Compensation Concept in HRM
The literal meaning of compensation is to counter—balance. In the case of human resource management, compensation is referred to as money and other benefits received by an employee for providing services to his employer. Money and benefits received may be in different forms — base compensation in money form and various benefits, which may be associated with employees services to the to the employer like provident fund, gratuity insurance scheme and any other payment which the employee receives or benefits he enjoys in lieu of such payment. Cascio has defined compensation as follows; “compensation includes direct cash payments, indirect payments in the form of employees to strive for higher levels of productivity.”… Read the rest