Compensation

PRESENTATION ON COMPANSATION

PREPARED BY ABEER RAJA PGDBM JAIN COLG BANGALORE

 TAPOMOY

K

DEB.

SOURCES

ASWATHAPPA.

 INTERNET.

TOPICS  DEFNITION  THEORIES  COMPANSATION  COMPANSATION

STRATEGY

EVERYONE

LIKES TO BE PAID.

COMPENSATION

IS THE REMUNERATION

COMPENSATION

IS MOTIVATION.

 WAGES

AND SALARY

 INCENTIVES  FRINGE

BENEFITS

 PERQUISITS  NON

e.g INFOSYS.

MONETARY BENEFITS

Remuneration Financial Hourly Monthly Rated Wages And Salaries

Incentives Individual Plans Group Plans

Fringe Benefits Gratuity P.F Insurance etc

Non financial

Perquisites Furnished House Stock Option Schemes

Job context Challenging Job Recognition

COMPONENTS OF EMPLOYEES REMUNERATION

THEORIES  EQUITY

 REINFORCEMENT

 EXPECTANCY

 AGENCY

 DISREPANCY

EQUITY THEORY  GIVEN

BY ADAM

 POSITS

EMPLOYE’S INEQUITY AND ITS RESTORATION IN REMUNERATION . IN THIS WE HAVE

 INTERNAL  EXTERNAL

EQUITY EQUITY

 INDIVIDUAL

EQUITY

Internal equity

External Equity

Motivation

Perception Of fairness

Individual Equity

DIAGRAMATIC REPRESENATATION OF EQUITY THEORY

Commitment

Performance

Performance Desire for More pay

Strikes Grievances

Search for Higher Paying jobs

Absenteeism Turnover

Pay Dissatisfaction

Lower attractive ness of job

Job Dissatisfaction Absenteeism

Psychological withdrawal Visits to the Doctor Poor Mental Health

CONSEQUENCES OF PAY DISSATISFACATION

Feedback To Employees set Expectations And goals

Employees Performance is reward

Employee considers Equity of Performance rewards

MOTIVATION AND PERFORMANCE MODEL

Feedback To Employees set Expectations And goals

Employees Performance is reward

Employee considers Equity of Performance rewards

MOTIVATION AND PERFORMANCE MODLE

COMPENSATION STRATEGY. 

HOW AN ORGANIZATION WANTS TO PAY ITS EMPLOYEES.



EMPLOYEES SATISFACTION.



ACHIEVING GOALS.



CLASSIFIED INTO 4 DISTINCT AREAS.

PAY LEVEL DECISION.  LEAD,LAG

OR MATCH POLICY.

 WETHER

OR NOT EMPLOYEES ARE WILLING TO CONTINUE TO WORK FOR THE ORGANIZATION.

 UNDER

PAY LEADS TO DISASTEROUS SITUATION.

PAY DIFFERENTIATION DECISION.  BASED

ON SENIORITY.

 BASED

ON MERIT.

PAY STRUCTURE DECISION.  PAY

DIFFERENCES BETWEEN LEVELS OF HIERARCHY.  SIGNIFICANT PAY DIFFERENCES BETWEEN HIERARCHICAL LEVELS SHIFTS FOCUS FROM EFFECTIVE TO SUCCESS.

PAY ADMINISTRATION DECISION.  MERIT.  SUBJECTIVE.  TENURE.

FACTORS AFFECTING COMPENSATION.  EXTERNAL

 INTERNAL

COMPETITIVENESS.

COMPENSATION STRUCTURE.

 TECNOLOGICAL  CHANGE  CAREER

DEVELOPMENTS.

IN CULTURE. DEVELOPMENT.

 ECONOMIC

RESTRUCTRUING AD DIFFERENT .

 FINANCIAL

RESULTS.

 FINANCIAL

RESULT.

 RISNG

COST

DERMINANTS OF EMPLOYEEE COMPANSATION  MOTOVATION OF EMPLOYEES

 DUTY

OF TOP MANAGEMENT AND HR PEOPLE

FACTORS INFLUENCING  ORGANIZATIONAL

STRATEGY



ORGANIZATIONAL STRATEGY



ORGANIZATIONAL CHARAC. CATAGORISED (a). Defenders. (b). Prospectors. (c). Analyzers.



EXTERNAL ENVIRONMENT

COMPENSATION STRUCTURE Fixed pay:  Base

pay.  Competence-based pay.  Fixed period employment contracts.  Fringe benefits.  International remuneration.  Performance pay.  Retirement funds.  Total package.

Cont….. VARIABLE PAY  Long-term  Share

incentives

schemes

 Short-term  Long-term

incentives incentives

 Organization

wide incentives