Free Essay

Compensation Management


Submitted By lytton
Words 4526
Pages 19
COMPENSATION MANAGEMENT Compensation is a key factor in attracting and keeping the best employees and ensuring that organization has the competitive edge in an increasingly competitive world. The Compensation Management component enables one to differentiate between one’s remuneration strategies and those of his competitors while still allowing flexibility, control and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allows one to control bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion – in other words, total compensation. In brief, it includes     Create centralized and decentralized budgets Plan and administer compensation adjustments at the manager level Plan and administer compensation adjustments within budget Performing Job Pricing Define pay grades and salary structures to identify the internal value of jobs and positions in your organization  Administer long-term incentives. FEATURES Compensation Management comprises the following components: Job Pricing This component uses to store and manipulate results from external job evaluation systems, and data from external marketing surveys. This data can be used as a starting point for building salary structures associating with jobs and positions in the organization. This component allows identifying the internal worth of jobs and positions in the organization. Budgeting This component is used to allocate monetary amounts or non-monetary amounts, for example, a number of shares, to a particular department, subsidiary, or plant within the organization. It can also be used as a control mechanism to make sure to stay within the budget amount allocated. Compensation Administration This component is used to plan and administer compensation adjustments, such as salary increases, bonuses, long-term incentives either across the board or in accordance with the corporate compensation policy and eligibility criteria. This component also enables to distribute adjustments at the employee by allowing one to overwrite the prescribed adjustment manually. The additional employee information provided supports and facilitates the decision-making process. The control mechanisms built into the component warn immediately if the planning is inconsistent or has exceeded the allocated budget.


INTRODUCTION TO UNILEVER BANGLADESH Unilever started its onshore operations in Bangladesh in 1964 when its soap factory was set up at Chittagong. Unilever Bangladesh is market leader in 7 of the 8 categories it operates in, with 16 brands spanning across Home and Personal Care and Foods. Unilever Bangladesh’s operation provides employment to over 10,000 people directly and indirectly through its dedicated suppliers, distributors and service providers. 99.8% of Unilever Bangladesh employees are locals. We also have a large number of Company employees working abroad in other Unilever companies as expatriates. Doing Well by Doing Good

Project Laser Beam – Bangladesh selected for pilot of Unilever-WFP led Public Private Partnership targeted towards eradicating child hunger and malnutrition. Global Hand washing Day – UBL, along with its partners, applied for Guinness Record for highest number of people (52,000) washing their hands together at a time Oral Health & Hygiene Awareness Programme – led by Pepsodent through school-based activations, covering 700,000 contacts in ’09 and targeting 2.5mln in ‘10 Lifebuoy Friendship Hospital - Launched in March 2002 in association with the humanitarian organization "Friendship”. Has a dedicated medical team on board and reaches to people who would not have access to proper medical facility. Approximately 200,000 people benefited till date

Empowerment of Women

Fair & Lovely Foundation gives empowerment training to women & scholarship to female students for IT education Worked with 23 NGOs and CARE Bangladesh to create sustainable business opportunities for rural women Over 2,500 Aparajitas (woman entrepreneurs) earn by selling UBL products.


In present world, Consumers are increasingly bringing their views as citizens into their buying decisions, demanding more from the companies behind the brands. They want companies and brands they trust. Unilever embraces these new expectations. Their heritage of good governance, product quality and long experience of working with communities gives them a strong base. They aim to build on this by taking the next step in transparency and accountability. Every day 150 million people in over 150 countries choose their products. Already, most of their brands give the benefits of feeling good, looking good and getting more out of life. Bertolli, for example, conjures up the Italian zest for life and Becel/Flora keeps hearts healthy. In the future, they believe their brands will do even more to add vitality to life. Their vitality mission will focus their brands on meeting consumer needs arising from the biggest issues around the world today – ageing populations, urbanization, changing diets and lifestyles. Unilever is in a unique position to understand the interrelationships between nutrition, hygiene and personal care. According to them, It is by bringing all this together that we can strive to contribute to quality of life and wellbeing - adding vitality to life. The long-term success of their business is intimately interconnected with the vitality of the environment and the communities in which they operate. The environment provides them with their raw materials and the ingredients they need to make our products. Healthy, prosperous communities provide them with a healthy, growing consumer base.

UNILEVER BANGLADESH- AT A GLANCE Over the last four decades, Unilever Bangladesh has been constantly bringing new and worldclass products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of our products. Type of business Fast Moving Consumer Goods company with local manufacturing facilities, reporting to regional business groups for innovation and business results. Operations Home and Personal Care, Foods Constitution Unilever - 60.75% shares, Government of Bangladesh - 39.25% Product categories Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal Grooming, Tea based Beverages. Our brands Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Axe, Dove, & Vaseline. Manufacturing facilities The company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong. Besides these, there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh. Employees Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and we have equal number of Bangladeshis working abroad in other Unilever companies as expatriates.



