Why would that be? From the information, Weisbeck says Visier's group extrapolated that the circumstance of these abdications isn't really characterized by the schedule, yet around inside cycles and constructions like extra instalments. 11.3.8 Be Prepared for Turnover Obviously, now and again turnover is inescapable, says Nfrastructure's Pickett. Associations should be ready to lose star ability, particularly in the event that they have the chance to move into a truly amazing job, he says. \"Individuals are thinking about this like, 'Alright, I accepted my reward and presently I can leave,' not 'Goodness, it's a New Year, time for a new position,'\" Weisbeck says. \"Since numerous associations time their rewards to hit around Christmas and the finish of-year Christmas season, it's a good idea to see the January departure. The compensation and rewards — or scarcity in that department — aren't the explanation they're leaving; as a rule they have chosen to leave a long time previously yet have held tight until they get this cash.” 11.4 SUMMARY \"Investing in your workers' schooling can assist with holding ability and licensed innovation when there's hardened contest for both,\" says Griffin. \"The requirement for new ranges of abilities and advancing jobs are popular at quickly developing rate, so putting somebody on a profession way that doesn't have any space to create isn't just a vocation restricting move for the representative, yet a business-restricting move for the organization.\" Looking all the more intently at the information can assist with uncovering designs like this, possibly repudiating standard way of thinking, he says. Artificial intelligence and AI can help distinguish and address these issues before they lead to weakening and turnover. \"Commute time, for instance, isn't as large a factor in individuals' commitment, joy and their shots at passing on a task as distance to family,\" Weisbeck says. \"In the event that your drive is 90 minutes every way and you have a family at home, you're not really disappointed with the drive; it's the time you're not going through with your family. Thus, associations could add more strategic scheduling. Distant work openings. Whatever might assist with tending to that trouble spot?\" A more outrageous model he offers is a worker who experienced childhood in North Carolina and whose family actually lives there, however who currently lives and works in Portland, Oregon. \"In that circumstance, drive time isn't even in the condition; it's a greater separate. Between movement time for occasions and excursion and outing costs, the time region issues — individuals in those circumstances are bound to leave,\" Weisbeck 251 CU IDOL SELF LEARNING MATERIAL (SLM)
says. \"We've seen customer organizations address these issues by loosening up their excursion and travel approaches; assisting representatives with buying aircraft tickets, etc.\" An association should offer a positive feel to its representatives to anticipate a steady exhibition from them. The working environment ought to be liberated from a wide range of debates, terrible legislative issues, discussions and attempts at finger pointing which go far in demotivating a worker and inciting him to search for a change. Sound rivalry is fundamental at the work environment to urge the representatives to perform sufficient without fail. Employees working with an association for quite a while never revile it and are fairly sincerely joined to it. Individuals leaving in a limited ability to focus talk sick about their past associations. The dedication factor is right around nothing and nobody is prepared to take responsibility for. 11.5 KEYWORDS Extrapolated – broaden the use of (a strategy or end) to an obscure circumstance by accepting that current patterns will proceed or comparable techniques will be appropriate. Stumbled – to discover or find out about (something) surprisingly I coincidentally found/on/upon this book by some coincidence. We staggered onto/across the remains of an old post. Friction – Friction, power that opposes the sliding or moving of one strong article over another. Frictional powers, for example, the foothold expected to stroll without slipping, might be useful, yet they likewise present an extraordinary proportion of resistance to movement. Reluctant – It implies that you are going through some internal battle and are reluctant or incapable to choose. Lucrative – Delivering a lot of cash or making a huge benefit: The proprietor and head supervisor offered the player a worthwhile. 11.6 LEARNING ACTIVITY 1. Create a survey on Types of Compensation Planning. ___________________________________________________________________________ _____________________________________________________________________ 2. Create a session on Features of Compensation Planning. 252 CU IDOL SELF LEARNING MATERIAL (SLM)
___________________________________________________________________________ _____________________________________________________________________ 11.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Retention Strategies? 2. What is Leverage Technology? 3. Write about Be Transparent and Open? 4. Describe the Be Prepared for Turnover? 5. Write a note on Recognize Retention Starts with Recruiting? Long Questions 1. Explain the Need & Importance of Employee Retention. 2. Discuss the Role of Motivation in Employee Retention. 3. Elaborate Role of Motivation in Employee Retention. 4. Explain about the Identify Candidates Who’ll Stay the Course. 5. Illustration of Put Data (And Ai) to Work. B. Multiple Choice Questions 1. Which should not be in the rules and regulations are formulated for the benefit of the employees? a. Trade b. Union c. Rigid d. Money 2. Which of the following is a plan that organizations create and use to reduce employee turnover, prevent attrition, increase retention, and foster employee engagement? a. Retention strategy b. Mutual strategy c. Demat strategy d. Money strategy 253 CU IDOL SELF LEARNING MATERIAL (SLM)
3. Which of the following does an organization invests time and money in grooming an individual and makes him ready to work and culture? a. Strategic b. Executive c. Corporate d. Market 4. What does the employees working for a period of time are more familiar with the company’s policies, guidelines and thus they adjust better? a. Longer b. Shorter c. Medium d. Trade 5. Which of the following is the superiors should send motivational emails to their team once in a week and display inspirational posters, photographs on the notice board for the employees to read and? a. Stay people b. Stay time c. Stay calm d. Stay motivated Answers 1-c, 2-a, 3-c. 4-a, 5-d 11.8 REFERENCES References book F. Herzberg, B. Mausner and B. B. Snyderman, (1959). The Motivation to Work, 2nd ed New York: Wiley M. G. Wolf, (1970). “Need Gratification Theory: A Theoretical Reformulation of Job Satisfaction/Dissatisfaction and Job Motivation,” Journal of Applied Psychology, vol. 54, pp. 87–94 E. J. Poza and M. L. Markus, (1980) “Success Story: The Team Approach to Work Restructuring,” Organization Dynamics, vol. 8, no. 3, pp. 2–25. Text book 254 CU IDOL SELF LEARNING MATERIAL (SLM)
G. S. Crystal, (1968). The Performance Appraisal Process and Its Relation to Compensation, Compensating Executive Worth, ed. Moore, R. F., American Management Association, pp. 91–105. J. F. Reda, S. Reifler, and L. G. Thatcher, (2005) Compensation Committee Handbook, 2nd ed. New York: Wiley, pp. 54–76. Hunt, A. R.,(2007). Letter From Washington: As U.S. Rich–Poor Gap Grows, so Does Public Outcry, International Herald Tribune: Americas, 18 February 2007 (accessed 7 August 2007) Websites https://www.zoomshift.com/blog/employee-retention-strategies/ https://wheniwork.com/blog/7-great-employee-retention-strategies https://www.bamboohr.com/hr-glossary/retention-strategy/ 255 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 12 – EMPLOYEE BENEFITS 256 STRUCTURE 12.0 Learning Objectives 12.1 Introduction 12.2 Compensation and Benefits 12.3 Importance of Employee Benefits 12.3.1 Recruit and Retain Key Employees 12.3.2 A Healthy Workforce is a Productive Workforce 12.3.3 Culture and Morale 12.3.4 Tax Advantages 12.3.5 A Foundation for Growth 12.4 Components 12.4.1 Base Pay Structure (Fixed Component) 12.4.2 Variable Pay Programs 12.4.3 Benefits 12.4.4 Rewards & Recognition 12.5 Summary 12.6 Keywords 12.7 Learning Activity 12.8 Unit End Questions 12.9 References 12.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Explain Recruit and Retain Key Employees. Examine the Culture and Morale. Illustrate the Rewards & Recognition. CU IDOL SELF LEARNING MATERIAL (SLM)
12.1 INTRODUCTION Compensation is fundamental to hold and inspiring the business power. Since financial prizes are significant elements in the inspiration of sales rep, they are viewed as the techniques for remunerating them. Money related motivations might be as pay, commission, reward, and so on, the commission is viewed as a helpful strategy for repaying on the grounds that it gives an immediate connection between deals execution and pay. A base measure of pay is ensured to sales reps to guarantee the wellbeing of, and fulfilment with the work. Commission and pay are consolidated to remunerate sales reps and animate them to accomplish the objectives. The pay rates are comparable with the obligation and nature of work. Travel and out-station remittance ought to be changed appropriately to propel them. Compensation might be as a straight compensation plan, a straight commission plan, a compensation in addition to commission plan, and pay – in addition to reward plan, and a compensation in addition to reward in addition to commission plan Not all representatives are something similar, nor are the positions they hold. A few gatherings inside an association need unique remuneration frameworks to exploit the sort of individual that is drawn to that kind of work and the exceptional attributes of the work. In many associations the remuneration program for deals faculty is unique and separate from that of different workers. This diverse treatment has to do with the idea of the work, the significance of the work, and the idea of deals staff. The predominant aspect of deals pay is the utilization of variable compensation. While variable compensation plans are turning out to be more mainstream for a wide scope of worker gatherings, the business bunch has consistently been paid on a variable compensation framework because of the idea of the work. To draw in, hold and rouse the best sales reps one should pay them more than they are worth. The accompanying figure shows that the diverse pay remunerating techniques followed by the organizations to their business faculty. The all-out wage cost of a representative to the association is undeniably more than the compensation pace of that worker. Moreover, the absolute pay compensation of the representative surpasses their salary. All out pay comprises part of the way of the compensation of the representative and part of the way of a bunch of different prizes that are approximately called benefits. The expansion of these things to the remuneration bundle significantly entangles all parts of the organization of pay — from the pay system to the execution of the arrangement. Advantages are not normal for base compensation in that they are granted for various targets, they are not intermittently given, they are periodically conceded instead of current, and they require various sorts of organization. Since pay and advantages together make up the pay expenses of the association, there is a compromise between direct compensation and advantages. Advantages, as of not long ago, were called incidental advantages. This was on the grounds that they were viewed as a minor piece of the remuneration bundle. This is presently false, and benefits are turning out to be more significant in Compensation organization as they become a bigger extent of complete pay, 257 CU IDOL SELF LEARNING MATERIAL (SLM)
