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Master of Business Administration-MBA Semester 4 Assignment MU0015
Q1. What is CTC? What are the components of CTC?
Ans.Cost to Company is the amount that you cost your company. That is theamount that the company directly or indirectly spends on you because of employing you.Components of CTC:
Following are the components of CTC…….
i. Basicii. Dearness Allowance (DA)iii. House Rent Allowance (HRA)iv. Medical Allowancev. Conveyance Allowancevi. Special Allowancevii. Vehicle Allowanceviii. Incentives or bonusesix. Leave Travel Allowance or Concession (LTA / LTC)x. Telephone / Mobile Phone Allowance.
Q2. What are the elements of compensation?
Ans.The primary elements of a compensation package are:
i. Base Pay
: Base Pay is the fixed rate of compensation that an employeereceives for performing the standard duties and assignments of a job.Employers need to ensure that base-pay programs are designed to revealmarket practices within their identified competitor group. To achieve thisorganisations must first identify their competitive market. This can beachieved by considering different factors, including the nature of the industry,geographic location, total employment and annual revenue. Next, they need toconduct an assessment of market pay practices for similar jobs within therecognized competitor group. This assessment should involve the duties,skills, and impact levels of each job evaluated
that is, each job of similar size