Good Morning all
I have completed MBA with HR.. Now i am working in manufacturing company in SAP HR module.. As I am a fresher I dont have any relevant exp in HR core activities rather than my studies... Can anyone send me the complete compensation process & its calculating details.. I am eagerly waiting for ur valuable reply..
Thanks & Regards
Gopalakrishnan K.C

From India, Bangalore
Cite Contribution
Community Manager
Deputy Executive Officer- Sap Hr
+2 Others

Cite Contribution

Dear Gopalakrishnan,
You would need to learn the operational part in compensation and not the theory. SAP HR deals with functional module .
Please research up the process with in the company as anything beyond would n't be relevant .
What is the salary hike cycle that is being followed ? How are salary bands designed ?
What are the strategies used for disbursing incentives ? How doesn't differ from each level?
What the different benefits offered in the company ? How does that increase with each level ?
Looking forward to brainstorm this with you .

From India, Mumbai

Dear (Cite Contribution)
thanks for your guidance.. I definitely follow your guidance.. within my company i can know... what should i do if i want to learn common process.. because it may be vary from co to co..

From India, Bangalore

Hi Gopalakrishnan,

It is a length process to have a full C&B structure. First of all you have to understand the company mission & vision and the brand value / position among the industry to benchmark your positions with peer; in order to bench mark positions, you have to start with Job Analysis (understand the Key Result Areas of each position - not the person) then you have to prepare Job Description listing priorities for all the unique positions in a job family (mentioning the competency requirement for each position and the accountability and financial magnitude) and a Organization structure then you have to use any third party job evaluation tools such as Hay Guide Chart or Mercer methodology etc. to get the total weight of each position, once you have the weight then you can easy define your grading system, further you have to benchmark your positions with market positions to conclude the grading system to have a good external equity. Once you have your grading system you have to align with your company vision with your pay structure in order to attract talents from the peer group / industry as well as internal priority such as high variable payments for senior positions (to achieve targets and bring revenue - to satisfy the company and the employee at the same time) and less variable for blue collars etc. further you have to do the administration of compensation to ensure the internal equity (you have to get a good correlation chart when you prepare grade vs current pay as well as revenue vs pay structure movement). Hope you got an overall idea about c&b role.

From United Arab Emirates,

Hi Gopalakrishnan 18.2.2015


CATEGORISING / GRADING of every Employee’s Designations in an Organisation (especially, Labour Intensive Mfg. Cos. Steel, Cement, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.

Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits Orders etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for thousands of employees at a stretch in big labour intensive Mfg. Companies.

The Salaries are tobe fixed in such a way that employees in each grade has a particular salary range in a descending order say; from Sr.Manager down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees later.

Salary fixation (as in many other cases) depends upon Demand & Supply. A fixed range cannot remain for ever. For ex: a HR Manager with 10 yrs.exp. gets 5 lac/anum in X Co, will shift to Y Co. if Y Co. offer 6 lac & again to Z Co. who may offer 8 lacs. Rarely, people accept new Co. with lesser salary unless, it is close to his native place or his wife or other compelling reasons.

Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another. The 2nd one i.e., Categorising/ grading/ grouping say 1000 employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time. State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.

I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with


Semi-Skilled &

Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)

Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)

Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)

Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)


However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.

As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.

I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.

Yours sincerely,

• C.Neyim, HR Consultant, Ex:AGM (HR&A), Hiriyur, Chitradurga, Karnataka, S.India.

• Mobile - 9535470460 EMail:

From India, Bangalore

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