COMPENSATION

MANAGEMENT

SUBMITTED BY:
RUTH GHALEY
B.COM ( HONS )
3rd SEMESTER (B)
SUBMITTED TO :
DR. RAGINI CHAUHAN
 INTRODUCTION
 The term compensation as a
substitute word for wages and
salaries, is of recent origin.
 It has become imperative for
organizations to balance the
cost of compensation and
employee motivation to
survive in a competitive world.
 Employee compensation is a
better term than employee
benefits or wages or salaries.
 WHAT IS COMPENSATION
MANAGEMENT?

 Compensation Management is designing and

implementing total compensation package
with a systematic approach to providing
value to employees in exchange for work
performance.
 OBJECTIVES

 To recruit and retain qualified employees,

 To increase or maintain morale.
 To determine basic wage and salary.
 To reward for job performance.
 COMPONENTS OF
COMPENSATION
 Wages
 Salary
 Incentives
 Fringe Benefits
 Perquisites
 Real Wages
 Non-monetary
benefits
 Rewards
 Nominal Wages
 COMPENSATION & BENEFITS
PACKAGE
 Base Salary – the fixed amount to be paid.
 Incentives – additional variable pay based on
performance.
 Protective – programs which insure employees
against loss.
 Capital Accumulation – programs that provide the
opportunity to establish a personal estate.
 Retirement Income – plans that defer income for
services rendered to a later payment date.
 Perquisites – company paid allowances beyond
direct pay.
 WHAT DO YOU MEAN BY
WAGES ?
Payment for labor or services to a
worker, especially remuneration on
an hourly , daily , or weekly basis or
by the piece.
 CONCEPTS OF WAGES
 Minimum
Wages
 Fair Wages
 Living Wages