)
Process/Steps of Career
Planning

 Aligning needs & opportunities (a) identify the potential

of employees & then undertake career development
programs with a view to align employee needs &
organizational opportunities.
(b) after identifying the potential of employees certain
developmental techniques such as special assignments,
planned position rotation, job enrichment ,understudy
programs can be undertaken to update employee
knowledge & skills.
Process/Steps of Career
Planning

 Action plans & periodic review( helps the

employee to know in which direction he is
moving, what changes are likely to takes place,
what kind of skills are needed to face new &
emerging organizational challenges)
Pre-requisites for the success
of career planning
 Organization’s goal in selection should
be selecting the most suitable man &
place him in the right job.
 Organization should take care of the
proper age composition in manpower
planning & in selection.
Pre-requisites for the success
of career planning
 Organization should take steps to
minimize career stress.
 Organization should have fair promotion
policy.
 Organization should publicize widely the
career planning & development
programs.
Organizational career planning
& individual career planning
 HR needs development identifying your interests,

skills& potential
 Upgrading of HR for Identifying your Increased
productivity. Life-goal& career goals.
 Career paths definition developing a written plan
to achieve your goals.
 Assessment of Seeking & obtaining the
Individual Potential job best first.
Organizational career planning
& individual career planning
 Matching of org. needs communicating to mang.
& career needs. your career plan.
 Career counseling for seeking counsel from
Quality of work life. Your manager.
 Audit & control of evaluating internal &
Career planning external opportunities.
Development system.
Career Development
 Career development consists of the
personal actions one undertake to
achieve a career plan.
 It looks at the long-term career
effectiveness of employees whereas
employee development focuses on
effectiveness of an employee in the
immediate future.
Career Development
 Career development represents the entire sequence
of activities and events related to an individual's
career. Career development encompasses
acquiring of educational qualifications and
certifications, career path, self-actualization as an
individual, shifting of careers and career growth,
learning curve, family life, accomplishments and
recognitions or felicitations.
Steps in Career Development
 Need -(defining the present system)

 Vision- (determining new directions &

possibilities & linked with the
interventions)
Steps in Career Development
 Action plan- (deciding on practical aspect,
an action plan should be formulated in order
to achieve the vision)

 Results-(maintaining the change, career

development prog. should be integrated with
the organization’s ongoing employee training
& management development programs and it
should be evaluated from time to time)
Individual Career
Development Actions
 Various career development actions
prove useful if an employee is
committed to career development……

 Job performance (employee must

prove that his performance on the job is
to the level of standards established)
Individual Career
Development Actions
 Exposure (employee’s desire for career
progress should expose their skills,
knowledge, qualifications,
achievements, performance, etc to
those who take the decision about
career progress)
Individual Career
Development Actions
 Leveraging (Resignations employees may resign the
present job in the organization ,if they find that career
opportunities elsewhere are better than those of the
present organization)
 Loyalty to Career( employee do not think that
career-long dedication to the same organization so to
overcome this problem companies come out with
lucrative, innovative compensation packages in
addition to employee stock option plans for those
who remain with the company for a specified period.)
Individual Career
Development Actions
 Mentors & sponsors (mentors offer advice&
guidance on how to survive & get ahead in the
organization & sponsor is someone in the
organization who can create career development
opportunities)
Individual Career
Development Actions
 Key subordinates (qualified & knowledgeable
subordinates, often extend invaluable help that
enables their bosses to come up in life)
 Expand ability (employees who are career
conscious must prepare themselves for future
opportunities that may come their way internally
or externally by taking a series of proactive steps.)
Organizational Career
Development
 Self-assessment tools (two tools are
commonly used in organization-career planning
workshops & career workbook. This guide throws
light on organization’s structure, career paths,
qualifications for jobs & career ladders)
 Individual counseling (discussion of
employees’ interests, goals, current job activities
& performance and career objectives take place)
Organizational Career
Development

 Information services (employment opportunities

at various levels are made known to employees
through information services of various kinds.
organization basically used 4 methods-

