a basic intro

1. Human Resource ManagementHuman Resource Management
Concept And Administration
of Compensation
Made by Needish Kumar
Roll No-11417

2. Compansation
compensation refer to a wide range of financial
and non financial reward to employees for their
services rendered to the organisation.it is paid
in the form of wages,salaries and employee
benefits such as paid
vacations,insurance,maternity leave,free travel
facility,retirement benefits etc.compensation of
employees for their services is an important
responsibility of human resource mangement.

3. Types of Compensation
Direct IndirectIndirectIndirectIndirect Non-financial
Wages
Salary
Bonuses
Commissions
Insurance
Vacation
Childcare
Praise
Self-esteem
Recognition

4. Purpose of compensation
➢
Capable employees are attracted
toward the organisation.
➢
The employees are motivated for
better performance.
➢
The employees do not leave the
employer frequently.

5. Compensation Administration
It means control and balance of
wage and salary level for
establishment of fair and equitable
remuneration for various
categories of staff. Also utilisation
of wages and salaries as an
incentive to greater employee
productivity.

6. Main objective of the
compensation administration
1 1 Developing compensation programs, policies, and Developing compensation programs, policies, and
procedures to meet the needs of the University procedures to meet the needs of the University
administrators as they attract, retain, motivate, administrators as they attract, retain, motivate,
develop, and organize their diverse workforcedevelop, and organize their diverse workforce..
2 Establishment of fair and equitable 2 Establishment of fair and equitable
remuneration for various categories of staff. remuneration for various categories of staff.
3 Utilisation of wages ans salaries as an incentive to 3 Utilisation of wages ans salaries as an incentive to
greater employee productivity.greater employee productivity.
4 Maintenance of a satisfactory public relations image.4 Maintenance of a satisfactory public relations image.

7. Role of hr manager in
compensation administration
1 To approve the system of job analysis and job
evaluation.
2 To check all activities of the salary adminstration
group against the company policies.
3 To recommend to top management the wage
policies and in the salary or wage level.
4 To review department wise wage and salary
schemes.
5 To recommend to the top management specific
raises for executives above a specified limit.

8. Principal of compensation
administration.
1 Wage policies should be carefully developed, having in mind the
interest of (a) managementas the representiveof the owners,
(B) the employees.
2 Wage policies should be clearly expressed in writing to ensure
uniformity and stability.
3 Wage policies should duly incorporate the difference in the jobs.
There must exist a definite plan in which differences in pay
jobs are based upon variations in job requirements.
4 Wage policies should carefully distinguish between jobs and
employees.
5 Wage policies should always aim at establishing equal pay for
equal work . In other words, wage rate should not be baised
for employees filling up the job.

9. Examples
●
A MNC has a profit of 50 cr in 2008-2009 when they
don't use any compensation technique like bonus paid
vacations,insurance,maternity leave,free travel
facility,retirement benefits etc but during 2009-2010 it
uses all the compensation technique like bonus paid
vacations,insurance,maternity leave,free travel
facility,retirement benefits medical facility etc
surprisingly the profit of that company got doubled i.e.
Rs. 100 cr. This is because the people of the
organisation get motivated and give full production to
the company.

10. Conclusion
●
With out the compensation or compensation
Administaration a company can't use its full
resources because the people of the
organisation need motivation to do the work
so by compensation any organisation can
use its full resources to earn maximam profit

11. Thank you