Introduction of compensation management

It is not an incentive system of wage payment. Tim rat! Such benefits are computable in terms of money and the amount of benefit is generally not predetermined. In the time rate system no distinction is made between efficient and lazy workers, both are paid at one rate which is unfair.

Introduction of compensation management

Increase in spoiled work and wastage of raw materials. In fact, profit! Such uarrel affects both the parties as it leads to dispute and delay in payment. In the group incentive plan, the incentive is not for individual employee but for the group of employees working in one department or section. Tim rat! To rai! It creates contended labour force with higher standard of living. Such benefits are computable in terms of money and the amount of benefit is generally not predetermined. Distinction is not made between good and bad workers. In the time rate system, efficiency, sincerity, ability is not given attention and all the workers are paid at one and the same rate as per the period spent in the factory.

It should have a wide coverage and almost all employees should be covered in such plan. In every incentive plan, wages are linked with the given output.

Here, efforts and reward are directly and proportionately linked.

Introduction to compensation management pdf

Individual incentive plan is meant for individual employees. It creates contended labour force with higher standard of living. Initially the benefit will be given to the group and thereafter, it will be divided among the members of the group. The work can be as part of full time engagement or part time in nature. Here efficiency, honesty and sincerity of workers are not given any special weightage. Sometimes, relations between labour and management are adversely affected on the point of profit! G :rofit! Such standard work! In the time rate system no distinction is made between efficient and lazy workers, both are paid at one rate which is unfair. Such provision of guarantee payments creates a sense of security and confidence among workers. Disputes are possible as regards the profit! In this sense, profit! It is ust opposite to the time rate. In every incentive plan, wages are linked with the given output.

Pi1 rat! In the piece rate system, wages are paid as per the output or production given by the worker and not as per the time spent by the worker in the factory.

G :rofit! Buality, workmanship of production may suffer.

definition of compensation management by different authors pdf
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Introduction to compensation meaning and objectives