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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
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ASSIGNMENT
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER 4
SUBJECT CODE & NAME MU0015- COMPENSATION AND BENEFITS
BK ID B1859
Credit & Marks 4 CREDIT, 60 MARKS
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Question.1. (i) What is meant by “compensation management”?
Answer:Compensationmanagementisageneral policy,implementedinconjunctionwithspecialized
software,designed to help an organization maximize the returns on available talent. The ultimate
goal is to reward the right people to the greatest extent for the most relevant reasons.
Compensationmanagementsoftware canoptimize salary,bonus,stockoption,andbenefitsbudgets
to yieldthe maximumprofitperemployeeorperworkhour. However,any organization or business
requiresacompetentandsensitive humanmanagementteamatleast as much as it needs effective
computer programs.
(ii) Organizations design out the employee compensation packages
basedon some ‘compensation’ and ‘non-compensation’
dimensions.Describe in brief the ‘compensation’ dimensions
Answer:Compensation Management is an organized practice that involves balancing the work-
employeerelationbyprovidingmonetaryandnon-monetarybenefitsto employees. Compensation
includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales
commission. Compensation can also include non-monetary perks such as a company-paid car,
company-paid housing and stock options. Compensation is an integral part of human resource
managementwhichhelpsinmotivatingthe employeesandimproving organizational effectiveness.

2. Question.2. Explain the concept of Wage?
List down the pre-requisites of effective Incentive schemes?
Answer:A wage ismonetarycompensation(orremuneration,personnel expenses, labor) paid by an
employertoanemployee inexchange forworkdone.Paymentmaybe calculated as a fixed amount
for each task completed (a task wage or piece rate), or at an hourly or daily rate, or based on an
easily measured quantity of work done.
Question.3. What do you understand by VRS (Voluntary Retirement
Scheme? Also listdown reasons, merits and demerits of VRS?
Answer:Voluntary retirement scheme is a method used by companies to reduce surplus staff. This
mode has come about in India as labour laws do not permit direct retrenchment of unionized
employees.
VRS applies to an employee who has completed 10 years
Question.4. Discuss the Organizational and External Factors
Affecting Compensationstrategies?
Answer:The primaryobjective of acompensationsystemistoadministeraneffective and equitable
pay system. It can be affected by various factors which are as follows:
1. Organizational Provisions:Organizational provisionstatesthat the level of compensation largely
dependsuponorganizational operatingpoliciesandprocedures.It is because the policies serve as a
guideline for formulating and implementing
Question.5. Explain the elements of Managerial
remuneration?Elucidate some of the economic determinants of
pay?
Answer:Managerial remuneration is compensation for services provided to a company in a
managerial capacity.Thiscan include cash payments, along with benefits like stock options, health
insurance,andbonuses.Managersare typicallypaidmore thanthe people theysupervise, although
they tend to make less than the executives at the head of the company. Some pay structures are
transparent, making it easy to determine how

3. Question.6. Who are ‘Expatriates’? What are the objectives of
‘Expatriatecompensation’? Differentiate between Financial
(extrinsic)compensation and Non-financial (intrinsic) compensation.
Answer:Major objectives on which most of the expatriate compensation plans are designed are
mentioned below:
The whole area of international compensation presents some tricky problems. On the one hand,
there is logic in maintaining uniformity in companywide pay scales and policies so that the
employees in the same cadre are paid within the same narrow range.
This reduces the risk of perceived inequalities
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
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