1. COMPENSATION
MANAGEMENT
Submitted by:
Gurpreet Singh

2. CONTENTS
Introduction
Objectives
Components
Importance
Factoraffecting
conclusion

3. INTRODUCTION
 Compensation is a systematic
approach to providing monetary & non
monetary value to employees in
exchange for work performed.
 Compensation may be defined as
money received in performance of
work and many kinds of benefits that
an organization provides to their
employees.

4. OBJECTIVES
 To recruit & retain
qualified
employees.
 To increase or
maintain morale.
 To determine basic
wage & salary.
 To reward for job
performance.

5. COMPENSATION COMPONENT
compensation
monetary Non monetary
direct indirect

6. COMPONENT
Direct
compensation
 Base Pay
 Bonus
 Long term incentives
 Perks or perquisites

7. CONT…
Indirect compensation
 Insurance
(health, eye).
 Leaves
(sick, holiday/personal)
 Clothes
 Company parties
 Phones/laptop
 Retirement programs

8. NON MONETARY
 Enhance dignity & satisfaction from
work performed.
 Promote social relationship with co-
workers.
 Allocate sufficient resources to
perform work assingments.
 Offer supportive leadership &
management.
 Enhance physiological health,
intellectual growth.

9. IMPORTANCE
Job description
Job analysis
Job evaluation
Pay structure
Salary surveys

10. FACTOR AFFECTTING
External Internal
 Demand &  Compensation
supply of labour policy
 Cost of living  The org. ability to
 Society pay
 Labour unions  Job analysis &
 The economy
description
 Employee

11. CONCLUSION
We can say that good
compensation can increase the
productivity of an organization
because its provides various
rewards, bonus, schemes etc. and
its compulsary for every
organization.

13. ?
PLEASE