1. Job posting system( through notice boards,

newsletters & other company publications)
Organizational Career
Development

2.Skills inventory (containing employees’

work histories, qualifications,
accomplishments, career objectives,
geographical preferences, etc which help
organizations in learn the characteristics of
their workforces so that they can use the
skills of their employees, whenever
required)
Organizational Career
Development
3.Career ladders & career paths (it throw light on
career progression & future job opportunities in
the organization)

4.Career resource centre (it is a sort of library in the

organization established to distribute career
development materials as reference books, career
manuals, brochures ,newsletter & learning guide,
self study tapes)
Organizational Career
Development
 Employee developmental programs (this
consist of skill assessment & training efforts
that organizations use to groom their
employees for future vacancies)
 Career program for special groups
(schemes such as part-time work, long
parental leave, child care centers, flexible
working hours & promotions & transfers in
tune with the demands of dual career
conflicts)
Key Issues in Career
Development (Roles)
 Individual
 Should be motivated.
 Should accept responsibility for his own
growth.
 Seek information & resources for his own
development.
 Should establish career goals & plans.
 Utilize opportunities for growth.
 Talk to his boss.
Key Issues in Career
Development (Roles)
 The Manager or the Boss-
 Provide timely performance feedback.
 Provide developmental assignment &
support.
 Participate in career development
discussions.
Key Issues in Career
Development (Roles)
 Organization
 Communicate policies, procedures.
 Provide training & development
opportunities & information.
 Offer if possible variety of career
options & provide monitoring.
Succession Planning
 The process of ensuring a suitable
supply of successors for current &
future senior or key jobs arising from
business strategy, so that the careers of
individuals can be planned & managed
to optimize the organizations’ needs &
the individuals’ aspirations.
Succession Planning
 Succession planning is a process of
determining critical roles within the
company, identifying and assessing
possible successors, and providing them
with the appropriate skills and
experience for present and future
opportunities.
succession planning comprises
of these important steps

 Recruitment and staffing - you recruit superior

and right employees
 Training and development - you train the
employees to develop their knowledge, skills and
abilities
 Performance and Compensation management -
prepare them for advancement or promotion into
ever more challenging roles
 Other (in which talent management plays a role) -
you are prepared to retain or replace superior
employees
 Typical activities covered by
succession planning include
 Determine what roles and skills are critical for
the growth of the company.
 analyze and address the gaps revealed by the
planning process .
 identify and understand the developmental
needs of employees to fill those positions .
 ensure that all key employees understand
their career paths and the roles they are
being developed to fill.
Typical activities covered by
succession planning include
 train people for skills and positions that are not
presently existing in the company.
 understand the time needed to backfill key roles.
 enrich succession plans through regular executive
discussion of people and posts.
 identify top performers in all departments and make
sure that they are engaged and satisfied to stay with
you for a long period.
 continually review and check the process of
succession and whether planned individual
development has taken place
key issues the HR professionals should consider
while developing a succession plan are –

 Strategic plans and future goals

 Workforce requirement
 Knowledge retention and critical roles
 Talent management strategies
Succession Planning In India
 The problem associated with successions planning
are particularly acute in India, where family managed
businesses proliferate.

 What the CEO needs to do

Many CEOs fail to handle succession planning
effectively for a variety of reasons:
 They forget the big picture and stay focused on day

to day operations.
 They have an exaggerated sense of self importance

and begin to think they are indispensable.

Succession Planning In India
 They are poor in building a second layer of
management because of an unwillingness to
tolerate good people or to delegate.
 They try to avoid conflict and hesitate to send
a clear message who the successor is going
to be.
 They continue to play a role in the company
even after the new CEO has been put in
place.
Guidelines for effective
succession planning
 Succession Planning should be customized to suit the needs of the
organization.
 Succession planning should be driven by the line function and not HR
executives.
 Succession planning should develop key candidates, in anticipation of
future openings.
 Succession planning is not just selection. Development through job
rotation, mentoring and formal training programs is equally important.
 Succession planning must take into account the culture of the
organization.
 Succession planning must be consistent with the future strategic
direction of the company.
Job Evaluation
 It is a systematic way of determining the
value/worth of a job in relation to other jobs
in an organization.
 Job Evaluation is a technique to rank jobs in
an organization on the basis of the duties and
responsibilities assigned to the job. The job
evaluation process results in a job being
assigned to a pay grade. The pay grade is
associated with a pay range that is defined by
a minimum and a maximum pay rate.
Objectives of Job Evaluation

