take advantage

1. PRSENTED BY: T.Y.B.M.S / A
SUMIT KORI – 38
JAYESH TEKCHANDANI - 48
AVINASH MOURYA - 49
DEEPAK N. GUPTA -50
HEMANT KUMAR HARIJAN - 51

2.  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 good compensation will also serve the need for
attracting and retaining the best employees. .
Introduction

3. 
 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 work-employee relation by
providing monetary and non-monetary benefits
to employees
Compensation

4. 
 When managed correctly, it helps the organization achieve its
objectives and obtain, maintain, and retain a productive workforce.
 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.
 Without adequate compensation, current employees are likely to
leave and replacements will be difficult to recruit.
 The outcomes of pay dissatisfaction harm productivity and affect
the quality of work life.
Cont.….

5. 
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Compensation Management

6.  Compensation provided to employees can direct in the form
of monetary benefits and/or indirect in the form of non-
monetary benefits known as perks, time off, etc.
 Financial Compensation:
Total Financial compensation = Direct + Indirect Compensation
 Direct Financial Compensation
– pay received in forms of wages, salaries, bonuses and
commissions , fringe benefits
Types of compensation

7. 
Fringe benefits described as
 Welfare expenses
 Wage supplements
 Perquisites other than wages
 Sub wages
 Social charges
Fringe Benefits

8. 
 Indirect Financial Compensation(benefits)
- All financial rewards not included in direct
compensation. For examples workers compensation,
Family & medical leave, Disability Protection,
 Nonfinancial Compensation
- Satisfaction person receives from psychological & or
physical environment in which person works. For
examples, skills variety, experiences, good working
conditions, flextime
Types of compensation (contd..)

9. 
 A good compensation package is important to motivate the
employees to increase the organizational productivity.
 Unless compensation is provided no one will come and work
for the organization. Thus, compensation helps in running an
organization effectively and accomplishing its goals.
 Salary is just a part of the compensation system, the employees
have other psychological and self-actualization needs to fulfill.
Thus, compensation serves the purpose.
 The most competitive compensation will help the organization
to attract and sustain the best talent. The compensation
package should be as per industry standards
Need of Compensation Management

10. Objective Of Compensation Management
Compensation
Package
Motivation
Need
Satisfaction
Employee
Retention

11. 
 To help the organization achieve strategic success while
ensuring internal and external equity.
 Internal equity- ensures that more demanding positions
or better qualified people within the organization are paid
more.
 External equity - assures that jobs are fairly compensated
in comparison with similar jobs in other firms
 Attract qualified personnel
 Retain current employees
 Reward desired behaviour
 Facilitate understanding
Cont.…

12. 
 Internal Factors:
 Employers Compensation strategy
 Worth of a Job
 Employees Relative Worth
 Employers Ability to Pay
DETERMINING COMPENSATION

13. 
 External Factors:
 Labor Market Conditions
 Area Wage Rates
 Cost of Living
 Collective Bargaining
Cont.……

14. 
 Wage and Salary Surveys
 Collecting Survey Data
 The Wage Curve
 Pay Grades
 Competency Based Pay
The Compensation Structure

15. 
 Payment of Wages Act, 1936
 Industrial Dispute Act, 1947
 Minimum Wages Act, 1948
 Equal remuneration Act, 1976
 Payment of Bonus Act, 1965
 Wage Board
Governmental Wage Policy of India

16. 
 Wage boards consist of an impartial chairman , two
other independent members and two or three
representatives workers and employers each
 The recommendations of the board are first submitted
to the government for the acceptance
 After acceptance the government requests the parties to
implement them.
Wage boards

17. 
 To establish good labor relations.
 To decide on appropriate wages
 To decide wages based on individual’s capability
 To develop a pre-determine scheme for payment of wages
 To establish linkages of wages payment with performance
 To provide for incentive payment
 To guarantee minimum wages
 To provide for neutralization of price rise
 To develop a wage structure which can attract talent
Objective Of A Good Wage Policy

18. 
 The Issue of Equal Pay for Comparable Worth
 The Issue of Wage Rate Compression
 Living Wage Laws
 The Issue of Low Salary Budgets
Compensation Issues