Blue Flower Pvy Ltd

In: Business and Management

Submitted By shanuki88
Words 1778
Pages 8
What is compensation Management? Companies have a process, or procedure they use when deciding the terms of the compensation. Thus, compensation management is the act of distributing some type of monetary value to an employee for their work, by means of the company's policy or procedures. In basic terms, it is paying an employee based upon the decided pay and benefit package for the position. The goal of compensation management is to find quality people, who perform quality work, and then compensating them in order to retain them and reduce turnover rates. Some different types of compensation include, salary, overtime pay, commission, bonuses, and benefits packages that might include, health and dental insurance, vacation time, and retirement savings.

Blue Flowers (Pvt.) Ltd
Blue Flowers (Pvt.) Ltd is an 8 years old company engaged in manufacturing of high quality artificial flowers to the local and international is situated in a remote area in Moneragala District, with a total workforce of 350.Its products are very well established in local and International outlets. The vision of the company is “To be a leading manufacturer of world class quality artificial flowers in South Asia by year 2015”.
The company operates through functional departments, namely Purchasing Department, Production Department, Sales/Marketing Department, Accounts Department and HR Department. From last year onwards, they have been flowing with steady import orders.
This trend can be anticipated in the coming years as well. In this background, in order to increase the production at least by 40%, the company engaged in implementing an incentive program, where they gave 10%-15% as an additional incentive when they produced more than the original targets given.
After this incentive program was introduced, they ran this for 6 months and evaluated the pros and cons of the…...

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