FACULTY: ECCONOMIC MANAGEMENT

DEPARTMENT: BUSINESS ADMINISTRATIOIN

SUBJECT: HRM
UNIT 2: Compensation
 Members:

Maxamed duran maxamed.

Siciid cabdulaahi yaasiin.

Siciid cabdulaahi muuse.

Axmed duran ali.

Cabdulaahi axmed jaamac.

 OBJECTIVES
At the end of this
unit, you should
be able to:

List factors Explain the basis

define what
determining of compensation
compensation is
general pay level and rewards
Compensation
Introduction

Compensation refers to the financial and non-

financial rewards that employees receive in
exchange for their work and services at a
company. It can include salary or wages,
bonuses, benefits, and other perks such as
stock options or vacation time.
Factors Determining the General Pay Level
Market Demand.
Skill and Education.

Experience
Company size
location
the basis of compensation and rewards

Compensation and reward administration as a tool of management

is designed to achieve certain objectives:

Equity: A fair day‟s job must be followed by a fair days pay. And
equal work must elicit equal pay.

Competition: One of the philosophical bases of reward

management is to attract.
 CONCLUSION

In this chapter we have studied the topic of

Compensation and Rewards. It gives its
meaning and the factors used in its
determination. The most important factors
are economic, social and ethical issues.
End lesson
• THANKS ALL OF YOU FOR THE LISTENING