MM Bagali, HRM Project

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Reference No: 9800210045

Project on

Compensatation and Benefit Scheme in
Faculty-
Education Sector, for Management Faculty-MBA

Dr. M M Bagali,

PhD in Management

Dean-
Dean-Acharya MBA Institutions, Bangalore

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March, 2010

Dr. M M Bagali,

Benefits Scheme
Compensation and Benefits Scheme in Education
Sector

Education in India and
elsewhere has always been the prime concern for all. It could
be in terms of establishing Institutes, starting new course, and
designing new areas of learning, apart from looking at centre
for excellence and providing innovation in education. Even
most of the government concern is to see that, best education
is imparted and all care is taken to get the best teachers to
work in these institutes. Teachers play an important role in
imparting education. The interest level, the knowledge base,
the learning experience, the aptitude and attitude towards
teaching, and moreover, the passion with which they work will
go a long way in building a good future society. The issue of
attracting best talent to teach depends on the REWARD system
and benefit practices, per se. The compensation and benefit

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structure and system is what is crucial and makes best brains
to join the teaching profession. Thus, it becomes prime
concern to have the compensatation and benefit in its place
and look at the best model to attrack, retain and motivate
people to be with teaching profession. At various points in
discussion, it is debated that, compensation and benefits for
teaching community is a point of discussion at various level.
Even, the government (UGC) came out with the solution of
attracting best talent for teaching field by formulating and
implementing the latest Pay Scales par with any of the other
profession.

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Standing of
educational
Institute

Factors effecting
C+B

23

Identifying the basic
components of Salary structure, and designing an Ideal reward
system and practice for teaching Profession reflect the kind of
people who join this Profession. An attractive Salary package
with all the possible benefits in its place is challenging and
crucial. The project would focus in addressing this issue. It

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tries to identify the ideal pay structure for the teaching
community, with most benefits attached to it.

The objectives of present
project would be two-fold:

1. To identify the basic components of salary structure

2. To design the grades of jobs to be included based on JOB
Grading, and defining the JD and the competency level
required.

1. The present project
would focus in the education sector, preferably the job
and salary structure for MBA – Management course
faculty.

2. What are the factors affecting Job grading to be
identified.

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3. The salary structure would be designed based on job
grades of the probable level that are ideal in any of the
graded management institutes.

4. The grade level, grade description and the jobs to be
included in each grade will be worked out.

Basic Component of Salary
Structure:

Basic component of an Ideal Salary structure for teaching
includes the Basic (base pay), DA, CCA, HRA, Medical, TA,
Research and Training allowance, Periodical and Book
Allowance, Faculty development allowance, and Special Merit
Allowance. The deductions would be in terms of PF and
Professional Tax.
Table No : 01 DESCRIPTION OF A FEW COMPONENTS OF

SALARY Basic salary The basic salary component could form about 30 to 40% of
the total CTC. The base pay is given to all level of faculty,
which is given monthly in terms of Salary.

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Provident Fund The PF has two components. One is employers’
contribution and the other is employees’ contribution. Each
is 12% of the basic salary.

House Rent Allowance HRA is one of the allowances where an employee can save
on tax.

Dearness Allowance DA is the allowance given in percentage against the base
pay. It varies from Institutions to inst policy, but a
percentage of 90-100% is given.

CCA This is given as city compensatory allowance, and depends
on the level( tier) city classified as 1/2/3…

TA Travelling Allowance is the allowance for traveling from
and to the workplace. Either vehicle I provided or the
allowance is included.

Research and training Certain allowance is assigned to how or have expenses
Allowance incurred for research and training of the faculty. An
amount is assigned for research and training work.

Faculty development This is assigned for the faculty to spend on ones career
Allowance advancement.

