Findings & Recommendation:

Compensation and benefits which are provided to the employees are good but should be
better because employees of certain levels are satisfied but not all. So, MTB should increase
other benefits according to their promotion and efforts. Moreover, MTB should try to
increase compensation and benefits according to market standard analysis. One thing I like to
mention that MTB does not provide any life insurance policy which I have come to know
while working there. The absence of life insurance may discourage the employees to settle
there. Therefore, I think they can introduce life insurance policy to their employees since
other organization of similar field have their life insurance policy. In term of promotion MTB
only focuses to the increment of the salary. But I It is discourage the senior most employees
to continue their work at MTB due to
the policy of not giving compensation benefits 60 ages above employees. Therefore, I think
they can review this policy considering for the job satisfaction of senior level employees.

26
Matthew Freedman and Renata Kosova1 (2012) writes a paper entitled “Agency and
Compensation: Evidence from the Hotel Industry” in ‘The Journal of Law, Economics, and
Organization’ and examined how agency problems in the workplace interact with compensation
policies by taking advantage of the structure of the hotel industry, in which many chains have both
company-managed and franchised properties. As residual claimants on their properties’ profits,
franchisees have stronger incentives to monitor employees than managers in company-managed
hotels. Exploiting this variation and using rich, longitudinal data on the hotel industry, the effort has
been made to estimate differences in wages and human resource practices across company-
managed and franchised hotels within chains as well as within individual hotels as they change
organizational form. The results suggest that the timing of pay and the propensity to use
performance-based incentives relate to the extent of agency problems within establishments.

Yao-Hung Yang (2013) conducted a study and published a research paper entitled “An
Investigation of the Business Performance and Manager Compensation of Taiwanese Non-Family
Controlled and Family-Controlled International Businesses” in ‘International Journal of Economics
and Finance’. This study explores the problem of the communities of interest that form when
management and ownership overlap. Samples were obtained from the Taiwan Economic Journal
(TEJ) data bank from 2005 to 2011. The result of non-family-controlled international businesses
shows that business accounting performance is improved when directors serve as managers;
however, if control rights exceed ownership rights to a great extent, business accounting
performance declines. The results of family-controlled international businesses shows that directors
who serve as managers can monitor compensation 15 effectively; however, if control rights exceeds
the ownership rights to a great extent, communities of interest can pursue selfish interests. In this
study, suggested that directors serve as managers to improve business performance and supervise
managers’ compensation. Moreover, controlling shareholders should serve as board members with
a certain proportion to prevent excessive interest assimilation.

Afroja Rehan Rima and Md. Rifayat Islam (2013) have written a paper “A Case
Study on Compensation System Practices in the Perspective of Telecom Industries of Bangladesh” in
‘American International Journal of Research in Humanities, Arts and Social Sciences’.
Telecommunication sector in Bangladesh has always been leading the way to initiate new products
and services in the local marketplace. The total strength of this sector depends on their employees
stood at approximately 20,000 at the end of the year. The telecom industry considers that a hefty,
skillful and enthusiastic employee is the key factor to success. The continual expansion of their
people is an essential factor in driving their growth ambitions. They place a strong importance on
how they are investing on their people and in people development, building a strong performance
culture and driving the right levels of motivation across the organization. “People” are the central
focus, which is why they maintain a very strong Human Resource Managing Culture throughout their
organizations. As they give more focus on their employees and for that they want to do best for
them through motivation so that they will be able to perform in an efficient and effective way.
Though there were some dark sided regarding the full utilization of the process in the perspective of
Bangladesh; still the telecom industry in Bangladesh getting benefitted from it. A good
compensation system is very much effective for an organization; whatever the industry. It creates an
opportunity for the telecom industry in Bangladesh’s employees as well for high involvement with
the organization. Through a strong and standardized compensation system, employee can compare
themselves with others. No 16 compensation system can succeed without a clear, concise, and
comprehensive communication plan. Every employee should make clear themselves about the
whole process to proceed for further and make them competent in such a competitive market place.
In this case study, a brief description of compensate issues has been highlighted and finally build up
a comparison between two leading telecom companies in Bangladesh and make some effective
recommendations.

