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I-INTRODUCTION:

: Analysis of Compensation Management in Muthoot Capital Services, Ernakulam : Sidharth R (11HM30)

Compensation Something (such as money) given or received as payment for a service Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the workemployee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. COMPONENTS OF COMPENSATION SYSTEM Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

PURPOSE OF COMPENSATION MANAGEMENT: Compensation is a key factor in attracting and keeping the best employees and ensuring that your organization has the competitive edge in an increasingly competitive world. The Compensation Management component enables you to differentiate between your remuneration strategies and those of your competitors while still allowing flexibility, control and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects your organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allows you to control bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion in other words, total compensation. SCOPE OF COMPENSATION MANAGEMENT: In todays world organizations tries more to assess the worth of an individual in terms of his performance and contribution to the organizations. With the growing demand of workforce and constant challenges in the business environment, organizations have to evolve and accurate system for evaluating jobs and assessing their worth. Compensation management helps to determine the relative worth of a job in an organization in a systematic, consistent and accurate manner. It also helps in estimating the basic pay for each job in accordance with the importance of the job in the organizational hierarchy .once a basic pay is determined , the rewards , incentives and benefits attached worth the pay, positions and performance are also determined . The basic wage, incentives and rewards and benefits, together form the compensation package of an employee IMPORTANCE OF THE STUDY: An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. It should be easy to implement, should not result in exploitation of workers. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor acts. It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel. Sound Compensation/Reward System brings peace in the relationship of employer and employees. It aims at creating a healthy competition among them and encourages employees to work hard and efficiently. The system provides growth and advancement opportunities to the deserving employees. The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability. The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job. The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce. The sound compensation system is hallmark of organizations success and prosperity. The success and stability of organization is measured with pay-package it provides to its employees.

RISK INVOLVED IN COMPENSATION MANAGEMENT: An unclear definition of the companys future; Not effective communication; Employees dont see a role for themselves; A sense of insecurity; incentive plans are incomplete or inadequate; compensation is not treated as an investment, but as an expense; rewards plans are not integrated; incentive plans remain unchanged for long periods of time;

In order to avoid such risk these three action steps that companies should take in preparation. Educate the compensation committee about these new disclosure requirements to eliminate information gaps.

Work with the compensation committee to determine the companys approach to compensation and risk management in advance of regulation. Understand the companys existing risk management process and key business risks.

LIMITATIONS OF THE STUDY: The area of project work is banking sector so, the data or result may be approximate as the conclusion is based on the survey method i.e. primary & secondary source (filling of questionnaire from the employees) may be hypothetical (imaginary) data. TIME REQUIREMENT: The study has been scheduled for four months. PLACE OF STUDY: Internship training for this study is under gone at MUTHOOT CAPITAL SERVICES, Kerala.

II-DESIGN OF THE STUDY: OBJECTIVE: To analyze the payroll administration employees To analyze employee satisfaction To analyze performance level of employees To analyze

RESEARCH DESIGN: The study proposes to conduct a descriptive research on compensation management. DATA COLLECTION: The study will be based on both primary and secondary data. Secondary data contains datas from various journals and web resources about compensation. Primary data contains datas from employees at all level in an organization. SAMPLE FRAME: Employees of Muthoot Capital Services shall be the sample frame for the study

SAMPLIING TECHNIQUE: Simple random sampling technique is used for collecting the data. All employees are selected for the study. DATA REPRESENTATION: The Raw data will be fed through the Ms-Excel data sheet and it will be represented in tabular and diagrammatic forms to ensure easy statistical analysis. DATA ANALYSIS: The statistical package of SPSS and the statistical tools of mean, chi square, factor analysis and ANOVA will be used to analyze and interpret the data for meaningful conclusion.

III- CONCLUSION:

Outcome of the study will have

The payroll administration of employees Employee satisfaction level with respect to compensation and atmosphere Performance level of employees.

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