Module 5: Compensation

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Management:

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Meaning:

Compensation refers to all forms of financial returns & tangible service & benefits employees receive as part of an employment relationships.

The term compensation is used to mean employees gross earnings in the form of financial rewards and benefits as part of employment 6/3/12

Compensation may be viewed as:

v

A system of rewards that motivates employees to perform. A tool used by organization to foster the values, culture & the behavior they require. An instrument that enables

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Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an involves employee monetary benefits to organized practice that balancing the workrelation by providing and non-monetary employees.

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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 6/3/12 standards.

NATURE:

Adequate: Equitable Balanced Cost effective

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Objectives:

The objectives include: Efficiency: Improving performance Increasing quality Delighting stockholders customers &

Controlling labor costs

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Compliance regulations:

with

laws

&

Conforming to federal & state compensation laws & regulations. If laws change, pay systems may need to change.

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Thank you