addressing near 40% of the absolute expense of pay. Unmistakably then, at that point, appropriately oversee them. The expanding costs lessen the Compensation to nothing and the cash's worth is descending dependent fair and square of expansion. The instalment of dearness remittance, which might be a decent rate on the essential compensation, empowers the workers to confront the expanding costs. Worker benefits and (particularly in British English) benefits in kind (additionally called incidental advantages, perquisites, or advantages) incorporate different sorts of non-wage Compensation gave to representatives notwithstanding their ordinary wages or pay rates. Cases where a worker trades (cash) compensation for some other type of advantage is for the most part alluded to as a \"pay bundling\" or \"pay trade\" course of action. In many nations, most sorts of worker benefits are available somewhat. Instances of these advantages include: lodging (business gave or manager paid) outfitted or not, with or without free utilities; bunch insurance(health, dental, life etc.); income assurance; retirement benefits; childcare; educational cost repayment; debilitated leave; excursion (paid and neglected); government backed retirement; benefit sharing; boss understudy loan commitments; conveyancing; long assistance leave; home-grown assistance (workers); and other specific advantages. The motivation behind representative advantages is to build the financial security of staff individuals, and in doing as such, further develop labourer maintenance across the association. Accordingly, it is one part of remuneration the board. Informally, \"advantages\" are those advantages of a more optional nature. Frequently, advantages are given to representatives who are doing outstandingly well or have status. Normal advantages are bring home vehicles, inn stays, free rewards, relaxation exercises on work time (golf, and so on), writing material, recompenses for lunch, and—when various decisions exist—best option of such things as occupation tasks and get-away planning. They may likewise be allowed first opportunity at work advancements when opening exist. 12.2 COMPENSATION AND BENEFITS Compensation or Remuneration is an orderly way to deal with offer money related benefit to representatives in return for work performed by them is called as pay or compensation. Remuneration might accomplish a few purposes aiding enrolment, work execution and occupation fulfilment. On account of Human Resource Management, Compensation is alluded to as cash and different advantages that are gotten by a worker for offering types of assistance to his boss. Cash and advantages got might be in various structures — based Compensation in cash or money related structure and different advantages, these might be related with representative's support of the business like opportune asset, tip and protection plot and whatever other instalment which the worker gets or benefits he appreciates in lieu of such instalment. 258 CU IDOL SELF LEARNING MATERIAL (SLM)
R. Wayne Mondy characterizes pay as, \"Compensation is the absolute of all prizes gave to workers consequently to their administrations. The general reasons for giving remuneration are to draw in, hold and spur representatives.\" Gary Dessler believes, \"Compensation implies all types of pay or rewards going to representatives and emerging from their work.\" Terry Leap believes, \"Pay is a wide term relating to monetary prizes got by people through their business relationship with an association.\" Cascio states, \"Compensation incorporates direct money instalments aberrant instalments as representative advantages and impetuses to spur worker to take a stab at more elevated levels of usefulness.\" Benefits are any perks offered to workers notwithstanding pay. The most widely recognized advantages are clinical, inability, and disaster protection; retirement benefits; took care of time; and incidental advantages. Benefits can be very important. Clinical protection alone can cost a few hundred dollars every month. That is the reason think about benefits as a component of your complete pay. Ensure you comprehend which ones you will get. 12.3 IMPORTANCE OF EMPLOYEE BENEFITS Compensation is perhaps the main pieces of a work contract that acquires individuals from outside and makes them individuals from an association. The force impact of an association's compensation framework, notwithstanding, fluctuates from one industry to another and from one situation to another inside the business. Enterprises that are in a condition of motion encountering quick change in innovation of activity and quick change in strategic policies might discover their workers exceptionally touchy to pay practices of different associations. Conversely ventures those are somewhat steady both as far as the manner in which business measures are led and as far as the manner in which associations rival one another, have representatives who may not show a lot of affectability to distinction in pay with workers working in different associations. Recruit and Retain Key Employees A Healthy Workforce is a Productive Workforce Culture and Morale Tax Advantages A Foundation for Growth. 259 CU IDOL SELF LEARNING MATERIAL (SLM)
12.3.1 Recruit and Retain Key Employees In the present labour force, workers esteem—and anticipate—a business to offer advantages. Results from Glassdoor's Employment Confidence Survey show that 4 out of 5 representatives would prefer to have new or extra advantages than a salary increase. This can give little businesses an approach to rival bigger managers who have the spending plan for more significant compensations. Regardless of whether you can't stand to lay out a major check, offering an alluring advantages bundle will get top up-and-comers in the entryway and assist you with holding them long haul. 12.3.2 A Healthy Workforce is a Productive Workforce Employee benefits furnish your labour force with assets to stay sound and useful, filling in as a shared benefit for both your association and workers. For instance, giving representatives admittance to quality medical services, and adding to the expense, eliminates a major monetary weight for workers and their families. On the business side, offering medical advantages can prompt less days off and impromptu truancy. That is a quantifiable profit from your interest in your worker. 12.3.3 Culture and Morale As a little manager, it's entirely expected to have close working associations with your representatives. With regards to culture and spirit, workers feel this correspondence. Realizing that their manager really focuses on their wellbeing and prosperity makes worker faithfulness and retention. In a review led by the Science of Care, 60% of laborers who revealed feeling really focused on by their boss likewise said they wanted to remain with their associations for at least three years, instead of just 7% of the individuals who detailed they didn't feel really focused on by their managers. 12.3.4 Tax Advantages Numerous employee benefits are charge advantaged for both the association and its representatives, and not simply the ones you'd generally consider, similar to commitments to medical care and retirement plans. A few different kinds of worker benefits are tax-exempt, including: Life protection Tuition repayment Child care repayment Cafeteria plans Employee limits 260 CU IDOL SELF LEARNING MATERIAL (SLM)
Personal utilization of an organization claimed vehicle Cell telephones Meals gave at the work environment 12.3.5 A Foundation for Growth A last benefit of representative advantages is they set the establishment for your association to scale and develop. As you enlist more representatives, having a remarkable and alluring worker benefits bundle helps you draw in, recruit, and keep the best workers. 12.4 COMPONENTS Parts of compensation imply segments of compensation to representatives. A normal workers in the coordinated area is generally qualified for different advantages. Compensation is an instalment made in real money to the representative consequently of the commitment that he/she makes in the association. Compensation might have a base compensation just as factor pay parts. Compensation and wages are most normal type of remuneration given to the workers. Comprehend the traditions that must be adhered to and tax collection strategy to comprehend the segments of pay a lot methodologies. Associations consistently pay for the work taken care of (work) and less for the people; work is the core for deciding pay. Every association will have its own specific manner of characterizing occupations and deciding progressive system of occupations. Anyway for effortlessness the segments of occupations will resemble: Base Pay Structure (Fixed component) Variable Pay Programs Benefits Rewards and Recognition 12.4.1 Base Pay Structure (Fixed Component) Pay rates and compensation are the intermittent guaranteed instalments made to the representatives. Compensations are for the most part paid to the lasting representatives on the month to month premise, though compensation are paid to impermanent or legally binding laborers on the consistent schedule. Basic Component Typically 40% of the base compensation is essential and rest of the base compensation falls under different other, classifications. This breakage is administered by the assessment rules that everyone must follow. In India, for example, in case everything is given to a worker as 261 CU IDOL SELF LEARNING MATERIAL (SLM)
essential the entire will be burdened, though if the base compensation is broken into sub- segments like HRA certain duty exceptions might be gotten. HRA (House Rent Allowance) Determined as a level of essential. HRA limits are fixed by the public authority and are consistently relevant. In the event that an organization chooses to pay more than the breaking point chose by the organization it can anyway the overabundance will be burdened similar to the essential. In the event that an organization pays HRA part, it should gather verifications of lease paid (rental receipts) from the representative. DA (Dearness Allowance) It is determined as a level of essential. The installment of dearness recompense works with representatives and laborers to confront the cost increment or expansion of costs of labor and products. The attack of cost increment has a significant bearing on the day to day environments of the work. The expanding costs decrease the remuneration to nothing and the cash's worth descends dependent fair and square of swelling. The installment of dearness stipend, which might be a proper rate on the fundamental compensation, empowers the workers to confront the expanding costs. Leave Travel Allowance Leave Travel allowance or LTA is paid by specific organizations. Anyway again confirmations of movement costs should be gathered by the organization from the representatives. Leave Travel Allowance (LTA) is a sort of stipend which is given by the business to his representative who is going on leave from the work to cover his movement costs. LTA is a significant segment of the compensation of the worker as it is qualified for annual duty exclusion according to the Income Tax Act, 1961. Mobile Expenses Mobile Expenses the executives is the cycles, helped by specific programming that an association uses to deal with the expenses of its portable interchanges organization. An optimal versatile cost the executives framework gives progressing utilization and cost data on singular organization clients, divisions, and the staff overall. 12.4.2 Variable Pay Programs Variable pay plans for deals addresses a compensation blend that might be a 70-30 or 60-40 or 50-50 arrangement. Here the 30, 40 or 50 addresses the variable part of the compensation and is connected to the objectives. Targets could be item based, an area based, income based, and benefit put together or based with respect to new business creation. 262 CU IDOL SELF LEARNING MATERIAL (SLM)
