Introduction of Management Compensation. A compensation is all the income in the form of money, goods directly or indirectly received by employees in exchange for services rendered to the company. - Drs. Malayu S.P Hasibuan -
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A compensation is all the income in the form of money, goods directly or indirectly received by employees in exchange for services rendered to the company. -Drs. Malayu S.P Hasibuan-
A compensation is anything that constitutes or is regarded as an equivalent or recompense.
-Andrew F. Sikula-
compensation is a reward in the form of financial and nonfinancial firms given in reply to the services of the employee.
The objective is to direct, manage and supervise the conduct of the employee in order oriented vision of the company.
The Relationship between Management Control System and Compensation Management
- Direct Rewards
- Indirect Rewards
Cassandro Mary Hamel
Mathis and Jackson
- Life insurance - Paid leave - Pension fund - Workers compensation
- Base pay
- Bonus - Commission - Incentive program - Stock options
Michael and Harold (1993: 443)
In compensation, the rate or amount of compensation should really be considered because it will determine the level of compensation lifestyle, self-esteem, and the value of the company. Compensation has great influence in the withdrawal of employees, motivation, productivity, and employee turnover.
(Benardin and Russell, 1993: 373)
1. To get good quality employees
2. Maintain current employees
3. Ensure the justice (internal and external equity)
4. Award for desirable behaviour
5. Control cost
6. Obey the regulation
7. Facilitate understanding
Werther, Davis, McGraw-Hill Human resource management 5 Sub edition (1995)
Martoyo, S., 2007, Manajemen Sumber Daya Manusia, BPFE, Yogyakarta, hal. 128-129.