it involves monetary benefit to the employees in the form of wages and salaries. It is giving the remuneration to the workers for doing the work.

1. Base compensation
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Compensation in organization
• Compensation is a wide
range of financial and
non financial rewards to
employees for their
services rendered to the
organization.

4. Compensation in organization
• It is paid in form of wages,
salary, other benefits such
as vacations, maternity
leave, medical facilities
etc. compensation helps in
motivating the employees
and reduce labor turnover.

5. Types of compensation
• Base compensation
• Supplementary
compensation.

6. Base compensation
• it involves monetary benefit
to the employees in the form
of wages and salaries. It is
giving the remuneration to
the workers for doing the
work.

7. Base compensation
• Wages are generally given to
the workers based on hourly,
daily, weekly or monthly
basis. But salary is the
compensation given to the
office employees.

8. Base compensation
• Wages may be based on the number of
units produced i.e. piece wage system or
the time wage system i.e. the time spent
on the job. But salary is always based on
the time spent on the job. When it is
difficult to judge the production of the
company then the compensation is paid
in form of salary.