• The compensation policy and

organizational commitment

Created by: Under the supervision:

NOUHAILA ESSALIMI HOUDA ALAMI
ILHAM ETTARBI
 INTRODUCTION
Compensation management is one of the practices of resource management.
the most fundamental human rights. It is a subject of major importance in the field
management general Employees are generally motivated to integrate a certain
post or to make more efforts in their work, depending on the remuneration they receive
is offered. Thus, one of the main objectives of any organization is to maximize the
profits by minimizing costs. Very often, organizations use systems
management of compensation to attract, motivate, satisfy, and retain employees
also to ensure that employees use their personal skills and
professionals will accomplish the tasks that will be assigned to them, thus contributing
to the increase in the company's productivity.
ISSUE:
TO START THE SUBJECT, IT IS IMPORTANT FOR US TO
ASK THE FOLLOWING QUESTION:

➡HOW THE COMPENSATION POLICY

INFLUENCE THE BEHAVIOR OF
PERSONNEL WITHIN THE COMPANY?
OBJECTIVES:
Address the dimensions of compensation policy and organizational commitment
Understand the objectives of compensation, its types and its factors.
Examine the impact of the compensation policy on organizational commitment
Analyze two practical cases to strengthen our presentation
identify the constraints of the compensation policy
 PLAN
• Introduction:
I- the remuneration policy:
1-Definition
2 objectives
3-3 different types
4 - the influencing factors
II - Compensation and Organizational Commitment
1-organizational commitment
2-The impact of organizational commitment
III-Practical case:
1-The company COCA-COLA
2 - The remuneration policy of companies: between
speech and practices
IV-The constraints of the compensation policy Conclusion
“
The remuneration
”
Remuneration is the total amount of money given to a person in exchange.
of a job or a service. It can take various forms: remuneration
fixed, variable, in-kind benefits and social benefits based on
criteria such as: degrees, autonomy, experience, seniority and the
responsibilities.
Objectives of compensation for the company:
Improve productivity
Improve performance
Attracting and retaining the right skills

Objectives of compensation for the employee:

