Compensation Management Practices of Selected Companies: Basis for Compensation Management Program

Abstract

The purpose of this study was to assess the existing compensation management practices of selected companies as basis for development of compensation management program. This paper tests a hypothesis that there is no significant difference in the extent of use of compensation management tools when the selected companies were classified as large, medium, and small. In conclusion, companies recognized that effective compensation management improves organizational productivity. They are reluctant however in the conduct of salary survey. While conducting salary survey posed some disadvantages, it has even more advantages, being an important function of providing external wage equity, which justifies the wholeness of a company’s compensation management program.

Key words: salary survey, job evaluation, job classification, salary structure