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Special merit allowance Assigned if the faculty has done/worked/undertaken some
Quality Standard works in Research/ Some teaching
Awards/ Career Awards/ Young Scientist Awards

If we look at the competency
and skills that are required as a teacher could be at two-fold:
a) The knowledge Base; and, b) The Behavioral Skills. The
knowledge base competency includes knowledge of subject,
research acumen, consultancy, mentoring, counseling; and the
Behavioral skills includes Intelligent Quotation; Emotional
Quotation; Leadership Quotation; Communication Quotation;
Interpersonal and relationship building, per se. Infact, the
competency can be divided into : a) Core competency : which
are rare; b) Level competency: which are essential; and, c) Role
competency
competency: which are non-substitutable.
competency

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The core competencies are the ones which are essentially can’t
be copied or easily transferred. They are core to the individual
and shall be with them. Example could be: a faculty good is
organizing the case discussion, can run it very successfully
without a single error or confusing or ambiguity. The level
competencies are the ones which are essential and each as a
faculty should possess. Example could be in the area of
creativity and innovation in teaching ones own subject,
tolerance, patience, updating the knowledge domain, etc. role
competency is the one, which you cant substitute, and it could
be your area of teaching specialization of subjects. The faculty
good in HR, Finance or Mkt has to be competent enough and
those skills which he is good at these subjects can’t substitute
the knowledge base to others.

Factors effecting Job
Grading:

Depending on the level/grade that the faculty is positioned,
following factors affect Job grading. Those include work
experience; job knowledge; Risk sharing and level; skill

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required; type of mental activity/involvement, creative extent;
revenue generation; no. of reporting people; business impact;
client interaction; efforts required; working conditions;
admissions impact/ target; corporate impact; job task; work
content; subject mastery; administrative mastery; level of
engagement in academic and administration; level of
responsibility; and the service delivery.

Let us look into few of these areas in length and what they
signify for the faculty with each factor, per se.

Stands for the work experience in that particular area of
Experience subject. If its HR domain, the experience that the person
has either in teaching, research or worked in core HR area,
per se.

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Teaching Stands for handling subjects related to HRD/
HRM/IR/PM/IHRM/OB/OD/ Leadership/ Performance
Management, and the like.

Revenue Generation We necessarily mean it in terms of Research Projects, Joint
research proposals, research papers, patient, IPR,
consultancy, conducting FDP’s/MDP’s/ and mentoring for
the clients, where revenue in what ever form( Quantum) is
generated.

Corporate Impact Focus on the number of invitations received by Corporate
groups to conduct MDP’s/ Projects/ Expert Opinions/
Member on the Advisory Board/ or any such committee of
the corporate.

Level of Engagement Level of engagement in academic and administration is in
terms of various committees / councils/ team/ group/ that
are part of your work.

Performance Management
Systems:
Systems:

While monitoring of faculty performance forms the part of
academic enhancement and enrichment, a system will be

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followed for getting and evaluating the PMS. It could be as
follows:

1. Name : Performance Management System

2. Once in 3-4 months, depends of semester type

3. Parameters like : Teaching/ behaviour/ Updating the
knowledge/Q-A handling/ Syllabus coverage/
conduct/ discipline/punctuality/ passion, and the like

4. PMI data could be taken by all the stake holders like
Students/ peer group/alumina/ staff/ management/
and the like

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The Project:

The following levels of Job form the teaching area in
management institutes, and have been identified for Job
Grading.

Teaching Associates TA

Research Associates RA

Lecturer Lec

Senior lecturer Sr.Lec

Assistant Professor AP

Associate Professor Ass Prof

Additional Professor Addi Prof

Professor Prof

Deputy Director / Dean Dy Dir/ Dean

Director Dir

Note: PRO, Placement, Corporate relations and Technical
Personnel are not included for reasons of not directly having

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impact on/in teaching regularly. This also includes Professor
Emeritus, and Professor for the Chair, in case the chair is
instituted, and adjunct Professor level. Also there could be
Accredited and Non Accredited Teacher, Associate and
Assistant Dean, Instructors, which are not included here.

Job Profile of Each Grade:

Teaching Associate and Research Associate: To assist the
faculty in preparing the course material, lesson plans,
ppts, case study, distribution of the same during the class
session, taking and putting grades (point) during the
discussion in sessions, taking back the course work. Case
analysis in class, and assisting the faculty to put the
grades at the end of the course. Also, involve data
collection for faculty; do research and assist in writing
papers, and class seminar and workshop. Research
Associates may involve in their Research, if they have
registered for PhD/ M.Phil degree. Their term of
appointment is purely on contract basis (2-3 years).

Lecturer and Senior Lecturer:

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To take course (teaching), involve in Research and take-
up One–Two Academic Improvement activity. Assist
Senior Faculty in MDP program, guide and mentor
students in academic activity. Also, to design one course
material, prepare syllabus in consultation with senior
faculty. Any extra academic and administrative work
under the consultation and guidance of Senior Faculty
and Director.

