Mahr
Head - Human Resources
Avinash-babbi1
Hrm & Legal
+2 Others

What is Compensation? Hello, Could I have inputs on what exactly "Compensation" is? its meaning, definition & examples Regards, Gyanendra kumar
18th February 2010 From India, Gurgaon
Your question is not clear... The term "Compensation" has lots of meaning. It would be Remuneration, Workers Compensation, Damages, Psychological Compensation, etc etc.. Which one do you want to be defined?
You shall get the normal definition in web itself. Do use the search option.
18th February 2010 From India, Bangalore
How is compensation used?

Definitions of compensation •something (such as money) given or received as payment or reparation (as for a service or loss or injury)

•(psychiatry) a defense mechanism that conceals your undesirable shortcomings by exaggerating desirable behaviors

•recompense: the act of compensating for service or loss or injury

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Compensation is a tool used by management for a variety of purposes to further the existance of the company. Compensation may be adjusted according the the business needs, goals, and available resources.

Compensation may be used to:

recruit and retain qualified employees.

increase or maintain morale/satisfaction.

reward and encourage peak performance.

achieve internal and external equity.

reduce turnover and encourage company loyalty.

modify (through negotiations) practices of unions.

What are different types of compensation?

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Different types of compensation include:

Base Pay

Commissions

Overtime Pay

Bonuses, Profit Sharing, Merit Pay

Stock Options

Travel/Meal/Housing Allowance

Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

examples are

very famous proverb in Hinduism explains the idea of brotherhood thus:

"If you accidentally poked yourself in the eye with your finger, you wouldn't be angry with your finger - you wouldn't cut it off. Think of anyone who's caused you pain like you would think of your own finger"

However, now we don't have to resort to this proverb - we can simply fine a claim and seek compensation. Compensation claims are a legal recourse when we have had to pay for or suffer injuries that were not our fault. Thus, almost any kind of injury comes under its purview. Yet, terms like work accident claim, road accident claim, motorbike claim, slip, trip and fall claim can be quite confusing to someone who's already suffering. Here's a list of the kind of claim that you can file.

Generally, all claims relating to injuries suffered on your person - as in, on your body - are called personal injury claims. How these injuries were suffered, what caused them, is how the claims are differentiated with each other. Generally this will depend on the kind of situation you were in.

Let's say you were walking on the sidewalk and an out-of-control car hits you. You possibly fracture a leg or arm. This would qualify as a road accident claim that has caused a personal injury. Similarly, if you were driving, and were hit by another car - that would be a car accident claim. If you were on a motorbike, it would be a motor bike accident claim. In such cases, you know exactly who's at fault and can claim compensation from them.

Let's say you were at a supermarket and you slipped on wet floor and fractured your ankle or your hip. Now ideally, wet areas are supposed to be marked with cautionary signs. If the supermarket failed to do this, you could file a claim for an injury sustained due to slip, trip or fall in a public place. Similarly, if your kid was playing on the swings in a public park and the swing gave away, injuring your child, you could file a claim to secure compensation from the civic authorities responsible for maintaining the park.

Envision another scenario: You constantly have backaches and finally, you were unable to get out of bed one day. Your doctor said it's because of your posture in the office. On further probing, you realize that it's actually your office chair that's causing the pain. Not only you, in fact, many employees are complaining about their backs. All of them are entitled to ask for and to receive compensation for the medical expenses and the suffering they've had to undergo.

The underlying factor in all these cases is that the injuries have been caused by another person. Another important factor also is that the injuries have to have happened in the past 3 years from the time you file the claim.

Any personal injury claim can also be pursued as a no win no fee claim. Find out more about this at claims4negligence.co.uk.

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thanks & regards

sachin
18th February 2010 From India, Vadodara
Hi, Please go through the book by Tata Mcgraw Hill by Milkovich- Compensation. You will get all your answers but this book has compensation structure of USA, not of India. Plz see.
19th February 2010 From India, Aurangabad
Compensation - Its a reward for labour or service rendered by an individual whether physical or mental.
19th February 2010 From India, Rohtak
hi

Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits, employee morale and quality of product.

or

Sigma is a rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company's operational performance, practices and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness.

The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty.

Six Sigma can be understood/perceived at three levels:

1.Metric: 3.4 Defects Per Million Opportunities. DPMO allows you to take complexity of product/process into account. Rule of thumb is to consider at least three opportunities for a physical part/component - one for form, one for fit and one for function, in absence of better considerations. Also you want to be Six Sigma in the Critical to Quality characteristics and not the whole unit/characteristics.

2.Methodology: DMAIC/DFSS structured problem solving roadmap and tools.

3.Philosophy: Reduce variation in your business and take customer-focused, data driven decisions.

Six Sigma is a methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation leads to defect reduction and vast improvement in profits, employee morale and quality of product.
10th March 2010 From India, Vadodara
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