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    Compensation Management

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    saurabh698
    This document discusses compensation management and trends in compensation in India. It covers types of compensation including direct, indirect, variable, and executive compensation. It outlines trends in India prior to 1991 when government determined pay scales and after 1991 when liberalization led to productivity gains, real wage increases, and average salary increases of 10-40% annually in some sectors like IT and outsourcing. Key factors in devising pay structures include job evaluation, affordability, goals, and incorporating base pay with variable pay. The purpose of wages and salaries is to attract, retain, and motivate talent while meeting financial and legal obligations.

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    Compensation Management

    Uploaded by

    saurabh698
    12K views15 pages
    This document discusses compensation management and trends in compensation in India. It covers types of compensation including direct, indirect, variable, and executive compensation. It outlines trends in India prior to 1991 when government determined pay scales and after 1991 when liberalization led to productivity gains, real wage increases, and average salary increases of 10-40% annually in some sectors like IT and outsourcing. Key factors in devising pay structures include job evaluation, affordability, goals, and incorporating base pay with variable pay. The purpose of wages and salaries is to attract, retain, and motivate talent while meeting financial and legal obligations.

    Original Title

    COMPENSATION MANAGEMENT

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    This document discusses compensation management and trends in compensation in India. It covers types of compensation including direct, indirect, variable, and executive compensation. It outlines trends in India prior to 1991 when government determined pay scales and after 1991 when liberalization led to productivity gains, real wage increases, and average salary increases of 10-40% annually in some sectors like IT and outsourcing. Key factors in devising pay structures include job evaluation, affordability, goals, and incorporating base pay with variable pay. The purpose of wages and salaries is to attract, retain, and motivate talent while meeting financial and legal obligations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    12K views15 pages

    Compensation Management

    Uploaded by

    saurabh698
    This document discusses compensation management and trends in compensation in India. It covers types of compensation including direct, indirect, variable, and executive compensation. It outlines trends in India prior to 1991 when government determined pay scales and after 1991 when liberalization led to productivity gains, real wage increases, and average salary increases of 10-40% annually in some sectors like IT and outsourcing. Key factors in devising pay structures include job evaluation, affordability, goals, and incorporating base pay with variable pay. The purpose of wages and salaries is to attract, retain, and motivate talent while meeting financial and legal obligations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Compensation

    management
    SAURABH JAIN
    COMPENSATION
    MANAGEMENT
    • Objective .
    • Definition.
    • An Integral Part of Human
    Resource Management.
    TYPES OF
    COMPENSATION
    • Direct
    • Indirect
    • Variable
    • Executive.
    TRENDS IN INDIA
    • Compensation trends in India
    changed with liberalization in
    1991.
    • Government was the biggest job
    creator
    • Guaranteed pay determined by
    agreement between employee
    unions and Government
    • Private sectors made
    government pay scales as
    CURRENT TRENDS
    Factors that influenced
    compensation post
    liberalization
    § Increase in productivity gains
    § Fast growth in real wages
    § Faster GDP growth
    § IT and Outsourcing services
    § Average salary increases over
    2005-06 ranged from 10% to
    40%
    FACTORS DEVISING PAY
    STRUCTURE
    • Job evaluation.
    • What must be paid to
    attract right people
    • Affordability of the
    organization
    • Requirements to meet
    organizational goals
    • It must have 2 components-
    base rate and scope for
    THE CONCEPT OF WAGE
    AND SALARY
    Compensation
    administration.
    The principles governing
    compensation
    administration.
    • a)Maintaining equity.
    • b)Maintaining
    competitiveness.
    • c)Matching employee
    expectations.
    • e)Devising a most efficient
    THE PURPOSE OF WAGE
    AND SALARY
    ØAttracting a talented
    resources.
    ØRetaining and motivating
    employees.
    ØFinancial management.
    ØLegal requirements.
    CONCEPTS OF
    DIFFERENT WAGES.
    üMinimum wage (The six
    norms).
    üFair wage .
    üLiving wage.
    BASIC WAGE PLANS

    ØTime wage plan.


    ØPiece wage plan.
    ØSkill-based wage plan.
    ØCompetency based pay.
    ØBroad banding.
    Types Of Incentive Plans

    Halsey Plan
    Long
    Annual Bonus

    term
    Rowan
    Plan
    Plans
    Profit Sharing

    Barth Gain
    Sharing
    Short
    System

    Term
    Point Rating Employee Stock
    Option
    Plans
    system

    Progressiv
    e Bonus
    NON MONETARY
    INCENTIVE
    • Recognisation
    • Assigning challenging
    assignment.
    • Giving additional
    responsibility.
    • Giving non cash rewards.
    • Awards for exceptional
    performance and valuable
    GUIDELINES
    • Linked to employee’s
    performance
    • Communicated
    • Suggestions should be
    valued
    • Not affected by external
    factors
    • Should not add negative
    WAGES POLICY IN INDIA
    • Minimum Wages Act, 1948..
    • Payment of Wages Act,
    1936..
    • Payment of gratuity 1972
    • Industrial Dispute Act, 1947.
    • Payment of Bonus Act,
    1965..

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