Assistant and Associate Professor:

Involve in teaching, research, MDP, and extension work,
apart from CSR. To design MDP’s, guide research
students and publish papers, including working papers
for the institute. Apart from this, should involve in
Industry-Institute interface activity, conduct seminars,
conference and workshop. Also, to present papers at peer
group conferences. Involve in administrative work like
Placement committee, Exams committee, Admissions
committee, Research committee, alumina and the like.

Additional Professor and Professor:

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The work will be divided into Teaching (20%); Research
(30%); MDP’s (30%); and collaborations and MOU’s with
Academic –Professional bodies of repute (20%). Guiding
PhD work, Publishing Books, IPR, Patent, writing papers
and designing conferences, seminars and workshop,
apart from consultancy will be part of the job. Post
Doctoral work is desirable.

Dy Director-Dean/ Director

Involves managing and running the institute with major
work to be administrative in nature. The work could be
divided into Academic (15%); research
paper/book/IPR/Patent/ PhD guidance (30%);
collaborations and MOU (40%); and students mentoring,
teachers guidance would be (15%). Flair for leadership
and management is essential. Direct contact with the
public, brand building and branding of the institute and
program including the faculty, called as faculty Branding.

Benefits for Faculty:

Increments @what rate@what level@what%

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1) Each annual increment shall be equivalent to 3% of the
sum total of Net/ Gross/ Base pay in the relevant Pay
band.

2) Incentives could also be for paper publication in lead
peer journals, NGO activity,

Academic Benefits: There could be additional academic
benefits depending on the faculty making efforts in area
of International Conference paper presentation; taking up
additional certification course (Market Merit Fixed
Scheme); award of M.Phil / PhD degree, or any other valid
certified skill enhancements, career enrichment,
organizing International Training Programme, per se.

Pension and Family Pension: The pension and family
pension, which is in force, shall be available, if they are in
pension scheme.

Gratuity:

Facilities of gratuity shall be extended to the entire
faculty, but will not be for TA/RA.

Ex-
Ex-Gratia Compensation:

Families of teachers who die in performance of their bona
fide duties shall be compensated.

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Fund:
Provident Fund

The contributory PF shall be followed

Transport:
Housing and Transport

Depending on the level and availability of the housing,
the scheme will be extended. A 10% cut as rent in Net/
Gross salary would be deducted. Likewise, depending on
the grade level, transport facility would be extended. This
could be free/ shared/ or minimum payments as part of
service.

facilities:
Other facilities:

Facilities could also be in terms of telephones, Internet,
Medical, leave travel, Career end bonus, loyalty to
organisation bonus, and the like

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Job Grading:

There could be five grades identified, based on the role,
responsibility, mental activity, function and the impact on
the education business, per se.

Grade level Jobs included in the Grade

GS 1 Teaching Associates and Research Associates

GS 2 Lecturer and Senior Lecturer

GS 3 Assistant and Associate Professor

GS 4 Additional Professor and Professor

GS 5 Dy Director/ Dean and Director.

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Grade level: GS 1

Grade Description: Includes those classes of positions,
the duties of which are to be performed under various
faculties, following almost all the instructions given by
higher-ups, with little or less exercise of independent
judgment or taking any sort of decision. They have no
scope to act, but to follow the code defined. They support
the faculty under which they are assigned in areas of
teaching, research, consultancy, and the work related to
academic.

Jobs included in the Grade: Teaching Associates and
Research Associates

Grade level: GS 2

the duties of which are to be performed independently in
the subject/course of given responsibility; no
independence in any of the administrative work, and has
to work under Senior. They have scope to work and act
independently in their respective subjects, and also to

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receive guidance and mentoring from the seniors. Amy
involve in independent research or in collaboration with
seniors.

Jobs included in the Grade: Lecturer and Senior Lecturer

GS
Grade level: GS 3

the subject of given responsibility; guiding the junior
incumbent and assisting them in the defined area of
teaching and research. They have scope to act and work
independently in their respective subjects, and also
receive guidance and mentoring from seniors. To also
involve in academic – administrative work. Take one-two
institute responsibility which enhances the academic
activity.

