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Compensation Management: Dr. Kapil Pandla

This document discusses compensation management and its key components. It covers what compensation is, the objectives and purposes of compensation planning, components of compensation like base pay and benefits, and objectives of wage and salary administration like attracting talent and controlling costs. It also discusses different types of wages like minimum wage, different components of pay structure in India, and guidelines for effective incentive plans.

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56 views17 pages

Compensation Management: Dr. Kapil Pandla

This document discusses compensation management and its key components. It covers what compensation is, the objectives and purposes of compensation planning, components of compensation like base pay and benefits, and objectives of wage and salary administration like attracting talent and controlling costs. It also discusses different types of wages like minimum wage, different components of pay structure in India, and guidelines for effective incentive plans.

Uploaded by

split5244
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Compensation Management

Dr. Kapil Pandla

Dr. Kapil Pandla

What is compensation?

Compensation is what employees receive in exchange for their contribution to the organisation

Dr. Kapil Pandla

Components of Compensation

Base Pay or fixed component Variable Pay Benefits

Dr. Kapil Pandla

Objectives of Compensation Planning

Internal equity External equity Individual equity

Dr. Kapil Pandla

Purpose of Compensation Planning

Attract Talent Retain Talent Ensure equity New and desired behaviour Control Costs Comply with legal rules Ease of operations

Dr. Kapil Pandla

Equity and Pay rates


Find worth of each job through job evaluation Conduct a salary survey to find what other employers are paying for comparable jobs Group similar pay grade by using wage curves Fine tune pay rates

Dr. Kapil Pandla

Components of Pay Structure in India


Wages Dearness Allowance Dearness pay HRA CCA

Dr. Kapil Pandla

Wage and Salary Administration Objectives


To establish a fair and equitable remuneration To attract qualified and competent personnel To retain present employees by keeping wage levels in tune with competitors To controls costs To improve motivation To project a good image of the company
Dr. Kapil Pandla 8

Wages

Minimum Wage Fair Wage Living Wage

Dr. Kapil Pandla

State regulation of Wages


Minimum Wages Act, 1948 The Payment of Wages Act, 1936 Wage Boards Pay Commission

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Types of Wages

Time Wage Piece Wage

Balance or debt method

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Wage Differential

Occupational Differential Inter-firm Differential Inter area differential Inter-industry differential Personal Wage differential

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Incentives

An incentive or reward can be anything that attract attention and stimulates him to work.

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Types of incentives

Direct Indirect

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Wage Incentives
It refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job

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Guidelines for effective incentive plan 1/2

Insure that efforts and rewards are directly related The reward must be valuable to the employee The record must be clearly identifiable Methods and procedures must be carefully studied Effective standards must be set
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Guidelines for effective incentive plan 2/2


Standards must be guaranteed An hourly base rate must be guaranteed Rewards must be granted promptly The Plan must be within the financial and budgetary capacity of the organisation Additional reinforcement must be provided Must minimize friction between workers
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