Compensation Function and Objectives and the Components of Wage Structure of...

Today there is a lot of talk virtually hire, its cost to the organization and the companys return on its compensation investment. As a result, a variety of new counterbalance systems have been developed, each with its own objectives, benefits and risks. Some companies have already installed new pay plans, and many more are considering it. strategic compensation planning allows an organization to focus on its strategic objectives and develop a comprehensive plan, considering base pay, short- and long-term incentives, benefits and increase opportunities. This kind of planning helps ensure that the compensation system ordain support the organizations long-and short-term objectives without overlap, which would have more than iodin pay plan driving the same objectives. An organizations compensation program foc physical exercises on two major objectives. First, it moldiness disclose the right pay programs to recognize and reward desired behaviors. Second, it must decide how to organize work procedures to make the best use of available resources. Basic earningss/Salaries:- These refers to the cash component of the wage structure based on which other elements of compensation whitethorn be structured. It is normally a fixed amount which is crush to changes based on annual increments or subject to periodical pay hikes.

It is structured based on the position of an unmarried in the organization and differs from grades to grades. Dearness allowance:- The payment of preciousness allowance facilitates employees and workers to face the price increase or lump of prices of goods and services consumed by him. The onslaught of price increase has a major bearing on the living conditions of the labour. The increasing prices recoil the compensation to nothing and the moneys worth is coming dispirited based on the level of inflation.The payment of dearness allowance, which whitethorn be a fixed percentage on the introductory wage, enables the employees to face the increasing prices. Bonus:- The bonus can be paid in... If you want to get a full essay, enact it on our website: Orderessay

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