Anyway instalment of the variable part doesn't generally follow a straight scale. Probably the objective is USD 100 million of deals. It is conceivable that till USD 50 million there might be no factor pay. In the event that the individual accomplishes USD 75 million (edge level) he/she might get half of the variable part growing up to 100% of the variable bit when he/she accomplishes USD 100 million in deals. Variable pay plans don't accompany an upper cap i.e., if a similar person surpasses USD1 100 million of deals will he get more than the arrangement as factor pay? Well the appropriate response is Yes! By and large, an individual in a 50-50 arrangement makes up to 70% or 80% variable compensation. Such compensation plans are for those representatives who either are the individuals who need motivations to push their work or are those whose exhibition can be improved by giving them impetuses like protection plans, MasterCard’s, shared assets and so forth For the most part the variable bit in non-deals is lesser than if there should arise an occurrence of sales. The Variable pay depends on positions and levels of work. Now and again such plans might be covered under vast plans and the whole factor segment might be broken under representative execution, utilitarian execution (for example execution of the capacity in which that representative works) and hierarchical execution. The various variable-pay components very briefly have been discussed below Bonus Bonus is by and large post-facto. The reward can be paid in an unexpected way. It very well may be fixed rate on the essential pay paid yearly or with respect to the productivity. The Government likewise recommends a base legal reward for all representatives and laborers. There is likewise a Bonus plan which remunerates the Managers and representatives dependent on the business income or Profit edge accomplished. Extra plans can likewise be founded on piece compensation however relies on the usefulness of work. Commissions Commission to Managers and representatives might be founded on the business income or benefits of the organization. It is consistently a decent rate on the objective accomplished. For tax assessment purposes, commission is again an available segment of pay. The installment of commission as a part of commission is polished vigorously in target based deals. Contingent on the objectives accomplished, organizations might pay a commission on a month to month or periodical premise. Mixed Plans Organizations may likewise pay representatives and others a mix of pay just as commissions. This arrangement is called mix or blended arrangement. Aside from the pay rates paid, the representatives might be qualified for a proper level of endless supply of fixed objective of 263 CU IDOL SELF LEARNING MATERIAL (SLM)
deals or benefits or Performance destinations. These days, the vast majority of the corporate area is following this training. This is likewise named as factor part of compensation. Incentives Incentives are unmistakably characterized, target-related and forthright. Piece rate compensation is pervasive in the assembling compensation. The workers are paid wages for every one of the amount delivered by them. The gross profit of the work would be identical to number of products delivered by them. Piece rate compensation further develops efficiency and is a flat out estimation of usefulness to wage structure. The reasonableness of remuneration is completely founded on the usefulness and not by any emotional factor. The cant efficiency arranging and Taylor's arrangement of wages are instances of piece rate compensation and the connected results. Sign on Bonuses The most recent pattern in the compensation arranging is the singular amount reward for the approaching representative. An individual, who acknowledges the offer, is paid a singular amount as a little something extra. Despite the fact that this training isn't pervasive in the greater part of the businesses, Equity examination and speculation banking organizations are paying sign-on-rewards to draw in scant ability. Profit Sharing Payments Profit Sharing Payments sharing is again a clever idea these days. This can be paid through installment of money or through ESOPS. The organizing of wages might be done so that, it draws in intensity and further developed usefulness. Stock Options Stock Options are given to representatives for two basic roles – one to have long haul revenue of the worker and second to interface singular execution to authoritative execution. By and large Stock Options might be given under three classifications ESOPs or Employee Stock Options. RSUs or Restricted Stock Units. ESPP or Employee Stock Purchase Plans. ESOPs or Employee Stock Options Assume a representative is given ESOPS in the accompanying manner – 'A', a worker is given 2000 supplies of Rs.100 (Grant cost). He is permitted to sell half of the stocks following 2 years and the remainder of the stocks after an additional 2 years. Suppose following two years the cost of stock is Rs.110/ - (vested cost). 264 CU IDOL SELF LEARNING MATERIAL (SLM)
Then, at that point the representative really gets just 1000 × 10 = 10000/ - rupees as it were. In such a situation in the event that the cost of the stock fell under 100/ - rupees the worker doesn't get anything. ESOPs functioned admirably when stock costs were rising consistently. Anyway when offer costs began to drop then the importance of ESOPs declined. RSUs or Restricted Stock Units These are not quite the same as ESOPs. At the point when stocks are given to the representatives it is considered at zero worth. So whatever is the stock value the worker winds up bringing in some cash. Taking forward the prior model in the event that following two years the cost of stock is Rs.90/ - the representative actually gets 90000/ - rupees, on exchanging his alternatives. ESPP or Employee Stock Purchase Plans This is more similar to an advantage. At the point when the organization is doing great then it offers choice to representatives to buy shares on some rebate. 12.4.3 Benefits The benefits could be the one that are lawfully commanded ones or the ones that are 'a great idea to-have' for upper hand. The advantages might be financial or non-money related, long haul or present moment, free or at concessional rates and may incorporate training, lodging, clinical, or sporting offices, given independently or aggregately, inside or outside the authoritative premises. The benefits ought to consistently be given with a real worry for the workers and consequently Most of the benefits ought to be expansive based and ought to consistently apply to every one of the workers; and Must be planned remembering the certifiable advantage that it will give to the workers. This implied that this advantage didn't arrive at greater part of the workers. The organization changed the advantage marginally to incorporate the representative's folks too. This expanded the worth of the advantage extensively. Organizations are progressively taking the representatives to an 'all out remunerations point of view' that includes thinking about base compensation, variable compensation, business advantages and balance between serious and fun activities together. Notwithstanding this the advantages that an organization gives to its representatives have stayed tattered or least attributable to the predominant intense monetary conditions. Anyway in future there is possibility of the recovery of advantages. 265 CU IDOL SELF LEARNING MATERIAL (SLM)
12.4.4 Rewards & Recognition By the day's end we are generally people and like to contend and show improvement over others. This makes a characteristic desire to be compensated and perceived. While planning the prizes and acknowledgment designs the 'why' and 'what' sort of individuals to be canvassed in such plans should be replied. For the most part the prizes and acknowledgment, pyramids resemble. Befuddling compensation and advantages with remunerations and acknowledgment: the truth of the matter is that workers once in a while leave association for moderately little salary rises. All the more regularly, they leave for characteristic explanation, for example, feeling esteemed by an association or seeing freedom for development. Remuneration, regardless of what amount, doesn't fill inherent requirements. Rewards and Recognition is a framework where individuals are recognized for their exhibition in natural or outward manners. Recognition & Reward is available in a workplace where there is suitable affirmation and enthusiasm for representatives' endeavours in a reasonable and opportune way. Representative award and acknowledgment programs are one strategy for persuading workers to change work propensities and key practices to profit a private venture. 12.5 SUMMARY Understanding the organization's pay theory, rules, strategy thus on. Defining the limits a lot of representatives in the organisation. Knowing the assumptions and need arrangements of the workers. Assessing cost of different elective projects and contrasting something very similar and the appraisals of their effectiveness. Cost- advantage examination of monetary and non-monetary prizes. Recognising a piece of compensation cost as interest in workers which pays for long. In light of these, working out a last compensation bundle including monetary and non- monetary prizes. In any case, pay arranging is certainly not a basic exercise. It needs to keep into thought a few things, for example, wage speculations, work assessment, work evaluating, motivator plans, beneficial advantages and public pay strategy A great compensation strategy assists with rousing the workers to perform well. The compensation that the specialists get for administrations delivered rouses them. A very much planned organized pay strategy assists with getting the premium of the workers just as to guarantee viable association activity and fulfilment of generally authoritative goals. It assists with deciding reasonable, just and even-handed compensation for the laborers. It attempts to guarantee that the paid decently for their commitments to the association. A sound compensation strategy inspires the specialists to work effectively 266 CU IDOL SELF LEARNING MATERIAL (SLM)
to accomplish the particular guidelines. Compensation is the premise of bliss and fulfilment of the labour force. These aides in decreasing work turnover. A sound, reasonable even-handed compensation strategy assists with keeping away from struggle between the business and the representatives and builds up a quiet connection between them. It works on the assurance and effectiveness of the specialists. Different occupations require various types and levels of abilities, information and capacities and these shift in their worth to the association. In this way, endeavours ought to be made to guarantee that distinctions in pay are as per these varieties. Compensation organization ought to consistently be steady with generally speaking authoritative plans. Wage design ought to be sufficiently adaptable to oblige the progressions in inside and outside climate. Pay organization plans ought to be painstakingly planned and created by considering the wellbeing of the relative multitude of concerned gatherings like administration, worker's guilds, representatives, society and government. There ought to be equivalent compensation for equivalent work. Pay plans ought to be unmistakably characterized and written to guarantee soundness and consistency. The degree of wages ought to be in accordance with the predominant rates in the work market. The workers ought to get ensured least wages to keep a sensible way of life. There ought not to be any mystery in the foundation of compensation rates. Representatives and worker's organizations ought to be all around educated in regards to the system of setting wage rates. There ought to be an arrangement of hearing and dealing with complaints identified with compensation. Wages ought to be paid on schedule and pay rates updated intermittently. For this a compensation advisory group ought to be designated. At last, wages ought to be to such an extent that they draw in, propel and hold capable staff. To pay adequately to satisfy essential needs. To mark the remuneration dependent on outside work market. To keep up with pay value among employees. To reward representatives' past performance. To adjust representatives' future presentation to authoritative goals. The treat representatives as per their performance. To control pay cost. To draw in just as hold new representatives. 12.6 KEYWORDS Align - To mastermind in an orderly fashion; change as indicated by a line, to bring into a line or alignment. To carry into participation or concurrence with a specific. Grievance –An authority articulation of a protest over something accepted to not be right or uncalled for. A sensation of hatred over something accepted to not be right or out of line. 267 CU IDOL SELF LEARNING MATERIAL (SLM)
