The Study of Better Compensation Management in the Successful Organization in Improvement of Higher Productivity and Profitability

Abstract

Compensation management is an important human resource function. Salaries and wages issues are of concern to managers because of high cost of labour to the company. Compensation is what employees receive in exchange for their contribution to the organization. It includes all the extrinsic rewards that an employee receives during and after the course of his job. Managers are also concerned about developing pay policies and methods that help them attract, retain, and motivate employees. Compensation management plays a vital role in the effort of organization to gain a competitive advantage and to achieve its major goals and objectives. Best compensation management increase performance of employees by the making appropriate budget of training and development program, by which productivity of organization enhance. This all convert in to achieve the dream of higher profitability of the organization or company.