Description
This is a presentation that includes topics like concepts, components and measuring of compensation.
Introduction to Compensation
Semester III Chapter 1
Concept of compensation
?
?
?
Compensation may be defined as money received for the services rendered. It includes Direct Compensation + Indirect Compensation For employers it is a part of cost of production.
Sugandha Agarwal 2
16/04/09
Components
Compensation
Wages & Salaries
Incentives
Fringe Benefits
Perquisites
Direct
Indirect
16/04/09
Sugandha Agarwal
3
Meaning of compensation management
Decenzo Robbins “compensation management aims at designing a cost effective pay structure that will attract, motivate and retain competent employees”.
16/04/09
Sugandha Agarwal
4
?
? ? ? ? ? ? ?
It includes such areas as: Job evaluation Surveys of wages & salaries Development and maintenance of wages structure Establishment of rules for administering wages Wage incentives and profit sharing Wage changes and adjustment Control of compensation costs
Sugandha Agarwal 5
16/04/09
Objectives
?
?
? ? ?
?
To attract and retain the employee To motivate employee to meet desired performance standards To achieve the internal & external equity To control excessive labor cost To ensure compliance with legal regulations To facilitates easy understanding and acceptability by all.
Sugandha Agarwal 6
16/04/09
Dimensions of compensation
?
?
? ?
Salary Pay Dispersion: tournament & equity fairness Incentives Perquisites
16/04/09
Sugandha Agarwal
7
Labour
?
It refers to any manual or mental work whether performed for monetary consideration or not.
16/04/09
Sugandha Agarwal
8
Characteristics
?
? ? ?
?
? ?
Active factor of production Labour is heterogeneous Labour is perishable Labour is a human factor Supply of labour is inelastic during the short run. Productivity & efficiency of labour can be improved. Efficiency and productivity of labour is highly contingent on factors surrounding him.
16/04/09
Sugandha Agarwal
9
doc_282456216.ppt
This is a presentation that includes topics like concepts, components and measuring of compensation.
Introduction to Compensation
Semester III Chapter 1
Concept of compensation
?
?
?
Compensation may be defined as money received for the services rendered. It includes Direct Compensation + Indirect Compensation For employers it is a part of cost of production.
Sugandha Agarwal 2
16/04/09
Components
Compensation
Wages & Salaries
Incentives
Fringe Benefits
Perquisites
Direct
Indirect
16/04/09
Sugandha Agarwal
3
Meaning of compensation management
Decenzo Robbins “compensation management aims at designing a cost effective pay structure that will attract, motivate and retain competent employees”.
16/04/09
Sugandha Agarwal
4
?
? ? ? ? ? ? ?
It includes such areas as: Job evaluation Surveys of wages & salaries Development and maintenance of wages structure Establishment of rules for administering wages Wage incentives and profit sharing Wage changes and adjustment Control of compensation costs
Sugandha Agarwal 5
16/04/09
Objectives
?
?
? ? ?
?
To attract and retain the employee To motivate employee to meet desired performance standards To achieve the internal & external equity To control excessive labor cost To ensure compliance with legal regulations To facilitates easy understanding and acceptability by all.
Sugandha Agarwal 6
16/04/09
Dimensions of compensation
?
?
? ?
Salary Pay Dispersion: tournament & equity fairness Incentives Perquisites
16/04/09
Sugandha Agarwal
7
Labour
?
It refers to any manual or mental work whether performed for monetary consideration or not.
16/04/09
Sugandha Agarwal
8
Characteristics
?
? ? ?
?
? ?
Active factor of production Labour is heterogeneous Labour is perishable Labour is a human factor Supply of labour is inelastic during the short run. Productivity & efficiency of labour can be improved. Efficiency and productivity of labour is highly contingent on factors surrounding him.
16/04/09
Sugandha Agarwal
9
doc_282456216.ppt