Compensation Management - Meaning

“If you pick the right people and give them the opportunity to spread their wings - and put compensation and rewards as a carrier behind it - you almost don’t have to manage them.”

— Jack Welch

Most of us would have heard the term “compensation” in the context of getting paid for the work that we do. The work can be as part of full time engagement or part time in nature. What is common to them is that the “reward” that we get for expending our energy not to mention the time is that we are compensated for it.
From the perspective of the employers, the money that they pay to the employees in return for the work that they do is something that they need to plan for in an elaborate and systematic manner. Unless the employer and the employee are in broad agreement (We use the term broad agreement as in many cases, significant differences in perception about the employee’s worth exist between the two sides), the net result is dissatisfaction from the employee’s perspective and friction in the relationship.
It can be said that compensation is the “glue” that binds the employee and the employer together and in the organized sector, this is further codified in the form of a contract or a mutually binding legal document that spells out exactly how much should be paid to the employee and the components of the compensation package. Since, this article is intended to be an introduction to compensation management, the art and science of arriving at the right compensation makes all the difference between a satisfied employee and a disgruntled employee.
Though Maslow’s Need Hierarchy Theory talks about compensation being at the middle to lower rung of the pyramid and the other factors like job satisfaction and fulfilment being at the top, for a majority of employees, getting the right compensation is by itself a motivating factor. Hence, employers need to quantify the employee’s contribution in a proper manner if they are to get the best out of the employee. The provision of monetary value in exchange for work performed forms the basis of compensation and how this is managed using processes, procedures and systems form the basis of compensation management.
As the module progresses, readers would be introduced to other aspects of compensation management like the components of compensation management, types of compensation, inclusion of variable pay, the use of Employee Stock Options etc. The aspect of how skewed compensation management leads to higher attrition is discussed as well. This aspect is important as studies have shown that a majority of the employees who quit companies give inadequate or skewed compensation as the reason for their exit. Hence, compensation management is something that companies must take seriously if they are to achieve a competitive advantage in the market for talent.
Considering that the current trend in many sectors (particularly the knowledge intensive sectors like IT and Services) is to treat the employees as “creators and drivers of value” rather than one more factor of production, companies around the world are paying close attention to how much they pay, the kind of components that this pay includes and whether they are offering competitive compensation to attract the best talent. In concluding this article, it is pertinent to take a look at what Jack Welch had to say in this regard: As the quote (mentioned at the beginning of this article) says, if the right compensation along with the right kind of opportunities are made available to people by the firms in which they work, then work becomes a pleasure and the manager’s task made simpler leading to all round benefits for the employee as well as the employer.
source website is


http://www.managementstudyguide.com/compensation-management.htm
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more concepts about Compensation Management is

Compensation Management
The typical global enterprise still relies on spreadsheets or outdated legacy software systems to manage compensation, which leads to inconsistency in how compensation policies and plans are created, implemented, and measured. The fragmentation of compensation management within many organizations can result in poor decisions based on inaccurate or out-of-date information, inefficient and costly systems for rollups and approvals, and an inability to align compensation decisions to the performance of individuals and groups.
SumTotal Compensation Management simplifies and standardizes the planning, modeling, budgeting, analysis, and execution of global compensation and reward policies. Built on the industry’s most complete talent platform, SumTotal Compensation Management enables you to:

• Achieve global compensation visibility by replacing spreadsheets and legacy systems with a flexible, centralized, and modern compensation system
• Build a culture of high performers by aligning performance, goals, and rewards across an entire organization
• Reduce the cost and complexity of compensation administration by optimizing rollups, exception handling, and approvals

source website is
http://www.sumtotalsystems.com/products/compensation-management.html
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Selection Process is One of the Most Important Function in Human Resource Management

The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side.

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Selection Process  have some Important Characteristics

Based on objective criteria, the management team selects top performers in a given position. The top performing employees are assessed on their mental ability, behavioral traits and occupational interest, which include the following 20 core characteristics:

- Learning index

- Verbal skill

- Verbal reasoning

- Numerical ability

- Numeric reasoning

- Energy level

- Assertiveness

- Sociability

- Manageability

- Attitude

- Decisiveness

- Accommodating

- Independence

- Objective judgment

- Enterprising

- Financial

- People service

- Creative

- Technical

- Mechanical
 This data is used to create a unique job fit profile that lays the foundation for the skills and characteristics required by your company for screening and hiring talented people.
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Another is

Selection Process In Hrm

The selection process consists of various steps. At each stage facts may come to light which may lead to rejection of the applicant. Steps involved in the selection are: -application
* Preliminary interview: - Initial screening is done to weed out totally undesirable/unqualified candidates at the outset. It is essentially a sorting process in which prospective candidates are given necessary information about the nature of the job and the organization.

* Application blank: - Application form is a traditional and widely used device for collecting information from candidates. The application form should provide all the information relevant to selection.
* Selection test: - Psychological are being increasingly used in employee selection. A test is sample of some aspects of an individual’s attitude, behavior and performance. It also provides systematic basis fro comparing the behavior, performance and attitudes of two persons.

* Employment interview: - An interview is a conversation between two persons. In selection it involves a personal, observational and face to face appraisal of candidates for employment.

* Medical examination: - Applicants who have crossed the above stages are sent for a physical examination either to the company’s physician or to a medical officer approved for the purpose.

* Reference checks: - The applicant is asked to mention in his application form the names and addresses of two or three persons who know him well.

* Final approval: - The shortlisted candidates by the department are finally approved by the executives of the concerned department. Employment is offered in the form of appointment letter mentioning the post, the rank, the grade, the date by which the candidate should join and other terms and conditions in brief.

source file is
http://www.oppapers.com/essays/Selection-Process-In-Hrm/486505

Definition for recruitment, selection and training.

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.
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Recruitment is the process of identifying that the organisation needs to employ someone up to the point at which application forms for the post have arrived at the organisation. Selection then consists of the processes involved in choosing from applicants a suitable candidate to fill a post. Training consists of a range of processes involved in making sure that job holders have the right skills, knowledge and attitudes required to help the organisation to achieve its objectives. Recruiting individuals to fill particular posts within a business can be done either internally by recruitment within the firm, or externally by recruiting people from outside.

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What is Recruitment?

recruitment is the process of attracting qualified 
applicants for a specific job. the process begins when 
applications are brought in and ends when the same is 
finished. the result is a pool of applicants, from where 
the appropriate candidate can be selected.

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Manage Recruitment and Staffing in Your Organization


 Recruitment and staffing provide the overall framework for the process of planning, recruiting, selecting, and hiring employees. The goal of recruitment and staffing is to identify the smartest, most versatile employees you can find. Retention of your best employees starts with your effective recruitment and staffing process, strategies, policies and procedures. Recruitment and staffing are the focus of these resources.

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Recruitment process outsourcing

Recruitment Process Outsourcing is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
The Recruitment Process Outsourcing Association defines RPO as follows: "when a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the onboarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.

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www.ik20.com

Source websites are
http://en.wikipedia.org/wiki/Recruitment
http://www.cssforum.com.pk/css-optional-subjects/group/business-administration/16400-what-recruitment-selection-training.html
http://www.allinterview.com/showanswers/1515.html
http://humanresources.about.com/od/recruitingandstaffing/Employee_Planning_Recruiting_Selecting_Staffing_and_Hiring.htm
http://en.wikipedia.org/wiki/Recruitment_process_outsourcing