Compensation plays a pivotal role in effective management of human resources, which is crucial to the competitive advantage of organizations.

1. Importance of compensation management
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. Importance of compensation management
• Compensation plays a
pivotal role in effective
management of human
resources, which is crucial
to the competitive
advantage of
organizations.

4. Importance of compensation management
• It is essential for
integrating employee
efforts with
organizational goals
and objectives.

5. Importance of compensation management
• It is part of sound people
management framework
for recruiting, selecting,
socializing, performing,
developing and
maintaining a capable and
motivated workforce.

6. Importance of compensation management
• It has social
implications as poorly
paid employees are
likely to indulge in
social unrest and
undesirable activities.

7. Importance of compensation management
• It is a management tool
for controlling and
directing employee’s
productive energies for
improving organizational
competence and
performance.

8. Importance of compensation management
• It helps in generating a
talent pool.