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Base compensationCompensation Management
Prepared By
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Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
Compensation in organization
• Compensation is a wide
range of financial and
non financial rewards to
employees for their
services rendered to the
organization.
Compensation in organization
• It is paid in form of wages,
salary, other benefits such
as vacations, maternity
leave, medical facilities etc.
compensation helps in
motivating the employees
and reduce labor turnover.
Types of compensation
• Base compensation
• Supplementary
compensation.
Base compensation
• it involves monetary benefit to
the employees in the form of
wages and salaries. It is giving
the remuneration to the
workers for doing the work.
Base compensation
• Wages are generally given to
the workers based on hourly,
daily, weekly or monthly basis.
But salary is the compensation
given to the office employees.
Base compensation
• Wages may be based on the number of
units produced i.e. piece wage system or
the time wage system i.e. the time spent
on the job. But salary is always based on
the time spent on the job. When it is
difficult to judge the production of the
company then the compensation is paid in
form of salary.
