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 Management refers to the establishment and implementation of sound policies, programmes and practices of employee compensation. It is essentially the application of a systematic and scientific approach for compensating the employees for their work in a fair, equitable and logical manner. Compensation Management is concerned with the compensation to employees for their work and contribution for attaining organisational goals. [...]