 To provide a basis for a simpler, more rational wage

structure;
 To provide an agreed-upon means of classifying new or
changed jobs;
 To provide a base for individual performance measurements;
 To reduce pay grievances by reducing their scope and
providing an agreed-upon means of resolving disputes;
 To provide incentives for employees to strive for higher-level
jobs;
 To provide information for wage negotiations;
 To provide data on job relationships for use in internal and
external selection, personnel planning, career management,
and other personnel functions.
Process of Job Evaluation
 Gaining acceptance (top management must
explain the aims & uses of the program to the
employees & unions)
 Creating job evaluation committees (consist of
experienced employees, union representatives &
HR experts)
 Finding the jobs to be evaluated (certain key
jobs in each department may be identified)
Process of Job Evaluation
 Analyzing & preparing job description (this requires the
preparation of a job description & also an analysis of job
needs for successful performance)
 Selecting the method of evaluation (keeping the job
factors s well as organizational demands in mind)
 Classifying jobs (the relative worth of various jobs in an
organization may be found out after arranging jobs in
order of importance using criteria such as skill
requirements, experience needed, under which conditions
job is performed, etc)
Process of Job Evaluation
 Installing the program ( once the evaluation
process is over & a plan of action is ready,
management must explain it to employees & put it
into operation)
 Reviewing periodically
Benefits
 It tries to link pay with the requirements of the job.
 It offers a systematic procedure for determining the
relative worth of jobs.
 An equitable wage structure is a natural outcome of job
evaluation.
 Employees as well as unions participate as members of job
evaluation committee while determining rate grades for
different jobs.
 job evaluation, when conducted properly & with care,
helps in the evaluation of new jobs.
Job Evaluation Methods( Ranking Methods)

 Ranking jobs is the easiest, fastest, and least expensive

approach to job evaluation. It is also most effective in
smaller organizations with few job classifications. To rank
positions, order jobs from highest to lowest based on their
relative value to your organization.

 The process of job ranking typically assigns more value to

jobs that require managerial or technical competencies. For
example, a job-ranking system might rank the job of CEO
as the most valued job within the organization and the job
of product assembler as the least valued.
Job Evaluation Methods( Ranking Methods)
 Advantages   Simplicity is the main advantage in using a
ranking system. It is also easy to communicate the results
to employees, and it is easy to understand.

 Disadvantages   Ranking jobs is subjective. Jobs are

evaluated, and their value and complexity are often
assessed on the basis of opinion. Also, when creating a
new job, existing jobs must be re-ranked to accommodate
the new position.
Job Evaluation Methods (Classification
Methods)

 The general purpose of job classification is to create and

maintain pay grades for comparable work across your
organization.

 To conduct a job classification: First, write descriptions for

a category of jobs; next, develop standards for each job
category by describing the key characteristics of those jobs
in the category; finally, match all jobs to the categories
based on the similarity of tasks, the decision-making
exercised, and the job's contribution to the organization's
overall goals.
Job Evaluation Methods (Classification
Methods)
 Advantage   Job classification is simple once you
establish your categories. You can assign new jobs
and jobs with changing responsibilities within the
existing system.

 Disadvantages   Job classification is subjective,

so jobs might fall into several categories.
Decisions rely on the judgment of the job
evaluator. Job evaluators must evaluate jobs
carefully because similar titles might describe
different jobs from different work sites.
Job Evaluation Methods (Point evaluation
Methods)

 Point evaluation is the most widely used job

evaluation method. In a point evaluation system, you
express the value of a particular job in monetary
terms. You first identify compensable factors that a
group of jobs possess. Based on these factors, you
assign points that numerically represent the
description and range of the job.