Reimbursements – The activity of reimbursing an individual who has gone through or lost cash, a total paid to cover cash that has been spent or lost. Onslaught – Onslaught connotes seriously vicious attack, as by a military or a bandit, though it is once in a while utilized of rough discourse. Dominant– Ignoring and directing from a predominant position vital, amazing, or fruitful. 12.7 LEARNING ACTIVITY 1. Create a survey on Compensation and Benefits ___________________________________________________________________________ _____________________________________________________________________ 2. Create a session on Importance of Employee Benefits ___________________________________________________________________________ ____________________________________________________________________ 12.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Base Pay Structure? 2. What is Variable Pay Programs? 3. Write about Tax Advantages? 4. Describe the Foundation for Growth? 5. Write Recruit and Retain Key Employees? Long Questions 1. Explain the Compensation and Benefits. 2. Discuss the Importance of Employee Benefits. 3. Elaborate Culture and Morale. 4. Explain about the Base Pay Structure (Fixed Component). 5. Illustration of Rewards & Recognition. B. Multiple Choice Questions 1. Who should be paid in time and wage rates revised periodically? a. Material 268 CU IDOL SELF LEARNING MATERIAL (SLM)
b. Money c. Machinery d. Wages 2. Who should always be consistent with overall organizational plans? a. Compensation strategy b. Compensation employee c. Compensation administration d. Compensation planning 3. Who benefits include a variety of non-cash payments that are used to attract and retain talented employees and may include educational t assistance? a. Fringe b. Performance c. Monetary d. Debit 4. Which of the following and wages are the periodic assured payments made to the employees? a. Direct b. Indirect c. Salaries d. Non Salaries 5. Which analysis of financial and non-financial rewards? a. Procurement b. Cost-benefit c. Compensation d. Organisation Answers 269 1-a 2-c, 3-a. 4-c, 5-b 12.9 REFERENCES References book CU IDOL SELF LEARNING MATERIAL (SLM)
J. B. Christianson, D. J. Knutson, R. S. Mazze, (2006). “Physician Pay-For Performance. Implementation and Research Issues,” Journal of General Internal Medicine, vol. 21, no. s2, 2006, pp. S9–S13. Price Waterhouse Coopers Health Research Institute, (2007). “Keeping Score: A Comparison of Pay-for-performance Programs among Commercial Insurers,” p. 24. 24. L. A. Petersen, Woodard, L. D., (2006). “Does Pay-for-Performance Improve the Quality of Health Care?,” Annals of Internal Medicine, vol. 145, no. 4, pp. 265–72 Textbook references E. S. Fisher, (2006) “Paying for Performance – Risks and Recommendations,” The New England Journal of Medicine, vol. 355, no. 18, pp. 1845–47 T. Chien and R. A. Dudley,(2007) “Pay-for-Performance in Paediatrics: Proceed With Caution,” Paediatrics, vol. 120, no. 1, pp. 186–8 Gerhart and S. Rynes, (2003). Compensation: Theory, Evidence, and Strategic Implications. Thousand Oaks, CA: Sage Website https://www.digitalhrtech.com/types-of-employee-benefits https://blog.vantagecircle.com/employee-benefits-compensation-ideas/ https://www.hrzone.com/hr-glossary/what-are-employee-benefits 270 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 13-STRATEGIC COMPENSATION CHALLENGE STRUCTURE 13.0 Learning Objectives 13.1 Introduction 13.2 Strategic Compensation 13.2.1 Concept 13.2.2 Objective 13.3.3 Pre- Requisites 13.2.4 Functions of Compensation Management 13.3 Factors Influencing Strategic Compensation Management 13.4 Challenges of Strategic Compensation Management 13.5 Summary 13.6 Keywords 13.7 Learning Activity 13.8 Unit End Questions 13.9 References 13.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Explain concept and objective of Strategic Compensation Management Evaluate the Factors Influencing Strategic Compensation Management Compare the Challenges Of Strategic Compensation Management 13.1 INTRODUCTION Globalization has created a “global village” where people in different parts of the world are able to not only participate in global supply chains but also partake of the wonders of cultural exchange and assimilation. This has created aspirational values among large sections of people in the developing countries who now demand better compensation at par with their counterparts in the advanced economies of the West. 271 CU IDOL SELF LEARNING MATERIAL (SLM)
Hence, corporates need to be aware of the complexities of the issue of how much compensation and in what form that is to be paid to the employees taking into account all the factors. Given the fact that most companies in the West outsource to countries like China and India because of the cost advantage where lower wages in these countries provide cost savings, the reckoning of higher wage demands and wage parity that occurs because of economic factors might obviate the advantage enjoyed by these countries as far as the outsourcing phenomenon is concerned. In this context, it is worth noting that corporates world over are feeling the pinch of the ongoing global economic crisis and this has led to depressed wages as well as lower hikes for the employees in the last two years. Hence, the added challenge of keeping the workforce happy in these gloomy times is something that HR managers must take into account as well. The globalized workforce that participates in the global supply chain creates its own set of challenges with many expatriates being paid “hardship allowances” to entice them to work abroad in developing countries. Further, the native workforce in these transnational corporations earn higher wages than those of the average workers in their countries leading to ethnic tensions and demand for inclusion of the less qualified workers. All these factors need to be addressed by the managers of corporations when they decide on the compensation. Finally, the very real phenomenon of attrition because of poor compensation continues to haunt the corporates and the challenge of retaining quality workers while retrenching poor performers remains a key imperative for companies. Hence, compensation management has aspects other than those that were discussed so far in this module and this article is meant to highlight some of them. It is hoped that the world economy recovers quickly and the boom years where workers and corporates were happy working together come back to the advantage of everybody. 13.2 STRATEGIC COMPENSATION 13.2.1 Concept Competitive business strategy refers to the planned use of company resources—financial capital, equipment capital, and human capital—to promote and sustain competitive advantage. 272 CU IDOL SELF LEARNING MATERIAL (SLM)
Within the context of competitive business strategy and human resource strategy, compensation professionals practice strategic compensation. Strategic compensation refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies. Compensation and benefits executives work with the lead HR executive and the company’s chief financial officer (CFO) to prepare total compensation strategies. 13.2.2 Objective The basic objective of compensation management can be briefly termed as meeting the needs of both employees and the organization. Employers want to pay as little as possible to keep their costs low. Employees want to get as high as possible. Compensation management tries to strike a balance between these two with specific objectives; Acquire qualified personnel Compensation needs to be high enough to attract applicants. Pay levels must respond to the supply and demand of workers in the labor market since employees compare for workers. Premium wages are sometimes needed to attract applicants working for others. Retain current employees Employees may quit when compensation levels are not competitive, resulting in higher turnover. Employees serve organizations in exchange for a reward. If pay levels are not competitive, some employees quit the firm. To retain these employees, pay levels must be competitive with that of other employers. Ensure equity To retain and motivate employees, employee compensation must be fair. Fairness requires wage and salary administration to be directed to achieving equity. Compensation management strives for internal and external equity. Internal equity requires that pay be related to the relative worth of a job so that similar jobs get similar pay. 273 CU IDOL SELF LEARNING MATERIAL (SLM)
External equity means paying workers what other firms in the labor market pay comparable workers. Reward desired behavior Pay should reinforce desired behaviors and act as an incentive for those behaviors to occur in the future. Effective compensation plans reward performance, loyalty, experience, responsibility, and other behaviors. Good performance, experience, loyalty, new responsibilities, and other behaviors can be rewarded through an effective compensation plan. Control costs A rational compensation system helps the organization obtain and retain workers’ reasonable costs. Without effective compensation management, workers could be overpaid or underpaid. Comply with legal regulations A sound wage and salary system considers the legal challenges imposed by the government and ensures employers comply. Facilitate understanding The compensation management system should be easily understood by human resource specialists, operating managers, and employees. Further administrative efficiency Wage and salary programs should be managed efficiently, making optimal use of the HRIS, although this objective should be a secondary consideration with other objectives. Motivating Personnel Compensation management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. Besides money, people also want praise, promotion, recognition, acceptance, status, etc., for motivation. Consistency in Compensation Compensation management tries to achieve consistency-both internal and external in compensating employees. Internal consistency involves a payment based on the criticality of jobs and employees’ performance on jobs. 274 CU IDOL SELF LEARNING MATERIAL (SLM)
Thus, higher compensation is attached to higher-level jobs. Similarly, higher compensation is attached to higher performers in the same job. To be adequate Compensation must be sufficient so that the needs of the employee are fulfilled substantially. 13.2.3 Pre-Requisites An effective compensation system should fulfil the following criteria: 1. Adequate: The compensation system must meet minimum governmental, union, and managerial pay level positions. 2. Equitable: Care should be taken so that each employee is paid fairly, in line with his/her abilities, efforts, education, training, experiences, competencies, and so on. 3. Balanced: Pay, benefits, and other rewards must provide a reasonable compensation package. 4. Secure: The compensation package must adequately cover employees’ security needs. 5. Cost-Effective: Pay must be neither excessive nor inadequate, considering what the enterprise can afford to pay. 6. Incentive Providing: The compensation package should be such that it generates motivation for effective and productive work. 7. Acceptable to all Employees: All employees understand the pay system well and feel it is reasonable for the enterprise and the individual. 13.2.4 Functions Of Compensation Management Are: (1) The Equity Function – It is the first and foremost important function of compensation which ensures that the employees are fairly paid and that their worth is appropriately compared. This function ensures that more difficult jobs are paid more and that they are fairly compensated in comparison to similar jobs in the market. (2) The Welfare Function – This function is to take care of their psychological and social need satisfaction. The employees worry about the family, and the liability should be reduced and their self-esteem needs should be met to allow them to work without tension or unwanted stresses. (3) The Motivation Function – The motivational function is to encourage an employee to take further challenges, perform better and develop oneself for superior positions. This function, therefore, takes care of career plans and training and development activities. 275 CU IDOL SELF LEARNING MATERIAL (SLM)
