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Thursday, August 9, 2012

PowerPoint Presentation On Remuneration

PPT On Remuneration

Presentation Transcript:
1. Remuneration

2. 3W’s of Remuneration
Remuneration occupies an important place in the life of employee.. His/her standard of living, status in society, motivation , loyality.

3. Component of Remuneration
Wages and salary are subjective to annual increment Incentive also called ’payments by results’ paid in addition to wages and salary An average employee in the organized sector is entitled to several benefit –both financial as well as non financial. Typical remuneration of an employee comprises- wage and salary, incentive , fringe benefit and non monetary benefit. Wages and salary- wages represent hourly rate of pay, and salary refers to the monthly rate of pay, both are subject to annual increment. They differ from employee to employee. And depend upon a nature of job, seniority, Incentive-also called payment by result, incentive are paid in additional to wage and salaries. Incentive depend upon productivity, sales , profit, or cost reduction efforts. There are individual incentive schemes and group incentive program.. Individual incentive . Fringe benefit- these include such employee benefit as provident fund gratuity, medical care, hospitalization accident relief health and group insurance, canteen uniform etc. Perquisites- These are allowed to executives and include company car , club , membership, paid holiday , furniture house stock option scheme and the like. Non monetary benefit- these include challenging job opportunities , recognition of merit, growth prospects, component supervision, comfortable working condition and job sharing.

4. Theories of Remuneration
Reinforcement theory- Reinforcement theory is the process of shaping behaviour by controlling the consequences of the behaviour. In reinforcement theory a combination of rewards and/or punishments is used to reinforce desired behaviour or extinguish unwanted behaviour. Any behaviour that elicits a consequence is called operant behaviour, because the individual operates on his or her environment. Reinforcement theory concentrates on the relationship between the operant behaviour and the associated consequences, and is sometimes referred to as operant conditioning. Expectancy theory-the expectancy theory of motivation can be understood by examining the relationship between the attitudes of the employees, their perception regarding the feasibility of achieving the targets and the rewards they hope to receive as a consequence of elevated performance Equity theory- equity theory is based on the premises of the belief in fair treatment by the organization in terms of equally rewarding all employees doing equal amount and equal level of work

5.Importance of An Ideal Remuneration System
In a country like India an average worker cares for money Hence, remuneration must fulfill expectations and aspirations of employees and exploit energies for benefit of organizations Employee longevity of service in a particular organizations depends on non-financial benefits but financial benefits can’t be ruled out Employee feels satisfied with his/her remuneration not but by comparing it with others. Comparing - provides feeling of equity. In case non equity he/she may leave the organization

6. Remuneration and Business Strategy
It should be must gel with corporate strategy. If corporate strategy is to invest to grow , then it should install entrepreneurship in employees If corporate strategy is to manage earnings it should be reward management skills If corporate strategy is to reinvest then it should control cost

7. For more please refer our PPT. Thank You.

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