COMPENSATION

MANAGEMENT
Submitted by:

Gurpreet Singh

CONTENTS
Introduction
Objectives

Components
Importance
Factor

affecting
conclusion

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

COMPONENT
Direct compensation

Base Pay

Bonus

Long term incentives

Perks or perquisites

CONT
Indirect compensation

Insurance (health,
eye).
Leaves (sick,
holiday/personal)
Clothes
Company parties
Phones/laptop
Retirement programs

NON MONETARY
Enhance

dignity & satisfaction from

work performed.
Promote social relationship with coworkers.
Allocate sufficient resources to
perform work assingments.
Offer supportive leadership &
management.
Enhance physiological health,
intellectual growth.

IMPORTANCE
Job

description
Job analysis
Job evaluation
Pay structure
Salary surveys

FACTOR
AFFECTTING
External

Internal

Demand

Compensation

&
supply of labour
Cost of living
Society
Labour unions
The economy

policy
The org. ability
to pay
Job analysis &
description
Employee

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.

PLEAS
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