(4) The Retention Function – Today, human resources are being considered as a valuable asset to the organization and because of retaining and developing the knowledge bank, the retention of employees has become an important function of compensation management. 13.3 FACTORS INFLUENCING STRATEGIC COMPENSATION MANAGEMENT 1. The Organisation’s Ability to Pay: Wage increases should be given by those organisations which can afford them. Companies that have good sales and, therefore, high profits tend to pay higher wages than those which running at a loss or earning low profits because of the high cost of production or low sales. In the short run, the economic influence on the ability to pay is practically nil. All employers, irrespective of their profits or losses, must pay no less than their competitors and need pay no more if they wish to attract and keep workers. In the long run, the ability to pay is very important. During the time of prosperity, employers pay high wages to carry on profitable operations and because of their increased ability to pay. But during a period of depression, wages are cut because funds are not available. Marginal firms and non-profit organisations (like hospitals and educational institutions) pay relatively low wages because of low or no profits. 2. Supply of and Demand for Labour: The labour market conditions or supply and demand forces operate at the national, regional and local levels, and determine organisational wage structure and level. If the demand for certain skills is high and the supply is low, the result is a rise in the price to be paid for these skills. When prolonged and acute, these labour-market pressures probably force most organisations to “reclassify hard-to-fill jobs at a higher level” than that suggested by the job evaluation. The other alternative is to pay higher wages if the labour supply is scarce; and lower wages when it is excessive. Similarly, if there is great demand for labour expertise, wages rise; but if the demand for manpower skill is minimal, the wages will be relatively low. Mescon says- “The supply and demand compensation criterion is very closely related to the prevailing pay, comparable wage and ongoing wage concepts since, in essence, all of these remuneration standards are determined by immediate market forces and factors.” 3. Prevailing Market Rate: This is also known as the ‘comparable wage’ or ‘going wage rate’, and is the most widely used criterion. An organisation’s compensation policies generally tend to conform to the 276 CU IDOL SELF LEARNING MATERIAL (SLM)
wage rates payable by the industry and the community. This is done for several reasons. First, competition demands that competitors adhere to the same relative wage level. Second, various government laws and judicial decisions make the adoption of uniform wage rates an attractive proposition. Third, trade unions encourage this practice so that their members can have equal pay, equal work and geographical differences may be eliminated. Fourth, functionally related firms in the same industry require essentially the same quality of employees, with the same skills and experience. This results in a considerable uniformity in wage and salary rates. Finally, if the same or about the same general rates of wages are not paid to the employees as are paid by the organisation’s competitors, it will not be able to attract and maintain a sufficient quantity and quality of manpower. Belcher and Atchison observe- “Some companies pay on the high side of the market in order to obtain goodwill or to insure an adequate supply of labour, while other organisations pay lower wages because economically they have to, or because by lowering hiring requirements they can keep jobs adequately manned.” 4. The Cost of Living: The cost of living pay criterion is usually regarded as an automatic minimum equity pay criterion. This criterion calls for pay adjustments based on increases or decreases in an acceptable cost of living index. In recognition of the influence of the cost of living, “escalator clauses” are written into labour contracts. When the cost of living increases, workers and trade unions demand adjusted wages to offset the erosion of real wages. However, when living costs are stable or decline, the management does not resort to this argument as a reason for wage reductions. 5. The Living Wage: The living wage criterion means that wages paid should be adequate to enable an employee to maintain himself and his family at a reasonable level of existence. However, employers do not generally favour using the concept of a living wage as a guide to wage determination because they prefer to base the wages of an employee on his contribution rather than on his need. Also, they feel that the level of living prescribed in a worker’s budget is open to argument since it is based on subjective opinion. 6. Productivity: Productivity is another criterion, and is measured in terms of output per man-hour. It is not due to labour efforts alone. Technological improvements, better organisation and management, the development of better methods of production by labour and management, 277 CU IDOL SELF LEARNING MATERIAL (SLM)
greater ingenuity and skill by labour are all responsible for the increase in productivity. Actually, productivity measures the contribution of all the resource factors — men, machines, methods, materials and management. No productivity index can be devised which will measure only the productivity of a specific factor of production. Another problem is that productivity can be measured at several levels — job, plant, industry or national, economic level. Thus, although theoretically it is a sound compensation criterion, operationally many problems and complications arise because of definitional measurement and conceptual issues. 7. Trade Union’s Bargaining Power: Trade unions do affect rate of wages. Generally, the stronger and more powerful the trade union, the higher the wages. A trade union’s bargaining power is often measured in terms of its membership, its financial strength and the nature of its leadership. A strike or a threat of a strike is the most powerful weapon used by it. Sometimes trade unions force wages up faster than increases in productivity would allow and become responsible for unemployment or higher prices and inflation. However, for those remaining on the payroll, a real gain is often achieved as a consequence of a trade union’s stronger bargaining power. 8. Job Requirements: Generally, the more difficult a job, the higher are the wages. Measures of job difficulty are frequently used when the relative value of one job to another in an organisation is to be ascertained. Jobs are graded according to the relative skill, effort, responsibility, and job conditions required. 9. Managerial Attitudes: These have a decisive influence on the wage structure and wage level since judgement is exercised in many areas of wage and salary administration — including whether the firm should pay below average, or above average rates, what job factors should be used to reflect job worth, the weight to be given for performance or length of service, and so forth, both the structure and level of wages are bound to be affected accordingly. These matters require the approval of the top executives. Lester observes “Top management’s desire to maintain or enhance the company’s prestige has been a major factor in the wage policy of a number of firms. Desires to improve or maintain morale, to attract high-caliber employees, to reduce turnover, and to provide a high living standard for employees as possible also appear to be factors in management’s wage policy decisions.” 278 CU IDOL SELF LEARNING MATERIAL (SLM)
10. Psychological and Social Factors: These determine in a significant measure how hard a person will work for the compensation received or what pressures he will exert to get his compensation increased. Psychologically, persons perceive the level of wages as a measure of success in life; people may feel secure; have an inferiority complex, seem inadequate or feel the reverse of all these. They may not take pride in their work, or in the wages they get. Therefore, these things should not be overlooked by the management in establishing wage rates. Sociologically and ethically, people feel that “equal work should carry equal wages “that“ wages should be commensurate with their efforts, ”that“ they are not exploited, and that no distinction is made on the basis of caste, colour, sex or religion.” To satisfy the conditions of equity, fairness and justice, a management should take these factors into consideration. 11. Skill Levels Available in the Market: With the rapid growth of industries, business trade, there is shortage of skilled resources. The technological development, automation has been affecting the skill levels at faster rates. Thus, the wage levels of skilled employees are constantly changing and an organisation has to keep its level up to suit the market needs. 13.4 CHALLENGES OF STRATEGIC COMPENSATION MANAGEMENT Even the most rational methods of determining pay must be tempered by good judgment when challenges arise. The implications of these demands may cause analysts to make further adjustments to compensation. 1. Strategic Objectives. 2. Prevailing Wage Rates. 3. Union Power. 4. Government Constraints. 5. Comparable Worth and Equal Pay. 6. Compensation Strategies and Adjustments. 7. International Compensation Challenges. 8. Productivity and costs. 1. Strategic Objectives 279 CU IDOL SELF LEARNING MATERIAL (SLM)
Compensation management is not limited to internal and external equity. It also can be used to further an employer’s strategy. Employee compensation might have been initially anchored by the relative worth of jobs and the prevailing wage rates in the local market. 2. Prevailing Wage Rates Market forces may cause some jobs to be paid more than their relative worth. Demographic shifts and relative supply and demand relationships affect compensation. 3. Union Power When unions represent a portion of the workforce, they may obtain wage rates that are out of proportion to the relative worth of the jobs. Unions may also limit management’s flexibility in administering merit increases since unions often argue for raises based on seniority and are applied across the board equally. 4. Government Constraints The government sets minimum wage, overtime pay, equal pay, child labor, and record- keeping requirements. The minimum-wage and overtime provisions require employers to pay at least a minimum hourly rate regardless of the job’s worth. 5. Comparable Worth and Equal Pay Beyond “equal pay for equal work” is the idea of “comparable pay for comparable work” called comparable worth. It requires employers to pay equal wages for jobs of comparable values. Comparable worth is used to eliminate the historical gap between the incomes of men and women. 6. Compensation Strategies and Adjustments Most organizations have compensation strategies and policies that cause wages and salaries to be adjusted. A common strategy is to give nonunion workers the same raises given to unionized employees; this is often done to prevent further unionization. 280 CU IDOL SELF LEARNING MATERIAL (SLM)
