1

CHAPTER I
1.1 INTRODUCTION
Compensation management is an integral part of the management of the organization. It
contributes to the overall success of the organization in several ways. Compensation management,
also known as wage and salary administration, remuneration management or reward management,
is concerned with designing and implementing total compensation package for the employees.

Compensation and salary of employee are one and the most important thing is to note that
compensation plays a major role in attracting talent from the market and compensation system of
the organization is key factor for creating employer brand which is most important for attracting
talent people. Having talent people for the organization on the major assets for the organization
development. Compensation or reward system of the organization is most influencing factor for
employee motivation must remember.
In the present era where high employee turnover and low retention rate turn into biggest
nightmare for the entrepreneurs, a sound compensation policy for the organization plays a great
role in case of providing relief to them. Concepts like performance based pay system, knowledgebased pay system, and market-based pay system are introduced by the employers to pay the
employees in different format. Apart from this various offers like commission, profit sharing,
health insurance schemes are also provided in order to attract employees. Some organizations also
prepare separate set of executive compensation policy for their top level executives, so that they
can attract and hire them in this time of cut throat competition. Various components of
compensation such as wage/salary, incentives, benefits, perquisites are properly taken into
consideration by the organization while designing the compensation policy for the employees. The
sole objective behind this is to make the employees satisfied in terms of compensation, which is
the major role player in influencing their professional and personal life. Because it is money,
which motivates the employees more, to perform better and better in the organization and through
this they get a status and recognition in the society. Owing to emphasis on literacy level, today
most of the employees are educated, well informed, and they are very much aware of their rights.

As a result, it is now very difficult for the organizations to exploit them in any ground.
Similarly, due to the vast use of television and Internet, now it is not so difficult for them to access
any job belong to any organization at any place. Therefore taking all these into consideration a
sound compensation policy is a compulsory factor for every organization under compensation
management system, so that they maintain a stable and satisfied workforce.
Compensation Management Principles:
The basic principles of compensation management that you should understand in order to
get the most out of this book. Everything around us impacts our compensation. Its like the
butterfly effect. Butterfly effect refers to the idea that a butterfly's wings might create tiny changes
in the atmosphere that ultimately cause a tornado to appear (or prevent a tornado from appearing).
The flapping wing represents a small change in the initial condition of the system, which causes a
chain of events leading to large-scale phenomena. Had the butterfly not flapped its wings, the
trajectory of the system might have been vastly different. A small change in the employees work
environment can significantly impact compensation.
Compensation Strategy:
To attract and retain employees that will help the company achieve business results. HR
practices vary across the world. In US, employment-at-will is the de facto norm where in
European and Asia Pacific countries, employee protection is a norm. In some countries, employee
needs to be given 6 months notice period before they are let go. There are some countries where
13 month pay is a norm. In other countries, if a particular bonus payment is made for more than 2
consecutive years, it becomes an entitlement that cant be taken away later. Compensation strategy
can be defined at a global level but local compensation plans need to tailor on local drivers.

Compensation System:
Compensation system is the backbone of compensation management. It needs to be
flexible as well as reliable to deliver the needs of an organization. There has been a great deal of
evolution is compensation system.

Largely many of the computer systems were based on spreadsheets. The spreadsheet
based systems are easy to start-up but have a high degree of maintenance and are not as flexible as
one would expect. The employee data is not real-time i.e. the employee who just left might still
continue to appear of spreadsheet till someone either notices it or updated ones are distributed
again. The spreadsheet systems are difficult to replace since a lot of time and effort has already
been spent by the compensation team and they dont want to let go of it to create a new one. There
are a whole host of advantages to having a compensation system that is integrated with your HR
systems. Some of these include:

Real-time employee data

A better user interface

Complete data consistency

Integrated to payroll to distribute compensation in timely manner

Currency calculations

Multiple language support

Compensation management provides the eligible employee population with guidelines on

what they should be awarded and a mechanism for the managers to award and approve. The actual
payment is executed by Payroll Department, however, so its very important to ensure that your
compensation and payroll processes are aligned. Administration of compensation packages will
become more and more critical. There will be different kind of packages that will be required to
provide for the differentiation. The compensation packages could change regularly. Also the jobs
are more dynamic and they will change more often. This will make it a necessity that the
administration be easy and flexible. Stock options have been very popular form of compensation
and employees have reaped the benefits of this. This type of compensation has been very effective
for growth companies since there is a lot of potential for the stock price to raise and in turn give
employee a windfall. These are classified as long term incentives since there is no immediate gain
but can have a substantial future value. Approval of compensation is also one of the big items.
Depending on a company culture, more decentralized the company the greater authority is given to
the manager. Also the levels of approvals are limited. In certain cases, multiple approvals are
needed. With current issues with executive compensation, management boards are actively
involved in approving executive compensation.

Compensation Elements:
The study comprises a quantitative and qualitative analysis focusing on the following:
(i)Quantitative analysis:
Total Fixed Cash Compensation (TFCC): This is a summation of basic salary, all fixed
cash allowances and any guaranteed payments made to employees.
Total Variable Pay (TVP): This refers to any bonus, long term/ short term incentive
payments made to an individual directly linked with company and/or individual
performance.
Total Cash Compensation (TCC): This is a summation of all pay components paid in cash
whether fixed or variable and is computed by adding up Total Fixed Cash Component and
Total Variable Pay. All benefits paid to the employees are over and above this.
Pensions: This includes any longterm contributions made for a retirement or superannuation plan.

(ii)Qualitative Analysis:
In addition to the quantitative analysis, there is also a qualitative trend analysis on overall
benefits packages, excluding pensions, from the participating organisations. This is primarily life,
personal accident/disability and health insurance benefits offered to employees as well as holiday
entitlement.
COMMUNICATION IN COMPENSATION MANAGEMENT
Communication about pay systems is often defined as exchanging information and forming
understanding about pay systems. In a compensation management context, communication
involves the delivery of pay messages from one person or group to another (the receiver) through
verbal, non-verbal and written communication. Specifically, a communication process may
increase employees understanding, appreciation and credibility of compensation practices in pay
administration. There are two major types of communication strategies adopted by most
organizations: communicating pay information from employees to the organization and
communicating pay from the organization to employees.