Unilever Human Resource is one of the best systems in Bangladesh. The strategy of Human Resource Division is followed Unilever strategy. The strategy that followed by HR’s is described below: Vision: Vision crystallizes our employee focus as the cornerstone of everything we do; to help our customers get the full benefit if communications services in their daily lives. It describes our ambition for future, sets a common direction across the group, and shall inspire all employees to imagine how they can contribute. Our values describe what behaviors are necessary to realize that vision. HR is a Critical Enable for Unilever Bangladesh Ltd in the pursuit of its strategic goals. HR is a key to ensuring An Organizations, that provides a competitive advantage by being simple, aligned and efficient. A Culture centered on the employee and characterized by diversity, generosity and an international mindset. Leaders, who have a passion for business, excel at empowering people and never compromise on ethical standards. People, who perform at the peak of their ability because they feel a sense of mission, accomplishment and growth.

HR POLICIES Probation: All employees recruited on a permanent basis must undergo a period of six months as probationary period to ascertain their capability and suitability for employment and would be judged with a performance appraisal at the end of 5th month. On successful competition of the probationary period employee shall be given a letter of confirmation. During probation period no benefit of provident fund or gratuity will accrue. And employee will be entitled to avail 50% of entitled annual leave during this period and seven days for medical leave during the period. During probation employment may be terminated by either party upon 24 hour notice and confirmed employees are required to give one month notice for resignation or should give up one month basic salary.

Working hours and holidays: Sunday to Thursday 9.00 am – 5.45 pm Lunch hour Friday and Saturday 1.00 pm- 1.45 pm Weekly holiday

Punctuality: Employees are required to arrive at work before 9.00 am and to disregard this will be treated as late and will be recorded in the Attendance Register accordingly. Similarity leaving the working place without authorized permission before 5.45 pm will be treated as indiscipline.

LEAVE Each permanent employee is entitled to the following leaves: Management General Manager DGM and AGM Senior Manager Manager Asst. Manager Executive Non-executive Annual Leave Entitlement 25 working days 22 working days 20 working days 18 working days 16 working days 14 working days 14 working days

50% of the entitlement of the annual leave can be accumulated or carried forward to the next service year and rest will be lapse if not availed. Medical Leave Employee medical leave entitlement is 14 days for all level of executives. Employee must have to produce medical certificate fo medical leave. There is no provision of accumulation of medical leave. Quarantine Leave This is a leave of absence from duty necessitated by orders not to attend office in consequence of the presence of infectious disease (e.g. Chickenpox, eye diseases & Hepatitis) in the person, family or household of an employee. Such leave can be granted by the authority up to maximum 15 working days. However, the employee concerned has to submit a medical certificate from a registered medical practitioner. Accidental Leave Employees who get injure by an accident occurred while on duty will be allowed accident leave with full pay for the period required for full recovery and become fit to join duties. If the accident causes partial or full disablement and te joining to duties is uncertain, then management will decide on accident leave. Maternity Leave

A female employee who has been employed for s period of not less than ninety days during the nine months immediately preceding her confinement shall be granted ninety consecutive days maternity leave on full pay. Maternity leave shall be granted after twenty eight weeks of pregnancy and application for maternity leave shall be made not less than two months prior to date on which it is desired that the maternity leave shall commence. Such entitlement applies for two times during her service with the company. Paternity Leave Male employees are entitled for 3 working days paternity leave. One employee can avail paternity leave up to two times during his tenure. Compassionate Leave Employees are entitled for 3 working days compassionate leave in case of death of their parents , spouse and children to cope up with the shock. Haji leave Only permanent employees (service length minimum two years) can take Haji Leave of 20 consecutive days (including the holiday) for holy Hajj with prior approval of the management. An employee can avail haji Leave once in his/her service tenure. Leave without Pay The company may grant an employee, as its discretion, no pay leave on important personal ground upon approval of the divisional head, provided that the employee has exhausted his/her annual leave. Functional Heads will approve such leave depending upon the circumstances. Compensatory Day-off An employee when requires to work on any weekly holiday or governmental holiday shall be given a substitute day off which should be taken within one month of the date or will be fortified. Employees may take day-off leave instead of any weekly or govt. holiday if he works on that day for at least eight hours(in one day). The leave must be taken within the following month and