7. International Compensation Challenges The globalization of business affects compensation management. Compensation analysts must focus not only on equity but on competitiveness too. The growing globalization of business also means a greater movement of employees among countries. As employees are relocated, compensation specialists are challenged to make fair adjustments to the employee and the company while keeping competitiveness in mind.Monetary 8. Productivity and costs Regardless of the company or social policies, employers must make a profit to survive. Without profits, they cannot attract enough investors to remain competitive. Therefore, a company cannot pay its workers more than the workers give back to the firm through their productivity. The company needs some creative techniques for compensation. 13.5 SUMMARY Strategic compensation refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies. Objectives of compensation management are; Acquire qualified personnel. Retain current employees. Ensure equity. Reward desired behavior. Control costs. Comply with legal regulations. Facilitate understanding. Further administrative efficiency. Motivating Personnel. Consistency in Compensation. To be adequate. The functions of Compensation Management are The Equity Function 281 CU IDOL SELF LEARNING MATERIAL (SLM)
The Welfare Function The Motivation Function The Retention Function. Factors Influencing Strategic Compensation Management: The Organisation’s Ability to Pay: Supply of and Demand for Labour: Prevailing Market Rate: The Cost of Living: The Living Wage: Productivity: Trade Union’s Bargaining Power: Job Requirements: Managerial Attitudes: Psychological and Social Factors: Skill Levels Available in the Market: The implications of these demands may cause analysts to make further adjustments to compensation. Strategic Objectives. Prevailing Wage Rates. Union Power. Government Constraints. Comparable Worth and Equal Pay. Compensation Strategies and Adjustments. International Compensation Challenges. Productivity and costs. 13.6 KEYWORDS Strategic compensation refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies. HR Strategy is the strategy adopted by an organization which aims at integrating core human resource aspects like organization's culture, its employees, partners, 282 CU IDOL SELF LEARNING MATERIAL (SLM)
training, incentives and overall system by coordinating a set of actions to get the required business goals. Equity in the workplace refers to fair treatment in access, opportunity and advancement for all individuals. Internal Consistency - a situation in which employees who do similar jobs within a company receive similar pay. Comparable worth - It requires employers to pay equal wages for jobs of comparable values. 13.7 LEARNING ACTIVITY 1. Why it is important to have Consistency in Compensation Management? ______________________________________________________________________ ______________________________________________________________________ 2. Non-monetary compensation policy plays an important role in motivating employees ______________________________________________________________________ ______________________________________________________________________ 13.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Explain the concept and importance of Strategic Compensation. 2. State the pre-requisites of Strategic Compensation Management. 3. Describe the functions of Strategic Compensation Management 4. Discuss the significance of the prevailing market rates on the Compensation Management. 5. How Compensation Management is linked with the Labour Market Conditions? Long Question 1. Why it is important for Organization to consider the integration of Compensation Strategy with the Organization Strategy? 2. State and explain the objectives of the Compensation Management. 3. Discuss the Factors Influencing Strategic Compensation Management. 283 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Explain the challenges involved in the Strategic Compensation Management. 5. What strategies should be adopted by the organization to overcome the challenges involved in the Strategic Compensation Management? B. Multiple Choice Questions 1. _____________must respond to the supply and demand of workers in the labor market since employees compare for workers. a. Pay levels b. Training Levels c. Education Levels d. Position Levels 2. What requires that pay be related to the relative worth of a job so that similar jobs get similar pay? a. External Equity b. Internal Equity c. Lateral Equity d. Primary Equity 3. What is involved as a payment based on the criticality of jobs and employees’ performance on jobs? a. Externalconsistency b. Rational consistency c. Standard consistency d. Internal consistency 4. What is also known as the ‘comparable wage’ or ‘going wage rate’? 284 a. Normal Rate b. Standard Rate CU IDOL SELF LEARNING MATERIAL (SLM)
c. Prevailing Market Rate d. Random Rate 5. What is referred by the “escalator clauses”? a. influence of the cost ofliving b. Influence of Society c. Influence of Education d. Influence of Life style Answers 1-a, 2-b, 3-d, 4-c, 5-a 13.9 REFERENCES References book J. B. Christianson, D. J. Knutson, R. S. Mazze, (2006). “Physician Pay-For Performance. Implementation and Research Issues,” Journal of General Internal Medicine, vol. 21, no. s2, 2006, pp. S9–S13. Price Waterhouse Coopers Health Research Institute, (2007). “Keeping Score: A Comparison of Pay-for-performance Programs among Commercial Insurers,” p. 24. 24. L. A. Petersen, Woodard, L. D., (2006). “Does Pay-for-Performance Improve the Quality of Health Care?,” Annals of Internal Medicine, vol. 145, no. 4, pp. 265–72 Textbook references E. S. Fisher, (2006) “Paying for Performance – Risks and Recommendations,” The New England Journal of Medicine, vol. 355, no. 18, pp. 1845–47 T. Chien and R. A. Dudley,(2007) “Pay-for-Performance in Paediatrics: Proceed With Caution,” Paediatrics, vol. 120, no. 1, pp. 186–8 Gerhart and S. Rynes, (2003). Compensation: Theory, Evidence, and Strategic Implications. Thousand Oaks, CA: Sage Website https://www.digitalhrtech.com/types-of-employee-benefits 285 CU IDOL SELF LEARNING MATERIAL (SLM)
https://blog.vantagecircle.com/employee-benefits-compensation-ideas/ https://www.hrzone.com/hr-glossary/what-are-employee-benefits 286 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT14 - INTERNATIONAL COMPENSATION STRUCTURE 14.0 Learning Objective 14.1 Introduction 14.2 International Compensation 14.2.1 Definition and Concept 14.2.2 Objectives 14.2.3 Major Components in an International Compensation Package 14.3 Approaches and practices 14.4 Factors Affecting International Compensation Strategy 14.5 Managing People in International Firms 14.5.1 Expatriation Process: 14.5.2 Repatriation Process 14.6 Summary 14.7 Keywords 14.8 Learning Activity 14.9 Unit End Questions 14.10 References 14.0 LEARNING OBJECTIVE After studying this unit, you will be able to: Explain the Objective and Components of International Compensation Management Compare the different approaches in International Compensation Outline the factors that affect the International Compensation Management Describe the significance of Expatriation and Repatriation Process 287 CU IDOL SELF LEARNING MATERIAL (SLM)
14.1 INTRODUCTION To counter-balance is the literal meaning of compensation. Compensation in the context of human resource management refers to the money and other advantages received by an employee in exchange for providing services to his company. Money and benefits may be received in a variety of forms, including monetary remuneration and various advantages linked with the employee's service to the employer, such as provident fund, gratuity, insurance scheme, and any other payment or benefit the employee receives in lieu of such payment. Cascio has defined compensation as follows: “Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity” Based on above description of compensation, we may identify its various components as follows: 1. Wage and Pay: Wage and salary are the most crucial aspects of remuneration, and they are required regardless of the type of company. Wage is a term that refers to remuneration for workers, specifically hourly-rate payments. The term \"salary\" refers to the remuneration paid to white-collar employees, such as managers. Wages and salaries are paid for a set length of time and are usually unrelated to an employee's output at any given time. 2. Incentives: Incentives are payments made to employees in addition to their earnings and salaries. These are frequently tied to productivity, either in terms of increased output or cost savings, or both. These incentives may be given on individual basis or group basis. 3. Fringe Benefits: Fringe benefits are those that are provided to employees that have a long- term impact, such as provident fund, gratuity, or pension; or are provided in response to specific events, such as medical benefits, accident relief, health and life insurance; or are provided to facilitate job performance, such as uniforms, canteens, and recreation. 288 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Perquisites: These are usually given to managerial people to help them perform their jobs better or to keep them in the company. Company cars, club membership, free residential housing, paid vacation excursions, stock options, and other perks are examples of such perks. 14.2 INTERNATIONAL COMPENSATION 14.2.1 Definition and Concept International compensation can be defined as the provision of monetary and non-monetary rewards, including base salary, benefits, and perquisites, long- and short-term incentives, valued by employees in accordance with their relative contributions to MNC performance. Its broad HRM purpose is to attract, retain, and motivate those personnel required throughout the MNC currently and in the future. Job evaluation is the means by which internal relativities and compensable factors, those elements such as skills, physical and mental demands, and responsibilities that comprise an individual’s work role in the MNC and contribute to its performance, are determined. 14.2.2 Objectives 1. Attracting and Retaining Personnel From organisation’s point of view, the compensation management aims at attracting and retaining right personnel in the organisation. In the Indian corporate scene, there is no dearth of personnel at operative levels but the problems come at the managerial and technical levels particularly for growing companies. Not only they require persons who are well qualified but they are also retained in the organisation. In the present day context, managerial turnover is a big problem particularly in high knowledge-based organisations. 2. Motivating Personnel Compensation management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. Alfie Kohn (an American author and lecturer who has explored a number of topics in education, parenting, and human behavior.) has gone to the extent of arguing that corporate incentive plans not only fail to work as intended but also undermine the objectives they intend to achieve. He argues that this is due to inadequate psychological assumptions on which reward systems are based. His conclusions are as follows: 1. Rewards punish people-their use confirms that someone else is in control of the employee. 289 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Rewards rupture relationships-they create competition where teamwork and collaboration are desired. 3. Rewards ignore reasons-they relieve managers from the urgent need to explore why an employee is effective or ineffective. 4. Rewards discourage risk taking-employees tend to do exactly what is required to earn the reward, and not any more. 5. Rewards undermine interest-they distract both manager and the employee from consideration of intrinsic motivation. Notwithstanding these arguments, compensation management can be designed to motivate people through monetary compensation to some extent. 