COMPENSATION MANAGEMENT IN INTERNATIONAL CONTEXT

Highlights
Forms of compensation and factors influencing compensation policy Objectives and key components of international compensations Approaches to compensation management in the international context Compensation practices across the countries Social security systems across the countries Global compensation: emerging issues

Introduction
Compensation is the remuneration received by an employee in return for his contribution to the organization . Managing compensation in international context is a very complex and crucial activity of MNCs. There is a wide gap between salaries paid in different countries due to different economic systems, development levels, political factors , traditions and culture.

Forms of compensation
Intrinsic and Extrinsic compensation : Intrinsic compensation is the non financial compensation which is related to the nature of the work, interest in work and career prospects. Extrinsic compensation is compensation of financial nature.