Abstract

The compensation policy and the reward system of an organization are viewed by the employees as indicators of the management’s attitude and concern for them. Traditionally, pay scales in companies reflected the importance of the work and the responsibility level. Today, organizations try more to assess the worth of an individual in terms of his performance and contribution to the organization. These caselets discuss the importance of a compensation system that is competitive and attractive for the employees and at the same time, profitable for the organization.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The role and importance of compensation management in an organization.

Keywords

Compensation policy, reward system, organization, employees, indicators, attitude, pay scales, companies, responsibility level, performance, contribution, competitive, attractive, profitable