Business Manangemnt - 3736 Words

------------------------------------------------- Compensation Management Compensation Management is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. Compensation can also include non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Total compensation has three parts: Base compensation The fixed pay an employee receives on a regular basis, either in the†¦show more content†¦A fixed sum is paid every month to cover a part of traveling charges * Incentives: Incentive compensation is performance-linked remuneration paid with a view to inspire employees to work hard and do better. Both individual incentives and group incentives are used. Bonus, profit-sharing, commissions on sales are some examples of incentive compensation * Fringe Benefits/Perquisites: These include employee benefits such as provident fund, gratuity, medical care, hospitalization, accident relief, health and group insurance, canteen, uniform, recreation and the likes. Bonus: The bonus can be paid in different ways. It can be fixed percentage on the basic wage paid annually or in proportion to the profitability. The Government also prescribes a minimum statutory bonus for all employees and workers. There is also a bonus plan which compensates the Managers and employees based on the sales revenue or Profit margin achieved. Bonus plans can also be based on piece wages but depends upon the productivity of labour. Non Monetary Benefits:These benefits give psychological satisfaction to employees even when financial benefit is not available. Such benefits are: (a) Recognition of merit through certificate, etc. (b) Offering challenging job responsibilities, (c) Promoting growth prospects, (d) Comfortable working conditions, (e) Competent supervision, and (f) Job sharing andShow MoreRelatedProject Management : Common Project Failures1617 Words   |  7 Pagesto achieve success. The cost and the time of delivery should be well documented to show how any change will affect the budget. The PM should create a scope management plan to show how they will monitor and control the project scope ( Project Manangemnt Institute, 2012). Sponsors should sign off on scope documentation to reduce scope creep. In doing so, project failure can be minimized. Poor Communication Communication between the PM, stakeholders and team members is imperative to the success