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COMPENSATION
OUTLINE, DEFINITIONS AND IMPORTANCE
HELWAN UNIVERSITY
FACULTY OF COMMERCE AND BA.
PROFESSIONAL POST-GRADUATE ...
QUOTE
“Our Assets walk out of the door each evening. We
have to make sure that they come back the next
morning.”
Narayana ...
ILOs
1- WHAT ARE THE VARIOUS DEFINITIONS OF COMPENSATION?
2- HOW IS COMPENSATION USED?
3- WHAT ARE THE DIFFERENT TYPES OF ...
DEFINITIONS
Wage:
- Paid to blue-collar workers.
- Paid daily, weekly or monthly.
- Paid for the jobs which can be
measure...
COMPENSATION!!?
COMPENSATION
“All forms of pay going to employees and
arising from the employment.”
Gary Dessler
COMPENSATION
- The sum of all forms of payments/rewards provided to employees for performing
tasks to achieve organization...
BENEFITS
“Employee benefits as a whole have no direct affect on
employee performance, however, Inadequate Benefits
do cont...
THE IMPORTANCE OF COMPENSATION
THE IMPORTANCE OF COMPENSATION
Compensation may be used to:
- Recruit and retain qualified employees.
- Increase or mainta...
THE IMPORTANCE OF COMPENSATION
The Organization:
- Job Satisfaction
- Motivation
- Low Absenteeism
- Low Turnover
The Empl...
THE IMPORTANCE OF COMPENSATION
HIGH COMPENSATION - LOW
COMMITMENT
Hired Guns
HIGH COMPENSATION - HIGH
COMMITMENT
Professio...
THE COMPONENTS OF
COMPENSATION SYSTEM
- Job Description
- Job Analysis
- Job Evaluation
- Pay Structure
- Salary Surveys
-...
COMPONENTS OF COMPENSATION
COMPONENTS OF COMPENSATION
OPEN DISCUSSION
THANK YOU ..
Compensation [ Outline, Definitions and Importance ]
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Compensation [ Outline, Definitions and Importance ]

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In 2009 an Aberdeen study found that 60% of executives believed that the current state of the economy would increase the importance their organizations placed on Human Capital Management. In a time when business results are of utmost importance, and companies are increasingly seeking efficiencies, human resources can be the difference between success and failure. Many companies are willing to admit that their most important resource is their people, and one of the tools, organizations use to attract, retain and motivate its employees is Compensation Management.

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Compensation [ Outline, Definitions and Importance ]

  1. 1. COMPENSATION OUTLINE, DEFINITIONS AND IMPORTANCE HELWAN UNIVERSITY FACULTY OF COMMERCE AND BA. PROFESSIONAL POST-GRADUATE PROGRAMS MASTERS OF BUSINESS ADMINISTRATION LEVEL 2 CONTEMPORARY HUMAN RESOURCE MANAGEMENT DR. MAHMOUD AHMED ALKHATEEB MOHAMED AYMAN AHMAD DAWOD 29th April, 2017
  2. 2. QUOTE “Our Assets walk out of the door each evening. We have to make sure that they come back the next morning.” Narayana Murthy, Executive Chairman - INFOSYS
  3. 3. ILOs 1- WHAT ARE THE VARIOUS DEFINITIONS OF COMPENSATION? 2- HOW IS COMPENSATION USED? 3- WHAT ARE THE DIFFERENT TYPES OF COMPENSATION? 4- WHAT ARE THE COMPONENTS OF A COMPENSATION SYSTEM?
  4. 4. DEFINITIONS Wage: - Paid to blue-collar workers. - Paid daily, weekly or monthly. - Paid for the jobs which can be measured in terms of money’s worth to some extent. Salary: - Paid to white-collar workers. - Paid monthly. - Paid to employees whose contribution cannot be easily measured.
  5. 5. COMPENSATION!!?
  6. 6. COMPENSATION “All forms of pay going to employees and arising from the employment.” Gary Dessler
  7. 7. COMPENSATION - The sum of all forms of payments/rewards provided to employees for performing tasks to achieve organizational objectives. - The process of providing adequate, equitable and fair remuneration to the employees. - Systematic approach of providing monetary value to employees in exchange of work performed.
  8. 8. BENEFITS “Employee benefits as a whole have no direct affect on employee performance, however, Inadequate Benefits do contribute to Low Satisfaction Level and Increase Absenteeism & Turnover in employees. ” DeCenzo and Robbins
  9. 9. THE IMPORTANCE OF COMPENSATION
  10. 10. THE IMPORTANCE OF COMPENSATION Compensation may be used to: - Recruit and retain qualified employees. - Increase or maintain morale/satisfaction. - Reward and encourage Peak performance. - Achieve internal and external equity. - Reduce turnover and encourage company loyalty.
  11. 11. THE IMPORTANCE OF COMPENSATION The Organization: - Job Satisfaction - Motivation - Low Absenteeism - Low Turnover The Employee: - Peace of Mind - High Self-Confidence
  12. 12. THE IMPORTANCE OF COMPENSATION HIGH COMPENSATION - LOW COMMITMENT Hired Guns HIGH COMPENSATION - HIGH COMMITMENT Professionals LOW COMPENSATION - LOW COMMITMENT Workers as Commodity LOW COMPENSATION - HIGH COMMITMENT Family Oriented Organization HIGH HIGH
  13. 13. THE COMPONENTS OF COMPENSATION SYSTEM - Job Description - Job Analysis - Job Evaluation - Pay Structure - Salary Surveys - Policies and Regulations
  14. 14. COMPONENTS OF COMPENSATION
  15. 15. COMPONENTS OF COMPENSATION
  16. 16. OPEN DISCUSSION
  17. 17. THANK YOU ..

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