Compensation is an important activity of Human Resource Management (HRM). It plays a significant role for the employee as well as the employer. For the employee, compensation is the main source of livelihood and determines his/her standard of living, status in the society, motivation, loyalty, and productivity. For the employer, compensation is an instrument of procuring (attracting), maintaining, developing, promoting, [...]
The basic objective of compensation management can be briefly termed as meeting the needs of both employees and organization. Since both these needs emerge from different sources, often, there is a conflict between the two. This conflict can be understood by agency theory which explains relationship between employers and employees. The theory suggests that employers and employees are two main [...]
Compensation system plays a very vital role in a business organization. Since, among four Ms., i.e. Men, Material, Machine and Money, Men has been the most important factor. It is impossible to imagine a business process without Men. In any organization, the compensation system is designed and incorporated to streamline the activities. The activities performed by the human resources earn [...]