Communicating pay information from employees to an organization involves

compensation analysts and other human resource/pay specialists to actively seek information from
employees. Under this communication system, most employers prefer to seek broad and specific
information from at least some of their employees. Compensation managers view this type of
information as useful as they seek to design pay systems that would satisfy employees needs and
would increase employee understanding of the system, thereby influencing procedural justice.
Communicating pay information from the organization to the employees relates to how
information is disseminated. This communication exchange emphasizes the degree of openness
and disclosure about the compensation system. An open communication system may clearly
expose the value of the compensation package quantitatively and qualitatively, deliver accurate
information about pay and performance relationships, permit a voice in the system and increase
the ability to understand and perceive equity and fair treatment within the system. Implementation
of these two major types of communication strategies may help HR officers to increase
appreciation and credibility of pay systems.
Compensation Package:
Its easy to think dollars per hour when thinking about compensation. However, successful compensation packages go a lot further and can be considered total rewards systems that
contain non-monetary, direct and indirect elements.
(i)Non-monetary compensation:
An employee receives from an employer or job that does not involve tangible value. This
includes career and social rewards such as job security, flexible hours, and opportunity for
growth, praise and recognition, task enjoyment, and friendships.
(ii)Direct compensation:
An employees base wage, which can be an annual salary or hourly wage, plus any
performance-based pay an employee receives, such as profit-sharing bonuses.

(iii)Indirect compensation:
It includes everything from legally required public protection programs such as Social
Security to health insurance, retirement programs, paid leave, child care or moving expenses.
Determining the Cash Wage:
Ask ten different people what a fair wage is and youll get ten different answers. While
there are no hard and fast rules for determining a fair wage, the importance of the task is obvious.
Research indicates that employees expect wages to: 1) cover basic living expenses; 2) keep up
with inflation; 3) provide some funds for savings or recreation; and 4) increase over time.
Discussing wage expectations with employees can help determine what your compensation
package should look like.
The first thing employers should consider when developing compensation packages is
fairness. It is vital that businesses maintain internal and external equity. Internal equity refers to
fairness between employees in the same business, while external equity refers to wage fairness as
compared to other farms or businesses. No matter the compensation level, if either internal or
external equity is violated employees may become dissatisfied. This becomes apparent through
decreased productivity, absenteeism, or employees leaving the business.
So, what constitutes a fair wage? One approach to determining a fair wage is a market
survey. This is a fast and easy way to establish compensation guidelines for many businesses. A
few phone calls to other employers in similar businesses can determine the market value for a
specific job.
A MODEL OF EFFECT OF COMPENSATION ON WORK MOTIVATION
Compensation system is their effects on the satisfaction of psychological needs the key to
promoting autonomous work motivation, better performance and employee well-being. Therefore,
we propose that future research should examine the effect of compensation system on the needs
for autonomy, competence and relatedness. This will help explain why certain compensation
systems are more efficient for promoting the autonomous motivation of employees.

The process has five dimensions

a) The absolute amount of pay in monetary value.
b) The perceived equity of the compensation, operationalized in terms of distributive justice.
c) The ratio of fixed amount of pay versus the amount of pay that varies according to a
certain criterion.
d) The objectivity of the performance appraisal that determines compensation.
e) The number of people whose performance is used to determine ones compensation.

COMPANY PROFILE
Elim Meditech Pvt Ltd is Indias leading manufacturer, developer and distributor of
medical electronic equipment with subsidiaries in country. Our major product lines for export are
patient monitors, electroencephalographs, evoked potential and electromyography systems,
electrocardiographs, defibrillators, and haematology analysers. Elim Meditech equipment is well
known for its quality and ease of use.
Elim Meditech actively contributes to the advance of medical technology. Elim Meditech
researchers have published valuable research in some of the world's most prestigious medical,
engineering and scientific journals. Elim Meditech has significantly contributed to the
advancement of modern medical treatment with many innovative products and technologies. Pulse
oximetry, the technology to non-invasive measure oxygen in the blood. In addition to supplying
the world with our own high quality medical equipment, Elim Meditech imports outstanding
overseas products. Our wide range of imported equipment includes cardiology, urology,
respiratory care, anaesthesiology, emergency care, sports medicine and rehabilitation. Our
extensive domestic sales network consists of direct sales staff. Our mission is to improve the
quality of life through advanced medical technology.
In fulfilling our management philosophy:
Our fundamental goal is to establish trust and grow as a company that is recognized by its
customers, shareholders, business partners and society for its superior products, services,
technologies, financial standing and employees.
ME (Medicine and Engineering):
ME (Medical Electronics or Medical Engineering) is the union of medicine and
engineering. ME is a common abbreviation in recent years but the founders of Elim Meditech
began working in medical electronics. The neuromuscular tissue of a small bird was the impetus
behind the founding of Elim Meditech. The founder of Elim Meditech, was doing research in
electrical Engineering when one day he happened to see an experiment involving stimulation of
the neuromuscular tissue of a small bird.

He was struck by the wonder of biology and remarked. That to measure part of a living
body requires several hundred times the sensitivity and At least two decimal places more than the
equipment developed by the leading electrical Engineering experts. He wondered if it might be
possible to apply a higher level of engineering to the subtleties of biology and study the human
body. And furthermore, if this union of medicine and engineering could be used for saving human
life. With this powerful inspiration, he Studied medicine and founded Elim Meditech. With the
unshakable conviction that curing disease is something that transcends politics and national
borders, and we will never have any regret putting all our energy into this goal.
Elim Meditech produced a number of state of the art medical Electronic instruments. As
medicine evolved, Elim Meditech products branched out into many areas. However, the original
vision did not change and it still inspires The Companys engineers. Elim Meditech will continue
growing as a company that contributes to the world by striving to use advanced technology based
on our experiences to fight disease and improve healthcare.
Mid-term Business Plan, Strong Growth 2017 (April 2013 to March 2017):
Elim Meditech mid-term business plan, Strong Growth 2017, is the second stage and the
coming four-year period is crucial for building a more solid foundation in order to realize its longterm vision. Elim Meditech aims to achieve sustainable growth under the national future vision to
reorganize the medical and nursing care systems by 2025 and achieve strong growth in
international markets. The Company will also enhance its operating base to ensure its growth.
Basic Principles:
Each and every employee will act autonomously and implement the following principles
aimed at realizing the Companys long-term vision:
User oriented
Take all necessary actions for the customer.
Relationships
Strengthen relationships with customers and partners both inside and outside the Company.

