Objectives of compensation management - compensation management - Manu Melwin Joy

Objectives of compensation managementCompensation Management

Prepared By

Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.

Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Objectives of compensation management

• To attract highly capable and

efficient employees so that their

efforts produces higher

organizational performance.

• To retain talented employees for

continuance of organizational

performance and attainment of

higher levels of competence.

Objectives of compensation management

• To increase the motivation and

morale of employees for achieving

higher employee commitment

towards goals and objectives of the

organization.

• To maintain market competitiveness

in order to reduce or control

employee attrition which can affect

organizational functioning.

Objectives of compensation management

• To reward employees for their

productive contributions to

organization's bottom line.

• To integrate employee efforts

with organizational

performance management

systems for increased

effectiveness.

Objectives of compensation management

• To build employer branding

which is key to building a

pool of potential hires.

• To help employee meet their

economic, personal, material,

social and psychological

needs and aspirations.

Objectives of compensation management

• To encourage employees to

develop their skills and

competencies by attaching

higher values to

compensation for increased

job performance.

• To elicit needed and desirable

behaviors from employees.

Objectives of compensation management

• To comply with labor and

social legislations such as

The Minimum Wages

Act, 1948, Equal

Remuneration Act, 1976,

Section 529 –A of the

Companies Act, 1956 etc.