necessary documents (attendance register) must be produced for the approval. On the other hand, the employees will not be entitled for day-off leave if they take holiday allowance for the day. Encashment of Annual Leave If any employee’s leave application is rejected for two times in a year, he will be eligible for applying for the leave encashment up to a maximum of 10 days. The encashment will be based only on Basic Salary. LANGUAGE English is the official language of Unilever. However employee dealing with customers can speak in Bengali if requires. ID card and Business card After joining, human resource division would issue ID card and Business card to each employee for ensuring security and proper identity. Only non-executives are not entitled to get business card. Salary and Benefits Monthly salary will be transferred to employee individual salary account on 25 th of each month with other allowances less deductions such as income tax, contributory provident fund etc. Each employee will receive a monthly payment statement detailing gross pay and deduction. Festival Bonus They usually awards two bonuses in a year on occasion of Eid/Christmas/, as festival bonus. The amount of bonus is normally equal to basic salary. Other Variable Bonus They are offering other variable bonuses like performance bonus (related with individual performance) and company performance bonus (special bonus for company

performance/success) to the employees. Soft Furnishing Allowance

This allowance is paid as a part of house maintenance of the staffs. Only Executive and above are entitled for the allowance. This allowance shall be paid on yearly basis at the end of the year (with December pay). Job Level To management Sr. Management Manager Asst. manager Executive Yearly Allowance (tk) 20,000 15,000 8,000 6,000 4,000

Shift Duty Allowance

Holiday Allowance Job Level Manager & Sr. manager 3-5 hours Tk. 300/ (per day) >5 hours Tk. 500/ (per day)

Salary Review Salary is received periodically with consistent with the living standard and competitive salary package offered by other multinational organization. Provident Fund and Gratuity The contribution in provident fund is 10% of basic salary from both sides. Employee will be eligible for company contribution after 5 years of the membership of the fund. Employee will also be entitled to a gratuity payment. Group Life Insurance Policy

Management has approved a group of life insurance policy under which, death, permanent partial disability and permanent total disability shall cover. And the insured amount for life is 36 times gross salary. Child Birth Benefit All regular employees are entitled for child birth allowance as per stated below: 1. Manager and above: (both employee and spouse) Tk. 15000 per delivery 2. Assistant manager and below: (both employee and spouse) Tk. 10000 per delivery Incumbent (regular employee) shall submit: 1. Birth certificate from appropriate authority 2. Claim form Hospitalization Fund policy All employees are entitled for the benefit (All permanent employees and their families, all probationers and their families and all contractual employees and their families including nonexecutives) as per the level of employment/Grade (family means spouse and children up t o25 years old.) Mode of benefits 1. Employee can claim for two hospitalization cost per year 2. Employee should take prior approval from head of Human Resources in advance in writing of any pre-planned hospitalization. In case of any emergencies, employee or any of his dependents should inform HR immediately. 3. Employee will pay the bills of hospitalization of his/her own and submit the bill copies and money receipts for reimbursement of the hospitalization expense. 4. In case of any overseas treatment, reimbursement shall be up to respective employee’s entitlement.

Hospitalization Expenses include

1. Consultation fees while admitted 2. Investigation expenses while admitted 3. Artificial Limbs, Eyes, Casts, braces or crutches 4. Post hospitalization physiotherapy up to two sessions 5. Rental or Wheel Chair or Hospital bed, if advised by physician 6. Ambulance service 7. Treatment by radiotherapy or chemotherapy 8. Preadmission treatment 9. Two follow up visits after discharge from hospital Claim Submission procedure for Reimbursement 1. All claims must be submitted to divisional head within 15 days after being released from hospital 2. Employees should settle the expenses themselves and apply for reimbursement attaching all original of payments with the claim form Supporting papers necessary for Hospitalization bill 1. Itemized original hospital bill for the total amount paid. Original voucher of consultant’s fee 2. Original Voucher of surgeon’s fee in case of surgery 3. Prescriptions of medicine used in the hospital along with money receipts of purpose 4. Original hospital discharge report/summary. Accommodation Allowances An employee who is required to travel out station on company business beyond a radius of 33 km from his office (within Bangladesh) and requires a stay of 24 hours or more shall be entitled for following claims: a. Hotel rental b. Rental without receipts.


Hotel Rental with Receipts

Hotel Rental without Receipts

Top Management Sr. Management Manager Asst. Manager Executive Non-executive

Actual cost single deluxe BDT 3000/ BDT 2500/ BDT 1800/ BDT 1400 BDT 600/

BDT 2000/ BDT 1500/ BDT 1200/ BDT 900/ BDT 700/ BDT 300/

Daily Allowances for overseas Travel An employee travelling outside Bangladesh, on company business shall be paid daily meal allowance as per stated below: Asia Europe/America/Japan/Hongkong and (USD) the rest of the world (USD) Top management 100 150 Sr. Management 85 120 Manager 70 100 Asst. manager 50 70 Executive 50 70 An employee traveling outside Bangladesh on company business shall be reimbursed on production of receipts for the airport charges, Tax and Transportation expenses. The mode of transport using hired vehicle must first be approved by the managing director. The airfare for such business trip shall be as follows: Designation Asia and Europe/America/Japan/Hong Kong the rest (Air fare) of the world (Air fare) Business Business Economy Economy Economy Economy Economy Economy Economy Economy Designation

