Professional Documents
Culture Documents
Compensati
on
mangment
Contents
Alia Company.............................................................................................................. 2
Compensation management in Alia Company Pvt.ltd.................................................2
Subject of study and the way information was collected............................................2
A clear introduction covering company name, geographic location and main
business activity......................................................................................................... 2
Define compensation.................................................................................................. 3
Direct Monetary Compensation.................................................................................. 3
Monetary elements given by the company Alia..........................................................3
Basic salary.............................................................................................................. 3
Attendance Allowance.................................................................................................... 4
Annual salary increment................................................................................................. 4
Bonus........................................................................................................................ 4
Indirect Monetary Compensation................................................................................4
Annual leave........................................................................................................... 5
Menstruation leave.................................................................................................. 5
Emergency leaves......................................................................................................... 5
No-pay leaves.............................................................................................................. 5
Sick leaves.................................................................................................................. 5
Medical insurance......................................................................................................... 6
Education expenses....................................................................................................... 6
Recreational programs............................................................................................ 6
Non-monetary Compensation..................................................................................... 6
Alia company non-monetary compensations..............................................................7
Appreciation of employees...................................................................................... 7
Challenging work.......................................................................................................... 7
Working environment..................................................................................................... 7
Rate of Pay determinants........................................................................................... 8
Looking into the factors of pay determinants at the Alia Company............................8
Knowledge, skills and ability....................................................................................8
Type of the company............................................................................................... 8
Compensation rates................................................................................................ 8
Supply and demand of labour................................................................................. 9
Job responsibilities................................................................................................... 9
Employee performance........................................................................................... 9
Period of service...................................................................................................... 9
Labour strength....................................................................................................... 9
Management philosophy....................................................................................... 10
Geographic location.............................................................................................. 10
Company profit...................................................................................................... 10
In conclusion............................................................................................................ 11
Alia Company.
Compensation management in Alia Company Pvt.ltd.
Subject of study and the way information was collected.
This assignment is about the compensation elements by classifying them as direct
monitory, indirect monitory and non-monitory in the company Alia. Ali Company is a local
business in Maldives. I will elaborate on the compensation elements and will analyze the factors
that the rate of pay is maintained by the organization. This report was done by interviewing
Senior Marketing Executive Abdulla Nishan and from different websites and books.
Moreover, company is has a workforce of more than 300 employees. alia company sees
their employees as the most valuable assets of them. Company gives their employees different
kinds of remunerations to motivate and to satisfy their employees aiming to achieve company
goals.
Define compensation.
Compensation refers to the all the types of monetary, non-monetary and indirectly returns in
contribution towards work performance by the employee as a part of employment relationship
throughout the time of employment.
Attendance Allowance.
Attendance is an allowance given to employees to motivate to come and work at the
organization. This is allowance is not much been practicing at government organizations and
mostly in civil service jobs. In Alia Company this allowance is given on monthly basis by adding
all the days the employee came for work. The allowance amount varies from employee to
employee depending on the employee hierarchy.
Annual salary increment.
Annual salary is known as the amount of money paid by the organization to the employees per
year or this is known as the basic salary paid in a year on monthly basis for 12 months. When
this amount is increase by years to years is known as salary increment. Salary increments are
given in the Alia Company depending on the employee work performance. This increasing salary
in year to year is to motivate and retain employees to work at the organization. Employee
retaining is very much important for organizations this is because employees who already works
at organization for a year or months has experiences in doing the job. He/she does not need
training as he/she will be knowledgeable about the tasks of the organization, how it should be
carried out and all. Thus recruiting employees for organization needs time, energy and money.
Bonus
Alia Company gives bonus to their employees annually. This bonuses are from the profit of the
company. Different employees will get different amounts of bonuses. This is because bonus is
given after evaluating the employee performance.
Annual leave.
Annual leave is given to the employees are like in the government policies. It is given on after
one year of joining the organization. Annual leave has 30 days excluding the public holidays.
Annual leave is a very important element in job satisfaction. This leave can be taken on
separately or fully. To overcome annual leave crashes organization practices annul leave plan
booking. This is to overcome unplanned annual leaves and to give leaves in a scheduled way.
Menstruation leave.
Menstruation leave is given to both parties, male and women. But the amount of period is
different from men to women. Men gets 10 days of menstruation leave and women gets 60 days
of menstruation leave. This leave is given to the employees when women gives birth to a baby.
Menstruation leaves are practiced almost all the organizations around the world and is
compulsory on international rights.
Emergency leaves.
Emergency leaves refers to the leave given to the employee under an emergency. This can be
taken at any time of the year. Even not yet been for the one year even. This leave is mostly taken
unplanned. leave consist of 10 days per year. Not more than that, if employee wants to continue
more than 10 days than he or she should take some other kind of a leave.
No-pay leaves.
No-pay leave is given to the employee if the employee have to leave for long duration of time.
This leave is given to the employees mostly due to medical condition of an employee or a family
member. No-pay leave has no exact number of days. Mostly employees take this leave for a long
period of time, as like for year or two.
Sick leaves.
Sick leaves, this is known as the most common type of leaves employees take. These leaves can
be taken when the employee is sick. This is also an unplanned leave that employees take. This
leave consists of 30 days per year. Employees take sick leaves in one or two days manner. A
good employee does not take this leave much often. It is not advised to take sick leave unless the
employee is sick and it is not advised to take 30 days of sick leaves per year.
