Paper Key : IRJ************361
Author: Sapna Chauhan (asst. Professor),Richa Joshi,Nisha Sangwani
Date Published: 06 Mar 2023
Abstract
The success of any organization depends on its ability to understand how human capital linksto its performance and its wealth because the only vital value any enterprise has, is theexperience, skills, innovativeness, and insights of its people. It is possible as a manager to dothings right-lay brilliant plans, draw clear organization charts, set up world class assembly linesand use sophisticated accounting controls, but still fail by wrongfully managing employees orhuman assets that are available in the organization. On the other hand, many managers havebeen successful even with inadequate plans, organizations, or control. Human capitalmanagement tend to affect the extent to which employees perform in the organization.Human capital management factors which affect employee performance are workingconditions, employer relationship, training and development opportunities, job security, andirms overall policies and procedures for compensating employees as identified by (Nwamuo,2019). Extrinsic compensations in terms of salary pay, incentives, bonuses, promotions, jobsecurity. Intrinsic compensations are intangible compensations or psychological compensationslike appreciation, meeting the new challenges, positive and caring attitude from employer, andjob rotation after attaining the goal.Compensation management has been one of the major policies used in motivating employeesin the private sector. Compensation is usually narrowed to cash and as a result, employers onlyhave a tunnelled vision when it comes to the issues of compensation for their employees. Otheraspects of compensation which makes up the total compensation package for the employee arenot given much attention in the literature. The study emanates from the need to effectivelymanage the employees both at the managerial cadre and the lower cadre of the managementfor an effective result through compensation management. Therefore, the problem theresearcher intends to investigate is to understand how compensation management influenceemployee commitment. The specific objective of the study is to establish the extent to whichcompensation management affects employee commitment.
DOI LINK : 10.56726/IRJMETS34121 https://www.doi.org/10.56726/IRJMETS34121