Explain the compensation function of Human Resource Management.

1.	Explain the compensation function of Human Resource Management.
Answer» Compensation management is more than just the means to attract and retain talented employees. In todays competitive labour market, organizations need to fully leverage their human capital to sustain a competitive position. This requires integrating employee processes, information and programs with organizational processes and strategies to achieve optimal organizational results. It consists of the following activities: 1. Job Evaluation: It is the process of determining the relative worth of a job. 2. Wage and Salary Administration: It implies developing and operating a suitable wage and salary programme. Surveys are conducted to determine wage and salary structure for various jobs in the organization. 3. Bonus: It involves payment of bonus under the payment of Bonus Act 1965, as well as non-statutory bonus and other incentives.

Answer»

Compensation management is more than just the means to attract and retain talented employees. In todays competitive labour market, organizations need to fully leverage their human capital to sustain a competitive position. This requires integrating employee processes, information and programs with organizational processes and strategies to achieve optimal organizational results.

It consists of the following activities:

1. Job Evaluation: It is the process of determining the relative worth of a job.

2. Wage and Salary Administration: It implies developing and operating a suitable wage and salary programme. Surveys are conducted to determine wage and salary structure for various jobs in the organization.

3. Bonus: It involves payment of bonus under the payment of Bonus Act 1965, as well as non-statutory bonus and other incentives.

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