 Examples of compensable factors are skills required,

level of decision-making authority, number of
reporting staff members, and working conditions.
Job Evaluation Methods (Point evaluation
Methods)

 Advantage   This method is often viewed as less biased

than other methods because the job evaluator assigns each
job's total points before the compensable factors become
part of the equation.

 Disadvantages   Subjective decisions about compensable

factors and the associated points assigned might be
dominate. The job evaluator must be aware of biases and
ensure that they are not represented in points assigned to
jobs that are traditionally held by minority and female
employees
Job Evaluation Methods (Factor Comparison
Methods)

 Job evaluators rank jobs that have similar

responsibilities and tasks according to points
assigned to compensable factors. The evaluators
then analyze jobs in the external labor market to
establish the market rate for such factors. Jobs
across the organization are then compared to the
benchmark jobs according to the market rate of
each job's compensable factors to determine job
salaries.
Job Evaluation Methods (Factor Comparison
Methods)

 Advantage   This method results in customized

job-ranking.

 Disadvantage   Compensable factor comparison is

a time-consuming and subjective process.
Performance Management
 Performance management is the process of
creating a work environment or setting in
which people are enabled to perform to the
best of their abilities. Performance
management is a whole work system that
begins when a job is defined as needed.
 It ends when an employee leaves your
organization.
A performance management system
includes the following actions.
 Develop clear job descriptions.

 Select appropriate people with an appropriate selection process.

 Negotiate requirements and accomplishment-based performance standards,

outcomes, and measures.

 Provide effective orientation, education, and training.

 Provide on-going coaching and feedback.

A performance management system
includes the following actions
 Conduct quarterly performance development discussions.

 Design effective compensation and recognition systems that

reward people for their contributions.

 Provide promotional/career development opportunities for

staff.

 Assist with exit interviews to understand WHY valued

employees leave the organization.
PERFORMANCE APPRAISAL

One of those special human

encounters where the manager
gets no sleep the night before, and
the employee gets no sleep the
night after.
—Thomas B.
Wilson
 Whom the company should evaluate

 What criteria should be used to

evaluate.
 TRAIT
 BEHAVIOR
 JOB RESULT
 Motivation.

 Insight into staff and supervisors.

 Rewards on a fair and credible basis

 Clarify organizational goals

 Immediate supervisor
 Peer appraisal
 Rating Committees
 Self-Ratings
 Appraisal by subordinates
 360-Degree feedback
Performance Appraisal Methods
 Traditional Methods Modern Methods
 Straight ranking method Assessment Centre
 Man-to-man comparison Management By Objectives
 Grading Human Asset Accounting
 Graphic Rating Scales Behaviorally Anchored Rating

Scales
 Forced distribution
 Check list
 Critical Incidents
 Group Appraisal
 TYPES OF PERFORMANCE
APPRAISALS

 Graphic Rating Scale Method

Alternative ranking Method
Paired comparison method
Forced Distribution Method
Forced Distribution Method
Annual confidential report
(ACR)
Critical Incident Method
Behaviorally Anchored Rating
Scales (BARS)
Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable
suggestions for increased sales and to have
positive relationships with customers all
over the country
Good 6 Can expect to initiate creative ideas for
improved sales
Above average 5 Can expect to keep in touch with the
customers throughout the year
Average 4 Can manage, with difficulty, to deliver the
goods in time.
Below average 3 Can expect to unload the trucks when
asked by the supervisor.
Poor 2 Can expect to inform only a part of the
customers
Extremely poor 1 Can expect to take extended coffee breaks
and roam around purposelessly
Management By
Objectives(MBO)
Six Step MBO Process
360° Feedback
Psychological Appraisals

Under this Technique, Psychologists are used for

Evaluations, they assess an individual’s Future Potential
and not the Past Performance. The Appraisal normally
consists of In-depth Interviews, Psychological Tests,
Discussions with Supervisors and a review of other
Evaluations.
Assessment Centre

