Compensation refers to all forms of financial return, tangible services and benefits employees receive as part of employment relationship. The compensation strategy plays an important role not only in retaining an employee but also converting him into a more productive and motivated factor of production. The book authored by Mousmi Bhattacharya and Nilanjan Senguta on compensation management explains this process of compensation and all related complex network of sub-processes in a very simple way suitable for all those students and practitioners who wants to learn about compensation.
The book begins with an introduction to the concept of compensation management and goes on to discuss the different macro as well as micro economic theories and their implications on compensation management. The subsequent chapters cover different processes involved in compensation management. Chapters three and four on Job analysis and job evaluation discuss the processes of identification and determination of the particular job duties and then covers the different quantitative, non-quantitative and computer based techniques to determine the relative worth of a job in the organization. In chapters five and six on performance appraisal and performance-linked compensation, different types of appraisals and of incentive plans in relation to perfor-mance of a person are discussed. The different frameworks like job-based, skill-based and competency-based pay structures with their respective advantages and disadvantages are also discussed while deciding the individual pay in chapter seven on person based compensation.
Chapters eight, nine, ten and eleven on wage differentials and wage fixation and executive compensation focus on differentiating factors of different jobs like hardships, safety etc., which causes the differentials. These differentials reflect differences in physical and mental abilities of workers and in turn in their compensations. How wages are fixed in India, role of statutory wage fixation, pay commissions and collective bargaining and components of pay are discussed in chapters related to wage fixation. In addition to these the prevalent basic components of an executive compensation in India is discussed in the chapter eleven on executive compensation. The book also discusses the types and components of international compensation management in chapters twelve and thirteen. Management of international compensation includes compensation practices of US, Saudi Arabia, China, Russia and Japan as well as the social security systems and their impact on compensation.
Another key strength of the book is that it provides case studies of different companies both from India as well as foreign companies like NIIT, SAS, IBM etc., to develop a strategic perspective on compensation management. Summarised version of a number of significant legislations related to compensation and employee welfare (in the Indian context) and of consumer price index number for ready reference are other good features of this book.
In sum, the book is a good compilation of theory and case studies on compensation management. The style of writing is simple to qualify as a text book. This book will be very helpful to develop managerial acumen of students of management and economics and practicing managers as well.
Sriram Centre for Industrial Relations & Human Resources, New Delhi
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|Publication:||Indian Journal of Industrial Relations|
|Article Type:||Book review|
|Date:||Apr 1, 2009|
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