1. Department of Management Studies

2. Topics On
Comparing Compensation
Between Privet & Public
Organization

3. What is Compensation Management?
Compensation is the remuneration
received by an employee in return for
his/her contribution to the
organization. It is an organized
practice that involves balancing the
work-employee relation by providing
monetary and non-monetary benefits
to employees.

4. How to Develop a Compensation
Plan?
1) Determine your company's vision and how
your benefits package can reflect this
2) Recognize that your compensation plan
needs to fit into your budget, especially if
you are a start-up business.
3) Research the options
4) Offer a compensation plan that includes a
mix of benefits
5) Don't be too generous with your
compensation plan.
6) be clear when putting your compensation
plan into your company policy book.

5. Comparing Compensation Between
Private Sector and Government
Productivity Differences
Even taking the study's analysis as given,
this does not mean that the value of an
average government worker's labour is
equal to that of an average private sector
worker with similar education and work
experience. This is because private sector
workers tend to be more productive.

6. Job Security Differences
The notion that public employees are
significantly undercompensated begs the
question: if they are so underpaid, why
would they agree to take government jobs
when they could earn more by performing
similar jobs in the private sector? Some
might cling to the romantic idea of "public
service," but public-sector employees are
every bit as self-interested as private-sector
workers, so this answer is wholly
unsatisfying. Whether for job security or
other reasons, the attraction to government
jobs is evidenced by job-quit rates. Lower
quit rates indicate a lack of better job
opportunities elsewhere.

7. Public-Sector Pension and Retiree
Health-Care Benefits Differences
As with job security, there is a value to the
guaranteed nature of public sector benefits
that is not captured in the Bender and
Heywood report. In most states, including
California, government workers' benefits
are protected by state constitutions, and
the benefits of current employees cannot
be reduced. This is a protection that is not
available in the private sector, where
pension plans may be frozen, benefits may
be reduced, and companies can go
bankrupt, which could cause employees to
receive fewer benefits than promised.

8. Overtime
Privet organization pay for overtime
working period but on the other hand Public
organization don’t pay for overtime period.
Disability Compensation
When a health problem occurs, public
organization considered that and pay
his/her salary. On the other hand most of
the time privet organization doesn’t
considered that factor.

9. Maternity
Public organization considered
maternity period for woman with pay
but privet organization considered that
without pay.

10. Conclusion
 A good compensation package is important to
motivate the employees to increase the
organizational productivity.
 Unless compensation is provided no one will
come and work for the organization. Thus,
compensation helps in running an organization
effectively and accomplishing its goals.
 Salary is just a part of the compensation
system, the employees have other psychological
and self-actualization needs to full fill. Thus,
compensation serves the purpose.
 The most competitive compensation will help
the organization to attract and sustain the best
talent. The compensation package should be as
per industry standards.