slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Introduction of Management Compensation PowerPoint Presentation
Download Presentation
Introduction of Management Compensation

Loading in 2 Seconds...

play fullscreen
1 / 18

Introduction of Management Compensation - PowerPoint PPT Presentation

  • Uploaded on

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 -

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Introduction of Management Compensation' - alyssa

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
introduction of management compensation
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-

A compensation is anything that constitutes or is regarded as an equivalent or recompense.

-Andrew F. Sikula-

our conclusion
Our conclusion…

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.

type of management compensation
Type of Management Compensation
  • Extrinsic Rewards (Financial):

- Direct Rewards

- Indirect Rewards

Cassandro Mary Hamel

intrinsic rewards non financial

Type of Management Compensation

Intrinsic Rewards (Non Financial):

employee ownership, provide freedom of action & visionary leadership to employees



employee satisfaction


enhance professional career


type of management compensation1
Type of Management Compensation

Mathis and Jackson

  • Allowance

- Life insurance - Paid leave - Pension fund - Workers compensation

  • Salary

- Base pay

- Wage

  • Not fixed income

- Bonus - Commission - Incentive program - Stock options

three types of management compensation
Three Types of Management Compensation

Michael and Harold (1993: 443)

  • Material compensation not only in the form of money, such as salaries, bonuses, and commissions, but all forms of physical reinforcer.
  • Social compensationclosely linked to the need to interact with others.
  • Activities compensationis able to compensate the compensation aspects of the job he did not like being given an opportunity to perform a particular activity.

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)


Why do we need Compensation Management?

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)


Factors that affect Compensation

Martoyo, S., 2007, Manajemen Sumber Daya Manusia, BPFE, Yogyakarta, hal. 128-129.