LOVELY PROFESSIONAL UNIVERSITY
Mittal School of Business
Faculty of Human Resource Management (HRM204)
Name of the faculty member: Ms. Shagun Sood Mam
Course Code: HRM 204 Course Title: Human Resource Management
Academic Task No: 2ND Academic Task Title: Compensation Management
Date of Allotment: 23-02-2023 Date of Submission: 09-03-2023
Student Roll No: A31 Student Reg. No: 12014641
Term: 6th Section: KO235
Max. Marks Marks. Obtained:
Evaluation Parameters
Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Good study skills can increase your confidence, competence, and self-esteem. They can also reduce anxiety
about tests and deadlines. By developing effective study skills, you may be able to cut down on the numbers
of hours spend studying, leaving more time for other things in your life. In regards with this project, I learnt
a lot of things and now I can easily differentiate the decisions which can help the company and also which
can affect the company.
Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other students’
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.
Student’ Signature: JAGRITI SINGH
Evaluator’s Comments (For Instructor’s use only)
General Observations Suggestions for Improvement Best part of assignment
Evaluator’s Signature and Date:
ACKNOWLEDMENT
In performing our Case study, I had to take the help and guideline of some respected
persons, who deserve our greatest gratitude.
I would like to show our gratitude to Ms. Shagun Sood Mam, Human Resource Planning
and Development Professor, Lovely Professional University for giving me a good
guideline.
Many people, especially our classmates and team members itself, have made valuable
comment suggestions on this proposal which gave us an inspiration to improve our Case
study. We thank all the people for their help directly and indirectly to complete our Case
study.
Thank You
COMPENSATION MANAGEMENT
Compensation management is the practice of managing employee salaries, wages, and other forms
of compensation, such as bonuses, stock options, and benefits. It involves ensuring that an
organization's compensation program is fair and competitive, and meets the needs of both the
employer and the employee. This practice involves developing and administering policies and
procedures, analyzing and evaluating data, and setting compensation levels. It is important for
employers to remain competitive in their compensation plans in order to attract and retain the best
talent.
“Compensation includes direct cash payments, indirect
payments in the form of employee benefits and incentives
to motivate employees to strive for higher levels of
productivity”
TYPES OF COMPENSATION
Wage and Salary: Wage and salary are the most important component of compensation. Wage is
referred to as remuneration to workers particularly, hourly-rated payment. Salary refers to as
remuneration paid to white-collar employees.
Incentives: Incentives are the additional payment to employees besides the payment of wages and
salaries.
Fringe Benefits: Fringe benefits include such benefits which are provided to the employees either
having long-term impact like provident fund, pension, medical benefits, canteen, uniform.
Perquisites: These are normally provided to managerial personnel either to facilitate their job
performance or to retain them in the organisation. Such perquisites include company car, club
membership, free residential accommodation, paid holiday trips, stock options, etc.
IMPORTANCE OF COMPENSATION
Helps Plan Your Budget– Employee salaries are the highest cost for any startup.
Helps Motivate Employees- Compensation is the key factor influencing an employee’s
productivity. A well-paid employee is more likely to work hard for your company and vice
versa.
Reduces Employee Turnover– Giving adequate monetary and non-monetary benefits helps
increase job satisfaction and reduce the rate of employee turnover.
Attracts Best Talent– It not only prevents employees from switching jobs but also helps attract
top talent.
SURVEY QUESTIONS
Person 1:
Compensation: 22,000/-
Answer: Satisfied
Person 2:
Compensation: 25,000/-
Answer: Satisfied
Person 3:
Compensation: 30,000/-
Answer: Very Satisfied
Person 4:
Compensation: 20,000/-
Answer: Dissatisfied
Person 5:
Compensation: 33,000/-
Answer: Very Satisfied
Person 6:
Compensation: 19,000/-
Answer: Dissatisfied
Person 7:
Compensation: 28,000/-
Answer: Satisfied
Person 8:
Compensation: 26,000/-
Answer: Satisfied
Person 9:
Compensation: 21,000/-
Answer: Dissatisfied
Person 10:
Compensation: 35,000/-
Answer: Very Satisfied
Survey 1
1. How would you rate your overall compensation?
Person 1: 8/10
Person 2: 9/10
Person 3: 8/10
Person 4: 8/10
Person 5: 7/10
Person 6: 9/10
Person 7: 8/10
Person 8: 9/10
Person 9: 10/10
Person 10: 8/10
Survey 2
2. How satisfied are you with the benefits provided by your employer?
Person 1: 8/10
Person 2: 9/10
Person 3: 7/10
Person 4: 6/10
Person 5: 8/10
Person 6: 9/10
Person 7: 7/10
Person 8: 10/10
Person 9: 9/10
Person 10: 8/10
Calculations:
Average compensation: 26,500 /-
Percentage of people satisfied: 60%
Percentage of people very satisfied: 30%
Percentage of people dissatisfied: 10%
SUGGESTIONS
1. Create a more transparent compensation plan: An effective compensation plan should
be transparent and clearly communicated to all employees. It should also be easily
understood and easy to follow.
2. Offer performance-based pay: Performance based pay can be a great way to reward
top performers and motivate employees.
3. Use a combination of base salary and bonus structure: A combination of base salary
and bonus structure can be used to create an effective compensation plan. This will allow
for rewards for top performers and the ability to adjust pay based on performance.
4. Offer additional benefits and perks: Offering additional benefits and perks such as
flexible working hours, increased vacation time, telecommuting options, or additional
training can help to motivate and reward employees
5. Consider the cost of living: The cost of living in the area should be taken into
consideration when making any adjustments to the compensation plan.
6. Develop a competitive compensation plan: Developing a competitive compensation
plan allows the organization to remain competitive in the market and attract top talent.
7. Communicate the compensation plan: It is important to communicate the
compensation plan to employees so they understand the expectations and are aware of
the rewards available.
8. Review the compensation plan regularly.
CONCLUSION
A efficient compensation plan should be tailored to the needs of the company and its
goals. It should be flexible and provide rewards for both short and long-term performance.
With careful consideration and evaluation, a compensation plan can be an effective tool
for both employees and employers.
The project that I have done here is very valuable to me as it teaches me how to analyse
the own self. With the help of this report, I can be a better human being and, I’ll be
confident in doing some work. This report helps me to check my strengths and
weaknesses. The ranking questions cleared made my mind to choose the suitable job that
suits me perfectly and it will help in decision making of my future goals soon.
THANK YOU