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Global:
Enhance global communication skills as well as think and act with a global perspective.
Speed:
Strive to do everything with greater speed.
Key Strategies:
1. Pursue the highest level of quality in the world:
Ensure quality in every activity of every division across the entire Elim Meditech Group,
from development to production, logistics, sales and services
2. Strengthen technological development capabilities:
Strengthen R&D organization to address the needs of clinical practice swiftly and flexibly.
Promote industry-government-academia collaboration as well as collaboration with other
companies both inside and outside India.
3. Strengthen business expansion by region:
Reinforce business expansion in Asia and emerging markets including BRICs.
4. Achieve further growth in core businesses:
Achieve further growth in 4 core businesses: Patient Monitors, Diagnostic Equipment,
Treatment Equipment, and Consumables and Services in order to expand global market share and
establish a stable and consistent revenue base.
5. Develop new businesses:
Develop new core businesses by self-development, alliances and M&A. Focus on solutions
to (i) help improve medical safety, (ii) address lifestyle-related diseases, dementia and intractable
diseases, and (iii) respond to an integrated community care system.

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6. Consolidate corporate fundamentals:

Foster a more robust business structure that is globalized, efficient and fast-paced
Implement CSR activities Strengthen human resource development initiatives.
Corporate Governance:
(1) Basic Approach to Corporate Governance:
Elim Meditech recognizes that corporate governance is one of its most important
management tasks and it has established a management control system for improving management
soundness and efficiency in order to fulfill its basic management philosophy.
(2) Corporate Organizational Structure:
Elim Meditech has adopted the audit & supervisory board system. Elim Meditech Board of
Directors consists of 10 corporate directors (of which two are outside directors). It meets at least
monthly to make decisions on legally stipulated matters and on important matters concerning the
management of the Elim Meditech Group. The board of directors also performs audits on whether
directors are executing their assigned duties. In order to execute management activities in
accordance with the basic policy determined by the board of directors, the Management Council,
which consists of each director and each operating officer, meets three times per month to expedite
decision making and ensure that operations are executed in an agile manner.
The number of corporate directors has been limited to 12 in order to help speed up decision
making, while directors terms have been set at one year to clarify the management accountability of
each director during the fiscal year. To enhance management transparency and soundness, Elim
Meditech appointed one outside director with no ties to the company in June 2010 and another in June
2012, for a total of two outside directors. As part of its efforts to strengthen corporate governance, the
company has also adopted the Operating Officer System in order to clearly separate managements
decision making and management audits from business execution.

Elim Meditech Audit & Supervisory Board consists of four audit & supervisory board
members, including two outside audit & supervisory board members.

12

Each audit & supervisory board member attends board of directors meetings, Management
Council meetings, and other important company meetings where they comment when appropriate
on deliberations of resolutions. In accordance with the audit plan formulated by the audit &
supervisory board, auditors also investigate the status of business execution and corporate assets as
well as perform audits on directors execution of their assigned duties. In order to execute strict
and enhanced audit operations, audit & supervisory board members work closely with the
companys accounting auditor and Internal Audit Department to perform audits on Elim Meditech
subsidiaries in India including on-site audits.
Elim Meditech have two outside directors and two outside audit & supervisory board
members report to Stock Exchange as independent directors/auditors that have no conflict of
interest with general shareholders. Elim Meditech Corporate Planning Department is charged with
providing business communication and assistance to the companys outside directors and outside
audit & supervisory board members. The Corporate Planning Department also provides
information to the companys outside directors and outside audit & supervisory board members on
a regular basis by circulating monthly business reports compiled by business divisions and
subsidiaries, distributing meeting documents for board of directors meetings and Management
Council meetings in advance, and offering explanations where necessary.
Elim Meditech has also established an internal audit system in order to strengthen internal
control. The Internal Audit Department (staff of seven) has four main tasks. It regularly performs
internal audits on the appropriateness and efficiency of operations as well as on the status of
compliance at Elim Meditech and its subsidiaries. It collaborates with audit & supervisory board
members to help strengthen oversight of accounting and business execution. It reports internal
audit results to the president as well as audit & supervisory board members as they become
available. It reports quarterly on internal audit results and the progress of implementing changes to
the companys directors, audit & supervisory board members and operating officers at
Management Council meetings.

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Key Facts (March 31, 2014):

Name

: Elim Meditech Pvt Ltd.

Type of Business

: Development, production, and sales of medical electronic

equipment.

Paid-in Capital

: 7,544 cores (as of March 31, 2014).

Net Sales

: 153,194 cores (year ended March 31, 2014).

Shares of Common Stock:

Issued and outstanding : 45,765 thousand (as of March 31, 2014).
Stock Listing First Section of Stock Exchange:
Stock Code

: 6849

Workforce:
Elim Meditech Group: 4,495 employees (as of March 31, 2014).
Philosophy and Policy:
(a)Management Philosophy:
We contribute to the world by fighting disease and improving health with advanced
technology, and create a fulfilling life for our employees.
In order to realize its management philosophy, Elim Meditech tackles the challenges of
healthcare through technological development deeply rooted in the front lines of medicine and
continually delivers safety and security to customers. This enables the Company to contribute to
society, continually grow as a corporate group, and enhance its corporate value.
(b)Elim Meditech Charter of Conduct:
Elim Meditech Charter of Conduct defines the following guidelines by which the company
and its executive officers and employees must abide to ensure that business activities are carried
out in line with the Companys management philosophy.

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(c)CSR Philosophy:
As a medical device manufacturer, Elim Meditech dedicates itself to contributing to all
forms of life on earth through its business activities and citizenship activities.
Relationship with Employees:
A workplace conducive to drawing out the skills and abilities of each and every employee
is essential to continue contributing to the world as a truly global company in todays turbulent
times marked by a declining birth-rate, aging society, diversification of values and globalization.

Elim Meditech offers a positive workplace environment and employee development

programs, while also promoting diversity and striving to hire a broad range of human resources.
Elim Meditech also advocates a work-life balance to encourage employees motivation and sense
of worth.
International training program:
Elim Meditech offers a training program open to all junior and mid-career employees that
provides an opportunity to take part in language learning and practical work experience at one of
its overseas subsidiaries. This training serves not only to develop language skills, but also to foster
diverse values and understanding of different business customs through interaction with local staff.
In turn, this develops human resources capable of driving our business forward globally. Support
programs for personal development and learning. Elim Meditech fully supports employees who
proactively seek to build their skills independently. We offer more than 200 correspondence
education courses that are paid for by the company. In 2013, 164 employees took correspondence
education courses mainly in language learning. Elim Meditech also has a program where it pays
for a certain percentage of the costs associated with obtaining a public certification or credential
recognized by the company as necessary.
Diversity:
Elim Meditech dedicates a great deal of effort to promoting diversity. We are
implementing initiatives not only to help female employees thrive in the workplace, but also to
fully leverage the skills and talents of our diverse pool of human resources in all aspects of our
business, regardless of gender, age, nationality, race or disability.

