Assignment I 1 11 2014 
MASTER IN BUSINESS ADMINISTRATION
(GENERAL MANAGEMENT)
MGT6033: COMPENSATION & BENEFITS MANAGEMENT
COURSEWORK / ASSIGNMENT I
Prepared By: Lim Chee Seong (IC: 661007-08-6109) (Student ID: PACE 024747)
Lecturer: Dr. Perema Kumari S Ponnampalam
a) Compensation management as one of the important link to the human resource management, has greatly affects the competency of an organisation or the corporate. Hence, the decision made by an organisation how to compensate its labours must be objectively and reasonably for the contribution from its labours in order to facilitate the corporate development and at the same time ensure the satisfaction of employee with monetary compensations (Chich-Jen Shieh, Social Behaviour and Personality, 2008) Compensation can be defined as all forms of financial returns, tangible services and benefits that employees received as part of the relationship of an employment (G.T.Milkovich, J.M.Newman, B.Gerhart;2014).
Guaranteed compensation can be referred to as a fixed monetary (cash) reward paid by an employer to an employee and the base salary is the most common form of guaranteed pay, which can be paid by a bi-weekly or monthly rate (Compensation and benefits - Wikipedia, the free encyclopaedia). This type of guaranteed compensation do not vary from one period to the next unless and except by the defined pay adjustments or increases which generally on annual basis. The obvious drawback of the guaranteed compensation was a tendency for those long-standing employees had already become relatively stodgy and too comfortable with the guaranteed salary and become less motivated.
As claimed by the compensation specialists that, today, the most significant trend is the move away from or the change of the traditional way of guaranteed compensation to performance related compensation, especially for the knowledge-based employees, performance-based compensation with measurable objectives is necessary.
(GENERAL MANAGEMENT)
MGT6033: COMPENSATION & BENEFITS MANAGEMENT
COURSEWORK / ASSIGNMENT I
Prepared By: Lim Chee Seong (IC: 661007-08-6109) (Student ID: PACE 024747)
Lecturer: Dr. Perema Kumari S Ponnampalam
a) Compensation management as one of the important link to the human resource management, has greatly affects the competency of an organisation or the corporate. Hence, the decision made by an organisation how to compensate its labours must be objectively and reasonably for the contribution from its labours in order to facilitate the corporate development and at the same time ensure the satisfaction of employee with monetary compensations (Chich-Jen Shieh, Social Behaviour and Personality, 2008) Compensation can be defined as all forms of financial returns, tangible services and benefits that employees received as part of the relationship of an employment (G.T.Milkovich, J.M.Newman, B.Gerhart;2014).
Guaranteed compensation can be referred to as a fixed monetary (cash) reward paid by an employer to an employee and the base salary is the most common form of guaranteed pay, which can be paid by a bi-weekly or monthly rate (Compensation and benefits - Wikipedia, the free encyclopaedia). This type of guaranteed compensation do not vary from one period to the next unless and except by the defined pay adjustments or increases which generally on annual basis. The obvious drawback of the guaranteed compensation was a tendency for those long-standing employees had already become relatively stodgy and too comfortable with the guaranteed salary and become less motivated.
As claimed by the compensation specialists that, today, the most significant trend is the move away from or the change of the traditional way of guaranteed compensation to performance related compensation, especially for the knowledge-based employees, performance-based compensation with measurable objectives is necessary.