Amity MBA 3rd Sem ASODL Compensation & Reward Management

Q1 What is Employees Compensation? State its two components? Explain the various steps involved in establishing pay rates?
Q2. Give overview of legislations affecting compensation?
Q3. What are different elements of managerial compensation?
Q4. Outline the main employees’ services benefits?
Q5. What is goal sharing? Why organizations introduce goal sharing?
Q6. Define Benefits and incentives? Classify them? State its merits and demerits?
Q7. State the differences between absenteeism and retention? Explain the process, advantages and limitations of retention management
Q8. Explain performance based rewards and compensation schemes? Also explain competency mapping?

Case Study- Seat of the pants

Gaurav cleaning centers doesn’t have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and tempered with an attempt on the part of Gaurav to maintain some semblance of equity between what workers with different responsibilities in the stores are paid.
Needless to say, Gaurav doesn’t make any formal surveys when determining what his company should pay. He peruses the want ads almost everyday and conducts informal surveys among his friends in the local chapter of the laundry and cleaners trade association. While Gaurav has taken a “seat-of-the-pants” approach to paying the employees, his salary schedule has been guided by several basic pay policies while many of his colleagues adhere to a policy of paying absolutely minimum rates, Gaurav has always followed a policy of paying his employees about 10%above what he feels are the prevailing rates, a policy that he believes reduces turnover while fostering employee loyalty. Of somewhat more concern to Pragati is her father’s informal policy of paying men about 20% more than women for the same job. Her father’s explanation is,” they are stronger and can work harder for longer hours and besides they all have families to support.”
1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?
2. Gaurav policy of paying 10%more than the prevailing rates a sound one and how could that be determined?

Case Study- Health care – Business or Employees
By February 2004 strike by southern Delhi grocery workers against the state’s major supermarket chains was almost 5 month old because so many workers were striking (70,000) and because of the issues involved, unions and employers across the country were closely following the negotiations. Indeed, grocery union contracts were said to expire in several cities later in 2004, and many believed the Delhi settlement-assuming one was reached-would set a pattern.
The main issue was employee benefits, and specifically how much (if any) of the employees health care costs the employees should pay themselves. Based on their existing contract, southern Delhi grocery workers had unusually good health benefits. For example they paid nothing toward their health insurance premiums, and paid only Rs 420 co-payments for doctor visits .However, supporting these excellent health benefits cost the big Southern Delhi grocery chain over Rs168 per hour per worker.
The big grocery chains were not proposing cutting health care insurance benefits for their existing employees. Instead, they proposed putting any new employees hired after the new contract went into effect into a separate insurance pool, and contributing Rs56.7 per hour for their health insurance coverage. That meant new employee’s health insurance would cost each new employee perhaps Rs420 per week. And, if that Rs420 per week wasn’t enough to cover the cost of health care, then the employees would have to pay more or do without some of their benefits.
It was difficult situation for all the parties involved. For the grocery chain employers sky rocketing health care cost per undermining their competitiveness; and the current employees feared any step down the slippery slope that might eventually mean cutting their own health benefits. The unions did not welcome a situation in which they’d end up representing two classes of employees, one(the existing employees) who had excellent health insurance benefits, another(newly hired employees)whose benefits were relatively meager and who might therefore be unhappy from the moment they took their jobs and joined the union.
Q1. Assume you are mediating this dispute. Discuss three creative solutions you would suggest for how the grocers could reduce the health insurance benefits and the cost of their total benefits package without making any employees pay more?
Q2. From the grocery chains point of view, what is the downside of having two classes of employees, one of which has superior health insurance benefits? How would you suggest they handle the problem?

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