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INDUSTRY PROFILE
Industry Definition:
Indian medical device manufacturing sector is a highly diversified industry that produces a
range of products designed to diagnose and treat patients in healthcare systems. Medical devices
differ from drugs in that they do not achieve their intended use through chemical reaction and are
not metabolized in the body. Medical devices range in nature and complexity from simple tongue
depressors and bandages to complex programmable pacemakers and sophisticated imaging
systems.
Key Products:
The key products that comprise the medical devices industry, include, surgical appliances
and supplies, surgical and medical instruments, electro-medical equipment, in-vitro diagnostic
substances, irradiation apparatus, dental and ophthalmic goods.
The challenge of collecting data on Medical Device Industry:
Firms in the medical device sector (medical devices as defined by regulations) are reported
under many Indian Industry Classification System codes, and those codes often include non-device
firms.
Overview and Global Competitiveness:
(1)Industry Characteristics:
Announcements of progress in medical technology that allow for earlier detection of
diseases and more effective treatment options are now almost daily occurrences. Particularly
notable technological advances in the industry in recent years included new developments in
neurology (e.g. deep-brain-stimulation devices for treating symptoms of Parkinson's), cardiology
(e.g. artificial device designed to replace diseased heart valves) and Health IT (e.g. "data liquidity"
to facilitate information sharing, wireless telemedicine devices, systems designed to track the
cardiac activity of patients with implanted medical devices). Scientists have used Nano sensors for
the quick detection of cancers through blood tests, with Nano-material also enabling the release of
medicine at targeted organs.

16

Minimally invasive surgery has also seen major gains - an exciting example of this trend is
an endoscopic technique that integrates nontechnology and diagnostic imaging. Capsule
endoscopy, which involves swallowing a tiny wireless camera pill that takes thousands of pictures
as it travels through the digestive track, gives physicians more detailed information about hard to
navigate sections of the digestive tract compared with earlier endoscopic technologies. The ability
to navigate and detect conditions in the small intestine is the most promising aspect of this new
technology; providing physicians with greater ability to diagnose conditions such as intestinal
tumours and Chrohns disease.
(2)Global Medical Device Sector:
The global medical device manufacturing industry is made up of more than 27,000 firms
worldwide and employs about one million people. The global industry has traditionally a low level
of industry concentration, with no one firm dominating. Small companies are common and
typically specialize in developing niche technology, while larger players frequently seek to acquire
smaller firms to expand their product range or gain access to a particular technology or market.
In 2011, the key business segments of the global medical device market were consumables
(15%), diagnostic apparatus (e.g., MRI and CT-scan) (27%), patient aids such as hearing aids and
pacemakers (12%), orthopaedic products (11%), dental products (7%), and other medical
equipment (28%).
Medical device companies are expected to realign their business structures and strategies to
compete in the changing global environment (such as growth of emerging markets, health care
reform and cost containment). Anticipated changes include company restructuring as well as an
increased reliance on strategic alliances and outsourcing for marketing, distribution, research and
manufacturing activities.
(a)Medical Device Sector:
Medical device sector is a highly diversified and export-oriented industry that
manufactures equipment and supplies. Purchasers include international hospitals, physician's
offices, laboratories, clinics as well as patients (through direct purchases).The sector is populated
with companies driven by product innovation.

17

The industry is able to draw on world-class innovative research being conducted research
institutes and hospitals, some of which has been spun-off into Indian medical device companies.
(b)Global Market for Medical Device Products:
(i)Medical Device Market:
Company has an estimated 6.4 cores (2012) medical device market accounting for about 2
percent of the global market. The following were key expenditure areas, as a percentage of total
2012 medical device sales:
Diagnostic apparatus (25.8%)
Consumables (15.3%)
Patient aids (12.3%)
Orthopaedic and prosthetic (11.9%)
Dental products (6.9%)
And, Other (27.8%) (including wheelchairs, ophthalmic instruments, anaesthesia
apparatus, dialysis apparatus, blood pressure monitors, endoscopy apparatus, hospital furniture,
other). Approximately 80 percent of the market is supplied by imported medical devices.
(ii)International Medical Device Markets:
In 2012, the global market for medical devices was valued at 327.7 cores, excluding in
vitro diagnostics. With a market of 188.9 cores or 36.3 percent of the global market, the United
States is the world's largest and most developed market and the leading supplier of medical
devices with 16 out of the top 25 medical device global companies.
(iii)Commercialization Initiatives:
Sector initiatives to facilitate technology commercialization include efforts by
organizations such as the Health Technology Exchange (HTX), Biomedical Commercialization,
and Le Campus des Technologies de la Sante (CTS).Three Centres of Excellence for
Commercialization and Research (CECR) with focused specialties in medical device research.

18

Each CECR is a not for profit corporation created by organizations such as companies,
universities and research institutions to match research expertise with business needs for the
purpose of stimulating commercialization.
The three CECRs are:

Centre for Imaging Technology Commercialization.

Centre for Probe Development and Commercialization.

Centre for Surgical Invention and Innovation.

(iv)Export Development:
Export Development an export credit agency which offers a range of trade finance, credit
insurance and other risk management services to exporters.
Key Non-Regulatory Policy Areas:
(a)Reimbursement:
Valuation and reimbursement of products by public and private sector financial entities are
crucial to the success of the medical device industry. The Department of Health and Human
Services Center for Medical and Medicaid Services (HHS/CMS) administers both the Medicaid
and Medicare program that covers the reimbursement of medical devices. In addition, the Veterans
Administration

is

the

key

agency

responsible

for

negotiating

an

agreement

with

manufacturers/distributors of medical devices (Federal Supply Schedules) for procurement of

medical devices by certain government agencies.
(b)Healthcare Reform:
Health care reform will have a wide ranging impact and will impose new mandates on
individuals, employers, medical service providers and health products manufacturers.
(c)Comparative Effectiveness:
As policy-makers contend with rising healthcare costs it is likely that some form of
comparative effectiveness, a system based on the relative benefits a product delivers, will be
implemented or expanded and abroad.

