• Employee compensation is a vital part of 
     human resource management. 
   • Wages or salaries and other forms constitute a 
     very large component of operating costs. 
   • MAJORITY of the UNION-MANAGEMENT 
     DISPUTES are RELATING TO REMUNERATION.
                      Department of Management Studies, NCM
    • No organisation can expect to attract and 
      retain talent unless it pays them fair 
      compensation.
    • Compensation 
       –Is a motivational factor
       –It helps to satisfy their physical needs
       –It also determines their social status
                        Department of Management Studies, NCM
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                      Department of Management Studies, NCM
    Base or primary compensation 
    • It refers to basic pay in the form of wages and 
       salaries.
    • It is fixed and paid on the basis of time 
       expended on the job.
    • It is usually paid in the form of cash 
    • The main purpose is to compensate 
       employees for their services.
    • It is determined on the basis of job evaluation.
                       Department of Management Studies, NCM
        Supplementary Compensation
    • It means fringe benefits paid in addition to 
      wages and salaries.
    • The main purpose is to retain employees and 
      to increase their efficiency.
    • It depend mainly on the company policies and 
      needs.
                      Department of Management Studies, NCM