An Assessment Centre is a central location where

managers may come together to have their participation in
Job-related exercises evaluated by Trained Observers. by
observing their Behavior across a series of select exercises
or Work Samples such as- In-Basket exercises, Work
Groups ( Without leaders), Computer Simulations, Role
Playing, and other similar activities which require the
same attributes for successful performance, as in the actual
job.
Why performance appraisals
fail?
Problems with Appraisals
How to avoid appraisal
problems?
Feedback
 Performance appraisal process is incomplete without
the feedback given to the employee about his appraisal and
his performance. But the way of giving as well as
receiving the feedback differs from person to person and
their way of handling and their outlook towards the issue.

 Feedback describes the situation when output from (or

information about the result of) an event or phenomenon in
the past will influence the same event/phenomenon in the
present or future.
Feedback
 According to a popular saying:

"A SUCCESSFUL MAN IS ONE WHO CAN

LAY A FIRM FOUNDATION WITH THE
BRICKS OTHERS HAVE THROWN AT
HIM."
On the part of the person receiving the feedback, the
following points are important to be taken care of:
 The employee should have a positive attitude towards the feedback
process

 He should listen to the suggestions of the appraiser calmly and try to

incorporate them in his plans.
 He should not hesitate to ask for the help of his superiors.
 Should have a co-operative attitude during the feedback meeting.
 Don’t judge the appraiser as a person.
 Should take the feedback objectively.
 Should not judge the appraiser as a person on the basis of the feedback.
On the part of the appraiser or the manager / person
giving the feedback, the following points are to be
taken care of:
 The appraiser should make the receiver feel comfortable
during the feedback meeting.

 The appraiser should make it a two – way conversation i.e.

let the employee speak.

 Listen to the employee and note his points, suggestions,

problems etc.
 The appraiser should not adopt a confrontational approach
towards the meeting. The goal is not to criticize the
employee.
On the part of the appraiser or the manager / person
giving the feedback, the following points are to be
taken care of:
 Provide a constructive feedback to the employee i.e. in a
way which will motivate him to perform better.

 Have a positive attitude towards the process

 Try to understand the reasons of his failure.
 Be fair and objective.
 Prepare yourself for what to say and how to say.
 Make the appraisal feedback meeting useful and
productive for the organization and the employee.
Compensation & Rewards
 It may be defined as money received in the
performance of work, plus the many kinds of
benefits &services that organizations provide their
employees.
Objectives of Compensation administration

 To establish a fair & equitable remuneration offering

similar pay for similar work.
 To attract qualified & competent personnel.
 To retain the present employees by keeping wage levels in
tune with competing units.
 To control labor & administrative costs in line with the
ability of the organization to pay.
 To improve motivation & morale of employees & to
improve union-management relations.
 To project a good image of the company & to comply with
legal needs relating to wages & salaries.
Compensation Management
 Process of determining cost-effective pay structure.

 Designed to attract & retain.

 Provide an incentive to work hard.

 Structured to ensure that pay levels are perceived as fair.

 Employee’s
Compensation Management
Tenure&
performance
Company
Size of company Profitability

Level of
Geographical Compensation Kind of job
location & benefits performed

Management
philosophy Kind of business

Labor or
unionization
Capital intensive
Principles of Wage & Salary Administration

 Wage & salary plans should be sufficiently flexible.

 Job evaluation must be done scientifically.
 Wage & salary administration plans must always be
consistent with overall organizational plans & programs.
 Its plans & prog. Should be in conformity with the social
& economic objectives of the country.
 These plans should simply & expedite other administrative
processes.
 The Wage Determination Process
Wage & Benefits
Legislation
Job Analysis

Wage Structure
Wage Survey &
Job Description Analysis of
& Specification Job Evaluation Relevant Rules of
Organizational Administration
Problems