Top management Sr. Management Manager Asst. manager Executive

Accommodation Allowance (overseas) An employee traveling outside Bangladesh on company business shall be paid accommodation allowances as per stated below: Designation Asia and rest of the world USD 75 USD 60 USD 45 USD 35 USD 35 Europe/America/Japan/Hong Kong

Top Management Sr. Management Manager Asst. Manager Executive

USD 100 USD 85 USD 65 USD 60 USD 60

Transfer Reimbursement The company shall pay a transfer allowance of Tk. 15000 for a married employee (executive and above) and Tk. 9000 for a single employee. Transfer allowance for non-executive is tk. 9000(married) and Tk. 6000 (single) respectively. Travelling allowances, meal allowances and accommodations allowances shall be paid according to company rules. Transport and Travelling allowances Employee authorized to use his/her vehicle in performing the duty, shall be reimbursed transport expenses: Description/Vehicle Motorcar Motorcycle Parking fees and toll charges Allowance Tk. 8/km Tk. 4/km Shall be reimbursed upon submission of receipt

Wedding Loan Interest free wedding loan for the confirmed permanent employee loan amount is 3 times gross salary (maximum amount of Tk. 100,000). Meal Allowances All confirmed regular employees are entitled for a monthly meal allowance as per thei job grade which is payable with their salary. Children Education Allowance All regular and confirmed employees are entitled for children education allowances up to maximum two children (age should be within 25 years). Allowance is payable with the monthly salary as per the employee job grade. Gratuity All confirmed regular employees are entitled for gratuity as per stated below: Years of service After 5 years After 8 years After 10 years Allowance 1 last drawn basis for each completed year 1.5 last drawn basis for each completed year 2 last drawn basis for each completed year

Long Service Award For all confirmed regular employees the reward will be with the form of gold medal worth different values relating with their frame: Years of Service After 5 years After next 5 years Reward 2 vhori Gold 3 vhori Gold

Leave Fair Assistance All regular employees are entitled for leave fare assistance on monthly basis per their job grade which is payable with their salary. One of the prime objectives of Unilever is to develop its individual employee’s career.

Carrier Development Through appraising their performance and providing with knowledge and skills through proper training and development programs. Induction After joining new employee is subject to attend an induction program. This program provides new employee with basis background information about employer, information about company rules and practices, organizations products and services. This new employee socialization program shall be conducted by HR division. Performance Appraisal To achieve the overall organization goal, each employee is assigned with his individual goals. A periodic appraisal is conducted with the view to monitoring employee performances and to find out the training need and developments of each employee. Good performances are awarded accordingly for their contribution to Unilever. Organizations Development Management gives immense emphasis on developing its human resources by allocating huge money with yearly training programs (both local and overseas training). Annual training calendar is drawn up consisting with the training need assessment of all members of the organization. Inhouse training is also arranged. Promotion A systematic promotion policy is followed in terms of promoting the deserving employees in line with the succession plan. Promotion is given to the employee when there is vacancy in the higher position and the employee has the required skills, experience to undertake the job. Up gradation is also awarded on the basis of performances and capability of the individuals. Motivation As motivation is a prime factor to job satisfaction, management is willing to take initiative by offering following schemes: Performance Bonus Performance bonus may be given to the good performers with accordance with the company rules and management discretion as recognition of ones performances throughout the year. Reward and recognition

Reward and recognition policy is introduced to award the outstanding performers for best employee of the year, best employee of the division, outstanding performers, best team performers and best support stuff. Safety and Security For conforming contingency or any possible accident in the work places, offices contains the fire extinguishers and first aid box and Unilever is in the brink of establishing a comprehensive safety and security policy for safeguard of our lives and properties as well. Punishments The measurement of punishment should be proportionate to the severity of the offence committed. The punishments could be as follows: 1. 2. 3. 4. 5. 6. Written warning Suspension without pay for a period not exceeding 7 working days Defer increment for a period not exceeding 2 years. Dismiss the employee without notice Termination Impose any other lesser punishment other than these.

Medically Boarding Out When an employee is incapable either physically or mentally to undergo his job, management may discharge him/her from service upon recommendation of the govt. medical board. Retirement Optional Retirement Male 50 years Female 45 years Compulsory Retirement Male Female 58 years 58 years

EMPLOYEE SATISFACTION Employee satisfaction is the terminology used to describe whether employees are happy and contented and fulfilling their desires and needs at work. Many measures purport that employee satisfaction is a factor in employee motivation, employee goal achievement and positive employee morale in the workplace. Employee satisfaction, while generally a positive in an organization, can also be a downer if mediocre employee stays because they are satisfied with work environment.

