INTRODUCTION

Compensation management has become one of the issues both for employees and employers
around the world due to its importance. Naturally, employees want to get more remuneration for
their work as where employers want to pay as minimum as they can. So regarding the
compensation there is a conflict between employees and employers in many of the organizations.
Compensation is the remuneration an employee receives for his or her contribution to the
organization. It occupies an important place in the life of employee. His or her standard of living,
status in the society, motivation, loyalty and productivity depend upon the remuneration he or
she receives. For the employer too, employee compensation is significant because of its
contribution to the cost of production. The HR specialist has a difficult task of fixing wages and
wage differentials acceptable to employee and their leaders. Remuneration is another term
synonymously used with the compensation. Human resource management in simple terms is
defined as employing people, developing their resource, utilizing, maintaining and compensating
there services in tune with the job and organizational requirements. It is concerned with the
development of human resources, i.e., knowledge, capability, skills, potentialities and attaining
and achieving employee goals, including job satisfaction. It also aims at attaining the goals of the
organization, individual and society in an integrated approach. Human Resource is the most vital
resource for any organization. It is responsible for each and every decision taken, each and every
work done and each and every result. Employees should be managed properly and motivated by
providing best remuneration and compensation as per the industry standards. The lucrative
compensation will also serve the need for attracting and retaining Compensation is the
remuneration received by an employee in return for his/her contribution to the organization. It is
an organized practice that involves balancing the work-employee relation by providing monetary
and non-monetary benefits to employees. Compensation is an integral part of human resource
management which helps in motivating the employees and improving organizational
effectiveness.
Compensation management
Human Resource is the most vital resource for any organization. It is responsible for each and
every decision taken, each and every work done and each and every result. Employees should be
managed properly and motivated by providing best remuneration and compensation as per the
industry standards. The lucrative compensation will also serve the need for attracting and
retaining the best employees. Compensation is the remuneration received by an
employee in return for his/her contribution to the organization. It is an organized practice that
involves balancing the work-employee relation by providing monetary and non-monetary
benefits to employees. Compensation is an integral part of human resource management which
helps in motivating the employee and improving organizational effectiveness.In today’s
intensely competitive and global marketplace, competitive advantage lies not just in
differentiating a product or service or in becoming the low cost leader but in also being able to
tap the company’s special skills or core competencies. Therefore skilled and efficient employees
of a company are now considered as one of the core competencies of the company. Especially
for power industry; skilled, efficient and motivated employees are must which requires
specialized, technical and scientific knowledge and expertise. To attain such objectives HR plays
a vital role and one of the most used tools by HR in 69 orders to ensure motivation for each and
every employee is a satisfactory “Compensation Package”.
REVIEW OF LITERATURE

Emmanuel Erastus Yamoah (2014) in his paper entitled “Exploratory Analysis of

Compensation and Employee Job Satisfaction” published in ‘Developing Country Studies’,
organizations are made up of people and the success or failure of these organizations are
dependent on the people in the organization. It has been proven time and again that one of the
ways to get the best performance out of employees is to make them comfortable and happy.
Workers of all ages and income brackets continue to grow increasingly unhappy at work a long-
term trend that should seriously concern employers. How then do managers create satisfied
employees? Since compensation has been a major factor of motivating employees in an
organization. This study examined the issue compensation and employee job satisfaction. Data
was collected and analyzed in terms of descriptive statistics and Pearson chi square was used to
test the significance of relationship between compensation and employee job satisfaction.

Afroja Rehan Rima and Md. Rifayat Islam (2013) have written a paper “A Case Study on
Compensation System Practices in the Perspective of Telecom Industries of Bangladesh” in
‘American International Journal of Research in Humanities, Arts and Social Sciences’.
Telecommunication sector in Bangladesh has always been leading the way to initiate new
products and services in the local marketplace. The total strength of this sector depends on their
employees stood at approximately 20,000 at the end of the year. The telecom industry considers
that a hefty, skillful and enthusiastic employee is the key factor to success. The continual
expansion of their people is an essential factor in driving their growth ambitions. They place a
strong importance on how they are investing on their people and in people development, building
a strong performance culture and driving the right levels of motivation across the organization.
“People” are the central focus, which is why they maintain a very strong Human Resource
Managing Culture throughout their organizations.

Yusuf Mohammed Nulla (2013) published “The Examination of Top Manager Compensation
System of NYSE Energy Companies” in ‘Strategic Management Quarterly’. This study
investigated CEO 18 compensation system of NYSE energy companies. It tested the relationship
between CEO compensation, firm size, accounting firm performance, and corporate governance,
from 2005 to 2010. The totaled twenty five companies were selected through random sampling
method from NYSE index companies.
Matthew Freedman and Renata Kosova1 (2012) writes a paper entitled “Agency and
Compensation: Evidence from the Hotel Industry” in ‘The Journal of Law, Economics, and
Organization’ and examined how agency problems in the workplace interact with compensation
policies by taking advantage of the structure of the hotel industry, in which many chains have
both company-managed and franchised properties. As residual claimants on their properties’
profits, franchisees have stronger incentives to monitor employees than managers in company-
managed hotels. Exploiting this variation and using rich, longitudinal data on the hotel industry,
the effort has been made to estimate differences in wages and human resource practices across
company-managed and franchised hotels within chains as well as within individual hotels as they
change organizational form.

