Republic of the Philippines

RAMON MAGSAYSAY TECHNOLOGICAL UNIVERSITY

Iba, Zambales
GRADUATE SCHOOL

COURSE TITLE: EDMA 608- School Finance & Business Management

TOPIC: SALARIES AND WAGES
REPORTER: JASON F. FARIŇAS
PROFESSOR: ESMEN M. CABAL, Ed. D.

WAGE / SALARY STRUCTURE

Wage structure is the hierarchy within a company that sets the amount each level of employment is
paid and what benefits each level is due.
Wage structure is generally the levels or hierarchy of job and pay ranges. It is the interrelationship of
the levels of pay for different types of employees.

It may mean the way the total wage of a worker or group of workers is composed; for example,
including such elements as a basic rate, a piecework bonus and other forms of bonus, overtime, etc.
It may also mean the established system of pay differentials between groups of workers by
occupation or the pattern of differentials on the basis of grade or status.

Teacher

Monthly Salary PBB

PERA PEI Loyalty Pay

Clothing Chalk Allowance Mid-Year Bonus Year-End Bonus
Allowance
 JOB ANALYSIS, JOB DESCRIPTION and JOB SPECIFICATION

Job Analysis can be understood as the process of gathering information related to the specific job.
The information encompasses knowledge, skill, and ability, possessed by the incumbent, to perform
the job effectively. It is helpful in the preparation of job description and job specification. In this
method, a personnel manager tries to gather, synthesize and implement the information available
regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to
put right man on right job.

There are two outcomes of job analysis:

1. Job description
2. Job specification

1. JOB DESCRIPTION is an organized factual statement of job contents in the form of duties
and responsibilities of a specific job. The preparation of job description is very important
before a vacancy is advertised. It tells in brief the nature and type of job. This type of
document is descriptive in nature and it constitutes all those facts which are related to a job
such as :
1. Title/ Designation of job and location in the concern.
2. The nature of duties and operations to be performed in that job.
3. The nature of authority- responsibility relationships.
 4. Necessary qualifications that are required for job.
5. Relationship of that job with other jobs in a concern.
6. The provision of physical and working condition or the work environment required in
performance of that job.

Advantages of Job Description

7. It helps the supervisors in assigning work to the subordinates so that he can guide and
monitor their performances.
8. It helps in recruitment and selection procedures.
9. It assists in manpower planning.
10.It is also helpful in performance appraisal.
11.It is helpful in job evaluation in order to decide about rate of remuneration for a specific
job.
12.It also helps in chalking out training and development programs.

2. JOB SPECIFICATION is a statement which tells us minimum acceptable human qualities

which helps to perform a job. Job specification translates the job description into human
qualifications so that a job can be performed in a better manner. Job specification helps in
hiring an appropriate person for an appropriate position. The contents are :
1. Job title and designation
2. Educational qualifications for that title
3. Physical and other related attributes
4. Physique and mental health
5. Special attributes and abilities
6. Maturity and dependability
7. Relationship of that job with other jobs in a concern.

Advantages of Job Specification

8. It is helpful in preliminary screening in the selection procedure.

9. It helps in giving due justification to each job.
10.It also helps in designing training and development programmes.
11.It helps the supervisors for counseling and monitoring performance of employees.
12.It helps in job evaluation.
13.It helps the management to take decisions regarding promotion, transfers and giving
extra benefits to the employees.
Performance-related pay or pay for performance, is a salary or wages paid system based on
positioning the individual, or team, on their pay band according to how well they perform. Car
salesmen or production line workers, for example, may be paid in this way, or through commission.
Many employers use this standards-based system for evaluating employees and for setting salaries.
Standards-based methods have been in de facto use for centuries among commission-based sales
staff: they receive a higher salary for selling more, and low performers do not earn enough to make
keeping the job worthwhile even if they manage to keep the job. In effect, the salary would be re-
evaluated up, or down, periodically (usually annually) based on the performance of the individual or
team. The reward is the salary: with an expectation to be high on the pay band for high performance
and low on the band for low performance.
In comparison, the performance-related pay rise system would see the reward given in the form of a
pay rise. The better the performance of the individual or team the larger the rise, likewise, if the
performance was poor the associated rise would be minimal, if any at all. The reward is the pay rise:
with an expectation of a high pay rise for high performance and a low or zero rise for low
performance.

Executive compensation or executive pay is composed of the financial compensation and other

non-financial awards received by an executive from their firm for their service to the organization. It
is typically a mixture of salary, bonuses, shares of or call options on the company stock, and
benefits, ideally configured to take into account government regulations, tax law, the desires of the
organization and the executive, and rewards for performance.

Types of Executive Compensation

a. Cash Compensation- This is the sum of all standard cash salary compensation that the
executive receives for the year.

b. Deferred Compensation- This is the compensation that is deferred until a later date, typically
for tax purposes. Examples of deferred compensation include pensions and retirement plans.