Maria Joutsenvirta (2013) published a paper “Executive Pay and Legitimacy: Changing
Discursive Battles over the Morality of Excessive Manager Compensation” in ‘Journal of Business
Ethics’. This study investigated discursive processes through which heavily contested executive pay
schemes of the Finnish Energy Giant Forum were constructed as (i) legitimate in public during 2005–
2009. The critical discursive analysis of media texts identified five legitimation strategies through
which politicians, journalists, and other social actors contested these schemes and, at the same
time, constructed subject positions for managers, politicians, and citizens. The comparison of two
debate periods surrounding the 2007–2008 financial crisis revealed significant differences in the
discursive strategies and the corresponding moral struggles linked to legitimation of executive
compensation. The analysis highlights a change in moral reasoning by social actors as they adapt
their justifications to a changing social context. This study has important implications for our
understanding of the ethical aspects and sociopolitical embeddedness of manager compensation. In
particular, it adds to the knowledge of organizational legitimacy by showing how discursive
strategies and the corresponding morality constructions used to (de)legitimate business activities
can shift quickly as a result of a change in the social and political climate surrounding the
legitimating struggle.

Hang Le et al.(2013) conducted a study and published an article entitled “Management

Compensation Systems in MNCs and 17 Domestic Firms: Cross-National Empirical Evidence” in
‘Management International Review’ and it is a study of the relationship between institutional
settings and managerial compensation systems, based on extensive cross-national survey evidence.
The authors compared the differences in practices between Multinational Corporations (MNCs) and
domestic firms across a range of capitalist archetypes. It was found that MNCs are more likely to
promote compensation systems that incentivize managers in line with organizational performance
compared to domestic firms. The findings also reveal persistent diversity reflecting firm type and
institutional setting. The authors find that the gap between MNCs and domestic firms in terms of the
usage of incentive-related compensation is less pronounced in Liberal Market Economies than in
other settings. This suggests that it is a combination of being an MNC and the specific home locale
that moulds approaches to managerial compensation. This reflects considerable hybridization of
practices within and between settings.

Bijan Abedini et al. (2013) published a paper entitled “Analysis of the Relationship between
Managers’ Compensation and Earnings in Companies Listed in the Tehran Stock Exchange” in
“Journal of Educational and Management Studies”. The objective of the paper is to study the
relationship between managers’ compensation and earnings in companies. It is a causal-analytic
survey which is based on analysis of panel data. In this study, the financial information on 112
companies listed in the Tehran Stock Exchange from 2006 to 2010 is analyzed. It shall be mentioned
that 560 companies were listed in the Tehran Stock Exchange each year. The SPSS 20, EVIEWS 7 and
MINITAB 16 software were used for analysis of the research results. The results of the study shows
that there is a significant direct relationship between managers’ compensation and earning.
Yusuf Mohammed Nulla (2013) published “The Examination of Top Manager
Compensation System of NYSE Energy Companies” in ‘Strategic Management Quarterly’. This study
investigated CEO 18 compensation system of NYSE energy companies. It tested the relationship
between CEO compensation, firm size, accounting firm performance, and corporate governance,
from 2005 to 2010. The totaled twenty five companies were selected through random sampling
method from NYSE index companies. The research question for this study was: is there a relationship
between CEO cash compensation, firm size, accounting performance, and corporate governance? To
answer this question, nine statistical models were created. It was found that, there was a
relationship between CEO salary, CEO bonus, total compensation, firm size, accounting
performance, and corporate governance. The correlations between CEO salary, CEO bonus, CEO
total compensation and firm size were ranged from moderate to strong positive ratios. The
correlations between CEO compensation and firm performance were ranged from low negative to
strong positive ratios. The correlations between CEO compensation and corporate governance were
ranged from low negative to moderate positive ratios.