The factors effects employee satisfactions are following: A. Organization development factors 1. Brand of organizations in business field and comparison with leading competitor 2. Missions and vision of organization 3. Potential development of organizations B. Policies of compensation and benefits factors 1. Wage and salary 2. Benefits 3. Rewards and penalties C. Promotions and carrier development factors 1. Opportunities for promotion 2. Training program participated or will do 3. Capacity of career development D. Work task factors 1. Quantity of task 2. Difficult level of task. E. Working conditions and environment factors 1. 2. 3. 4. Tools and equipment Working methods Working environment Working environment

F. Corporate culture factors 1. Relationship with coworkers 2. Level of sharing etc. G. Competencies, personalities and expectations of employer’s factors 1. Competencies and personalities of employee are suitable for job 2. Expectations of employers are suitable for policies of organization

Some other factors related with the employee satisfactions are given below: 1. Interesting works

2. Appreciation of work 3. Job security 4. Good wages 5. Promotion and growth 6. Good working conditions 7. Personal loyalty 8. Tactful discipline 9. Sympathetic help with problems 10. Preferred incentives 11. Flexi-timing 12. Telecommunicating 13. Company paid vacations 14. Accident and health insurance benefits 15. Retired benefits etc. 16. ANALYSIS AND FINDINGS Strength: The main strength of Unilever HR Division is the authority to work. They have authority to maintain the employee properly. The employees from different division have proper respect for HR division. This respect was gained by HR division. Weakness: Still Bangladesh has lack of enough HR personnel in the marker. It is important to have employee, who understand HR and can work according to HR needs. Opportunity: It is a huge organization consisting a large number of employees. HR division has to look all types of employee. They can work in several sectors along with those employees. Very few Bangladeshi organizations have this kind of have this kind of opportunity. An additional thin is they also have enough financial resource for successful implements of HR policies. Threat: It is also very difficult to handle with such a gigantic number of employees. It is very normal that any process can be bewildered when there is not enough internal resources. Sometimes the total process can be injudicious.

CONCLUSION From the above discussion we can easily understand that Unilever is one of the largest companies in Bangladesh. Over the last four decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of their products. Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and they have equal number of Bangladeshis working abroad in other Unilever companies as expatriates. It is found that the Human Resource practice, recruitment and selection process, employee satisfaction and relations at Unilever are very developed and effective one. The most important key source factor of Unilever is its efficient human resource. It is using the state of the art technologies and continuous monitoring to ensure its products quality. The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. Their operating model is designed to deliver faster decisions. Their corporate purpose sets out their aspirations in running business. It’s underpinned by their code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports approaching to governance and corporate responsibility.

Similar Documents

Premium Essay

Compensation Management

...| | Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees.Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Components of Compensation System Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:                        Types of Compensation Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity. Direct Compensation     Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus...

Words: 948 - Pages: 4

Free Essay

Compensation Management

...tation Compensation Policy Bd Telecommunication Rukana.Ppt Course No: EHRM-521 Course Title: Compensation Management Prepared for Abu Sayef Md. Muntaquimul Bari Chowdhuri Lecturer, Department of Management Studies Faculty of Business Studies Jahagirnagor University Prepared By: Md. Abu Rukana (Std. ID: 2011 3 122 ) Md. Hemayetul Islam (Std. ID: 2011 3 022) Mohammad Khalilur Rahman(Std. ID: 20122394) Ziasmin Akter (Std. ID: 20113286) Content…….. 1. 2. 3. 4. 5. 6. 7. Synopsis of mobile operator in BD Robi Banglalink Citycell Findings Recommendation Q/A Mobile Phone Subscribers in Bangladesh Operators Grameen Phone Ltd. (GP) Active Subscribers(Million) 39.293 Orascom Telecom Bangladesh Limited (Banglalink) 25.490 Robi Axiata Limited (Robi) Airtel Bangladesh Limited (Airtel) Pacific Bangladesh Telecom Limited (Citycell) Teletalk Bangladesh Ltd. (Teletalk) Total 19.211 6.734 1.699 1.358 93.788 Source: BRTA Website Company Overview ROBI…  Axiata (Bangladesh) Limited is a dynamic and leading countrywide GSM communication solution provider  It is a joint venture company between Axiata Group Berhad, Malaysia and NTT DOCOMO INC, Japan. Company Overview ROBI Cont.  On 28th March, 2010 the company started its new journey with the brand name Robi.  It has the widest International Roaming coverage in Bangladesh connecting 553 operators across 207 countries. Compensation plan of ROBI  Salary & Benefit  Monthly salary is transferred...