19

Comparative effectiveness employs research that compares the clinical effectiveness of

different drugs, devices and procedures with an eye toward improving quality of care. However,
issues remain as to who should conduct the research or when and how cost effectiveness should be
factored in.
(d)Industry Consolidation - Mergers and Acquisitions:
In the medical device industry small firms faced with devoting significant resources to
innovations often merge with larger 9 firms with the financial resources necessary to bring
products to market. The results was mutually beneficial - larger firms receive the benefit of the
new technology and, therefore, maintain market share; small firms can afford to continue to
produce and get the benefit of the large firms devoting resources to continued incremental
improvements that are crucial in the industry.
(e)Demographics:
Marked increases in the average age and populations has already influencing the direction
of the medical device industry through the changing health needs of senior citizens and shifts in
thinking on how and where they will be treated. As pressures mount to contain costs, expensive
and/or extended stays in healthcare facilities will be discouraged and healthcare will be
increasingly delivered in alternative settings such as nursing homes, hospices, and, especially, the
patients own home. Home health-care is one of the fastest growing segments of the industry, and
is branching out into new areas. What used to be limited to only the lowest technology products is
now encompassing a proliferation of high technology medical devices that are intended to be used
by unskilled health care workers or patients.
(f)Product Convergence:
As medical device and biotechnology products converge, medical devices will act as
delivery systems for pharmaceutical treatments and research resulting from genetic engineering
and biotechnology research. Many industry experts view the impending convergence of medical
devices with biotechnology and nanotechnology with cautious optimism, but also warn that if the
regulatory and reimbursement issues are not addressed problems will ensue as convergence takes
place.

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Industry Trading Environment:

(a)Key Export Destinations:
The EUs regulatory system for medical devices is generally considered open and
transparent, is based on international standards, and accounts for about one quarter of the global
medical device market. The EUs regulatory structure is contained in the Medical Device
Directives (MDD), which recently underwent amendments imposing more stringent requirements
as to what constitutes "clinical evidence" and mandating stronger enforcement by authorities.
These changes will be completed and in place in 2010. In 2009 the EU was considering additional
significant revisions to its MDD, but consultations with industry on what was known as the
recast led the Commission to delay implementation and revisit the numerous issues associated
with the planned changes.
(b)Key Competitors:
It is important to note that most of these foreign companies manufacture a significant
amount of medical devices. For example, as a result of recent acquisitions Philips currently
produces more medical devices in India. High-quality but lower technology medical device firms
are being challenged by numerous lower-cost producers from China, Brazil, Korea, Taiwan and
U.S, all of which are building up their domestic industries and beginning to complete globally.
(c)Export Barriers:
International Regulatory Environments
International Reimbursement Payment Environments
Harmonization Efforts
IPR and Counterfeit Medical Devices

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ORGANIZATION CHART:
MANAGING
DIRECTOR

MANAGER

ASSISTANT
MANAGER

HR
DEPARTMENT

PRODUCTION
DEPARTMENT

QUALITY
DEPARTMENT

PRODUCTION
MANAGER

QUALITY
ANALYSERS

SUPERVISOR

EMPLOYEE

FINANCE
DEPARTMENT

AUDITOR

MARKETING
DEPARTMENT

MAINTANACE
DEPARTMENT

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CHAPTER II
REVIEW OF LITERATURE
Bob (2011):
Compensation processes are based on Compensation Philosophies and strategies and
contain arrangement in the shape of Policies and strategies, guiding principles, structures and
procedures which are devised and managed to provide and maintain appropriate types and levels
of pay, benefits and other forms of compensation.
Armstrong (2005):
Compensation management is an integral part of human resources management approach
to productivity improvement in the organization. It deals with the design, implementation and
maintenance of compensation system that are geared to the improvement of organizational, team
and individual performance.
Robert and Angelo (2001):
The success or failure of organizations hinges on the ability to attract, develop, retain,
empower and reward a diverse array of appropriately skilled people and is the key to improved
performance hence the enthronement of democratic governance in 1999 brought some civil service
reforms and Anambra State Civil Service Commission got vested with horizontal powers by law to
manage the workforce of the civil service for greater efficiency.
Nweke (2010):
Compensation management is one of the central pillars of human resources management
(HRM). It is concerned with the formulation and implementation of strategies and policies that
aim to compensate people fairly, equitably and consistently in accordance with their value to the
organization.

23

Liska (2008):
In his own analysis says compensation management is all about developing a positive
employment relationship and psychological contract that adopts a total compensation approach
which recognizes that there are a number of ways in which people can be compensated.
Hewitt (2009):
Compensation Management as the name suggests, implies having a compensation structure
in which the employees who perform better are paid more than the average performing employees.
This encourages top-performers to work harder and helps to build a competitive atmosphere in the
organization.
Brown (2005):
compensation management is an integral part of HRM approach to managing people and as
such it supports the achievement of business objectives and it is strategic in the sense that it
addresses longer term issues relating to how people should be valued for what they want to
achieve; It is therefore integrated with other HRM functions, especially those concerned with
human resources development.
Anyebe(2003):
compensation management as being based on a well-articulated philosophy- a set of beliefs
and guiding principles that are consistent with the values of the organization which recognizes the
fact that if HRM is about investing in human capital from which a reasonable return is required,
then it is proper to the skills and competencies of employees in order to increase the resourcebased capability of the organization.
Dyer (1985):
The notion that compensation policies are strategic, thereby affecting the missions of the
organization, has considerable currency. This is part of the current popularity of all things
strategic. While some may write it off as another fad, a less cynical view is that a strategic
perspective on compensation is part of a growing recognition that macro-organizational issues are
an important part of the study of human resource management.

24

Mintzberg (1987):
A strategy may be intended and formally articulated in some plan or document, or it may
emerge through the patterns of decisions shown by the organization's behaviours. Thus, strategies
are both plans for the future and patterns from the past. Strategy applied to compensation
management is particularly ill defined. Analogous to the more general definition just discussed, the
term connotes compensation decisions responsive to environmental opportunities and threats, and
linked to or supportive of the overall long term directions and purposes of the organization.

