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TOPIC: COMPENSATION MANAGEMENT
• INTRODUCTION AND OBJECTIVE
Zahid 44
• Component and importance
Jawad ahmad 17
• EXECUTIVE COMPENSATION AND CONCUSION
SHAH RUKH 38
Group name nawey sahar
Group # 8th
Compensation 1)payment for work done e.g earning fee , hire ,salary, wage 2) some thing given in exchange for goods or services rendered like payment and remuneration 3) something to make up or loss or damage .
Compensation management 1) remuneration received by employee in return for his or her contribution to organization. 2) system of reward that can motivates the employee to perform the task for the organization. 3)the policy and procedure for managing all form of financial returns and tangible services and benefits that employee receive as part of employment relationship.
OBJECTIVE OF COMPANSATION MANAGEMENT1) The compensation should be paid to each employee the
on basis of their ability and performance.
A good compensation package is important to motivate the employees to increase the organizational productivity.
2)To recruit and retain qualified employee 3) To reward for job performance
Jawad ahmad roll # 17
Topic component of compensation and their importance
Compensation Compensation is the remuneration received by an employee in
return for his or her contribution to the organization.
Compensation does not include only salary but it is sum of all rewards bonuses and allowances provided to employee in return for their services.
Component of compensation There are two component of compensation
1) Monetary which directly or indirectly effect the financial
position of employee. There 2) Non monetary dignity and satisfaction promote social relationship enhance physiological and intellectual growth
Monetary The further divide into two parts .
Direct monetary component basic pay
bonus
perquisites
Insurance Leaves Phones and laptop Retirement program
Indirect monetary component
Importance of compensation management
An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed.
Sound Compensation/Reward System brings peace in the relationship of employer and employees.
The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability.
SHAH RUKH jan R# 38
TOPIC EXECUTIVE COMPENSATION
EXECUTIVE COMPENSATIONThe financial payment and non monetary benefits provided to high level management in exchange for their work on behalf of organization.
Executive Compensation is the compensation paid to executives of business corporations.
Exectuives managerial post are - presidents, vise-presidents, directors, general manager, etc
Managerial compensation of such positions comprises of these elements:
1) Salary 2) Bonus 3) Long Term Incentive 4) Perquisites
Elements of Executive Compensation
SALARY
Fixed amount is paid monthlySalary determined through job evaluation Salary of managers varies by the type of job , size of organization, region of the country and type of industry
BONUS or PROFIT SHARING
This type of incentive is annual and based on company performance or profit sharing
LONG TERM INCENTIVES/STOCK OPTIONS
If bonus are short term benefits , stock options are long term benefits offered to managers
Companies allow managers to purchase their shares at fixed price
Perquisites Special benefits for executives usually non-
cash items: - Companies provide health club memberships - Executive health plans- Personal car service- Entertainment
Why Managers Should Be Paid More Manager’s success is the means by which
organizational goal is achieve Organization pay heavily to attract and retain
talented and also to motivate competent manager Manager may be motivated sometimes for better
performance through money High compensation is made to manager to
eliminate or minimize corruption .
Purpose of executive compensation program
1)It must attract executives toward company goal.
2) It retain so they do not leave for alteration employment.
3) It motivate them to perform efficiently
conclusion We can say that good compensation can increase the productivity of an organization because its provides various rewards, bonus, schemes etc. and its compulsory for every organization.
Any question
Thanks to pay attention