To be fair
Be fair
Satisfaction of needs
LES MÉTHODES DE LA RÉMUNÉRATION

There are three main types of compensation

Direct remuneration that includes any form of financial payment that an employer
grants to his employee including hourly wages, annual salaries,
commissions and cash bonuses.
Indirect compensation. This refers to social benefits such as the plans of
retirement, parental leaves, thus, complementary benefits and the conditions
work-related, such as, the loan of a car, the borrowing of company equipment and
the tuition fees paid by the company.
Intrinsic, intangible, or psychological recognition, such as: the feeling
of achievement, pleasure at work, and the possibility of development.
THE FACTORS
DETERMINANTS OF THE
MANAGEMENT OF THE
REMUNERATION
FOUR FACTORS INFLUENCING THE
COMPENSATION MANAGEMENT:
the characteristics The The
of the environment: characteristics of characteristics characteristics
the organization: jobs: of the holders of
jobs
Size
The culture of the country: -Responsibilities and -Degrees and
individualism Notoriety and prestige demand skills
egalitarianism Business strategy -Catégories d'emploi: -Âges
-Unions -Structure and Sales, management Expectations and needs
Regulations Law: organization of Hierarchical level
normes, charte, code travail -Technologies
work, equity Business sector
salary economic
concurrence Financial health
Management policy
resources
humans
 THE COMMITMENT
ORGANIZATIONAL
Organizational commitment is the measure in
in which employees are involved, invested and
attached to their company and its objectives. It can
be influenced by factors such as
job satisfaction, recognition, the
career prospects, the corporate culture and
the relationships with colleagues and superiors.
High organizational commitment is associated with
benefits for the company such as the
increased productivity, talent retention,
reduction of absenteeism and turnover
staff and a favorable brand image.
employers can use various strategies
pour accroître l'engagement des employés, telles
that recognition programs,
effective communication and the implementation of a
feedback process.
THE IMPACT OF COMPENSATION ON ENGAGEMENT
ORGANIZATIONAL
Compensation has a direct impact on employee engagement in this
it is a major factor of job satisfaction and motivation.
A competitive salary can attract and retain talent, help to
increase productivity and reduce turnover. Indeed, a
fair and equitable compensation is a prerequisite for
engagement, because employees cannot get involved if they do not
sentences not respected and valued. The fact of offering salary benefits
and additional social benefits, such as health and retirement benefits,
can also help increase employee engagement.
Practical case of the company
coca-cola
THE COCA-COLA COMPANY HAS IMPLEMENTED STRATEGIES TO MAINTAIN A HIGH LEVEL OF ORGANIZATIONAL ENGAGEMENT
ITS EMPLOYEES, THUS, THE BENEFITS THAT THIS MULTINATIONAL OFFERS TO ITS EMPLOYEES VARY ACCORDING TO THEIR WORKPLACE
AND THEIR EMPLOYMENT STATUS. HOWEVER, HERE ARE SOME COMMON BENEFITS THAT ARE GENERALLY OFFERED TO
COCA-COLA EMPLOYEES:
Health insurance: Coca-Cola offers comprehensive coverage for healthcare, including medical, dental, and vision care.
Paid leave and vacation: employees are entitled to paid leave and paid vacations, and there are sabbatical leave programs for
certain qualified employees.
Retirement: Coca-Cola offers retirement programs such as 401(k) retirement accounts and defined benefit pension plans.
Training and professional development: the company offers numerous training and professional development opportunities to help
help their employees grow and evolve in their careers.
Flexibility: the company offers flexible working options, such as telecommuting and adjustable work hours, to help employees balance
their professional and personal life.
Inclusive corporate culture: The company strives to maintain an inclusive corporate culture where employees feel valued and respected.
Whatever their differences. It is important to note that these benefits vary by country, contracts, and company agreements.
Competitive salaries and benefits: Coca-Cola is a globally recognized and prosperous company, and it is likely to offer
competitive salaries and benefits to attract and retain the best talent.
Career opportunities: Coca-Cola is a multinational company with operations in many countries around the world. This means that it
there are many career opportunities for employees who may be interested in working abroad or moving to another position within
the company.
A positive corporate culture: Coca-Cola is known for having a positive corporate culture that encourages collaboration, innovation, and
personal development. Employees can expect to work in an environment where they feel valued and supported.
- Development opportunities: Coca-Cola invests in the training and development of its employees to ensure that they
have the skills necessary to succeed in their work. Employees can expect to have opportunities to develop their
skills and to progress in their career.
The company
Coca-Cola
represents them
advantages
social
as follows:
Practical case of corporate compensation policy: Gaps between practices and
Speech
This passage discusses a study that was conducted to analyze the salary practices of French companies and their evolution in the
The study uses data from the REPONSE survey of 1998, which focuses on companies with more than 20 employees and excludes the sector
public. The authors of the study aim to fuel the debate on salary practices and to determine whether they have transitioned from the systems used
during the 'thirty glorious years' to more flexible systems, or if there were only slight modifications. They highlight a
important diversification of wage practices, particularly between employees and non-employees, and also shows a gap between
the salary practices and the policies that companies claim to justify these practices.
The study focuses on the employer aspect of the survey and specifically examines the sections related to employees. the policies
salary and involvement, and the salary negotiations. The survey does not include information on specific compensation levels.
provided by the employer and the variables explained in the study are limited to the wage structure. The authors also mention
that the study uses various explanatory variables such as the structural characteristics of the establishment, economic health,
social relations, employment management, and the objectives pursued through wage policies to draw their conclusions.
Corporate compensation policies can combine the gaps between discourse and practice in different ways. By
For example, a company may give speeches about equal pay and fairness, but the actual compensation practices may not
does not reflect these commitments. Gender or race inequalities may be present in salaries and benefits, even if
the company does not intend to discriminate. Unconscious biases, such as attributing higher salaries to men by
relation to women, may also come into play. On the other hand, there may be cases where companies have policies of
fair and transparent remuneration but fierce competition for talent can lead to wage inflation which
could cause discrepancies with the company's discourse.
It is important for companies to regularly assess their compensation practices and seek to close the gaps between the
speech and practices. Transparent compensation policies, performance and skills evaluation processes
and equal pay policies can help achieve this goal.
THE CONSTRAINTS OF
POLICY OF
COMPENSATION:
The constraints that may affect this policy include:

Costs: Companies must balance the cost of compensation with their revenues and
their profits to remain competitive and profitable.
Labor market: Companies must comply with market wage standards to
attract and retain the most qualified talents.
Legislation: Companies must comply with the laws and regulations in force.
matter of salaries and benefits, such as minimum wage, hours
supplements and paid leave.
Equal pay: Companies must comply with laws on gender pay equality
and minorities to prevent discrimination
Social responsibility: Companies may be required to comply with standards of
social responsibility and sustainability that can have impacts on policies of
remuneration
➡Budget: Companies must adhere to the budget limits they have set for themselves.
their compensation policy
CONCLUSION
In conclusion, the compensation policy is a key element for
promote the organizational commitment of employees. A compensation
fair and equitable can improve motivation, satisfaction and
employee loyalty, while reducing turnover. However, it is
It is important to note that compensation is just one factor among
others that contribute to employee engagement, and that a policy
effective remuneration must be combined with other initiatives such as
that communication, recognition, training and the
development opportunities to achieve optimal results.
BIBLIOGRAPHY:
- Compensation" de George T. Milkovich et Jerry M. Newman
-"rewarding performance: A guide to effective employee compensation" de David S. Kaufman
- "l'engagement des salariés : une voie vers la performance" de Frédérique six et Matthieu Leroy

WEBGRAPHY:
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