Abbdul-Jaleel Saani (2013) writes on “Influence of Compensation and Supervision on

Private Basic School Teachers Work Performance in Ashaiman Municipality” in ‘International Journal
of Business and Social Sciences’. This study investigated the influence of compensation and teacher
supervision on teacher work performance. A total of 103 randomly selected private basic school
heads and teachers in the Ashaiman community of Tema, Ghana completed the questionnaire. Data
for the study were analyzed using multiple regression analysis. It was found out that compensation
and teacher supervision relate positively to teacher work performance; however, the two variables
do not directly predict work performance. They do so only if teachers are satisfied with the forms of
compensation available to them. It is therefore recommended that management of private basic
schools should design attractive compensation packages for their teachers. They should also use 19
appropriate supervision strategies in their schools, as this increases teacher work performance.

Amit Hole and Ashutosh Misal (2013) published a paper entitled “Impact of
Compensation Strategies on Performance of Insurance Agents in General Insurance Companies” in
‘Tactful Management Research Journal’. Since 1956, with the nationalization of insurance industry,
the LIC held the monopoly in India’s life insurance sector, GIC, with its four subsidiaries, enjoyed the
monopoly for general insurance business. From 1991 onwards, the Indian Government introduced
various reforms in the financial sector paving the way for the liberalization of the Indian economy. It
was a matter of time before this liberalization affected the insurance sector. Insurance being one of
the segments of financial sector, it has in the recent past gone through a transformation and change
including the passing of IRDA (Insurance Regulatory and Development Authority) Act 1999. Due to
the IRDA Act 1999 the insurance sector has been opened up, the monopoly of government
companies has broken and many new private players have entered into the insurance sector and
thus the sector has become highly competitive with full of challenges. Several factors account for
new private general insurance companies speedily penetrated in the market. Private companies
develop new distribution channels. They were having particular success in forging bank assurance
alliances, through direct marketing. This research paper analyzes impact of compensation policies on
performance of insurance agents for general insurance sector. It helps to improve the market share
of public sector general insurance company by improving performance of insurance agents by
motivating them by technique of compensation management. It provides a toolset for strategic
remuneration planning that reflects organization culture and pay strategies.
Rim Ben Hassen (2014) writes on “Executive Compensation and Earning Management” in
‘International Journal of Accounting 20 and Financial Reporting’. Given the growing complexity of
business, the need for financial reporting to include more reliable information is increased. For this
information to be relevant, they must be conducted in an implementation of an efficient system of
control to ensure a high quality result. The directors of listed companies may be required to affect
the quality of accounting earnings as their compensation depends. Therefore, it would be wise to
examine the relationship between the elements of executive compensation and earning
management. The objective of this paper is to examine one of the motivations that could encourage
managers to manage the accounting results, namely the managerial remuneration. The result of this
study shows that executive compensation is determined by the requirements of earning
management. Specifically, our litters indicate that total compensation is negatively related to the
absolute value of accruals. This result confirms the theoretical hypothesis alignment of interests of
executives with those of shareholders.

Roya Anvari et al. (2014) conducted a study and presented a paper entitled “Mediating
Effects of Affective Organizational Commitment and Psychological Contract in the Relationship
Between Strategic Compensation Practices and Knowledge Sharing” in ‘International Conference on
Innovation, Management and Technology Research’. This study contributes to the development of
the knowledge management and strategic compensation literatures through developing the linkages
between them. The study sample comprised of 301 employees from universities of medical sciences
in Iran. Multiple and simple linear regression and path analysis were used to test the direct and
mediated relationships among the variables. Results highlighted significant relationships between (a)
strategic compensation practices and affective organizational commitment (b) affective
organizational commitment and knowledge sharing (c) strategic compensation practices and
psychological contract and (d) psychological contract and knowledge sharing. The study revealed
that strategic compensation practices are positively 21 related to affective organizational
commitment and psychological contract. In addition, the results provided evidence that affective
organizational commitment and psychological contract have a significant mediating effect on the
relationship between strategic compensation practices and knowledge sharing. Managerial and
practical implications of the findings are highlighted.

