Defination

y 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. y Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. y Compensation systems are designed keeping in minds the strategic goals and business objectives

TRENDS IN INDIA
y Compensation trends in India changed with

liberalization in 1991. y Government was the biggest job creator y Guaranteed pay determined by agreement between employee unions and Government

Types of compensation
remuneration. 1. salary 2. bonuses, which provide short-term incentives 3. long-term incentive plans 4. employee benefits 5. paid expenses (perquisites) 6. insurance
y There are six basic tools of compensation or

COMPENSATION
y COMPENSATION y y y y y y

-something (such as money) given or received as payment or reparation, or can refer to; Damages- legal term referring to the financial compensation recoverable by reason of another's breach of duty; the money paid or awarded to a plaintiff. Workers compensation- is a payment provided to employees when they injured while at works. Remuneration - is pay or salary, typically monetary payment for services rendered, as in an employment. Usage is considered formal. Executive compensation- is how top executives of business corporations are paid. This includes a basic salary, bonuses, shares, options and other company benefits for work on the board of directors. Deferred compensation- is an arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned. Example of Deferred Compensation; PENSION, RETIREMENT PLAN.

COMPENSATION FOR DAMAGES

y damages is an award of money to be paid to a person as compensation for loss or injury y Compensatory damages, called actual damages, are paid to compensate the claimant for loss, injury, or harm suffered as a result of another's breach of duty

COMPENSATION FOR DAMAGES

y Damage is an award of money to be paid to a person as compensation

for loss or injury; y Compensatory damages, called actual damages, are paid to compensate the claimant for loss, injury, or harm suffered as a result another's breach of duty. 1. Compensation for damage y Payment for damage done 2. Compensation for loss of office y Payment to a director who is asked to leave a company before their contract ends 3. Compensation for loss of earnings y Payment to someone who has stopped earning money or who is not able to earn money

WORKERS COMPENSATION
y is a payment provided to employees when they injured

while at works.

CASE STUDY

REMUNARATION
y is pay or salary, typically monetary payment for services rendered, as in an employment. Usage is considered formal. FACTORS DEVISING PAY STRUCTURE y Job evaluation. y What must be paid to attract right people y Affordability of the organization y Requirements to meet organizational goals y It must have 2 componentsbase rate and scope

EXECUTIVES COMPENSATION
y is how top executives of business corporations are paid. This includes a basic salary, bonuses, shares, options and other company benefits for work on the board of directors

IIPM EXECUTIVE COMPENSATION PACKAGE

y Two main components of executive compensation

package y Base salary and Cash Incentive/ Bonus y Long-term Incentive Compensation y The main elements drive compensation package y Competitive marketplace y Complexity of leading IIPM