The document discusses compensation and pay structures. It defines compensation as what employees receive in exchange for their contributions, including base pay, variable pay, and benefits. It asks if the company Cooks should offer the highest pay packages in the industry to create a "high wage island" and make it difficult for employees to leave, or if they should continue pegging salary slightly below average but attracting employees through excellent business processes. The goal is to design a cost-effective pay structure that attracts, motivates, and retains competent employees while being viewed as fair and meeting legal requirements amid rising expectations and competition.

1. Group members: Prathiba Pawar Saujanya Gudala Lal Chand Sharma Rohit Singal Gaurav Sharma Jayesh kalal

2. It is what employees receive in exchange for their contribution to the organization. It consists of : Base Pay – Wages or salaries. Variable Pay – Bonus, incentives. Benefits – Health insurance , retirement pension.

4. LTR increased from 3% to 15% from 1990 to 1996.

5. Should Cooks offer the highest pay packages in the industry & create a high wage island so that people would find it difficult to leave the company ?

6. Should Malhotra continue to peg Cook’s salary structure as slightly below average , attracting & retaining people on the basis of the excellent business processes that the company was already known for ?

7. To design a cost –effiective pay structure that will attract,motivate and retain competent employees and that will also be viewed as fair by these employees.Apart from meeting legal repuirments ,organisations have to take care of ever-rising employee expectations and competitive pressures while designing an effective compensation plan.