07 Oct


1. What is your definition of compensation? Which meaning of compensation seems most appropriate from an employee’s view: reward or entitlement? Compare your findings with someone from another field of study?

2. Discuss the factors that influence compensation structures within the organization. Based on your own experience, which ones do you think are the most important? Why?

3. You are working as a middle ranking compensation and benefits specialist in a moderate sized organization in FMCG sector. The company has registered 25% revenue growth last year and is expecting the same rate of growth in the ensuing year. However, it is found that people working in key teams are leaving due to opportunities available in the market. The economy is doing well and the revenues of competitors are in upward swing. Your company follows a structured compensation pattern with liberal benefits to high performers. The management is worried about attrition and is keenly interested to retain the present sales, marketing and operations team. The management desires to restructure the compensation structure and benefits schemes. The HR head had asked you to design a Management Development Program (MDP) on “compensation and rewards” for the decision makers before the restructuring exercise comes into force.

a. What kind of “compensation issues” would you like to highlight and why?

b. Suggest alternatives to prevailing structured compensation system with necessary justifications.


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