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Unit-II

WageDisparities

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Determining an Internally Aligned Job Structure

Internalalignment Job

analysisJobdescriptio

n

Jobevaluatio

n

Jobstructure

Some Major Decisions in Job EvaluationSome Maj

or Decisions in Job Evaluation

Establish purpose of evaluationEstablish purpose of evaluation Decide whether to use single or multiple plansDecide whether to use single or multiple plans Choose among alternative approachesChoose among alternative approaches Obtain involvement of relevant stakeholdersObtain involvement of relevant stakeholders Evaluate plans usefulnessEvaluate plans usefulness

Some M

ajor Decisions in Job EvaluationSome Maj

or Decisions in Job Evaluation

Establish purpose of evaluationEstablish purpose of evaluation Decide whether to use single or multiple plansDecide whether to use single or multiple plans Choose among alternative approachesChoose among alternative approaches Obtain involvement of relevant stakeholdersObtain involvement of relevant stakeholders Evaluate plans usefulnessEvaluate plans usefulness

WorkWork

relationshipsrelationships

within thewithin the

organizationorganization

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Labor market participation and welfare

Distribution ofskills Labor market Firms

OutcomesEmployment/unemploymentWage inequality

Poverty

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Differences in wages

Differences in skills

Differences in firm size

Flexibility of the labor

Rules on compensation/hiring

Minimum wages

Strength of unions, etc.

Discrimination.

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Fundamental instruments

on equality ILO The Discrimination (Employment and

Occupation) Convention, 1958 (No.111) and

the Discrimination (Employment andOccupation) Recommendation, 1958 (No.111)

The Equal Remuneration Convention, 1951

(No.100) and the Equal RemunerationRecommendation, 1951 (No. 90).

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Objectives

To ensure that men and women workersreceive equal remuneration for work of equal

value, establishing rates of remuneration

without discrimination based on sex.

The State has to ensure equal remuneration

between men and women in the public sectorand to promote the principle in the private

sector.

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Ratifications

Ratified by 159 Member States.

A number of states have adopted equal pay

legislation or have included equal pay provisions intheir labour laws or labour codes or anti-

discrimination legislation. Member States continue to

express their intention to ratify the Convention.

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Causes of the pay gap

Productivity related differences

Job availability

Job selection Pay structure

Perceived labour costs

Lack of awareness.

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Other causes

Biases based on non-objective

perceptions of womens work, such as:

Lower physical strength

Mental orientation

Biological and social reproduction

Socio-cultural perceptions

Pre-existing inequalities.

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Scope of application

Applies to all workers and all sectors

Applies to all elements of remuneration

Implies a comparison between jobs.

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Work of equal value

Includes equal or identical work orwork in equal or identical conditionsAND

Includes different kinds of work whichbased on objective criteria are of equalvalue

Comparison between jobs is not limitedto the same job, the same employer orthe same sector.

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Scope of remuneration

basic, ordinary or minimum wage orsalary

and any other additional emoluments

paid directly or indirectly by the employer

in cash or in kind

out of the workers employment.

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Scope of remuneration (2)

Overtime pay, bonuses, grants

Uniforms, tools, equipment

Allowances, employer-paid socialsecurity benefits

Housing

Fringe benefits

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Permissable pay differences

Based on objective differences in thework performed but not based on sex

Based on non-sex-based factors such as:

Seniority

Education

Qualifications

Experience

Productivity.

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Methods of wage determination

Legislation

Public service wage classifications

Collective agreements

Wage directives from wage boards

Custom and practice

Individual contracts.

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Job evaluation to determine

equal value

Wages rates based on job content

Rating of job content is based on criteriarelated to

responsibility

skill

effortworking conditions

Analytical method of job evaluation.

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Job evaluation systems

Job evaluation systems do not

automatically promote equal

remuneration for work of equal value

Effort must be made to avoid gender

bias and to measure aspects of work

done by women as well as thattypically done by men.

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How to avoid gender bias?

Make gender equality an objective of the

process

Use objective criteria

Avoid stereotypes

Avoid under-valuing tasks related to care-

giving

Avoid over-valuing formal credentials Consider formal as well as informal

experience.

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Most common forms of

discrimination

Jobs or occupations with a femaledenomination

Underevaluation of certain jobs oroccupations

Invisibility of the qualities, tasks,

skills and efforts Vertical and horizontal occupational

segregation.

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Strategies for effective

implementation

Review methods of wage determination to

eliminate direct wage discrimination

Review laws and practices that result in salary

discrimination Use or promote the use of analytical job

evaluation methods

Collect and analyse comprehensive statistics

Establish pay equity councils.

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Strategies for effective

implementation

Include equal pay guarantees in legislation,collective agreements and wage directives

Undertake studies of earnings differentials

Require employers to prepare pay equity actionplans

Provide labour inspectors with specialized training

and adequate resources.

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Link between wage inequality

and poverty

Interaction of sources of differences in wages,

and

Share of income from labor market If most of the population depends on labor income and wages

are highly unequal, then poverty rates are likely to be high.

Redistribution through transfers (non-contributory pensions,

unemployment benefits, etc.) can reduce inequality and

poverty.

Main point: it is an empirical issue, and willdepend on country context.

