ANNA UNIVERSITY - HRM

1. REMUNERATION
UNIT-5,TOPIC-1
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Unit - V HRM,R.Banu rekha,

2. REMUNERATION


Remuneration is a payment or
compensation received for service or
employment.This includes the base
salary and any bonus or other
economic benefits that an employee or
executives received during
employment.
Or
Remuneration is traditionally seen as
the total income of an individual and
may comprises a range of separate
payments determined according to
different rules.
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Unit - V HRM,R.Banu rekha,

3. 


1) COMPENSATION
It is of two types
a) Executives Pay
Executive pay is the total pay or
financial compensation an
executive offer within the co- corporation
salary, and all bonuses, shares, options
and any other company benefits.
TYPES OF REMUNERATION (Cnts….)
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Unit - V HRM,R.Banu rekha,

4. b)DeferredCompensation

 It is an arrangement in which a
portion of an employee’s
income is paid out at a date
after which that income is
actually earned.
Example of deferred
compensation includes
pensions, retirement plans and
stock options.
TYPES OF REMUNERATION (Cnts….)
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Unit - V HRM,R.Banu rekha,

5. TYPES OF REMUNERATION (Cnts….)
2) EMPLOYEE BENEFITS
Employee benefits are various non-wage compensation provided
to employees in addition to their wage and salaries
Some of these benefits are
 housing ( employer provided or employer- paid )
 group insurance ( health, dental, etc).
 disability income protection.
 retirement benefits.
 tuition reimbursement.
 sick leave.
 vacation ( pad and not paid).
 social security.
 funding of education etc….
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Unit - V HRM,R.Banu rekha,

6. 3) COMMISSION
 The payment of commission as
remuneration for service
rendered or product sold in a
common way to reward sales
people.
TYPES OF REMUNERATION (Cnts….)
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Unit - V HRM,R.Banu rekha,

7. 4) PERFORMANCE LINKED
INCENTIVES (PLI)
 A performance linked incentives
is a form of payment from an
employer to an employees which
is directly related to the
performance output of an
employee and which may be
specified on an employment
contact.
TYPES OF REMUNERATION (Cnts….)
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Unit - V HRM,R.Banu rekha,

8. TYPES OF REMUNERATION

Incentive is a reward monetary or
non-monetary
 Incentive given to a worker for his
efficiency and hard work.
 An incentive motivates and
encourages a worker.

 Incentive and production are
closely related with each other.
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Unit - V HRM,R.Banu rekha,
5)INCENTIVES

9. TYPE’S OF INCENTIVES
INCENTIVES
NON-FINANCIAL
INCENTIVES
FINANCIAL
INCENTIVES
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Unit - V HRM,R.Banu rekha,

10. FINANCIAL INCENTIVES
 It involves direct monetary
payments or benefits to workers.
 It is as a tool for better productivity
and performance.


workers may receive financial
benefits in the form
a) bonuses
 b) profit sharing
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Unit - V HRM,R.Banu rekha,

11. METHODS OF FINANCIAL INCENTIVES
 There are various
methods of measuring
the financial incentives
but here we are
concerned with the
following;
a ) Piece rate system

 b ) Cent percent premium
Cent Percent
Premium
Methods of
Financial
incentives
Piece Rate
System
14/03/2020 11/15
Unit - V HRM,R.Banu rekha,

12. 
Under this system, a piece rate
for the completion of job is
fixed. Now if a worker
completes the job earlier, he
can save his time. In this time
he can make jobs and get extra
money for his extra work
 Earning of a worker = no. of
pieces produced * rate per
piece
METHODS OF FINANCIAL INCENTIVES
14/03/2020 12/15
Unit - V HRM,R.Banu rekha,
a)PIECE RATE SYSTEM

13. METHODS OF FINANCIAL INCENTIVES

In this system the standard
time for completion of the
job is fixed
 rate of completion during
this period is also fixed.
 Now the worker who
completes the job earlier
they get full payment for the
time saved.
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Unit - V HRM,R.Banu rekha,
b)Cent Percent premium

14. Non- Financial Incentives
 The financial incentives must be
supported by the non-financial
incentives
 Only cash wages cannot help in
solving the problems of the
workers
 Non financial incentives play an
important role in maintaining
better production and efficiency
in an organization.
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Unit - V HRM,R.Banu rekha,

15. Non- Financial Incentives (cnts.)
 Some of the chief Non-financial incentives
are:
ii.Security of service.
iii.Opportunity for training.
iv.Chances of Quick Promotion.
v.Personal Reward.
vi.Welfare Measures.
vii.Sympathetic Attitude of the
Management.
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Unit - V HRM,R.Banu rekha,