Compensation is fundamental to organization formation and its existence. People work to earn their living and organization compensates employees by providing monetary and non monetary benefits and other amenities for producing goods and services.

1. Role of compensation in organization
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Role of compensation in organization
• Compensation is fundamental to
organization formation and its
existence. People work to earn
their living and organization
compensates employees by
providing monetary and non
monetary benefits and other
amenities for producing goods
and services.

4. Role of compensation in organization
• Human resource practices in
general and compensation
systems in particular have
been shown to be highly
related to organizational
performance.

5. Role of compensation in organization
• The role of compensation in
organization in terms of gaining
and sustaining competitive
advantage has undergone
paradigm shift. Role of
compensation in organization is
strategic rather than merely
restricted to economic
compensation for providing labor.

6. Role of compensation in organization
• Compensation is today a key
tool for attracting, retaining
and utilizing a motivated and
productive workforce
necessary to enable the
organization to compete
successfully.

7. Changing paradigm of compensation
management from past to present

8. Role of compensation in organization
• Organization with proper
system for managing
compensation shall be able
to recruit and retain
competent employees for
organizational effectiveness
and success.