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Megha Mehta, Lovely Professional University Unit 10: Compensation and Benefits

Unit 10: Compensation and Benefits Notes

CONTENTS
Objectives
Introduction

10.1 Objective of Compensation Planning
10.2 Components
10.2.1 Wages

10.2.2 Allowances
10.3 Importance
10.4 Factors Influencing Employee Remuneration
10.5 Establishing Strategic Pay Plans
10.6 Pay for Performance

10.6.1 Competency based Pay
10.6.2 Guidelines for Effective Performance based Pay System
10.6.3 Incentives

10.7 Employee Benefits and Services
10.7.1 Employee Services
10.7.2 Features
10.7.3 Need for Employees Benefit and Services
10.7.4 Fringe Benefits

10.8 Summary
10.9 Keywords
10.10 Review Questions

10.11 Further Readings
Objectives

After studying this unit, you will be able to:
 Define the terms compensation and benefits
 Discuss the components and importance of compensation and benefits

 Understand various factors influencing employee remuneration
 Explain the concept of establishing strategic pay plans
 Describe employee benefits and services

LOVELY PROFESSIONAL UNIVERSITY 153