Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Unit 1 Introduction to
Compensation and Rewards
Management

Mrigendra Bharti

Published by NotesKaro by Sellbrochure IPDP, 2024
...

UNIT 1 INTRODUCTION TO COMPENSATION AND
REWARDS MANAGEMENT
First edition
...

Copyright © 2024 Mrigendra Bharti
...


Table of Contents
Unit 1 Introduction to Compensation and Rewards
Management
...
4
Definition and Importance of Compensation and Rewards | 1
...
5
2
...
6
3
...
7
4
...
8

Introduction:- Compensation and Rewards Management
Compensation and rewards management is a critical aspect of
human resource management that significantly influences an
organization’s ability to attract, retain, and motivate its
workforce
...
Compensation, in its broadest sense,
refers to the total financial and non-financial remuneration
provided to employees in exchange for their work
...
It is a key
factor in employee satisfaction, as fair and competitive
compensation is often viewed as a direct reflection of an
employee’s value to the organization
...

Rewards, on the other hand, encompass a broader range of
incentives that are not limited to financial compensation
...
Rewards are essential for driving employee
engagement, enhancing performance, and fostering a culture of
excellence within the organization
...
This, in
turn, leads to higher productivity, better customer service, and
ultimately, improved organizational performance
...

The importance of compensation and rewards management
cannot be overstated, as it directly impacts several key areas of
organizational success
...
In a highly competitive job market, offering
a competitive compensation package can make the difference
between securing top talent and losing them to competitors
...
When employees feel fairly
compensated and appropriately rewarded, they are more likely
to be engaged, productive, and committed to their roles
...

Moreover, compensation and rewards management is essential
for aligning employee behavior with organizational goals
...
This alignment not only
enhances individual performance but also promotes a culture
of accountability and continuous improvement
...

In conclusion, compensation and rewards management is a
multifaceted and strategic function that plays a pivotal role in
the success of any organization
...
This not only enhances
individual and organizational performance but also contributes
to long-term business success
...
Definition of Compensation:

-

Compensation refers to the total amount of monetary and
non-monetary pay provided to an employee by an employer
in return for work performed as required
...

- Incentives/Bonuses: Additional financial rewards based on
performance, productivity, or achieving certain goals
...


TYPES OF COMPENSATION:
- Direct Compensation: Includes the financial benefits like
wages, salaries, bonuses, and commissions
...

5

2
...
Rewards can be categorized
into:
- Monetary Rewards: These include financial incentives such as
bonuses, profit-sharing, and stock options
...

Categories of Rewards:
- Intrinsic Rewards: These are psychological rewards that
employees get from the work itself, such as satisfaction from a
job well done, autonomy, or personal growth
...


6

3
...
A well-structured compensation
plan helps in retaining top talent by ensuring they feel
adequately rewarded for their efforts
...
It serves as a primary
driver for employee productivity as workers are likely to work
harder if they know their efforts will be financially rewarded
...

Employees who are satisfied with their pay are less likely to leave
the organization, reducing turnover rates
...
Ensuring that employees are fairly
compensated as per legal standards helps in avoiding legal
disputes and maintaining the organization’s reputation
...


7

4
...
When employees
know that exceptional performance will be recognized and
rewarded, they are more likely to go the extra mile in their duties
...
Engagement is critical as it
leads to higher productivity, better customer service, and overall
improved business outcomes
...
When teams are rewarded for
collective performance, it fosters a sense of unity and encourages
cooperation among employees
...
Employees who feel
appreciated and rewarded are more likely to stay with the
organization for a longer time
...
This also helps
in creating a positive employer brand
...
This alignment helps
8

UNIT 1 INTRODUCTION TO COMPENSATION AND
REWARDS MANAGEMENT
9

in achieving both individual and organizational objectives
efficiently

---