COMPENSATION

1.7
AND
ORGANISATIONAL
OBjECTIVES
The compensation system is
designed to achieve certain
objectives. Though the main
objective of compensation
management is to attract competent
personnel, minimize the conflict,
encourage the employees to perform
better, and have a culture and
policies to retain them, it aims at
treating the employees as an asset to
the organization and properly
maintains them, to retain them and
keep satisfied.
The establishment of equity is an
important objective of compensation
management. However, the general
objectives of compensation
management could be listed as
below:
 To attract and acquire
qualified and competent
employees to meet the
organizational objectives
 To secure internal and external equity
 To control the desired behaviour of the
employees
 To reduce conflicts and grievances
 To ensure industrial harmony
 To simplify minimum bargain
 To facilitate pay roll and pay system.
Every organization has a goal to
accomplish and an urge to develop
competitiveness, and therefore tries
to acquire and retain the talents by
designing and offering attractive
compensations. To accomplish this

Fill in the blanks:

11. Every organization has a goal to accomplish and an urge to develop
competitiveness, and therefore tries to acquire and retain the talents by
designing and offering attractive.

“In this era of talent wars, compensation structures have lost their utility”
Critically evaluate the statement and give examples to justify your answer.
task both the employer's and the
employee's objectives regarding the
compensation and the internal as well
as the external environment need to
be studied.