Performance
Differential employee
Standards
Appraisal

Wage & Benefits

Payments
 Criteria (Factors influencing) for
Wage Fixation
Ability to pay

Living Wage
Going rate

Wage &
Cost of Living Salary Productivity
Criteria

Union Bargaining
Supply & Demand
Power
Factor
Job requirements
 Factors Affecting Compensation Plans
International Level Information
Organization
Environ
National level Mental
Supply & Demand Going wage monitoring
Wage leaders
Regional Level
Economic Going wage
Developments Wage leaders survey
Exchange
Local Level
Going wage
Social Wage leaders
Supply & Demand The
Trends
Economic People Organization
People for work Seeking Philosophy
Forces
legislation employment Ability to pay
unions productivity
Wage policy

 It is in the widest sense mean any economic

compensation paid by the employer under some
contract to his workers for the services rendered
by them. Wages therefore, include family
allowance, relief pay, financial support & other
benefits.
Minimum, fair & living wage.
 Minimum wage-the wage which must provide not only
for the bare sustenance of life, but for the preservation of
the efficiency of the worker.
 Living Wage- one which should enable the earner to
provide for himself & his family not only the bare
essentials of food, clothing & shelter but a measure of
frugal comfort, including education for his children,
protection against ill-health, requirements of essential
social needs & a measure of insurance against the more
important misfortunes, including old age.
Minimum, fair & living wage.
 Fair wage- it is the wage which is above the minimum
wage but below the living wage. It consider the following
factors i.e. the productivity of labor, the prevailing rates of
wages in the same or neighboring localities, the level of
the national income & its distribution & the place of
industry in the economy of the country.
Elements or ingredients of a good wage plan

 It should be easily understandable.

 It should be capable of easy computation.
 It should be capable of effectively motivating the
employees.
 It should provide for remuneration to employees as soon as
possible after the effort is made.
 It should be relatively stable rather than frequently varying
so that employees are assured of a stable amount of
money.
Types of Wages

 Time Rate- workers are paid according to the work done

during a certain period of time, at the rate of so much per
hour, per day, per week, per fortnight or per month or any
other fixed period of time.
 Piece Rate- workers are paid according to the amount of
work done or the number of units completed, the rate of
each unit being settled in advance, irrespective of the time
taken to do the task. WE=NR (worker’s earnings, N-no. of
pieces produced and R for the rate per piece.
Types of Wages
 Balance or Debt Method-combination of both time &
piece rate. The worker is guaranteed an hourly or a day-
rate with an alternative piece rate.
Wage Incentive Plans

 Halsey Premium Plan.

 Halsey Weir Premium Plan.
 Rowan Premium Plan.
 The 100% Premium Plan.
 The Bedeaux Point Plan.
 Taylor’s Differential Piece Rate Plan.
 Merric’s Multiple Piece Rate Plan.
 Gnatt Task Plan.
 Emerson Efficiency Plan.
Piece rate :Taylor’s differential Piece
Rate System-

 There shall be two piece work rates, one is lower & the
other is higher.
 The standard of efficiency is determined either in terms of
time or output based on time & motion study.
 If a worker finishes work within standard time (or
produces more than standard output within time) he will be
given high piece rate.
 This system penalizes the slow worker by paying low rate
because of low production, etc.
Merrick’s Differential Piece Rate
System
 It is a Multiple Piece rate system.
 Upto83% of the standard output workers are paid at the
ordinary piece rate.
 83% to 100% at 110% of the ordinary piece rate.
 Above 100% at 120%of the ordinary piece rate.
 Workers producing below the standard output are not
penalized by the low piece rate.
F.S.Halsey plan-standard hour plans
 Standard time is fixed for each job or operation.
 Time rate is guaranteed & the worker receives the
guaranteed wages irrespective of whether he completes the
work in the time allowed or takes more time to do the
same.
 If the job is completed in less than standard time, the
worker is paid a bonus of 50%(33 1/3 % under Halsey-
Weir Plan) of time saved at time rate in addition to his
normal time wages.
 Total earnings=time taken* hourly rate plus bonus
 Bonus=50% of time saved.
Rowan Plan
 Under this plan bonus is that proportion of the wages of
time taken which the time saved bears to the time allowed
or standard time.
 Bonus = Time save *Time Taken*Hourly rate
Standard time or time allowed

