TOPIC: COMPENSATION MANAGEMENT

• INTRODUCTION AND OBJECTIVE

Zahid 44

• Component and importance

Jawad ahmad 17

• EXECUTIVE COMPENSATION AND CONCUSION

SHAH RUKH 38

Group name nawey sahar

Group # 8th

Compensation 1)payment for work done e.g earning fee , hire ,salary, wage 2) some thing given in exchange for goods or services rendered like payment and remuneration 3) something to make up or loss or damage .

Compensation management 1) remuneration received by employee in return for his or her contribution to organization. 2) system of reward that can motivates the employee to perform the task for the organization. 3)the policy and procedure for managing all form of financial returns and tangible services and benefits that employee receive as part of employment relationship.

OBJECTIVE OF COMPANSATION MANAGEMENT1) The compensation should be paid to each employee the

on basis of their ability and performance.

 A good compensation package is important to motivate the employees to increase the organizational productivity.

2)To recruit and retain qualified employee 3) To reward for job performance

Jawad ahmad roll # 17

Topic component of compensation and their importance

Compensation Compensation is the remuneration received by an employee in

return for his or her contribution to the organization.

Compensation does not include only salary but it is sum of all rewards bonuses and allowances provided to employee in return for their services.

Component of compensation There are two component of compensation

1) Monetary which directly or indirectly effect the financial

position of employee. There 2) Non monetary dignity and satisfaction promote social relationship enhance physiological and intellectual growth

Monetary The further divide into two parts .

Direct monetary component basic pay

bonus

perquisites

Insurance Leaves Phones and laptop Retirement program

Indirect monetary component

Importance of compensation management

An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed.

Sound Compensation/Reward System brings peace in the relationship of employer and employees.

The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability.

SHAH RUKH jan R# 38

TOPIC EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATIONThe financial payment and non monetary benefits provided to high level management in exchange for their work on behalf of organization.

Executive Compensation is the compensation paid to executives of business corporations.

Exectuives managerial post are - presidents, vise-presidents, directors, general manager, etc

Managerial compensation of such positions comprises of these elements:

1) Salary 2) Bonus 3) Long Term Incentive 4) Perquisites

Elements of Executive Compensation

SALARY

Fixed amount is paid monthlySalary determined through job evaluation Salary of managers varies by the type of job , size of organization, region of the country and type of industry

BONUS or PROFIT SHARING

This type of incentive is annual and based on company performance or profit sharing

LONG TERM INCENTIVES/STOCK OPTIONS

If bonus are short term benefits , stock options are long term benefits offered to managers

Companies allow managers to purchase their shares at fixed price

Perquisites Special benefits for executives usually non-

cash items: - Companies provide health club memberships - Executive health plans- Personal car service- Entertainment

Why Managers Should Be Paid More Manager’s success is the means by which

organizational goal is achieve Organization pay heavily to attract and retain

talented and also to motivate competent manager Manager may be motivated sometimes for better

performance through money High compensation is made to manager to

eliminate or minimize corruption .

Purpose of executive compensation program

1)It must attract executives toward company goal.

2) It retain so they do not leave for alteration employment.

3) It motivate them to perform efficiently

conclusion We can say that good compensation can increase the productivity of an organization because its provides various rewards, bonus, schemes etc. and its compulsory for every organization.

Any question

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