Prestige Institute of Management

M.B.A. IV Sem.

Unit-I

Presented By-

Rashmi Tomar

Vashali Dixit

Introduction

• Remuneration is the compensation; an employee receives in return for his or her contribution to the organization.

Aims of Employee Compensation

Attract capable employees to the organization.

Motivate them toward superior performance.

Retainment of their services over an extended period of time.

Factors Affecting Compensation Policy

Supply and demand

Cost of living

Government Labor unions

Components of Compensation

3- P Compensation Concept

Person

Position

Performance

New Trends in Compensation Management

Group Mediclaim/Insurance Scheme Personal Accident Insurance SchemeCompany Leased AccommodationRecreation/ATM facilities Corporate Credit CardClub memberships

Components of Compensation

Wages and Salary

Incentives

Fringe Benefits