Total earnings= Time taken * hourly rate+ bonus

Gantt Task & Bonus Plan
 This plan combines time, piece & bonus system.
 Day wages are guaranteed.
 Standard time for task is fixed & both time wages as well
as a high rate per piece are determined.
 A worker who cannot finish the work within the standard
time is paid on time basis.
 If a worker reaches the standard, he will be paid time wage
plus a bonus at fixed percentage(20%)of normal time
wage.
 If the worker exceeds the standards, he is paid a higher
piece rate.
Bedeaux Plan
 Every operation or job is expressed in terms of so many
standard minutes, which are called ‘Bedeaux points’ or
“ B’s ”,each B representing one minute through time &
motion study.
 Up to 100% performance, i.e. up to standard B’s a worker
is paid time wages without any premium for efficiency.
 If the actual performance exceeds the standard
performance in terms of B’s then 75% of the wages of the
time saved is paid to the worker as bonus & 25% is earned
by the foreman.
Emerson’s Efficiency Plan
 When the efficiency of the worker reaches 67% he gets
bonus at the given rate.
 The rate of bonus increases gradually from 67% to 100%
efficiency.
 Above 100% bonus will be at 20% of the basic rate plus
1% for each 1% increase in efficiency.
Choices in designing a compensation
system
 Internal & External pay -Compensation policies are
internally equitable when employees believe that the wage
rates for their jobs approximate the job’s worth to the
organization. Perceptions of external equity exist when the
firm pays wages that are relatively equal to what other
firms are paying for similar types of work.
 Fixed vs. Variable pay- (a) should performance be
measured & rewarded on the bases of individual ,group or
organizational performance? (b) should the length of time
for measuring performance be short-term or long term?
Choices in designing a compensation
system
 Performance vs. Membership-knowledge based organizations these
days follow a performance based payment plan offering awards to
employees.
 Job vs. individual pay-
1.Jobs do not change often 1.The firm has educated
employee to learn different jobs.
2.Technology is stable 2.Technology frequently changing
3.Employees are expected to 3.Vertical growth opportunities are limited.
move up through the ranks
overtime.
Choices in designing a compensation
system
 Below market vs. above market compensation-in high
tech firms workers might be paid better then their
counterparts in the manufacturing division.
 Open vs. secret pay-openness is likely to be more
successful in organization with extensive employee
involvement.
 Reward/Incentives (It can be anything that attracts
a employees’ attention & stimulates him to work)
Rewards or
Intrinsic Extrinsic
Incentives
Participation Greater Job Opportunities
More Diversity of
In decision- Freedom & For
Responsibility Activities
making Direction Personal
Growth

Basic Overtime & Performance Direct

Profit sharing Stock options
wage Holiday Bonus Compensation
Protection Pay for time Services & Indirect
programs Not work perquisites compensation

Preferred
Preferred work
Impressive Company Non-financial
Lunch hrs. assignments Credit cards Job titles transport compensation
How organization manage exit
 Exit interviews are interviews conducted with departing employees,
just before they leave.
 From the employer's perspective, the primary aim of the exit interview
is to learn reasons for the person's departure, on the basis that criticism
is a helpful driver for organizational improvement.
 Exit interviews, are also an opportunity for the organization to enable
transfer of knowledge and experience from the departing employee to
a successor or replacement, or even to brief a team on current projects,
issues and contacts.
 Good exit interviews should also yield useful information about the
employer organization, to assess and improve all aspects of the
working environment, culture, processes and systems, management
and development, etc.; in fact anything that determines the quality of
the organization, both in terms of its relationship with its staff,
customers, suppliers, third-parties and the general public.
The questions that are most relevant to the
leaving circumstances, the interviewee and
your organization situation

 Tell me about how you've come to decide to leave?

