Index

Õ Introduction to compensation
Õ Components of compensation
Õ Types of compensation
Õ Need of compensation management
Õ Strategic compensation
INTRODUCTION TO
COMPENSATION
Õ  olution of strategic compensation

Õ Importance of compensation
] Evolution of strategic
compensation
’ Importance of compensation
Õ n ideal compensation system will ha e
positi e impact on the efficiency and
results produced by employees.
Õ Sol es disputes between the employee
union and management.
Õ It will enhance the process of job
e aluation.
Õ It aims at creating a healthy competition
among them and encourages
employees to work hard and efficiently.
Õ The sound compensation system is hallmark of
organization¶s success and prosperity.
Õ  ery employee would be able to compute his
own compensation recei able.
Õ It will raise the morale, efficiency and
cooperation among the workers. It, being just
and fair would pro ide satisfaction to the
workers.
Õ Such system would help management in
complying with the arious labor acts.
Õ The business organization can think of
expansion and growth if it has the support of
skillful, talented and happy workforce.
COMPONENTS OF
COMPENSATION
Õ ¦ob ± analysis
Õ Pay structures
Õ Salary sur eys

¦ob
analysis

Pay Salary
structure sur eys
] Job - analysis
’ Pay structure
Ô Salary surveys
Õ Úeaning of salary sur eys

Õ Objecti e of salary sur eys

Õ Types of salary sur eys

Types of salary surveys
TYPES OF COMPENSATION
Õ ¬irect compensation

Õ Indirect compensation
] Direct compensation
’ Indirect compensation
NEED OF COMPENSATION
MANAGEMENT
STRATEGIC COMPENSATION
 MORGAN STANLEY CASE STUDY
Õ In 1993, when terrorists attacked the World
Trade Center for the first time, financial ser ices
company Úorgan Stanley learned a life-sa ing
lesson. It took the company 4 hours that day to
e acuate its employees, some of whom had to
walk down 60 or more flights of stairs to safety.
Õ Úorgan Stanley took a close look at its
operation, analyzed the potential disaster risk
and de eloped a multi-faceted disaster plan.
Õ On September 11, 2001, the planning and
practice paid off. Immediately after the first
hijacked plane struck One World Trade Center,
Úorgan Stanley security executi es ordered
the company's 3800 employees to e acuate
from World Trade Center buildings, Two and
Fi e. This time, it took them just 45 minutes to
get out to safety!

Õ Stanley offered grief counseling to workers and

increased its security presence.
Õ It also used effecti e communications
strategies to pro ide timely, appropriate
information to management and employees,
in estors and clients, and regulators and the
media.
Õ In making a commitment to prepare its most
aluable asset, its people, Úorgan Stanley
ensured the firm's future.
Sources of information
Õ www.da idmaister.com/blog/548/Compensatio
n-Systems
Õ ë
ë

 ë ë

 

Õ www.hr-guide.com/data/G400.htm

Õ Book - 
   theory, evidence, and

strategic implications - Barry . Gerhart, Sara
Rynes - 2003
9