MU0015 – COMPENSATION AND BENEFITS

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601

ASSIGNMENT

DRIVE	SUMMER  2015
PROGRAM/ SEMESTER	MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4)    PGDHRMN – (SEM 2)
SUBJECT CODE & NAME	MU0015 – COMPENSATION AND BENEFITS
BOOK ID	B1859
CREDITS	4
Max. MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q1. Explain compensation as a retention strategy. Describe the significant compensation issues.

Answer : One component of executive and senior leadership compensation that has seen significant growth over the last several years is the implementation of retention compensation. On its face, retention compensation strategies are another form of long-term deferred compensation; but it is different in that retention rewards are typically in place because of a specific event or set of circumstances triggering the need.

What is Retention Compensation?

The concept is simple—the organization provides a payment to a key person which is tied to continued employment for a specific period of time. The need for retention incentives typically result from:

• An anticipated or pending sale of the business/organization.

• A significant reorganization and/or restructuring.

2 Explain the steps involved in designing a salary structure. List the components of pay structure.

Answer :HR managers must understand some basic facts about Employment laws in order to design a comprehensive salary structure for employees. We at Evaluer help you understand what different parts of the salary mean. This is the base income. The basic salary is used to calculate several other constituents of the salary. Basic salary is always taxable and hence ideally should not be kept more than 40 (Forty) percent of the Cost to Company (“CTC”) but then keeping it to low may also cause the reduction in other constituents of the salary. Hence a balanced Basic income should be calculated.

Pay structure :A pay structure is a collection of pay rates or pay ranges.Structure setting and adjustment is the process of developing, adjusting, and maintaining a pay structure.Salary structures are a necessary part of effective management. They help make sure that the pay levels are externally competitive and internally fair.

Reason for developing a proper pay structure :

3 Define the term ‘wage’. Write a brief note on ‘wage policy’.

Answer :Components of wages :

A wage is monetary compensation (or remuneration) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate, or based on an easily measured quantity of work done.

Wages are an example of expenses that are involved in running a business.

Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals (such as a week or month) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is

4 Explain the concept of ‘tax planning’ with an example. Explain its role in Compensation Benefits.

Answer :'Tax Planning' Logical analysis of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the most tax-efficient manner possible. Tax planning is one of the most important aspects of personal finance. People often fail to look at tax planning objectively and straight away start making investments related to tax saving.

Here are some examples of tax planning by which an individual or firm can plan to reduce their tax liabilities.

Residential status: Sometime by better tax planning a taxpayer can avoid becoming resident in a particular year. The advantage of this is that if he is non-resident

5 Define ‘reward management’. What are its aims? Explain the factors affecting reward management policies in service sector.

Answer :Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. Reward management, values, structures and processes. 109. acceptance is a key determinant of reward strategy success (Lawler, 1990) and perceived inequity by employees will lead to a lack of employee acceptance of the reward strategy. There are two ways in which employees may feel their pay is inequitable.

6 Who are ‘Expatriates’? What are the objectives of ‘Expatriate compensation’? Differentiate between Financial (extrinsic) compensation and Non-financial (intrinsic) compensation.

Answer :An expatriate (often shortened to expat) is a person temporarily or permanently residing in a country other than that of their citizenship. The word comes from the Latin terms ex ("out of") and patria ("country, fatherland"). In common usage, the term is often used in the context of professionals or skilled workers sent abroad by their companies. A variety of factors can directly affect expatriate compensation, with three primary approaches an organization should consider. These factors include host‐country cost of living, housing, dependent education, tax implications and health care – factors most often incorporated as a component of one of the primary approaches to compensation discussions: destination‐based approach, the balance‐sheet approach, and the international headquarters approach.

Negotiating expatriate compensation is a bit more

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601