CAREER PLANNING &

COMPENSATION MANAGEMENT

Group Members
OMKAR BAGWE SONALI MAJGAONKAR NAMRATA NIKALJE YOGENDRA PATEL POOJA RODE VINIT RAUT - 74 - 99 - 104 - 106 - 112 - 124

 Meaning-Career planning is a systematic

process by which, one decide career goals and the path to achieve these goals. From organisational point of view, career planning means helping employees to plan their careers in terms of their educational background and capacities.

CAREER DEVELOPMENT
Career development is essential for

implementation of career plan. It refers to a set of programmes designed to match the individuals needs, abilities and career goals with future opportunities in the organisation. Career planning and career development moves together.

Benefits of Career Planning and Development

achieve high quality of work Keeps employee motivation Links organisational goals with the

employee career goals. Facilitates managerial succession Facilitates career success Leads to job satisfaction Reduce labour turnover and labour absenteeism

Benefits of Career Planning and Development

Helps employees to know career opportunities

Create a better image

Facilitate rapid expansion

Steps in Career Planning & Development

Analysis of Personnel Career Situation Projection of Personal Situation Identifying of Career Needs Selection of Priorities Development of Career Plan Write-up of Formulated Plan Monitoring of Career Development Plan Implementation of Career Development Plan 9. Review and Evaluation of Plan 10. Future Needs
1. 2. 3. 4. 5. 6. 7. 8.

Career Management Process

1. Career Needs Assessment

2. Identification of Career Opportunities 3. Need-Opportunity Alignment

4. Monitoring Career Moves

SUCCESSION PLAN

Deciding the position for which the successor is needed

Identifying most suitable successor

Grooming of that successor to enable to make him competent for new position.
A succession plan consists of a runner up

chart for a particular position in an organisation. The chart helps the MD to identify a successor.

COMPENSATION MANAGEMENT

COMPENSATON Compensations are the monetary payment made by the employer to his employees for

the work done or services rendered. Normally it involves following three components Basic Compensation wage or salary Incentive Compensation D.A., profit sharing, bonus Supplementary Compensation Fringe benefits, employee service.

COMPONENTS OF REMUNERATION / COMPENSATION

1.WAGES AND SALARIES 2.INCENTIVES Individual Incentive Plans Group Incentive Plans 3.FRINGE BENEFITS Payment for time not worked by employee Contingent and deferred benefits Legally required payments Miscellaneous benefits

Objectives / Relevance of Fringe Benefits

To supplement the regular earning of the workers.

To retain competent employees

To develop good corporate image

To raise employee morale To motivate employees

COMPONENTS OF REMUNERATION / COMPENSATION

4. PERQUISITES Perquisite is a benefit received by an employee from the employer in addition to salary or wages either in cash or in kind without actually payment of money Illustration of perquisites Provision of a motorcar or free use of a car Provision of house, free of cost or at a concessional rent. Free gas, electricity Free services of servant at house Free educational facilities of children Free transport to an employee or his family Club bills paid by employer Income Tax due on salary paid by employer

COMPONENTS OF REMUNERATION / COMPENSATION

5. NON-MONETARY BENEFITS It includes comfortable working conditions, impartial promotions, support to workers facing special problems, welfare facilities, etc. Profit Sharing It is a type of group incentive plan in which employer is agrees to share a part of profit with employees in addition to their regular wages. This concept is popular in western countries; it was introduced in UK in 1891 by Southern Metropolitan Gas Company. However, profit sharing concept is not popular in India. Instead we have a system of bonus payment, which is now compulsory even when there is no profit to a company. To create a sense of partnership among the workers

Fair Wages
Fair wage is the wage, which is above the minimum wage

(as specified by Minimum Wages Act) but below the living wage. Wages is fair when the employee is able to meet his essential needs and enjoys a reasonable standard of loving. Fair wages depend on following factors: Prevailing rate of wages in the same or similar occupation Prevailing rate of wages in the same region or neighbouring areas Employers ability to pay Level of national income and its distribution Productivity of labour Status of the industry in the economy