Medical insurance.
Medical insurance is given to the all the employees at the organization. Medical insurance covers
all the medical expenses of the employees. Mostly this is covered with in the Maldives context.
But depending on the employee condition the company broads the medication to abroad. All the
expenses are covered by the organization under the medical insurance scheme of the
organization.
Education expenses.
Company will spent on further studies of the employee from national level to international level.
Scholarships are to their employees from different regions of countries. This expenses are
invested on employee when the employee reputation and work performance matches the
organizational goals. Hence chances given to those who are interested in further studies and
mostly from their field of interest.
Recreational programs
Recreational programs are conducted on monthly basis. Management sees team work building,
employee motivation and good health is very important for employees. Organization conducts
different kinds of activities include, football matches, basketball matches and many other sport
activities.
Non-monetary Compensation.
Non-monetary compensations is not part of the remuneration package. This is related to the work
environment, physical and psychological state of an employee. Non-monetary compensation
includes recognition of the employee for the appreciation of their works, challenging job, a
physical working environment. Alia Company practices all these kinds of non-monetary
compensations.
Challenging work.
Organization assigns challenging work task to their employees as due maintain at the market
place of the industry. According to Nishan organization strategy is multitasking employees.
Which is very best way of saving time and money on recruiting employees. Employees are very
much motivated when they are assigned with many tasks.
Working environment.
Company provide one of the best working environment to their employees in the country. Almost
all the international standards are met in providing work environment. According to the safety of
the organizational values its states that Safety is a responsibility of every employee. At
ALIA we understand that accidents are prevented through cautious planning,
appropriate training, and cooperative efforts in all areas of our operations. All our
work is performed in the safest possible manner (Ali construction, 2015).
Compensation rates.
Compensation rates are the main elements in attracting employees to the organization. Many
organizations practices different compensation rates to attract qualified candidates. Despite the
earlier days, now compensation package includes, allowances, bonuses, insurance, annual leaves
and family responsibility leaves etc. so to meet up with the best packages the company focuses
on the compensation rates in the market in determining the pay.
Job responsibilities
Job responsibilities is defines the job or the post. In an every organization there many different
posts with different responsibilities. Every job performs a different responsibility which means
rate of pay should be determined by the responsibilities of the job. As for example an engineer
job responsibilities will be different from a manager. Thus this factor is taken as account in
determining pay in the alia company.
Employee performance
Employee performance determines how much he/she works at the organization to achieve
organizational goals. The way employees performs will influence the employer to increase or
decrease the rate of pay to the employees.
Period of service.
Period of service can be defend as the number of years that an employee has worked in an
organization. Number of years, services will mostly influence rate of pay to increase. According
to Nishan, theres an old employee whose been working in the organization for almost 40 years.
His post is never changed but the rate of pay is being changing year to year .
Labour strength
Alia Company earning is higher than the labour cost, which means high pay for employees. This
factor is considered directly or indirectly on determining pay. As when the earning is low
compare to labour cost than the amount of pay is low.
Management philosophy
Alia Company sees employees are their most valuable assets, so they have been giving salaries,
allowances and other benefit more than the mandated rate by law. Hence one of the reason of
paying higher salaries and allowances is to attract qualified candidates and retain employees
within the organization.
Geographic location
This factor is very influential in determining rate of pay. As the company conducts many projects
at different locations around country. Living standard is different in different regions. For
example living expenses will be high on cities than the country side. This factor is taken into
account in determining rate of pay for their employees.
Company profit.
The amount of profit company gets on every quarter will lead to get high rate of pay to the
employees. This rate of pay is given by the name of bonus or increasing salaries of employees
annually.
In conclusion
Many factors will contribute job satisfaction of an employee in an organization. Which includes
challenging and interesting works. Job security etc. nevertheless job satisfaction of employees
cannot be achieved without paying the incentives to the employee. A satisfied employee would
expect and hope that he will be paid fairly compare to the job responsibilities. Thus this has led
employer to create and develop systemic compensation system. Compensation system consist of
monetary compensation, in-direct monetary compensation and non-monetary Compensation
systems. These system will allow to give fair and equitable way of compensations to the
employees in a systemic way. Monetary compensations given by the alia organization includes,
basic salary, attendance allowance and annual salary increment. And indirect monetary
compensation includes, annual leaves, sick leaves, family responsibility leaves, menstruation
leaves, insurance, education and recreational programs. And on non-monetary compensation
includes recognition of the employee for the appreciation of their works, challenging job, a
physical working environment. These all components are evaluated by determining rate of pay
factors. Which includes Knowledge, skill ability, and size of the company, compensation rates,
and supply and demand of labour, job responsibilities, and employee performance, period of
service, labour strength, management philosophy, geographic location and company profit.
Almost every factor is taken into account directly or indirectly in determining pay in the alia
company
Bibliography
Ali construction. (2015). Safty . Retrieved from www.aliacontractors.com:
http://aliacontractors.com/safety/
Alia construction. (2015). Core Values. Retrieved from www.aliacontractors.com:
http://aliacontractors.com/about/core-values/
Aliacontractors. (2015). Alia Construction (Pvt) Ltd. Retrieved from
http://aliacontractors.com/about/: http://aliacontractors.com/about/
Mohd Faizal Mohd Isa, W. S. (2012). Compensation managment . kulalumpur : OUM.