3. • INTRODUCTION AND OBJECTIVE
Zahid 44
• Component and importance
Jawad ahmad 17
• EXECUTIVE COMPENSATION AND
CONCUSION
SHAH RUKH 38
Group name nawey sahar
Group # 8th
4. 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 .
5. 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.
6. OBJECTIVE OF COMPANSATION MANAGEMENT
1) 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
7. Jawad ahmad roll # 17
Topic component of compensation
and their importance
8. 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.
9. 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
10. The further divide into two parts .
Direct monetary component
basic pay
bonus
perquisites
Insurance
Leaves
Phones and laptop
Retirement program
Indirect monetary component
11. 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.
12. 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.
14. EXECUTIVE COMPENSATION
The 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
15. Managerial compensation of such positions
comprises of these elements:
1) Salary
2) Bonus
3) Long Term Incentive
4) Perquisites
16. Fixed amount is paid monthly
Salary determined through job evaluation
Salary of managers varies by the type of job
, size of organization, region of the country
and type of industry
This type of incentive is annual and
based on company performance or profit
sharing
17. 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
Special benefits for executives usually non-
cash items:
- Companies provide health club memberships
- Executive health plans
- Personal car service
- Entertainment
18. 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 .
19. 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
20. 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.
