COMPENSATION MANAGEMENTSubmitted by:Gurpreet Singh

CONTENTS IntroductionObjectivesComponentsImportanceFactor affectingconclusion

INTRODUCTION Compensation is a systematic

approach to providing monetary & non monetary value to employees in exchange for work performed.

Compensation may be defined as money received in performance of work and many kinds of benefits that an organization provides to their employees.

OBJECTIVES To recruit & retain

qualified employees.

To increase or maintain morale.

To determine basic wage & salary.

To reward for job performance.

COMPENSATION COMPONENT

compensation

monetary

direct indirect

Non monetary

COMPONENT

Base Pay

Bonus

Long term incentives

Perks or perquisites

Direct compensation

CONT… Insurance (health,

eye). Leaves (sick,

holiday/personal) Clothes Company parties Phones/laptop Retirement

programs

Indirect compensation

NON MONETARYEnhance dignity & satisfaction from

work performed.Promote social relationship with co-

workers.Allocate sufficient resources to

perform work assingments.Offer supportive leadership &

management.Enhance physiological health,

intellectual growth.

IMPORTANCEJob descriptionJob analysisJob evaluationPay structureSalary surveys

FACTOR AFFECTTING

Demand & supply of labour

Cost of livingSocietyLabour unionsThe economy

Compensation policy

The org. ability to pay

Job analysis & description

Employee

External Internal

CONCLUSION We can say that good compensation can increase the productivity of an organization because its provides various rewards, bonus, schemes etc. and its compulsary for every organization.

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