 What is your main reason for leaving?
 What can you say about the processes and procedures or systems that
have contributed to the problem/your decision to leave?
 What specific suggestions would you have for how the organization
could manage this situation/these issues better in future?
 How do you feel about the organization?
 What has been good/enjoyable/satisfying for you in your time with us?
 What has been frustrating/difficult/upsetting to you in your time with
us?
The questions that are most relevant to the
leaving circumstances, the interviewee and
your organization situation
 What extra responsibility would you have welcomed that you
were not given?

 What training and development that you had did you find most
helpful and enjoyable?

 Would you be happy to take part in a briefing meeting with

managers/replacements/successor/colleagues so that we can
benefit from your knowledge and experience, prior to your
leaving?

 We'd be grateful for you to introduce (name of successor) to

your key contacts before you go - are you happy to help with
this?
VOLUNTARY RETIREMENT SCHEME (VRS)

 The Government had announced a Voluntary

Retirement Scheme (VRS) vide OM No. 2(36)/86-
BPE(WC) dated 5th October, 1988.

 In no case shall the compensation exceed 60 days

salary for each completed year of service or the
salary for the number of months service left,
whichever is less. Salary for the purpose of VRS
shall consist of basic pay and DA only and no
other element.
VOLUNTARY RETIREMENT SCHEME (VRS)

 Enterprises that make marginal profits or loss-making

enterprises may adopt the revised scheme of VRS.
 The compensation will consist of salary of 35 days for
every completed year of service and 25 days for the
balance of service left until superannuation. The
compensation will be subject to a minimum of Rs.
25,000/- or 250 days salary whichever is higher.
 this compensation shall not exceed the sum of the
salary that the employee would draw at the
prevailing level for the balance of the period left
before superannuation
Pink slip (Origin)
 Pink slip refers to the American practice, by a personnel
department, of including a discharge notice in an
employee's pay envelope to notify the worker of his or her
termination of employment. Receiving a "pink slip" has
become a metaphor for the termination of employment in
general.

 INFORMAL notice to an employee of termination of

employment.
Pink slip
 Its an informal way of letting the employees know that
their services are no more required. There is a practice
earlier that the salaries will be given in Envelopes and
while handing the envelopes, personal department people
used to keep a pink slip in the cover which means that they
have been discharged from their duties and the final
settlement has been made.
 THE PINK SLIP

IT IS NOT THE END OF THE WORLD.

HOW TO SPOT TROUBLE AT THE WORKPLACE

AND DEAL WITH THE PINK SLIP
 SIGNS THAT YOU ARE IN TROUBLE

1. Gap between what your Boss expects & what you

deliver.
2. An adverse performance review.
3. A negative appraisal or a promotion denied.
If you do not know what you are doing wrong or feel
you cannot do more, the company might ask you to go.
 SPOT A SINKING SHIP

A Merger or a Takeover.
Signs of financial trouble: If your salaries are consistently
late without clear explanations.
Loss of the company’s biggest client: If there is no
replacement for the loss of revenue, your company is in
stormy times.
 PREPARING FOR THE PINK SLIP

If you have even the slightest suspicion that your job is not as
secure as it should be, it is time for you to be ready.

Save copies of your work and important documents, especially

letters of recommendations and promotion, special notices of awards,
etc.
PREPARING FOR THE PINK SLIP

 Make a copy of your personal list of contacts and phone

numbers. It will come in handy on a job hunt.

 Start looking for a new job. The best time to seek is when
you are already working and financially secure.
 HOW TO REACT

If you are fired for reasons beyond your control such as
Mergers or Takeovers, you can ask for a letter of
recommendation.
If your company has a severance package, and you are
eligible, negotiate.
Do not shout or insult your Boss or Company.
SURVIVING THE SACK

Introspect about your career

Is there something else you
always wanted to do?
Think about a career change
 Do not repeat the mistake
of accepting a position you are
not suited for.
Struggle now than get fired
again .
 DON'T JUST BROOD!

Update your resume

Go for a functional resume
format instead of a chronological
one.
Network. Tell everyone you
know that you are job hunting.
You can freelance or do non-
profit work till you find a
permanent job