Grace Mwamburi Odhiambo and Esther Waiganjo (2014) examines the role of human capital
management strategies on the mobility of employees, specifically, the influence of communication
of corporate strategy, organizational alignment strategy, compensation strategy and
transformational leadership strategy on employee mobility. It adopted a case study research and
used a semi structured questionnaire to collect data that was analyzed using Microsoft Excel and
SPSS. The study’s findings revealed that JKUAT had communicated its corporate strategy well as over
90% of the respondents were aware of the vision and mission. Presence of transformational
leadership was also established. Organizational alignment was found to be non-existent while
compensation strategy emerged as the most prominent trigger for employee mobility. The research
recommends that the university considers utilizing its ICT infrastructure and telephone as channels
for disseminating strategy information; incorporating the HR function in the university management
board and reviewing its compensation system for equity and alignment with responsibilities and
qualifications. Uthra13 (2014) published an article entitled “A Study on Compensation Management
at Sri Steel Industries Limited, Coimbatore” in ‘The International Journal of Business and
Management’. In Today’s Dynamic Economy, with increased corporate competition and the job
uncertainty that follows hand in hand with mergers and acquisitions, it is becoming ever more
important to offer employees a benefits package that they perceive to be of great value. Not only
benefits packages help to retain employees, they can help to attract qualified candidates to add to
the 22 workforce. The sound compensation system is hallmark of organization’s success and
prosperity. The success and stability of organization is measured with pay-package it provides to its
employees. Compensation dissatisfaction can lead to absenteeism, turnover, job dissatisfaction, low
performance, strikes and grievances. Majority of labor-management disputes relate to
compensation. The objectives of the study are to study the compensation management practices in
the organization and also to identify the type of compensation and analyze the satisfaction of
workers with regard to compensation. The study assumes the nature of descriptive research. The
sample size considered for the study is 50. The respondents are the employees of Sri Steel Industries
Limited, Coimbatore. The sampling technique used is Strata sampling. The data is collected from the
sample through Questionnaire method. The statistical tools used for analysis are chiSquare and
mean score. The mathematical tool used is percentage analysis. It is found that most of the
employees are satisfied with the compensation policy followed at their organization and they are
also satisfied with the non-monetary benefits provided, basic pay, house rent allowance, dearness
allowance ,conveyance allowance, medical benefits provided, over time allowance, travelling
allowance. The employees are dissatisfied with the leave rules laid. From the chisquare analysis it is
observed that there is no relationship between the no. of year’s service and giving equal part in
decision making process and it is also observed that there is a significant relationship between the
work performance of the employee and the kind of compensation. It is recommended that
management can consider the pay revision at least once in every three years and as respondents are
dissatisfied with the leave rules of the organization management can laid down the leave rules in
consultation with the employees, if possible. 23 Nate Holdren14 (2014) published on “Incentivizing
Safety and Discrimination: Employment Risks under Workmen’s Compensation in the Early
Twentieth Century United States” in ‘Enterprise and Society’. This article takes criticisms of
employment discrimination in the aftermath of the creation of workmen’s compensation legislation
as a point of entry for arguing that compensation laws created new incentives for employment
discrimination. Compensation laws turned the costs of employees’ workplace accidents into a risk
that many employers sought to manage by screening job applicants in a manner analogous to how
insurance companies screened policy applicants. While numerous critics blamed insurers for
discrimination, the author argue that the problem was lack of insurance. The less that companies
pooled their compensation risks via insurance, the greater the incentives for employers to stop
employing people they would have previously been willing to hire. Abdul Hameed et al.15 (2014)
published “Impact of Compensation on Employee Performance (Empirical Evidence from Banking
Sector of Pakistan)” in ‘International Journal of Business and Social Science’. Compensation is very
important for the performance of the employees. Therefore, they are very important for the
