This document discusses compensation, defining it as all forms of pay provided to employees in exchange for work. It outlines several definitions of compensation terms like wage and salary. It also describes the importance of compensation in recruiting and retaining employees, increasing morale and performance, and achieving equity. Finally, it notes the components of an effective compensation system include job descriptions, analysis, evaluation, pay structure, salary surveys, and policies. The overall document provides an overview of compensation, its definitions, importance, and factors in building a compensation system.

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. 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. 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?

5. 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.

6. COMPENSATION!!?

7. COMPENSATION
“All forms of pay going to employees and
arising from the employment.”
Gary Dessler

8. 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.

9. 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

10. THE IMPORTANCE OF COMPENSATION

11. 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.

12. THE IMPORTANCE OF COMPENSATION
The Organization:
- Job Satisfaction
- Motivation
- Low Absenteeism
- Low Turnover
The Employee:
- Peace of Mind
- High Self-Confidence

13. 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

14. THE COMPONENTS OF
COMPENSATION SYSTEM
- Job Description
- Job Analysis
- Job Evaluation
- Pay Structure
- Salary Surveys
- Policies and Regulations

15. COMPONENTS OF COMPENSATION

16. COMPONENTS OF COMPENSATION

17. OPEN DISCUSSION

18. THANK YOU ..