Abang Azlan mohamad (2009) in his research article namely ―Human resource practices and
Organizational performance, incentives as Moderator‖ examines different human resource
practices and the impact of incentives on manufacturing companies in Malaysia. He has studied
three types of human resource practices namely, performance appraisal, training, and
information technology and the focus of this research with the presence of incentives as
moderator on organizational performance. In this research sample of eighty- five firms from
Sarawak, Malaysia, has taken. The results have indicated that the two components of human
resource (HR) practices namely, training and information technology have direct impact on
organizational performance. It was found that incentive is positively related to organizational
performance but did not moderate the relationship between both HR practices and
organizational performance. Implications of the findings, potential limitations of the study, and
directions for future research are suggested.
NEED FOR THE STUDY:

A good compensation package is important to motivate the employees to increase the

organizational productivity. Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization effectively and
accomplishing its goals. Salary is just a part of the compensation system, the employees have
other psychological and self-actualization needs to fulfill. Thus, compensation serves the
purpose. The most competitive compensation will help the organization to attract and sustain the
best talent. The compensation package should be as per industry standards. Compensation
management of the employees is important if the employees are satisfied then only the
organization can function smoothly increases its production, faces competition. If employees are
satisfied with their job they will carry a positive attitude. Hence the study has been undertaken to
assess the employee Compensation which is necessary for the organization in order to make
sound decisions.

OBJECTIVES OF THE STUDY:

1. Understand the concepts of compensation management in HERO MOTOCORP LTD
2. Explore the role of compensation management
3. Pay roll system in HERO MOTOCORP LTD
 Maintain pay equity
 Simplify the system
 Create a new “mindset”
 Give managers more autonomy
 Increase transparency
RESEARCH DESIGN

A Research Design is the framework or plan for a study which is used as a guide in collecting
and analyzing the data collected. It specifies the methods and procedures for acquiring the
information needed to conduct the research effectively.

RESEARCH METHODOLOGY

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is defined
as data that is collected from original sources for a specific purpose. Secondary data is data
collected from indirect sources.

PRIMARY SOURCES

Questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it

is by far the most common instrument used to collect primary data.

SECONDARY SOURCES

These include books, the internet, the company website etc,

SCOPE OF THE STUDY:

The compensation management in (HERO MOTOCORP LTD). Refers to a person’s feeling of

satisfaction on their job. It is different from person to person. The researcher has chosen to
measure the level compensation management in HERO MOTOCORP LTD. The study considers
the impact of 10 factors on compensation management in it concentrates on the effect of factors
in general, but no exclusive study is made on them. The study considers only the perceptual
elements of employees and does not focus on ground realities. The scope of study cover: work
conditions, compensation, extra benefits, conveyance treatment of superiors, colleagues, duly
timings, and grievance reprisal mechanism and promotion policy.
LIMITATIONS OF THE STUDY:

1. This study covers those employees who are working at HERO MOTOCORP LTD
2. The understand and knowledge may vary from person to person. The replied gives by
the respondents are taken for granted, though they are not uniform.
3. Since names are mentioned in most of questionnaires, most of the employees
answered favorable to the company. This might have led to wring finding in the
study.
4. The interpretation being based on percentage method is not definite.
5. The report is subjects to changes with fast changing scenario.
REFERENCE

1. Emmanuel Erastus Yamoah (2014): Exploratory Analysis of Compensation and

Employee Job Satisfaction. Developing Country Studies. Vol. 4. No. 12. 2014. P. 27-36.
2. Afroja Rehan Rima and Md. Rifayat Islam (2013): A Case Study on Compensation
System Practices in the Perspective of Telecom Industries of Bangladesh. American
International Journal of Research in Humanities, Arts and Social Sciences. Vol. 4. No.1.
September-November 2013. P. 01-05.

3. Yusuf Mohammed Nulla (2013): The Examination of Top Manager Compensation

System of NYSE Energy Companies. Strategic Management Quarterly. Vol.1. No. 1.
December 2013. P. 45-55.
4. Matthew Freedman and Renata Kosova (2012): Agency and Compensation: Evidence
from the Hotel Industry. The Journal of Law, Economics and Organization. Vol. 30. No.
1. 2012. P. 72-103.
5. Abang Azlan mohamad (2009) in his research article namely ―Human resource
practices and Organizational performance, incentives as Moderator‖ Journal of
Academic research in Economics, Vol 1, no 2, oct 2009 pp 229-244.