Introduction: A compensation or rewarding system is devised after careful consideration of various factors which affects both the organisation and employee. Rewarding of performance should be such that productivity gains continue. The system must be established according to the worth of a job. We must keep in mind that although we reward people for their work, we pay a job. [...]
This article throws light upon the top five methods of wage payment to employees. The methods are: 1. Time Rate System (Fixed Salary Method) 2. Piece Rate System 3. Salary plus Commission on Sales 4. Profit Sharing System 5. Non-Financial System. Method # 1. Time Rate System: It is a system where wages are paid on the basis of time [...]
After reading this article you will learn about:- 1. Meaning of Compensation 2. Objectives of Paying Compensation 3. Forms 4. Factors 5. Features. Meaning of Compensation: Employees work to earn money (wages or salary). This money is broadly termed as compensation. It is the reward they want from management in return for services rendered to the organisation. Compensation or paying [...]