Compensation Management

Authors

Rani C

Vijayakumar P

Published

Aug 13, 2025

Welcome

Compensation management is a core function of human resource strategy, focused on designing reward systems to attract, retain, and motivate a high-performing workforce. This text provides a comprehensive examination of the field, beginning with foundational wage theories and the contextual factors that shape pay. It establishes compensation not as a mere operational cost, but as a strategic investment in an organization’s human capital.

The analysis then proceeds to the technical design of compensation systems, covering job evaluation for internal equity, market surveys for external competitiveness, and the administration of performance incentives and employee benefits. This work will also address specialized and forward-looking topics, including the complexities of executive and international pay, the principles of wage administration, and the transformative impact of technology and shifting demographics. The goal is to equip readers with the knowledge to build ethical, sustainable, and strategically aligned compensation models for the modern organization.

About the Authors

Dr. Rani C Ph.D., is a dynamic educator and analytics-driven HR professional, passionate about transforming organizations and empowering people through innovative HR practices and evidence-based insights. With deep expertise spanning human resource management, training and development, compensation management, leadership, business law, HR analytics, and data visualization, she bridges the gap between classic HR functions and modern analytics.

Known for her mastery of R, SPSS, Tableau, Power BI, and Excel, Dr. Rani crafts compelling analyses and translates complex workforce data into clear, actionable strategies for growth and performance. Her unique combination of practical HR knowledge and advanced data skills makes her a sought-after mentor, collaborator, and thought leader in both academic and industry circles.

Dr. Rani is dedicated to helping individuals and organizations harness the power of HR analytics for smarter decision-making, continuous improvement, and sustainable leadership. Connect with her to explore the latest in HR trends, best practices in analytics, and inspiring conversations on building the workplaces of tomorrow.

Vijayakumar P is an accomplished educator and data professional with over eight years of teaching and research experience in business analytics, data science, and HR analytics. He is a UGC Junior Research Fellow (JRF) and has qualified the UGC NET and SET in Management multiple times, reflecting his strong academic foundation.

Proficient in Python, R, STATA, SPSS, AMOS, PLS-SEM, Tableau, Power BI, Google Looker Studio, GitHub, and Excel , he has guided students and professionals in transforming data into actionable insights. His teaching spans business analytics using R and Python, HR metrics and dashboards, business forecasting, and business research methods, and he has also developed interactive eBooks to enhance hands-on learning.

Vijayakumar’s work is marked by clarity, precision, and innovation—whether in research, classroom teaching, or applied analytics—making data more accessible, impactful, and meaningful for decision-making.

References

  • The Compensation Handbook: A State-of-the-Art Guide to Compensation Strategy and Design. Berger, L. A., & Berger, D. R. (2015). (6th ed.). McGraw-Hill Education.
  • Compensation Management. Bhattacharyya, D. K. (2015). (2nd ed.). Oxford University Press.
  • Compensation Management in a Knowledge-Based World. Henderson, R. I. (2005). (9th ed.). Pearson/Prentice Hall.
  • Compensation and Reward Management: Wage and Salary Administration and Benefits. Sharma, R. C., & Sharma, S. (2024). Routledge India.
  • Compensation: Theory, Evidence, and Strategic Implications. Gerhart, B., & Rynes, S. L. (2003). SAGE Publications, Inc.
  • Employee Benefits: A Primer for Human Resource Professionals. Martocchio, J. J. (2023). (7th ed.). McGraw-Hill Higher Education.
  • Strategic Compensation: A Human Resource Management Approach. Martocchio, J. J. (2025). (11th ed.). Pearson.

Text Books

  • Compensation. Milkovich, G. T., Newman, J. M., & Gerhart, B. (2023). (14th ed.). McGraw-Hill Higher Education.

  • Compensation and Reward Management. Singh, B. D. (2017). (3rd ed.). Excel Books.