Compensation Management...

Compensation Management The success or failure of an organization hinges on the ability to attract, develop, retain, empower and reward a diverse array of appropriately skilled employees. Compensation is a systematic approach for     providing monetary value to the employees in exchange for work performed by them. It may achieve several purposes such as assisting in recruitment, job performance, and job satisfaction etc. It also supports the achievement of the organizational objectives and is strategic in the sense that it addresses long term issues relating to how employees are to be valued for what they want to achieve. The focus on managing the effectiveness and maximizing the value of employees is a critical management necessity of the present time for the organizational performance. This, in turn, requires a focus on the fundamentals and management of compensation. Managing compensation is not an easy task, since it involves a variety of job categories and goes far beyond just doling out merit pay. It must address the planning for and management of the many categories of variable compensation used in a modern organization to incentivize improved performance of the employees. Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasized only on the determination of wage and salary structures in organizational settings. However, over the passage of time, many more forms of compensation entered the field of running an organization and this necessitated to take wage and salary administration in comprehensive way with a suitable change in its nomenclature. Compensation management is based on a well articulated philosophy,  a set of beliefs and guiding principles which are consistent with the values of the organization. It recognizes the...