Remuneration

Remuneration for employees is an essential component of Human Resource Management.Remuneration can be defined as "Reward for employment in the form of pay, salary, or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses, cash incentives, and monetary value of the non cash incentives".

In any company,employees are paid according to their skills,talent and performance.All three factors comes hand in hand.No matter how talented you are but if your performance is not upto mark then it will definitely affect remuneration given to you.Remuneration for an employee is dependent on many factors,some of them are internal to an organization and some are external to the organization.Some of these factors are illustrated below:

1.Talent and Skills:

  Talent and skills play an important role in defining remuneration at an early stage of the career.Companies prefer more skilled and talented persons and their salaries are directly proportional to the skills they acquire.Person with more skills should be paid more than the person with less skills.

2.Performance 

    On the job performance is an critical factor in determining the remuneration.Performance has a direct relation with the salary and benefits given.If your performance dips then it will have a negative impact on your salary.

3.Labor Market 

  Demand and supply in labor market always influence remuneration.If demand exceeds supply then remuneration will be higher.However,if supply exceeds demand then remuneration will be lower.

4.Cost of Living

   Cost of living also have a direct impact on remuneration.Companies may be forced to pay more to their employees with the increase in cost of living.

5.Economy

    State of economy determines how current employees will be paid.Good state of economy lead to good increment.However bad state of economy may lead to decrease in salary and benefits.We can draw some examples from current state of economy where many companies stalled increment due to  bad performance of economy.

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First Interaction with Dr. Mandi

It was 9 o’clock in the morning. I was sitting in the class for first session on Human Resource Management by Dr. T Prasad famously known as Dr. Mandi. I had heard a lot about his unique style of teaching and I was eagerly waiting for first lecture to start. At 9.15, he enters the class and asks students sitting in first row to arrange their chairs to form a semicircle. Reason behind such arrangement was to make setup for an interactive class. He started session with an introduction of himself and told about his methods of teaching. These methods will include blog and online media (Youtube). Session continued with Dr. Mandi telling about entrepreneurship. He illustrated some examples of past NITIE students who are very successful in the world of entrepreneurship. Main agenda of session was to make us aware about the importance of entrepreneurship in the life of B-school students.

Entrepreneurship should be focus of every B-school in this country. Students should be taught about the idea and nurtured to become a successful entrepreneur. We should be our boss and work for ourselves. Everyone can work for a LALA (Lala refers to a businessman) but only few of us have that passion and talent to create something of our own. Dr. Mandi motivated us to become an entrepreneur with his words of wisdom

“Paiso ke liye dhandha mat karo, Aisa dhandha karo ki paise apne aap aaye”.

It is the tendency of people to start business with a mindset of earning money. If they don’t see a good return, they drop the idea. It is not necessary that you get success in first attempt itself. You should start with an idea and work towards success. You may get success very early or you may not get success at all. However what you will get is the experience which definitely will lead to success one day.

As a B-School student, we should have a passion towards entrepreneurship. We should make ourselves independent and earn for our studies and expenses. This kind of passion is needed for making our country a better place and most importantly to make our parents proud.

“Aaj ki roti aaj hi kamaiyenge”

It was a great learning experience with Dr. Mandi in first session. Looking forward for upcoming sessions.