Words: 484 - Pages: 2

Premium Essay

Compensation Management

...Compensation Management Q1.a. What is the role of compensation and rewards in modern organization? What arethe advantages of a fair compensation system? Ans1a. Role of Compensation and Reward in Organization: Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Land, Labor, Capital and Organization are four major factors of production. Every factor contributes to the process of production/business. It expects return from the business process such as Rent is the return expected by the Landlord. similarly Capitalist expects Interest and Organizers i.e Entrepreneur expects profits. The labour expects wages from the process. It is evident that other factors are in-human factors and as such labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. Advantages of Fair Compensation System: Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1. If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen. 2. Such system will encourage the normal worker to perform...

Words: 9398 - Pages: 38

Free Essay

Compensation Management

...Compensation and Reward Management UNIT 17 COMPENSATION STRATEGY, STRUCTURE, COMPOSITION Objectives After reading this unit, you should be able to: l appreciate compensation function and objectives; l analyse compensation issues and trends; l assess the characteristics of executive compensation and its determinants; l understand the principles and practices of compensation administration; and l identify the major components of wage structure in India. Structure 17.1 Introduction 17.2 Compensation Issues 17.3 Compensation Function 17.4 Compensation Policies and Objectives 17.5 Compensation Administration 17.6 Compensation Determinants 17.7 Compensation Survey 17.8 Compensation Structure 17.9 Job Evaluation System 17.10 Pay Equity 17.11 Executive Compensation 17.12 Compensation Trends 17.13 Wage Structure in India 17.14 Case Study 17.15 Summary 17.16 Self-Assessment Questions 17.17 Further Readings 17.1 22 INTRODUCTION One of the most difficult functions of human resource management is that of determining the rates of monetary compensation. It is not only complex, but significant both to the organisation and employees. Employee compensation decisions are crucial for the success of an organisation. From a cost perspective alone, effective management of employee compensation is critical because of the total operating costs. Another...

Words: 6295 - Pages: 26

Free Essay

Compensation Management

...East West University TERM PAPER On Compensation strategy of RAHIMAFROOZ HRM412 Submitted to: SSM Sadrul Huda Assistant Professor Department of Business Administration Submitted by: Mahbuba Chowdhury 2004-3-10-013 Sec-01 Md. Tarekul Islam 2005-2-10-161 Sec-01 Shamsun Nahar Airin 2005-2-10-231 Sec-02 Tangina Jesmin 2005-3-10-029 Sec-02 Date of Submission: 14.08.2008 Acknowledgment At first we present our due regards to the Almighty, who has provided us the brilliant opportunity to build and complete this term paper successfully with good health & sound mind. We would like to acknowledge our instructor SSM Sadrul Huda for his guidance starting to data collection and preparing for the writing; our regards and heartfelt thanks to him. Moreover, we are grateful to our administration as they provide us with the facility to use computer lab for browsing net & study room for teamwork. May be it would have been impossible to finish the report in time if we didn’t get the facility. Letter of Transmittal August 10, 2010 SSM Sadrul Huda Assistant Professor Dept of Business Administration East West University 45 Mohakhali C/A, Dhaka 1212 Dear Sir, Here is the term paper that you have asked us to prepare as a group for our course Compensation Management (HRM- 412). We have done group work for this term paper and did it as per as the rule. We are encouraged...

Words: 4510 - Pages: 19

Premium Essay

Compensation Management

...mpensation management Disclaimer This document contains a collection of online assignment questions intended solely for the use of the SCDL students. If you are not the intended recipient, please delete the document. This document may contain viruses. I have taken every reasonable precaution to minimize this risk, but not liable for any damage you may sustain as a result of any virus in this document. You should carry out your own virus checks. Please note that this document is susceptible to change and I shall not be liable for any improper, untimely or incomplete transmission. I have taken every reasonable precaution to make sure that the questions from other subjects do not creep in. If this happens without my knowledge, please ignore it and bring it to my notice so that I can rectify it at the earliest. I do not guarantee the occurrence of these questions in your FINAL EXAMINATIONS. Thank you for all the support. *********************************************************************************************************************************************** Multiple Answer Question Extent of employees turnover depends upon :- Correct Answer Physical conditions within organisation , Type of industry , Male to female ratio True/False Question Performance standards & norms for incentive payments should be set up high for better results. Correct Answer False Multiple Choice Multiple Answer Question E.S.I. Act aims at providing...

