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Compensation & Benefits.

Submitted by.
Saira Aslam. MB-11-04

Muzzamil Hussain. MB-11-47 Kaleem Abbas. Atif Iqbal. Submitted to. Sir.Shakeel Abbas. MB-11-48 MB-11-35

COMPENATION AND BENEFITS.


Compensation and benefits (abbreviated C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making.

It is also known in the UK as total reward and as remuneration in Australia and New Zealand.

Compensation
The total of all rewards provided employees in return for their services. Compensation Compensation is one of the physical needs that influence motivation which in turn will affect the employee performance. Providing appropriate compensation within the meaning of fair and adequate to meet the requirements is one of the personnel department functions that are difficult to implement. Compensation includes the financial returns to the services renered by employees as part of employment relationships. Compensation is a form of rewards that flow to employees arising from their employment.

1.Direct Financial Compensation


Consists of the pay that a person receives in the form of wages,

salaries, bonuses, and commissions.

2. Indirect Financial Compensation


All financial rewards that are not included in direct Compensation.

3.Non-financial Compensation
Consists of the satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works. All such rewards comprise a total compensation program.

Total compensation.
Total compensation means the package of quantifiable rewards an employee receives for his or her labour.includes three components. Base compensation Pay incentives. Benefits.

1.Base compensation.
The fixed pay an employee receives on a regular basis either in form of a salary or as an hourly wage.

2.Pay incentives.
A program designed to a reward employee for good performance.

3.Benefits.
Employees today are not willing to work only for the cash alone, they expect 'extra'. This extra is known as employee benefits. Also known as fringe benefits.

Rewards.
The reward is a process which we give incentives to employee so that their motivation level may increase. The compensation is provided to employees in the form of rewards the reward includes promotion pays desirable work assignments work freedom and a kind of recognition.

There are following type of rewards. Intrinsic reward. Extrinsic reward. Performance reward. Membership reward. Financial reward. Non-financial reward.

1.Intrinsic reward.
It is personal satisfaction which employee receive from the performing job.

2.Extrinsic rewards.
In extrinsic rewards both financial and non-financial rewards are included. There come benefit, commissions & operations.

3.Performance rewards.
It means a man is given arwward on the base of his performance.

4.Membership rewards.
The reward is given on the biases of special degree or diploma they have.

5.Financial rewards.
These rewards are direct related to money and finance in which salaries are increased as a reward.

6.Non-financial rewards.
These rewards produce attraction in job.

Compensation administration.
The way to manage the compensation of employees. How government influence compensation administration is given as follow.

1.Fair labour standard act 1938.


The government decides wages pays overtime and standards regarding the labor.

2.Civil right act.


Some multinational companies make difference on the baises of age color and nations but this act says that there is no difference on such baises.

3.Equal pay act 1963.


According to this act all the employees will be given equal pays according to their work.

Motivation.
Motivation means the process through which we energies the employees so that they may perform their jobs well.

Methods of motivation.
There are following methods of motivations. 1. Rewards. 2. Challenging jobs. 3. Empowerment. 4. Spot awards. 5. Goal setting of employees. 6. Job redesigning. 7. Using life learning process. 8. Using recognition. 9. Merit pay.

1.Rewards.
The employees are given rewards to increase there performance. It increases their motivation level.

2.Challenging jobs.
Some employees may not know about their duties so the organization give them challenging jobs to enhance their performance. The challenging job may have two concepts.

1.job design.
It means the number and the nature of job activities in job.

2.Job enlargement.
In it we may increase number of tasks at same level.

3.Empowerment.
We give the authority to employee so that he may involve in decision making.

4.spot award.
If any employee is best performing then give him award at that spot called spot award.

5.Goal setting of employees.


While deciding the goals give the employees flexibility to make goal achievable.

6.Job Redesigning.
If the employee have more activities to perform the job and he is not performing well then redesign the job to increase the motivation level by increasing the number of activities.

7.Using life learning process.


The employees should be given training which should be lifetime and should be enough.

8.using recognition
If an employee is best performing just appreciate him it will increase motivation level of employee.

9.Merit pay.
The employees should be pay according to their performance and working.

Challenges to increase motivation level.


There are following challenges to increase motivation level of employees.

1.workforce diversity.
This is challenge to increase the motivation level of employees of different cultures, nature, age, etc,

2.Entry level of employees.


Newly entered employees are very difficult to be motivated.

Conclusion.
Compensation and benefits are very useful to enhance the performance of employees as well as of the organization. it is very invigorating for the company because it brings the company in competition and increase the performance.

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