3. Optimizing Cost of Compensation Compensation management aims at optimizing cost of compensation by establishing some kind of linkage with performance and compensation. It is not necessary that higher level of wages and salaries will bring higher performance automatically but depends on the kind of linkage that is established between performance and wages and salaries. Compensation management tries to attempt at this. 4. Consistency in Compensation Compensation management tries to achieve consistency-both internal and external-in compensating employees. Internal consistency involves payment on the basis of criticality of jobs and employees’ performance on jobs. Thus, higher compensation is attached to higher- level jobs. Similarly, higher compensation is attached to higher performers in the same job. Level of jobs within an organisation is determined by job evaluation. External consistency involves similar compensation for a job in all organisations. Though there are many factors involved in the determination of wage and salary structure for a job in an organisation which may result into some kind of disparity in the compensation of a particular job as compared to other organisations, compensation management tries to reduce this disparity. 14.2.3Major Components in an International Compensation Package International Compensation is an internal rate of return (monetary or non-monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. The following are the major components of an international compensation package. 290 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 14.2.1: International Compensation 1. Base Salary This term has a slightly different meaning in an international context than in a domestic one. In the latter case, it denotes the amount of cash compensation that serves as a benchmark for other compensation elements like bonus, social benefits. For the expatriate, it denotes the main component of a package of allowances directly related to the base salary and the basis for in-service benefits and pension contributions. Base salary actually forms the foundation block of the international compensation. 2. Foreign Service Inducement Premium This is a component of the total compensation package given to employees to encourage them to take up foreign assignments. This is with the aim to compensate them for the possible hardships they may face while being overseas. In this context, the definition of hardship, the eligibility criteria for premium and the amount and timing of this payment are to be carefully considered. Such payments are normally made in the form of a percentage of the salary and they vary depending upon the tenure and content of the assignment. In addition, sometimes other differentials may be considered. For instance: if a host country’s work week is longer that of the home country, a differential payment may be made in lieu of overtime. 3. Allowances 291 CU IDOL SELF LEARNING MATERIAL (SLM)
One of the most common kinds of allowance internationally is the Cost-of-Living Allowance (COLA). It typically involves a payment to compensate for the differences in the cost of living between the two countries resulting in an eventual difference in the expenditure made. A typical example is to compensate for the inflation differential. COLA also includes payments for housing and other utilities, and also personal income tax. Other major allowances that are often made are: Home leave allowance Education allowance Relocation allowance Spouse assistance (compensates for the loss of income due to spouse losing their job) Thus, multinationals normally pay these allowances to encourage employees to take up international assignments to make sure that they are comfortable in the host country in comparison to the parent country. 4. Benefits The aspect of benefits is often very complicated to deal with. For instance, pension plans normally differ from country to country due to difference in national practices. Thus all these and other benefits (medical coverage, social security) are difficult to imitate across countries. Thus, firms need to address a number of issues when considering what benefits to give and how to give them. However, the crucial issue that remains to be dealt with is whether the expatriates should be covered under the home country benefit programmes or the ones of the host country. As a matter of fact, most US officials are covered by their home country benefit programmes. Other kinds of benefits that are offered are: Vacation and special leaves Rest and rehabilitation leaves Emergency provisions like death or illness in the family These benefits, however, depend on the host country regulations. 5. Incentives In recent years some MNC have been designing special incentives programmes for keeping expatriate motivated. In the process a growing number of firms have dropped the ongoing premium for overseas assignment and replaced it with on time lump-sum premium. The lump-sum payment has at least three advantages. First expatriates realize that they are paid this only once and that too when they accept an overseas assignment. So the payment tends to retain its motivational value. Second, costs to the company are less because there is only one 292 CU IDOL SELF LEARNING MATERIAL (SLM)
payment and no future financial commitment. This is so because incentive is separate payment, distinguishable for a regular pay and it is more readily for saving or spending. 6. Taxes The final component of the expatriate’s compensation relates to taxes. MNCs generally select one of the following approaches to handle international taxation. 1. Tax equalization: – Firm withhold an amount equal to the home country tax obligation of the expatriate and pay all taxes in the host country. 2. Tax Protection: - The employee pays up to the amount of taxes he or she would pay on remuneration in the home country. In such a situation, the employee is entitled to any windfall received if total taxes are less in the foreign country then in the home country. 7. Long Term Benefits or Stock Benefits The most common long term benefits offered to employees of MNCs are Employee Stock Option Schemes (ESOS). Traditionally ESOS were used as means to reward top management or key people of the MNCs. Some of the commonly used stock option schemes are: Employee Stock Option Plan (ESOP) - a certain nos. of shares are reserved for purchase and issuance to key employees. Such shares serve as incentive for employees to build long term value for the company. Restricted Stock Unit (RSU) — this is a plan established by a company, wherein units of stocks are provided with restrictions on when they can be exercised. It is usually issued as partial compensation for employees. The restrictions generally lifts in 3-5 years when the stock vests. Employee Stock Purchase Plan (ESPP) — this is a plan wherein the company sells shares to its employees usually, at a discount. Importantly, the company deducts the purchase price of these shares every month from the employee’s salary. Hence, the primary objective for providing stock options is to reward and improve employee’s performance and /or attract / retain critical talent in the Organization. 14.3 APPROACHES AND PRACTICES 1. Going Rate Approach This is based on local market rates. It relies on comparisons of surveys of the local nationals, expatriates of same nationality and expatriates of all nationalities’ pay packages. In this approach, the compensation is based on the selected survey comparison. The base pay and benefits may be supplemented by additional payments for low pay countries. 293 CU IDOL SELF LEARNING MATERIAL (SLM)
The advantages of the Going Rate Approach are, Equality with local nationals Simplicity Identification with the host country Equity amongst different nationalities The disadvantages of Going Rate Approach are, Variation between assignments for the same employees The rivalry between expatriates of the same nationality in getting assignments to some countries Potential re-entry problems in the home country 2. Balance Sheet Approach: The Balance Sheet Approach to international compensation is a system designed to equalize the purchasing power of employees at comparable position levels living abroad and in the home country and to provide incentives to offset qualitative differences between assignment locations. The balance sheet approach is widely used by international organizations to determine the compensation package of the expatriates. The basic objective is the maintenance of living standards of the home country plus financial inducement. 1. Goods and Services: Outlays incurred in the home country for food, personal care, clothing, household furnishing, recreation, transportation, and medical care. 2. Housing: All major costs associated with housing in the host country. 3. Income Taxes: Parent country and host country income tax expenditures. 4. Reserve: Contribution to savings, payments for benefits, pension contributions, investments, education expenses, social security taxes, etc. The advantages of the Balance Sheet Approach are: Equality between assignments and between expatriates of the same nationality. Facilitates expatriate re-entry Easy to communicate to the employees The disadvantages of the Balance Sheet Approach are: It can result in considerable disparities between the expatriates of different nationalities and between expatriates and local nationals. It can be quite complex to administer due to changing economic conditions, taxation etc. 3.Citizen’s Approach – In this approach, an international basket of goods is used for all expatriates, regardless of country of origin. The basket of goods includes food, clothing, housing, and so forth. However, expatriates are not provided salary adjustments that would 294 CU IDOL SELF LEARNING MATERIAL (SLM)
allow them to purchase exactly the same items in the host country as in the home country. Rather, they receive adjustments that would allow them to purchase a comparable local product of the same nature; e.g., rather than a Mercedes (which they had in the home country), they would buy a local luxury car. Alternatively called the global salary systems, the international citizen’s approach is appropriate when an MNC has a team of dedicated international managers Europeans, Americans or Asians – who are ready to move to any part of the globe easily and effectively. Global salary systems seek to provide worldwide equity in rewards and allow managers to move between countries with minimal effects on lifestyle. 4. Lump Sum Approach – This involves giving the expatriate a predetermined salary and letting the individual decide about how to spend it. Finally, there is the regional system, under which the MNC sets a compensation system for all expatriates who are assigned to a particular region. Thus, everyone going to Europe falls under one particular system and those going to South Africa come under a different system 14.4 FACTORS AFFECTING INTERNATIONAL COMPENSATION STRATEGY The understanding of the economic, political and social conditions of the business where they are is vital to make sound compensation strategy in the competing markets. Though compensation and reward system is used to motivate employees, but it isn’t just used to attract and hold talents. It serves as a comparative advantage for companies if used properly. Thus, the establishment of international compensation and reward system has been at the top agenda of multinational giants. It becomes a new boom that many multinational giants try to establish compensation and reward system in a perspective of global mind-sets rather than local. Global knowledge and information are collected to overcome the limits of local experience and the result is that the integration of global mind-sets in the system contributes to the competitive advantage of those brilliant companies. 1. Social Contract Considered as part of the social contract, the employment relationship is not just an interaction between an employee and an employer, and it also includes the government, all managers and all employees. The relationships and expectations of these groups form the social contract. When thinking about how people get salaries around the world, it is apparent that different people have different ideas, so they think variously of government, employers 295 CU IDOL SELF LEARNING MATERIAL (SLM)