Words: 6355 - Pages: 26

Premium Essay

The Management of Executive Compensation

...THE MANAGEMENT OF EXECUTIVE COMPENSATION Posted on November 16, 2011 1 EXECUTIVE COMPENSATION Notes on THE MANAGEMENT OF EXECUTIVE COMPENSATION….. Executive compensation is the total remuneration or financial compensation a top executive receives within an organization. This includes a basic salary, any and all bonuses, shares options, and any other company benefit. Over the past three decades, executive compensation has risen dramatically beyond the rising levels of an average worker’s wage. Executive compensation is an important part of corporate governance, and is often determined by a company’s board of directors. Executive compensation is a very important thing to consider when evaluating an investment opportunity. Executives who are improperly compensated may not have the incentive to perform in the best interest of shareholders, which can be costly for those shareholders. While new laws and regulations have made executive compensation much clearer in company filings, many investors remain clueless as to how to find and read these critical reports. This article will take a look at the different types of executive compensation and how investors can find and evaluate compensation information. WHO IS AN EXECUTIVE? A person or group having administrative or managerial authority in an organisation. The chief officer of a government, state or political division. Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators...

Words: 2251 - Pages: 10

Premium Essay

Compensation Management

...ISSN 1822-6760. Management theory and studies for rural business and infrastructure development. 2010. Nr. 5 (24). Research papers. CRITICAL ISSUES FOR COMPENSATION AND INCENTIVES MANAGEMENT: THEORETICAL APPROACH Ramunė Čiarnienė, Milita Vienažindienė Kaunas University of Technology, Vilnius Co-operative College For most people, pay is a primary reason for working. Indeed, compensation is at the core of any employment exchange, and it serves as a defining characteristic of any employment relationship. The study focuses on critical points of compensation and incentives management. The fundamentals of a good incentive program include the elements of vision, potential, communication and motivation and can be realized if incentive promises are fulfilled – by both employer and employee. The aim of the paper is to identify the most important attributes of compensation and incentives management. Research method is the analysis and synthesis of scientific literature, logical, comparative and graphic representation. On the base of analysis, authors of this paper present the model of incentive system for positive employee attitudes and behaviors. Keywords: compensation, employees, incentives, management. Introduction Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay may be received directly in the form of cash (e.g., wages, merit increases, incentives, cost of living adjustments) or...

Words: 2728 - Pages: 11

Premium Essay

Management Compensation

...For organisations to achieve their goals, it is important that management control systems motivate managers and influence their behaviour to align their goals with the goals of the organisation (goal congruence). This can be achieved by reward and incentive systems because managers will tend to focus on the activities that are rewarded. Research have shown that people will be more motivated by the potential of earning rewards than by the fear of punishment. A managers total compensation package consists of salaries, benefits and an incentive compensation. Incentive compensation plans are divided into short-term and long-term plans. Under a short-term plan, managers are usually paid in cash. The total amount that can be paid out to employees in a given year is called the “bonus pool” and relates to the overall profitability in a current year. Bonus pools can be established setting the bonus equal to a set percentage of the profits or base bonuses on profitability relative to the industry. Under the short-term plan, some organisations might follow a deferred compensation plan, which spreads out the payments to managers over a period of years. Advantages of this are that managers can estimate their cash income for the year and even after retiring, the manager will continue to receive payments for a number of years. However, the payments may not relate to the performance in the year it was earned. With long-term plans, for an example, managers are usually given the option...

Words: 1282 - Pages: 6

Premium Essay

Compensation Management

...Bangladesh. Vision: Our Vision is to become a low cost leader in the market by competing with the existing dominant firms using low cost strategy and provide standard chemical & cosmetics to the root level customers. Organizational Structure: Job Description of General Manager: * Hires, trains, and motivates all Department managers.  * Directs and monitors all management or supervisory personnel functions and completes formal performance evaluations of all department managers.  * Meets with the comptroller/office manager monthly to review departmental forecasts for consistency with the annual forecast.  * Meets with managers individually to develop monthly and annual goals and objectives, and to review actual performance.  * Monitors the daily operating control (DOC), recommending improved courses of action where necessary. * Ensures that the monthly financial statement is complete, accurate, and submitted on time to the factory.  * Develops and maintains a good working relationship with lending institutions and manufacturer personnel.  * Communicates management policies and procedures to all employees and ensures that they are understood and followed.  * Provides enthusiastic leadership to help shape employees' attitudes and build morale.  * Holds regularly scheduled managers meetings to ensure that every department is operating efficiently and profitably.  * Reviews all requests for training, approves those which are appropriate...

