This document discusses compensation management and is divided into several sections. It defines compensation as monetary and non-monetary value provided to employees in exchange for work. Compensation includes direct elements like base pay and bonuses, and indirect elements like insurance and retirement programs. Non-monetary compensation enhances employee satisfaction and well-being. The objectives, components, importance, and factors affecting compensation are examined. The document concludes that good compensation can increase organizational productivity by providing rewards and incentives to employees.

1. COMPENSATION
MANAGEMENT
Submitted by:
Gurpreet Singh

2. CONTENTS
Introduction
Objectives
Components
Importance
Factor affecting
conclusion

3. INTRODUCTION
Compensation is a systematic
approach to providing monetary &
non monetary value to employees in
exchange for work performed.
Compensation may be defined as
money received in performance of
work and many kinds of benefits
that an organization provides to
their employees.

4. OBJECTIVES
 To recruit & retain
qualified
employees.
 To increase or
maintain morale.
 To determine basic
wage & salary.
 To reward for job
performance.

5. COMPENSATION COMPONENT
compensation
monetary
direct indirect
Non monetary

6. COMPONENT
 Base Pay
 Bonus
 Long term incentives
 Perks or perquisites
Direct
compensation

7. CONT…
 Insurance (health,
eye).
 Leaves (sick,
holiday/personal)
 Clothes
 Company parties
 Phones/laptop
 Retirement programs
Indirect compensation

8. NON MONETARY
Enhance dignity & satisfaction from
work performed.
Promote social relationship with co-
workers.
Allocate sufficient resources to
perform work assingments.
Offer supportive leadership &
management.
Enhance physiological health,
intellectual growth.

9. IMPORTANCE
Job description
Job analysis
Job evaluation
Pay structure
Salary surveys

10. FACTOR AFFECTTING
Demand &
supply of labour
Cost of living
Society
Labour unions
The economy
Compensation
policy
The org. ability
to pay
Job analysis &
description
Employee
External Internal

11. CONCLUSION
We can say that good
compensation can increase the
productivity of an organization
because its provides various
rewards, bonus, schemes etc. and
its compulsary for every
organization.

13. ?
PLEASE