and employees. The understanding of employee compensation management requires understanding of the social contract in that country. How to change employee compensation systems–for example, to make them serve better to customers, encourage innovative and quality service, or control costs–requires changing the expectations of groups to the social contract. 2. Culture Culture is an abstract but collective concept, which is not defined as a certain object but covers more than one object. It is a collection of Material wealth and Spiritual wealth including religious, customs, education, regulations, laws, economy and even science. Culture also plays its part in the international compensation system. People with different cultural backgrounds will view compensation system differently under the influence of culture. So does the management of the system. Culture is a thing deeply rooted in the blood of people. People in the same nation tends hold the same or similar mental programming way to process ideas and information. In other countries, the way may differ. So is the case of compensation system, the certain culture will inclines to match one culture of a nation if global mind-sets are not brought in and lead people to manage systems in a certain way. A simple and direct way to confirm it is to see the different meanings compensation in different countries. Culture which forms a system of knowledge, information and beliefs will affect attitudes and behaviors associated with the work. Culture affects the variables of the established compensation system. Though equity customs are shared among the employees from many countries, America and Japan for example, the force of the customs really works differently in different countries. In all, having the awareness of focusing the influence of culture values on employees is extremely important for corporate leaders. When dealing with compensation system, the controlling for context of culture should be paid attention. 3. Trade Unions Europe keeps highly solidaric and Asia is less heavily unionized. In some countries, team agreement sets how much the workers can earn even though the workers may not be union members. In France for example a majority of workers are paid by collective agreements, but 296 CU IDOL SELF LEARNING MATERIAL (SLM)
only a few are union members. Social legislation differs among European countries; UK has the fewest requirements, because it has no minimum salaries, no maximum working hours, and no common methods for employee participation. Social insurance in Germany and France are the most generous. 4. Ownership and Capital Markets Ownership and financing of companies are dramatically different around the world. These differences are vital to the understanding and managing of international payment. These patterns of ownership make certain kinds of pay systems have no significance. Employees in these corporations have various values and expectations. One research indicated that people who work for local or public corporations like salaries according to one’s performance more; however, those who work in federal-owned corporations are on the opposite side. So it is obvious that ownership differences have great effects on types of payment. It is very misleading to consider that every place is just like home. 5. Managers Autonomy Managerial autonomy reflects managers set his employees to make decisions by themselves. There is a relationship between it and the degree of centralization. Government, trade unions and corporate police are responsible to restrict managerial autonomy. Compensation decisions made in the domestic corporate offices and exported to subsidies all over the world may relate to the corporate strategy but discount local economics and social conditions. To sum up, international compensation is affected by economic, institutional, organizational, and individual conditions, globalization really represents that these conditions are varying– thus international pay system are altering too. Other Factors Besides the factors affecting compensation strategy talked about above, there exist some other important factors worth consideration. Global national policy is an example. Global national policy concerns many parts of the society, like tax. Taxation burden for the citizens vary across different countries. And so does welfare policy like retirement plan. The two are only two small parts of the national policy. National policy relates to the relationships among 297 CU IDOL SELF LEARNING MATERIAL (SLM)
employers, employees, government and companies, which can exert influence on the compensation and reward systems as well. National policy of different countries will vary, so it will influence the international compensation and reward system. Some examples can be listed to support it. In German and Japan and in America and England, taxation and some regulation policies will show differently in the use of stock options. And the taxation will in turn decide the variable payment of a person. Different tax rates will decide different variable pay schemes. Besides, bonuses and allowances win popularity among employees in Korea or Japan. The increase of bonuses and allowances are not directly decided by the performance at work. However, this is not the case in other places. As we all know, only the base pay rather than bonuses and allowances can be the base point to be calculated in some welfare schemes like national health insurance rates. And in America, the income tax doesn’t mean too much to benefit schemes. In this way, the taxation can function more effective to create employment. Besides, the complying with national policies is also a problem. When the government takes some initiatives, the corporate leaders is not easy to deal with even they are given discretion. They can’t just follow what others do. In many cases, companies can still have the clear mind to make decision about whether to follow the pervasiveness or to persist in the traditions. This just depends on the real condition of the company. For example, America once put forward some creative and innovative compensation schemes like phantom, ESOPs. The fact is that some companies adopted the initiatives and benefited a lot. And some didn’t, they just picked out what was proper for their companies. So whether to observe the national policies is a big choice worth consideration. Finally, there are social contracts in terms of the national policies. Social contracts are related to fairness and justice. The other concept is psychological contract. It means the company can benefit from benefiting employees. That is to say, though the psychological contract is invisible, the company can use to motivate. It concerns the employee participation and the emotions of employees. Companies can benefit development by satisfying the inner needs of employees to increase employee participation. The national policies put forward by government can show the social contract customs. Some public policies are issued to put limits to the employment relationship like minimum wage and family leave statutes. However, those national policies will influence the psychological contract by influencing the expectations related to the psychological contract. 298 CU IDOL SELF LEARNING MATERIAL (SLM)
14.5 MANAGING PEOPLE IN INTERNATIONAL FIRMS 14.5.1 Expatriation Process An expatriate is somebody who has left their country of origin in order to reside in another country.Ex-pats may leave home for work reasons, including migrant labor who seeks more lucrative employment in a different country.Expatriates may live for a while overseas, or completely renounce their citizenship of one country in favor of another. The typical phases of the expat adjustment cycle are Preparation, Honeymoon, Culture Shock, and Adaptation. Preparation for Relocation This is an exciting time for most assignees. They and their families will experience a mix of emotions ranging from the excitement of experiencing a new country to anxiety about the move and “starting over.” Honeymoon Phase Once They’re Abroad When a family first arrives in their host country and beings to explore their new home, they enter into the honeymoon phase of the expat adjustment cycle. The new language, culture, and way of life is exciting and strange, and families enjoy learning new vocabulary and meeting their new neighbors and co-workers. This stage lasts for about two months as they settle in. Culture Shock as Relocation Reality Sets In Once the honeymoon state has faded, the reality of life starts to set in. This begins the culture shock phase. Families begin to realize their own inabilities to interact with the culture, leading to feelings of isolation and frustration. These feelings can manifest in many different ways. People experiencing culture shock may lash out and become angry, or they may withdraw from the world and become uncommunicative. This is without a doubt the most difficult stage of the cycle, and can often last six to twelve months. Adaptation to Life Abroad Culture shock eventually wears off, and assignees and families begin to integrate more into their new home. The adaptation stage is when they begin to adjust to their new way of life, and accept and assimilate into the culture around them. Usually language skills improve 299 CU IDOL SELF LEARNING MATERIAL (SLM)
tremendously, families broaden their social circles, and are able to move confidently around in their new surroundings in this stage. Provide assignees and their families resources based on the different needs that manifest as they progress through the expat adjustment cycle. By understanding the common emotions and experiences felt during the relocation process, you can ensure you’re providing the emotional and tactical support to set everyone up for success in their new home. 14.5.2 Repatriation Process Repatriation is a process of returning back from a international assignment to a home country after completing the assignment or some other issues. Repatriation is the last step in the expatriation cycle and it involves readjustment and re-entry of international managers and their families back to their home country. Expatriation and repatriation are not two separated processes, rather the former is a beginning and the latter the closure. The term may also refer to the process of converting a foreign currency into the currency of one’s own country. The Importance of Repatriates The employee of any organization who adjust well in a HCN in an international assignment and performed effectively there would be highly imported. The repatriate perspective, here are some of the reasons why repatriated employees are important: There are a many successful international assignments which are very important to the employee career as well as for the company’s growth. So many companies send expatriate to other countries for doing business internationally. The employees who are send to abroad for international assignment are expatriates those employees who learned many things that would be useful to those who will be sent to that same country if some means could be identified as to how they might be mentors to future expatriate employees. Expatriates can bring new and unusual approaches to cultural environment, information gathering, analysis of data, and problem-solving as a result of having work cross-culturally in an effective manner. Expatriates may have been more flexible, or less rigid, in changing circumstances. In that different approaches have been tried in other contexts, they may be able to bring insights and innovation to the planning process that may not have been considered previously. 300 CU IDOL SELF LEARNING MATERIAL (SLM)
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