Horizontal and vertical analysis of Profit and loss account

1. Managing Basic Remuneration Human Resource Management, 5E

3. Components of Employee Remuneration Human Resource Management, 5E Remuneration Financial Non-financial Job Context Challenging job Responsibilities Recognition Growth prospects Supervision Working conditions Job sharing, etc. Perquisites Company car Club membership Paid holidays Furnished house Stock option Schemes, etc. Fringe Benefits PF Gratuity Medical Care Accident Relief Health and Group Insurance, etc. Incentives Individual plans Group plans Hourly and Monthly rated Wages Salaries Direct Indirect Environment

5. Consequences of Pay Dissatisfaction Human Resource Management, 5E Desire for More Pay Performance Strikes Grievances Search for Higher Paying Jobs Absenteeism Turnover Pay Dissatisfaction Lower Attractiveness of Job Job Dissatisfaction Absenteeism Psychological Withdrawal Visits to the Doctor Poor Mental Health

6. Influencing Factors of Remuneration Human Resource Management, 5E

7. Linkage of Remuneration Strategy to Business Strategy Human Resource Management, 5E Business Strategy Market Position and Maturity Remuneration Strategy Blend of Remuneration Invest to grow Merging or growth rapidity Stimulate entrepreneurialism High cash with above average incentive for individual performance. Modest benefits, Manage earnings-protect markets Normal growth to maturity Reward management skills Average cash with moderate incentives on individual, unit, or corporate performance. Standard benefits. Harvest earnings-reinvest elsewhere No real growth or decline Stress Below-average cash with small incentive tied to cost control. Standard benefits. Source: Wayne F. Cascio, Managing Human Resources, McGraw-Hill, 1995, p.352.

8. Remuneration Model Human Resource Management, 5E Job Description Job Evaluation Job Hierarchy Pay Survey Pricing Jobs

9. Raising Salaries Human Resource Management, 5E 2003 2004 (Increase in percent) IT 15 17 ITES 23 25 Telecom (Services) 10 12 Insurance 23 25 Banking (Retail) 12 15 Manufacturing 6 7 Pharma 20 22 Source: Business Today, September 12, 2004. p.46

10. Challenges of Remuneration Human Resource Management, 5E Monetary vs. Non-Monetary Rewards Employee Participation Pay Secrecy Salary Reviews Comparable Worth Eliticism or Egalitarianism Skill-based Pay Remuneration Below Market or Above Market Rates

11. Skill-based Pay and Job-based Pay Compared Human Resource Management, 5E Factors Job-based Skill-based Pay structure Based on job performance Based on ability to perform Employer’s focus Job carries wage; Employee linked to job Employee carries wage; Employee linked to skills. Employee focus Job promotion to earn greater pay Skill acquisition to earn greater pay. Advantages Pay based on value of work performed Flexibility; Reduced workforce. Disadvantages Potential personnel bureaucracy; Inflexibility Potential personnel bureaucracies; Cost controls. Source: Raymond A. Stone, Human Resource Management, John Wiley & Sons, 1995, p.324.