Upload
kishwar-subhani
View
217
Download
0
Embed Size (px)
Citation preview
8/6/2019 Compensation Presentation 2
1/14
8/6/2019 Compensation Presentation 2
2/14
Defination
y Compensation is the remuneration received by anemployee in return for his/her contribution to theorganization. It is an organized practice thatinvolves balancing the work-employee relation byproviding monetary and non-monetary benefits toemployees.
y Compensation is an integral part of human
resource management which helps in motivatingthe employees and improving organizationaleffectiveness.
y Compensation systems are designed keeping inminds the strategic goals and business objectives
8/6/2019 Compensation Presentation 2
3/14
TRENDS IN INDIA
y Compensation trends in India changed with
liberalization in 1991.y Government was the biggest job creator
y Guaranteed pay determined by agreement betweenemployee unions and Government
8/6/2019 Compensation Presentation 2
4/14
Types of compensationy There are six basic tools of compensation or
remuneration.
1. salary2. bonuses, which provide short-term
incentives
3. long-term incentive plans
4. employee benefits5. paid expenses (perquisites)
6. insurance
8/6/2019 Compensation Presentation 2
5/14
COMPENSATIONy COMPENSATION
-something (such as money) given or received as payment orreparation, or can refer to;
y Damages- legal term referring to the financial compensation
recoverab
le by reason of another's breach of duty; the money paid orawarded to a plaintiff.y Workerscompensation- is a payment provided to employees when
th
ey injured while at works.y Remuneration - is pay or salary, typically monetary payment for
services rendered, as in an employment. Usage is considered formal.y Executivecompensation- is how top executives of business
corporati
ons are paid. This includes a basic salary, bonuses, shares,options and other company benefits for work on the board of directors.y Deferred compensation- is an arrangement in which a portion of an
empl
oyee's income is paid out at a date after which that income isactually earned.
y Example of Deferred Compensation; PENSION, RETIREMENT PLAN.
8/6/2019 Compensation Presentation 2
6/14
COMPENSATION FORCOMPENSATION FOR
DAMAGESDAMAGESy damages is an award ofmoneyto be paid to a person as
compensation for loss or injury
y Compensatory damages, called actualdamages, are paid
to compensate the claimant for loss, injury, or harmsuffered as a result of another's breach of duty
8/6/2019 Compensation Presentation 2
7/14
8/6/2019 Compensation Presentation 2
8/14
WORKERSWORKERS COMPENSATIONCOMPENSATIONy is a payment provided to employees when they injured
while at works.
8/6/2019 Compensation Presentation 2
9/14
CASE STUDY
8/6/2019 Compensation Presentation 2
10/14
REMUNARATIONy is pay or salary, typically monetary
payment for services rendered, as in anemployment. Usage is consideredformal.
FACTORS DEVISING PAYSTRUCTURE
y Job evaluation.
y What must be paid to attract rightpeople
y Affordability of the organizationy Requirements to meet organizational
goals
y It must have 2 components-
base rate and scope
8/6/2019 Compensation Presentation 2
11/14
8/6/2019 Compensation Presentation 2
12/14
EXECUTIVES COMPENSATIONy is how top executives of
business corporations arepaid. This includes a basicsalary, bonuses, shares,options and other companybenefits for work on theboard of directors
8/6/2019 Compensation Presentation 2
13/14
IIPMEXECUTIVECOMPENSATION
PACKAGEy Two main components of executive compensation
package
y Base salary and Cash Incentive/ Bonusy Long-term Incentive Compensation
y The main elements drive compensation package
y Competitive marketplace
y Complexity of leading IIPM
8/6/2019 Compensation Presentation 2
14/14