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 COMPENSATION

MANAGEMENT

  Presentedby:

  Vinita  133

M.B.A . Gen.(B)

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COMPENSATION MANAGEMENTCompensation Management is an

organised practice that involves balancing thewor! e"ployee relation by providing"onetary and non "onetary bene#ts toe"ployees.

Compensation incl$des pay"ents s$ch as

bon$ses% pro#t sharing% overti"e pay%recognition rewards and sales co""ission.

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BEHAVIOURAL

THEORIESBehavio$ral theories revolves aro$nd the

concept that organisations o&er betterco"pensation to deter $ndesirable behavio$rby "aing a 'ob too good to lose

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o"e o the pro"inent behavio$ral theoriesare :

o

*"ployee+s acceptance o a ,age levelo -nternal wage str$ct$re

o ,age and "otivators

o o$rna"ent heory

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Emploee!sa""eptan"e o# $agele%el his ind$ce an e"ployee to stay

on with a co"pany. he si/e 0 prestige o theco"pany % the power o the $nion %

the wages and bene#ts that thee"ployee receives in proportion tothe contrib$tion "ade by hi"!all

have their i"pact.

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Inte&nal 'age

St&("t(&e his% theory i"plies that co"pensation is an

internal str$ct$ral iss$e o the organisationwhich is in$enced by "aret and socialactors.

ocial nor"s% traditions% c$sto"s prevalent inthe organisation and psychological press$reson the "anage"ent% the prestige attached tocertain 'obs in ter"s o social stat$s

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To(&nament T*eo&Model developed by 4a/ear and 5osen

oc$ses on an organisation+s hierarchy as an

incentive instr$"ent. his "odel co"pares lie in an organisation to

a sporting "atch.

or e6a"ple! A Gol to$rna"ent