Schwab (1980):
Being strategic about compensation implies support of the business strategy and sensitivity
to anticipated environmental pressures. But such a general characterization does not provide much
leverage for research or theory building. Nor does it offer much guidance for managing
compensation. And the folly of undertaking research based on poorly defined constructs is well
recognized.
Cooke (1976), Ellig (1981) & Salter (1973):
The notion of compensation strategy originally surfaced in the literature on executive
compensation. From a strategic perspective, compensation for executives was defined in terms of
several basic elements: base pay, short- and long term incentives, benefits, and perquisites. The
major strategic decisions focused on the deployment of total compensation among the basic
elements to best achieve the missions of the organization. Long term incentive as a percent of total
compensation is an example. Attention was directed at choices among various short-term versus
long-term incentive schemes, the relative emphasis on corporate versus subunit performance, and
the riskiness of the total compensation package.
Kerr (1985):
The compensation system serves as a key integration and control mechanism available to
management. Several studies of corporate diversification also examined compensation issues.

25

CHAPTER III
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research done scientifically.
It stands for advance planning of the method to be adopted for collecting the relevant data
and technique to be used in the analysis, keeping in view the objectives of the research and
availability of the respondents time and money.
3.1 TOPIC OF THE STUDY:
The title of the project is A STUDY OF COMPENSATION MANAGEMENT IN
ELIM MEDITECH PVT LTD
3.2 OBJECTIVES OF THE STUDY:
To understand in detail how to establish pay rates to different level of employee.
To analyse whether compensation was been on the employee ability.
To understand the impact of compensation management on performance level.
To analyze the compensation packages provide the company.
To analysis employee and employer relationship.
3.3 SCOPE OF STUDY:
The compensation management practice is to help the employee by salary satisfaction.
To provide better working conditions in the organization.
To provide compensation for each employee.
To provide individual for the safe shelter for hard workers.
3.4 RESEARCH DESIGN:
In this study descriptive research design was used. Descriptive research means fact finding
research. Descriptive research is concerned with describing the characteristics of a particular
individual or group.

26

3.5 SAMPLING SIZE:

Sample of 113 was taken from the total employees.
3.6 METHODS OF DATA COLLECTION:
There are two types of data collections:
Primary data
Secondary data
3.6.1 Primary data:
Structured questionnaire was used for primary data collection. A questionnaire is a
research instrument consisting of a series of questions and other prompts for the purpose of
gathering information from respondents.
3.6.2 Secondary data:
Secondary data is a means to reprocess and reuse collected information as an indication for
betterments of the service or product. Secondary data was collected and analysed by the
organization to organize the requirements of various research objectives. The sources of secondary
data are,

Books

Internet websites

3.7TOOLS USE FOR THE STUDY:

For data analysis the tools used in the study are:

Percentage analysis

Simple percentage analysis

Percentage refers to a special kind of ratio. Percentages are used in making comparison
between two or more series of data. Percentages are used to describe the relationships. Percentage
can also be used to compare the terms the distribution of two or more series of data.

27

No of respondents
Percentage analysis = --------------------------------------- *100
Total no of respondents
3.8 PERIOD OF STUDY:
th

Period of study based on my topic Compensation management as long as for 5 February

th

2015 to 21 April 2015.

3.9 LIMITATIONS OF STUDY:
The time period is limited. So it become difficult to collect information.
The study is conducted considering the prevailing conduction which is subjected to change
in future.
Lack of response from the employees.
This study is done in accordance with the present situation, hence this could not be applied
for long time.

28

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
Table No: 4.1
Age of the Respondents
Age

No of respondents

Percentage

21-30

35

31

31-40

29

25

41-50

30

27

Above50

19

17

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 31% of the respondents belongs to the age group
of 21-30, 25% of the respondents belongs to the age group of 31-40, 27% of the respondents
belongs to the age longs to the age group of 41-50,17% of the respondents belongs to the age longs
to the age group of above 50.
Chart No: 4.1
Age of the Respondents

No of respondents %

35

31

30

27

25

25

17

20
15
10

5
0
21-30

31-40

41-50
Age

Above50

29

Table No: 4.2

Number of Respondents based on Gender
Gender

No of Respondents

Percentage

Male

92

81

Female

21

19

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 81% of the respondents belong to male
population and 19% of the respondents belongs to female population.

Chart No: 4.2

Number of Respondents based on Gender
90

81

No of respondents %

80
70
60
50
40
30

19

20
10

0
Male

Female
Gender

30

Table No: 4.3

Education Background of the Respondents
Qualification

No of Respondents

Percentage

UG

22

19

PG

19

17

ITI

35

31

Diploma/Others

37

33

Total

113

100

Source: Primary Data

Interpretation: Respondents were classified based on their educational qualification. From the
above table it can be clearly understood that 19% where under graduates, 17% of them were post
graduate, 31% were ITI holders and 34% of them were diploma holders and others.

Chart No: 4.3

Education Background of the Respondents
33

35

31

No of respondents%

30
25
20

19
17

15
10
5
0
UG

PG

ITI

Education

Diploma/Others

31

Table No: 4.4

Respondents based on their work experience
Particulars

No of Respondents

Percentage

0-1 years

20

17

1-5 years

30

27

5-10 years

52

46

10-15 years

11

10

Total

113

100

Source: Primary Data

Interpretation: From the above table shows the work experience of the respondents. It was
informed that 17% of the respondents are 0-1 year experience, 27% of the respondents are 1-5
year experience, 46% of the respondents are 5-10 year experience and 10% of the respondents are
10-15 year experience.
Chart No: 4.4

No of respondents%

Respondents based on their work experience

50
45
40
35
30
25
20
15
10
5
0

46

27
17
10

0-1 years

1-5 years
5-10 years
Work experience

10-15 years

32

Table No: 4.5

Number of respondents based on company pay system
Particulars

No of Respondents

Percentage

Fixed pay system

44

39

Variable pay system

52

46

Both

17

15

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 39% of the total respondents are fixed pay
system 46% of the total respondents are variable pay system, 15% of the total respondents have
both pay system.
Chart No: 4.5
Number of respondents based on company pay system
50

46

45

No of respondents%

40

39

35
30
25
20

15

15
10

5
0
Fixed pay system Variable pay system
Pay system

Both

33

Table No: 4.6

Number of respondents based on base salary
Particulars

No of Respondents

Percentage

DA

20

18

PF

43

38

ESI

18

16

Medical allowance

32

28

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 18% of the respondents are DA, 38% of the
respondents are PF, 16% of the respondents are ESI,and 28% of the respondents are Medical
allowance.
Chart No: 4.6
Number of respondents based on base salary
38

