The document discusses compensation management at Packages Private Limited. It outlines Packages' compensation system which includes establishing pay rates based on factors like market rates and job evaluations. The compensation package consists of base pay, incentives, and benefits. Packages aims to attract and retain talent through an equitable compensation system tied to performance and contributions.

1. Submitted to: Mr. Ubaidullah Memon Presenters: Mr. Adeel Ahmed Mr. Arif Taj Mr. Muhammad Farhan COMPENSATION MANAGEMENT & ITS IMPACTS ON EMPLOYEES

2. OUTLINE

4. WHAT IS COMPENSATION?

6. Compensation System Components Pay Benefits

11. COMPENSATION SYSTEM Rs.

13. HR Management Strategy Model HR Strategy Desired Results Attract Retain Engage Select Develop Rewards

14. EMPLOYEE COMPENSATION

16. Compensation system consist of following elements:

17. Compensation of Employees Extrinsic Rewards Hourly Wages Salary Monetary Bonuses Rewards Commissions Pay Incentives Insurance Retirement Paid Vacations Benefits Food Services Credit Union Recreation Recognition Intrinsic Promotion Opportunities Rewards Working Conditions Interesting Work

18. REWARD STRATEGY

19. Effective Reward Strategy

20. Balanced, Practical Reward Strategy Model EMPLOYER’S PERSPECTIVE EMPLOYEE’S PERSPECTIVE Organization Capabilities Business Strategy Organization Structure Competencies Demographics Values Improved Business Results & Aligned Employee Behaviours Employment Deal Total Reward Strategy Pay Benefit Learning & Work Development Environment

22. CONSEQUENCES OF PAY DISSATISFACTION

23. Performance Strikes Grievances Search for job Absenteeism Turnover Absenteeism Psychological Withdrawal Dispensary Visits Poor Mental Health Desire for more Pay Pay Dissatisfaction Lower Attractiveness of job Job Dissatisfaction

25. PHASES OF COMPENSATION MANAGEMENT

27. OBJECTIVES OF EFFECTIVE COMPENSATION MANAGEMENT

30. STEPS FOR ESTABLISHING PAY RATES

32. Pay Grade Structure for Job-Based System Rs 10,000 Rs 30,000 Rs 50,000 Corporate Policy Line Midpoint 250 350 450 550 650 Job Evaluation Points Maximums Pay Grade Width Monthly Pay

33. WHAT DETERMINES HOW MUCH YOU PAY?

36. EQUITY THEORY

38. Equity Perceptions Self Other

40. EQUITY THEORY PREDICTIONS

41. Outputs Inputs < Outputs Inputs Outputs Inputs = Outputs Inputs Outputs Inputs > Outputs Inputs Under-reward Equity Over-reward Person B Person A

46. MANAGERS AND COMPENSATION

49. PACKAGES PRIVATE LIMITED

55. MANAGEMENT OF COMPENSATION AND BENEFIT AT PACKAGES

58. ESTABLISHING PAY RATES AT PACKAGES

63. INCENTIVE OR VARIABLE PAY PLANS AT PACKAGES

69. SHORT TERM INCENTIVES AT PACKAGES

74. DIRECT & INDIRECT FINANCIAL REWARDS AT PACKAGES

78. BENEFITS AT PACKAGES

87. EMPLOYEES WELFARE SCHEMES