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Hrm ppt compensation administration

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Shashank Gupta
Shashank Gupta

This document discusses human resource management and compensation administration. It defines compensation as financial and non-financial rewards provided to employees in exchange for their services, including wages, salaries, paid time off, insurance, and retirement benefits. It outlines the purposes of compensation as attracting capable employees, motivating performance, and reducing employee turnover. It also describes the role of human resource managers in developing compensation programs and policies to attract, retain, and motivate diverse workforces.

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Human Resource ManagementHuman Resource Management Concept And Administration of Compensation Made by Needish Kumar Roll No-11417
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.
Types of Compensation Direct IndirectIndirectIndirectIndirect Non-financial Wages Salary Bonuses Commissions Insurance Vacation Childcare Praise Self-esteem Recognition
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.
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.
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.
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.
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.
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.
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
Thank  you

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Hrm ppt compensation administration

  • 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