40

No of respondents%

35
28

30
25
20

18

16

15
10
5
0
DA

PF

ESI
Base salary

Medical
allowance

34

Table No: 4.7

Number of respondents of fixed and variable pay in company
Particulars

No of Respondents

Percentage

60%-40%

44

39

70%-30%

31

27

80%-20%

17

15

75%-25%

21

19

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 38.9% of the respondents are 60%-40% of pay in
company, 27.4% of the respondents are 70%-30% of pay in company, 15 % of the respondents are
80%-20% of pay in company and 18.5% of the respondents are 75%-25% of pay in company.
Chart No: 4.7
Number of respondents of fixed and variable pay in company
45
40

39

35
30

27

25
19

No of respondents%

20
15
15
10
5
0
60%-40%

70%-30%
80%-20%
Fixed & variable pay

75%-25%

35

Table No: 4.8

Number of respondents of monthly salary not including bonus
Particulars

No of Respondents

Percentage

Less than 10,000

42

37

10,000-20,000

37

33

20,000-30,000

21

18

30,000 and above

13

12

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 37.1% of the respondents are less than 10,000
32.7% of the respondents are 10,000-20,000, 18.5% of the respondents are 20,000-30,000 and
11.5% of the respondents are30,000 and above.
Chart No: 4.8
Number of respondents of monthly salary not including bonus
40

37
33

No of respondents%

35
30
25

18

20

12

15
10

5
0
Less than
10,000

10,000-20,000 20,000-30,000 30,000 and

above
Monthly salary

36

Table No: 4.9

Number of respondents of non-cash benefits
Particulars

No of Respondents

Percentage

Housings

25

22

Medical

55

49

Sick leave

33

29

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 22.1% of the respondents are housing, 48.6% of
the respondents are medical and 29.2% of the respondents are sick leave.
Chart No: 4.9
Number of respondents of non-cash benefits
60
49

No of respondents%

50
40

29

30
22
20
10
0
Housings

Medical
Non-cash benefits

Sick leave

37

Table No: 4.10

Number of Respondents of general increase in compensation in a year
Particulars

No of Respondents

Percentage

5%-7%

69

61

7%-9%

25

22

9%-11%

11

10

11%-13%

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 61% of the respondents are5%-7% compensation
in a year, 22.1% of the respondents are 7%-9% compensation in a year,10% of the respondents are
9%-11% compensation in a year and7% of the respondents are 11%-13% compensation in a year.

Chart No: 4.10

Number of Respondents of general increase in compensation in a year
70
61
No of respondents%

60
50
40
30

22

20

10
10

0
5%-7%

7%-9%
9%-11%
Increase in compensation

11%-13%

38

Table No: 4.11

Number of Respondents of company has a performance appraisal system
Particulars

No of Respondents

Percentage

Yes

92

81

No

21

19

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 81.4% of the respondents are Yes and 18.5% of
the respondents are No.

Chart No: 4.11

Number of Respondents of company has a performance appraisal system
90
81
80
No of respondents%

70
60
50
40
30
19
20
10
0
Yes

No

Performance appraisal

39

Table No: 4.12

Number of Respondents of company link your salary with your productivity
Particulars

No of Respondents

Percentage

Yes

79

70

No

34

30

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 69.9% of the respondents are Yes and 30% of
the respondents are No.

Chart No: 4.12

Number of Respondents of company link your salary with your productivity
80
70
No of respondents%

70
60
50
40
30
30
20
10
0
Yes

No

Salary link with productivity

40

Table No: 4.13

Number of Respondents of compensation paid by your company attract and retain the
employees
Particulars

No of Respondents

Percentage

Yes

62

55

No

51

46

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 54.8% of the respondents are Yes and 45.1% of
the respondents are No.

Chart No: 4.13

Number of Respondents of compensation paid by your company attract and retain the
employees
56

55

No respondents%

54
52
50
48
46
46
44
42
40
Yes

No

Attract and retain

41

Table No: 4.14

Number of Respondents of benefits are provided to employees
Particulars

No of Respondents

Percentage

Employee savings plan

44

39

Financial planning

25

22

Exercise facilities

26

23

Credit union

18

16

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 38.9% of the respondents are Employee savings
plan, 22.1% of the respondent are financial planning, 23% of the respondent are Exercise facilities
and15.9% of the respondent are Credit union.
Chart No: 4.14
Number of Respondents of benefits are provided to employees
45
No of respondents%

40

39

35
30

22

25

23

20

16

15
10

5
0
Employee
savings plan

Financial
Exercise
planning
facilities
Benefits

Credit union

42

Table No: 4.15

Number of Respondents of normal introductory period for new employee
Particulars

No of Respondents

Percentage

30 days

60

53

60 days

22

20

90 days

17

15

180 days

14

12

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 53% of the respondents are 30 days, 19.4% of
the respondents are 60 days,15% of the respondents are 90 days and12.3% of the respondents
are180 days.
Chart No: 4.15
Number of Respondents of normal introductory period for new employee
60
53
No of respondents%

50
40
30
20
20

15
12

10

0
30 days

60 days
90 days
Period for new employee

180 days

43

Table No: 4.16

Number of Respondents of formal job evaluation plan in place
Particulars

No of Respondents

Percentage

Yes

78

69

No

35

31

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 69% of the respondents are Yes and 30.9% of
the respondents are No.

Chart No: 4.16

Number of Respondents of formal job evaluation plan in place
80
69
No of respondents%

70
60
50
40
31
30
20
10
0
Yes

No

Job evaluation

44

Table No: 4.17

Number of Respondents of written job descriptions
Particulars

No of Respondents

Percentage

Yes

86

76

No

27

24

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 76.1% of the respondents are Yes and 23.8% of
the respondents are No.

Chart No: 4.17

Number of Respondents of written job descriptions
76

80

No of respondents%

70
60
50
40
30

24

20
10
0
Yes

No

Job description

45

Table No: 4.18

Number of Respondents of employee policy manual
Particulars

No of Respondents

Percentage

Yes

79

70

No

34

30

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 69.9% of the respondents are Yes and 30% of
the respondents are No.

Chart No: 4.18

Number of Respondents of employee policy manual
80
70

No of respondents%

70
60
50
40

30

30
20
10
0
Yes

No

Policy manul

46

Table No: 4.19

Number of Respondents of incentives systems currently
Particulars

No of Respondents

Percentage

Individual incentives

93

82

Team incentives

20

18

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 82.3% of the respondents are Individual
incentives and 17.6% of the respondents are Team incentives.