Jobs included in the Grade: Assistant and Associate
included
Professor

Grade level: GS 4


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teaching and research. They have scope to act and work
independently in their respective subjects, and also
receive guidance and mentoring from seniors. To also
involve in academic – administrative work. To focus more
in Research and academic development; guide and
supervise junior faculty research work; PhD work; Project
formulation/ execution brand building, linkage with
external organization/institute, MDP’s ;corporate training
and establishing centre for Research activity/ excellence.
Also to involve in new course introduction, syllabus
preparation.

Jobs included in the Grade: Additional Professor and
Professor

Grade level: GS 5

teaching and research. To focus more in Research and

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academic development; guide and supervise junior faculty
research work; PhD work; brand building, linkage with
external organization/ institute, MDP’s corporate training
and establishing centre for Research activity.

Includes difficult and most responsible work; broad
knowledge of administrative work; academic
development; Research promotion, linkage,
collaborations, MOU’s, brand building, development and
establishment of new courses, promotion of the institute
and courses, Placements efforts; Industry-Institute
linkage, bringing quality and accreditation into system
establishing of Centre of Excellence, CSR, and the like.

Jobs included in the Grade: Dy Director/ Dean and
Director.

The Matrix:

The Qualification and Experience and Scale of Pay

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Sl.No Grade Qualification Experience Scale AGP Remarks/ Net Salary

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1. TA /RA PG 0-1 Consolidated Rs. 8000 -

2. Lecturer PG 1-2 Rs.15600-Rs.39100 Rs.6000 Rs.38,000

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3. Sr. Lecturer PG 2-3 Rs.15600-Rs.39100 Rs.6500 Rs.38,000

4. Asst Prof PG/ PhD 3-5 Rs.15600-Rs.39100 Rs.7000 Rs.46,000

5. Asso Prof PG/PhD 5-8 Rs.37400-Rs.67000 Rs.7500 Rs.98,300

6. Add Prof PG/PhD 8-10 Rs.37400-Rs.67000 Rs.8000 Rs.98,300

7. Prof PG/PhD 10+ Rs.37400-Rs.67000 Rs.10000 Rs.98,300

8. Dy Dir/ DEAN PG/PhD 10+ Rs.37400-Rs.67000 Rs.12000 Rs.98,300

9. Director PG/PhD 10+ Rs.37400-Rs.67000 Rs.13000 Rs.98,300

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# Special Allowance: Dy Dir/ Dean: Rs. 2000 / Director: Rs. 4000[Based on Hard
Ship; Responsibility; Extra mile to work; etc]

Total / Gross Salary: L-Sl= Rs.40,000; Sr-Asst Pro=Rs.48,000; Asso till Director:
Rs.98,300. TDS, Professional Tax are deducted. All figures are rounded.

AGP: The Academic Grade Pay makes the difference in Gross / NET salary
payment. AGP is given if the faculty has gained grade points in terms of PhD;
PhD guided; Certifications; Publications; Design of New courses; foreign visits;
Overseas Conference participation, designing workshop and conferences, books
published/ written; Research Projects, Awards, Patents, IPR, collaborations; etc.

TA/RA/ Senior Lecturer: M.Phil could be added advantage for certain financial
allowances.

# Direct appointment of Professor scale may vary, which is not shown here.

The SCALE for Salary
Sl.No Level Basic DA HRA CCA TA Res/Tg Med Gross PF IT Net

Lecturer 15600 15600 2800 1000 2000 2000 1000 40000 800 1200 38000

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Sr. Lecturer 15600 15600 2800 1000 2000 2000 1000 40000 800 1200 38000

Asst Prof 15600 15600 4800 2000 4000 4000 2000 48000 800 2200 46000

Asso Prof 15600 15600 4800 2000 4000 4000 2000 48000 800 2200 46000

Add Prof 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300

Prof 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300

Dy Dir/ DEAN 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300

Director 37400 37400 8800 4000 4000 8000 3000 102600 1500 2200 98300

The possible outcome of the
project could be to identify the basic component of salary
structure for teaching community; the grading of different
level in teaching, with the level of competency that is required.
Further, how one can be placed at different pay band with pay
to scale based on their impact on education business and
knowledge generation. It may further add to the knowledge for
Management institutes to look at the project for their B-
School, while compensatation and benefits are decided.

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Dr MM Bagali,PhD, Dean, Acharya Institute of Technology,
MBA Institutions,Soldevanahalli, Hesaraghatta, Bangalore 90.

sanbag@rediffmail.com/sanbagsanbag@rediffmail.com

MM Bagali, HRM Project

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