Words: 3116 - Pages: 13

Free Essay

Axp Management Compensation

...A Snapshot of AXP Management Compensation Overview: Compensation Package Philosophy and Design The idea behind American Express (AXP) executive compensation program is to reward outstanding leadership that drives results and cultivates sustainable shareholder value. Paying awards in various time horizons from short term, medium term, to long term, the company works on aligning the interest of its shareholders and senior executives. A combination of fixed but predominantly variable awards is structured to encourage annual and sustainable performances. To study its executive compensation plan, the composition of payout package can be divided in terms of base salary, annual incentive award, cash portfolio grant award, performance restricted stock award, and stock option award (see Exhibit 1). CEO’s 50% versus other executive’s 59% short-term compensation encourages focus on long-term performances. In fact, “over 84% of the total direct compensation delivered in 2013 was variable and tied to performance, including financial results, strategic initiatives, and stock performance” (AXP Proxy Statement). A detailed description of the performance measurement is shown in Exhibit 2. Analysis: Management Performances versus Management Compensation The executive management at AXP may seem to be excessively over-compensated to some outside analysts but not to the internal board. From 2013 to 2014 (see Exhibit 3), target revenue growth of 8% annually was missed by half and EPS growth was...

Words: 631 - Pages: 3

Premium Essay

Primary Components of Compensation Management

...Primary Components of Compensation Management By: Desteni Lawhorn HR434 Compensation Management Park University Submitted: April 24, 2011 Too much focus on trends and hot topics. Not enough focus on customizing programs and processes to address real needs. People have programs looking for an application rather than analyzing the issue and then determining what's the best program or process. Too many start at the end and work toward the beginning. Logically they should start at the beginning. -Bruce Ellig Compensation management is more than just remuneration to appeal or retain capable employees, it is the leverage an organization utilizes to obtain, and retain its human capital and provide competitive positions within the organization. Recently, Human Resource departments have focused on the latest compensation trends or are geared toward rewards without merit, relevance or fit. This is a common mistake as compensation management should be focused on primary components of job analysis, pay structure and salary surveys. Human Resource departments must apply these fundamentals in the compensation management system in order to integrate well in an organization. Compensation management affords an organization the ability to reward superior execution and maintain the top employees in a particular field that contribute to the overall success and profitability of an organization. Through utilization of the basic fundamentals, organizations can visibly assess the employee’s...

Words: 1709 - Pages: 7

Premium Essay

Compensation & Benefit Management

...and selection, conducting induction and ensuring that the company’s policies (such as health and safety and equal opportunities) complied with legislation. Typically, she would only visit regional offices to attend disciplinary or grievance meetings. Whilst the company has broad guidelines on how each department is managed, the general attitude among senior management at HQ has been that as long as each office is performing adequately, they are happy not to intervene or get too involved at regional level unless directly asked to do so. However following the recent growth of the firm from a relatively small, tight-knit organisation to a larger, more bureaucratic company, the senior managers are keen to introduce a ‘performance culture’ into the firm and to formalise and standardise its key HR processes. As part of an ongoing process of reviewing HR policies and practices at the regional sales offices, you have been asked to compile details of the way in which reward is handled in each office with a view to standardising practices across the firm. Currently, all basic pay is determined according to what senior management feel is the ‘going rate’ for sales representatives nationally through a rudimentary benchmarking exercise conducted every two years by the...

Words: 1242 - Pages: 5

Free Essay

Compensation Management

...Compensation Management (PACM) Release 4.6C HELP.PACM Compensation Management (PA-CM) SAP AG Copyright © Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 , ® ® ® AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and Informix Dynamic Server Informix Software Incorporated. ® ® ® ® ® ® TM ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® are registered trademarks of UNIX , X/Open , OSF/1 , and Motif are registered trademarks of the Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow...

Words: 23388 - Pages: 94

Premium Essay

Compensation Management

...Danielle K. Ellison 22418 15 East Street Mineral, IL 61344 Student ID 21820664 Compensation Management, HRM 210 41200800 People all over the world are paid in numerous forms of payment schedules. “Compensation is payment in the form of salary or wages” (1). “A salary is a fixed compensation paid for regular services” (2). “A wage is a payment usually of money for labor or services usually according to a contract and on an hourly, daily, or piecework basis “(3). Merriam-Webster listed the fore stated definitions and though they are semi accurate, they are vague and not specific. Here in the United States, from my personal experience and knowledge, I will define these three words. Compensation is the sum of profits you receive from working a job including money and benefits. A salary is the money you make when you work a job, it is a fixed amount more often than not. Wages is how the money you will make is calculated in a paying job. For example, your hourly wage, annual wage, your piecework rate, or your cents per mile rate, are all different way to be paid in numerous different jobs or trades. Annual salaries are given out most often as a form of compensation in high executive positions and management positions. These positions are often very demanding and call for a lot of personal time to dedicate to a position. Often a management position has more work at variable hours. Salary positions are also given to people on call in a certain line of work. In a line of work...

Words: 1094 - Pages: 5