Chart No: 4.19

Number of Respondents of incentives systems currently
90

82

No of respondents%

80
70
60
50
40
30

18

20
10

0
Individual incentives

Team incentives
Incentivies

47

Table No: 4.20

Number of Respondents of link pay to performances
Particulars

No of Respondents

Percentage

Yes

89

79

No

24

21

Total

100

Source: Primary Data

Interpretation: From the above table shows that 78.7% of the respondents are Yes and 21.2% of
the respondents are No.

Chart No: 4.20

Number of Respondents of link pay to performances
90
79

No of respondents%

80
70
60
50
40
30

21

20
10

0
Yes

No

Pay to performance

48

Table No: 4.21

Number of Respondents of organization employee considered reward and recognition
Particulars

No of Respondents

Percentage

Innovative & creative

54

48

43

38

Customer satisfaction

16

14

Total

113

100

Increased productivity /
Result

Source: Primary Data

Interpretation: From the above table shows that 47.7% of the respondents are Innovative &
creative, 38% of the respondents are increased productivity / Result and 14.1% of the respondents
are Customer satisfaction.
Chart No: 4.21
Number of Respondents of organization employee considered reward and recognition

No of respondents%

60
50

48
38

40
30
20

14

10

0
Innovative &
creative

Increased
productivity / Result
Reward and recognition

Customer
satisfaction

49

Table No: 4.22

Number of Respondents of minimum hour per week that part time employees are required
work to qualify
Particulars

No of Respondents

Percentage

Below 8 hours

66

58

8- 10 hours

36

32

10-12 hours

11

10

Total

113

100

Source: Primary Data

Interpretation: From the above table shows that 58.4% of the respondents are Below 8 hours,
31.8% of the respondents are 8-10 hours and 9.7% of the respondents are 10-12 hours.
Chart No: 4.22
Number of Respondents of minimum hour per week that part time employees are
required work to qualify
70

No of respondents%

60

58

50
40
32
30
20
10
10
0
Below 8 hours

8- 10 hours
Work to qualify

10-12 hours

50

CHAPTER V
5.1 FINDINGS
The finding of the present revealed the following:
46% of the employees are satisfied with the variable pay system.
39% of the employees said for ratio of fixed and variable pay in the company.
49%of the employees said medical benefits are good in the management or non-cash
benefits.
81% of the management is good in performance appraisal.
48% of the employees are efficient in innovation and creativities of the firm to considered
for reward and recognition.
70% of the employees are said that company link with salary and productivity.
55% of the employees are said that compensation paid gives attractive and retain the
employees.
76% of the employees are like the written job description system.
70% of the employees are satisfied employee policy manual.
79% of the employees are satisfied pay link performance appraisal.
82% of the employees are satisfied incentives system.

51

5.2 SUGGESTIONS
The improve company bonus plan for used to retain the employees.
The providing the attractive basic salary for increasing the man power in our organization.

The salary will base on the employee productivity.

The monthly wise conduct the performance appraisal program for motivate the employees.

Providing the transport facility for employees comfortable.

To increase medical allowance from base salary.

52

5.3 CONCLUSION
The present study was conducted at Elim Meditech Pvt Ltd, Kanyakumari District. The
compensation management practice analysis is done by the employee life inside the organization.
The evaluation provides the compensation should be provided the employee for
motivating, appreciating, encouraging and also increasing the productivity of the organization.

53

APPENDIX
A STUDY OF COMPENSATION MANAGEMENT
QUESTIONNAIRE
PART 1
1. Name

2. Age

- a) 21-30

3. Gender

- a) Male

4. Qualification

- a)

5. Work experience

- a) 0-1 years b) 1-5 years c) 5- 10 years d)10-15 years

UG

b) 31-40

c) 41-50

d) Above 50

b) Female

b) PG

c) ITI d) Diploma

PART 2
1. Does the company have?
a. Fixed pay system ( )
b. Variable pay system( )
c. Both ( )
2. What are the components of your base salary?
a. DA ( )
b. PF ( )
c. ESI ( )
d. Medical allowance ( )
3. What is the ratio of fixed and variable pay in your company?
a. 60%-40% ( )
b. 70%-30% ( )
c. 80%-20% ( )
d. 75%-25% ( )
4. What is your monthly salary not including bonus?
a. Less than 10,000 ( )
b. 10,000-20,000( )
c. 20,000-30,000 ( )
d. 30,000 and above ( )

54

5. What kind of non-cash benefits do you receive?

a. Housing ( )
b. Medical ( )
c. Sick leave ( )
6. Does your company gives a general increase in compensation in a year?
a. 5%-7% ( )
b. 7%-9% ( )
c. 9%-11% ( )
d. 11%-13% ( )
7. Does your company have performed appraisal system?
a. Yes ( )
b. No ( )
8. In your organization employee are considered for reward and recognition mostly for?
a. Innovative and creative ( )
b. Increased productivity/Result ( )
c. Customer satisfaction ( )
9. Does your company link your salary with your productivity?
a. Yes ( )
b. No ( )
10. Does the compensation paid by your company attract and retain the employees?
a. Yes ( )
b. No ( )
11. Please indicate whether to the following benefits are provided to employees?
a. Employee savings plan ( )
b. Financial planning ( )
c. Exercise facilities ( )
d. Credit union ( )

55

12. What is tour normal introductory period for new employee?

a. 30 days ( )
b. 60 days ( )
c. 90 days ( )
d. 180 days ( )
13. Do you have a formal job evaluation plan in place?
a. Yes ( )
b. No ( )
14. Do you have written job description?
a. Yes ( )
b. No ( )
15. Do you have an employee policy manual?
a. Yes ( )
b. No ( )
16. What type of incentives systems do you currently have in place?
a. Individual incentives ( )
b. Team incentives ( )
17. Do you link pay to performance appraisal?
a. Yes ( )
b. No ( )
18. What is the minimum number of hours per week that part-time employees are required to work
to qualify for?
a. Below 8 hours
b. 8-10 hours
c. 10-12 hours

56

BIBLIOGRAPHY
REFERENCES BOOKS:
Naukrihub

: Payroll System and Compensation Management.

Dipak Kumar

: Compensation Management

V.W & Tang T.L

: Retaining and motivating employees: Compensation.

Wallace .M & Fay. C

: Compensation theory and practice.

Zollitsch.H. O

: Wage and salary administration.

Evans. E

: Compensation basics for HR generalists.

INTERNET WEB PAGE:

www.elimmeditech.com
www.Georgetown.edu
http://unllib.unl.edu/LPP/tella2.htm
www.compensation management.net