Lump Sum Increase (LSI) Definition and Explanation PDF Download

Learn Lump Sum Increase (LSI) definition in hrm with explanation to study “What is Lump Sum Increase (LSI)”. Study lump sum increase (lsi) explanation with HRM terms to review HRM course for online MBA programs.

Lump Sum Increase (LSI) Explanation:

A lump-sum increase is something given rather than increment in pay. It isn't added to the fixed base compensation. It is given as a solitary money installment. This is the motivation behind why it is otherwise called single amount reward. While there are different uses yet the best utilization of singular amount legitimacy increment is as a substitute is pay increment for those workers whose fixed base compensation has just arrived at a greatest for that specific position. The justification for this is straightforward: the director wishes to remunerate the workers for their great execution because of which the organization profited, so as opposed to expanding the compensation, the supervisor offers a single amount increment which is a one-time installment only for their great execution. The chief can't build the fixed base compensation which has just arrived at its most extreme for that activity position so a singular amount increment is given.

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