Centres Of Excellence

To focus on new and emerging areas of research and education, Centres of Excellence have been established within the Institute. These ‘virtual' centres draw on resources from its stakeholders, and interact with them to enhance core competencies

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Faculty

Faculty members at IIMB generate knowledge through cutting-edge research in all functional areas of management that would benefit public and private sector companies, and government and society in general.

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IIMB Management Review

Journal of Indian Institute of Management Bangalore

IIM Bangalore offers Degree-Granting Programmes, a Diploma Programme, Certificate Programmes and Executive Education Programmes and specialised courses in areas such as entrepreneurship and public policy.

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About IIMB

The Indian Institute of Management Bangalore (IIMB) believes in building leaders through holistic, transformative and innovative education

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DETERMINANTS OF MANAGERIAL COMPENSATION: AN EMPIRICAL EXPLORATION

This study aimed at understanding the factors behind the differences in compensation of managers in a manufacturing unit in India. Data on fixed and budgeted variable part of compensation were obtained, along with data on other variables deemed theoretically useful as determinants. Linear regression was used, in an exploratory way, to derive models which made maximum sense theoretically as well as statistically. Anomalous results were also explored further, and a tentative explanation was formulated. Human capital variables (such as education and experience) and performance ratings impacted compensation. Human capital variables (specifically education) probably impacted compensation structure through market value in a way that could be dubbed elitist. There was some reflection of tournament view also (more differential for higher designation) on compensation. The findings are, however, from only one unit in an organisation. Hence one limitation is low external validity. The finding that the market value of educational qualifications possibly impacts compensation in an elitist way over the years should spur further research. This study can sensitise managers about the impact of different decisions on compensation differences over time. It can also motivate them to examine the compensation practices in their organisations in a theory-driven way and illustrates an approach to do so.