organization too. The purpose of this research is to measure the impact of compensation on
employee performance. A questionnaire was designed to collect the data on the factors related to
compensation like salary, rewards, Indirect Compensation and employee performance. The data was
collected from different banks of Pakistan. The data collected were analyzed in SPSS 17.0 Version.
Different analytical and descriptive techniques were used to analyze the data. It is found from
different results that Compensation has positive impact on employee performance. It is proved from
correlation analysis that all the independent variables have weak or moderate positive relationship
to each other. Regression analysis shows that all the independent variables have insignificant and
positive impact on employee performance. Descriptive analysis also 24 reveals that all the
independent variables have positive impact on employee performance. ANOVA results reveal that
education have not same impact on employee performance. The major limitation of this research is
that this study only covers the banking sector of Punjab. Another limitation is that it excludes many
variables of compensation due to shortage of time. Funds were also another limitation. Apart from
these limitations this research may provide insights to the managers to enhance the employee
performance of their subordinates. Avinash Pawar and Charak16 (2014) writes and article entitled “A
Study and Review of Employee Value Proposition: A Tool of Human Resource Management” in
‘Review of Research’. The Employee Value Proposition (EVP) represents the perceived overall deal
between employer and employee. The employer makes an offer to the employee (or the give) and
expects contributions (or the get) from the employee in return. The inducements and contributions
consist of mutual obligations and promises. Inducements typically concern things such as career
progression, organizational support, fair and transparent performance management and more
tangible things such as pay and holiday entitlements. Contributions relate to things such as working
hours, being an advocate of the employer within and outside the organization, bringing skills,
enthusiasm and entrepreneurship to productive work. Importantly, within the overall deal there are
nested deals operating at different levels of the organization, such as the tailored, workable
arrangements forged between team leader and team members, these reflect opportunities available
for employees to shape their work experience. Topperforming companies create a sustainable EVP
and total rewards strategy based on the needs, demographics and preferences of their workforce.
Employee Value Proposition refers to the rewards and benefits that an employee receives in return
of the performance that he gives at the workplace in the organization. Manpower planning is putting
the right number of people, right kind of people at the right 25 place, right time, doing the right
things for which they are suited for the achievement of organizational goals. EVP is at the core of all
other organizational processes. The characteristics of the EVP need to be reflected in the corporate
and employer brands. The EVP, if maintained well is the driver of engagement, it informs
recruitment messages and communications and it helps to inform strategic HR priorities. It helps to
support and drive business strategy forward. People are the most important assets. Treat them like
they make a difference and they’ll make a difference. This paper takes the Review of Concept of
Employee Value Proposition and its relationship with Human Resource Management. Adisa Delić and
Amra Nuhanović17 (2014) published a paper entitled “Management Compensation and the World
Economic Crisis: Evidence from Bosnia and Herzegovina” in ‘Asian Journal of Business Management’.
In the published scientific discussions the main factors – causes of crisis have been often analyzed.
All those (up to now) analyzed factors make the crisis long-lasting, harder, uncertain with hardly
predictable implications. On the other hand, understanding the cause and preventing the
consequences of crises are an important precondition of economic and social development of any
country. With regard to this, the main aim of research by the authors is to explain the view according
to which, the greed of Wall Street bankers caused by excessive management compensation has also
been, inter alia, one of the relevant factors causing and deepening the 21st century world economic
crisis. Furthermore, the paperwork provides an overview of possible directions of regulation in the
field of management compensation, all with the aim to prevent large scale crises in the future.
Finally, to complete the research, the authors have analyzed the state in the field of management
compensation in Bosnia and Herzegovina. Ofoegbu Onyema18 (2014) writes an articl