MU0015-Compensation and Benefits

Spring-2016

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Master of Business Administration- MBA Semester 4

MU0015-Compensation and Benefits

(Book ID: B1859)

Assignment (60 Marks)

Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60.

Q1. (i) What is meant by “compensation management”?

(ii) Organizations design out the employee compensation packages based on some ‘compensation’ and ‘non-compensation’ dimensions. Describe in brief the compensation’ dimensions.

Answer. (i) Meaning of compensation management - Compensation management is a general policy, implemented in conjunction with specialized software, designed to help an organization maximize the returns on available talent. The ultimate goal is to reward the right people to the greatest extent for the most relevant reasons.

Q2. Explain the concept of Wage?

List down the pre-requisites of effective Incentive schemes?

Explain wage concept - 5

Pre-requisites of effective Incentive schemes - 5

Answer. A wage is monetary compensation (or remuneration, personnel expenses, labor) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate, or based on an easily measured quantity of work done. Wages are an example of expenses that are involved in running a business. In the widest sense, wages means any economic compensation paid to the employer under some contract to his woks for the services rendered by them.

Q3. What do you understand by VRS (Voluntary Retirement Scheme)? Also list down reasons, merits and demerits of VRS?

Concept of VRS - 2

Reason for adopting VRS by organization, Merits and demerits of VRS - 8

Answer. Voluntary retirement scheme (VRS) refers to voluntary retirement scheme, when company faces the problem of surplus labor, they have to remove the extra workers. Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees.

Q4. Discuss the Organizational and External Factors Affecting Compensation strategies?

Answer. The Compensation is the monetary and non-monetary rewards given to the employees in return for their work done for the organization. Basically, the compensation is in the form of salaries and wages. There are several internal and external factors affecting employee compensation.

Factors Affecting:

Internal factors: The internal factors exist within the organization and influences the pay structure of the company. These are as follows:

Q5. Explain the elements of Managerial remuneration? Elucidate some of the economic determinants of pay?

Elements of Managerial remuneration - 5

Economic determinants of pay - 5

Answer. Elements of a managerial remuneration

For Group Management, total remuneration consists of fixed salary, short-term and long-term variable remuneration, pension and other benefits. If the size of any one of these elements is increased or decreased, at least one other element has to change where the competitive position should remain unchanged.

• Fixed Salary,

Q6. Who are ‘Expatriates’? What are the objectives of ‘Expatriate compensation’? Differentiate between Financial (extrinsic) compensation and Non-financial (intrinsic) compensation.

Answer. Meaning of expatriates 'Expatriate' An individual living in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.

Objectives of expatriate compensation - Major objectives on which most of the expatriate compensation plans are designed are mentioned below:-

Most expatriate compensation plans are designed to achieve four major objectives:

Spring-2016

Get solved assignments at nominal price of Rs.125 each.

Mail us at: subjects4u@gmail.com or contact at

09882243490