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ReorganizingWage Structure

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Develop a Pay Policy

Above market: Lead

Increases ability to attract & retain

employees Can be more selective in hiring

Market

Reduces ability to select Reduces labor expenses.

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Pay Ranges

Productivity differences

Employee performance differences

Recognizes impreciseness of jobevaluation

Allows for seniority pay differentials.

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Construct Grades

Pay grades are jobs that are similar in

their worth to the organization

Grouping of jobs Each grade will have its own pay

range: minimum, maximum &

midpoint Midpoint represents a fully trained

employee, performing satisfactorily.

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Salary Compensation

Annual salary increases may comprise

two components:- a salary scale revision, as determined by

the University;

- a pay for performance (merit) increase,

determined on a discretionary basis by the

department head within guidelinesestablished by an annual policy statement.

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Annual Salary Adjustment

Components

Scale

- Scale adjustments represent the movement of the entire salary range.

- Salary scale adjustments are generally provided for the purpose of external

equity; that is, ensuring that the salary scale for the respective role profiles

and grades are reflective of the competitive market.

Merit

- a pay increase granted through a pay-for-performance system.

- represents movement through a pay range that is determined principally, if

not solely, on the basis of job performance.

- can also determine how far employees are allowed to progress in their pay

ranges.

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Elements of Merit Pay

Individual differences in job performance should be measurable

Individual differences in job performance must be significantenough to warrant the time and effort required to measure themand relate pay to them

The pay range should be sufficiently broad to allow for adequatedifferentiation in pay based on performance and/or level of

experience and skill Supervisors and managers must be trained in employee

performance planning and appraisal

Management must be committed, and employees must bereceptive to making distinctions in pay based on performance

Managers must be adequately skilled in managing pay Sufficient control systems must be implemented to ensure thatmerit increase guidelines are followed.

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- Employee satisfaction with the pay program

- Employee job satisfaction

- Employee perception that pay is based on performance

- Employee acceptance of and trust in the performanceappraisal process

- Employee trust in management

- Employee and organizational performance

- Employee commitment to the organization as demonstratedthrough reduced turnover and absenteeism

- Correlation between actual performance ratings and actualmerit increases.

*World at Work Compensation, Benefits and Total Awards (2007, p.326)

Evaluating a Merit Pay Plan*

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Across-the-Board

What is it?

- Across the Board increases are general

increases provided to all employees, given as a

fixed dollar amount or a percentage increase; canalso be considered as a cost of living increase

- Such increases in salary are generally intended

to protect employees purchasing power against

erosion caused by inflation.

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Job Evaluation ofEngineering Personnel -

Technical andProfessional Personnel

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Competency-Based Approach

Definition Competency

Combination of knowledge, skills and characteristics

needed to effectively perform a role in an organization.

Importance of Competencies

Primary tool for improving productivity

Primary step in creating a workforce that integrates

career planning and succession management1

Integrated approach for hiring, job evaluation and

performance management.

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Career Management Process

STEP 1

INDIVIDUAL ASSESSMENT

STEP 2

INTERPERSONAL ASSESSMENT

STEP 3

ORGANIZATIONAL ASSESSMENT

STEP 4

ACTION PLANNING

Who am I? (Career Stage, PathPreference, Political Style)

How do other see me?(Self-insight,

image, political style, personality)

What are my options within theorganization? (Knowledge of theorganization, future trends, options,opportunities)

How do I achieve my goals?

(Motivation, confidence, goalsetting, action planning)

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Career Management Programs

Career Counseling

Executive/Management Coaching

Supervisory Training

Management Development Career Resource Centers

Assessment Centers

Outplacement

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Special Challenges in Career Management

Socializationand Orientation

Dual-CareerPaths

Plateauing

SkillsObsolescence

Work and Non-work Policies

Balancing Workand Life

Coping WithJob Loss

Dealing WithOlder

Workers

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Balancing Organizational Needs with

Institutional Demands and Requirements

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Building a Human Capital Culture

Hold managers accountable for talent management

including tying retention and developmental coaching to

performance reviews

Train leaders on retention and development strategies sothey can build a retention culture in their own units

Implement strategic talent development programs including

coaching, 360 degree feedback and assessment centers to

identify high potential leadership talent

Institute formalized mentoring and career assessment anddevelopment programs

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SupplierCollaboratio

n

SupplierCollaboratio

n

Key ProcessIntegration

via ERP

Key ProcessIntegration

via ERPProductLifecycle

Management

ProductLifecycle

Managemen

t

SupplyChain

Management

SupplyChain

Management

CustomerManagemen

t

CustomerManagemen

t

DesignPartners

DesignPartners

Consumersand

Channels

Consumersand

Channels

Look Beyond ERP

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40

Critical Success Factors

Ta

ilor-MadeITsolutions

Management Organizational & Optimistic Approach- on adapting the IT product driven methodologies- on customization

- on monetary commitments

The Dedicated Team

Good Training

Strict Adherence to the Project Management Standards

Right Technical Infra-Structure

Change Management

?

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IT Product Selection Criteria

Technology

Support

Costs

5 Strategic5 Strategic

RequirementRequirement

LevelsLevels

FunctionalityGoal:Goal:

To select theTo select the

Most Suitable SoftwareMost Suitable Software

Package SolutionPackage Solution

Vendor

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Balancing Organizational and

Individual Needs