1)Wages Theories: 1) Statutory minimum wage theory 2) Bare subsistence or minimum

wages 3) Living wages 4) fair wages 5) minimum wages 6) Need minimum wages
2)Framework of compensation policy: 1. Attraction and Retention of Talent 2. Internal
Consistency 3. External Consistency 4. Ability to Pay 5. Pay and Performance 6. Labour Costs
and Productivity Wages 7. Cost of Living 8. Merit & Seniority Progression 9. Motivation 10.
Integrity and preserve their efficiency.
3) implications of tax planning in compensation to employees: 1. Salary 2. Allowances 3.
Perquisite 4. Tax Implication to the employees: 1. Salary 2. Allowance 2.1 HRA 2.2
Conveyance allowance 2.3 Travelling Allowances & expenses 3. perquisite 3.1 rent free
accommodation 3.2 provision of company owned car 3.3 furniture 3.4 LTA 3.5 Medical
facilities 3.6 other non-taxable perquisite 3.7 Gas Electricity water
4)BASES OF WAGE DETERMINATION: 1. economic aspects of wage determination 2.
sociological aspects of wage determination3.psychological aspects of wage determination 4.
political aspects of wage determination. 5.ethical aspects of wage determination 6.
corporate compensation policy 7. organisation’s ability to pay 8. prevailing market rate 9.the
cost of living. 10.productivity 11. trade union’s bargaining power. 12. job evaluation
5) METHODS OF JOB EVALUATION: the next step in the job evaluation process is to select or
design a method of evaluating jobs. four basic methods have traditionally been mentioned.
these are ranking, classification, factor comparison, and tlie point plan methods. these four
basic methods are pure types. in practice there are numerous combinations. whether are
qualitative versus quantitative, 2. whether they vary from job-to-job versus job-to-standard
comparison, and 3.
Whether it considers of total job against separate factors that make up the job. The simplest
and least formal of all job evaluation systems is known as the Ranking Methods. Under this
method no effort is made to break a job down into its elements or factors, the first step in
job evaluation is job analysis. Raters who will attempt to make unbiased judgments are
selected and trained. Although ranking is referred to as a "whole-job" approach, different
raters may use different attributes to rank jobs. Although straight ranking is feasible for a
limited number of jobs (20 or less),
Advantages 1. Easily understood and easy to administer. 2. Sets a better rate than the
arbitrary rate based purely on judgment and experience… Disadvantages 1. The
classification is in general terms and only an overall assessment is possible. 2. In a complex
industrial organisation. The grading is very much influenced by the existing wage rates. 4. It
does not indicate the degree of difference between jobs, but only indicates that one job is
more or Less important than another one.
B. Job Classification This method received widest recognition in 1922 when the US Congress
passed the Classification Act, which made this system applicable to all clerical,
administrative, professional and managerial civil service positions. Steps in Job Classification
method customarily employs a number of compensable factors. 1) Obtain Job Information
2. Select Cornpensable Factors 3. Determine the Number of Classes 4. Develop Class
Descriptions 5. Classify Jobs:
Advantages 1. Comparatively simple and easily administered; 2. Since written job
descriptions are used evaluation of jobs tend to be in or accurate than under ranking
system. Disadvantages 1. Classification is in general terms and only an overall assessment is
possible, 2. It is very difficult to make comprehensive class specifications for a complex
organisation. 3.Placing jobs in classes is very much influenced by the existing wage rates.
6) FIXATION AND REVISION OF MINIMUM WAGES The Appropriate Government may fix
the minimum rates of wages payable to the employees of Scheduled employment either for
the whole State, or a part of the State, or for any specified class or classes of such
employment. Minimum rates of wages. may be fixed both for time-rated and piece-rated
workers; and also for over-time work. The minimum wages so fixed may be reviewed at
such intervals as the
Government may think fit, such intervals not exceeding five years. Until the rates are so
revised the minimum rate in force immediately before the expiry of the said period of five
years shall continue in force. The minimum rates of wages may be fixed by the hour, by the
day, by the week, by' r the month, or by any larger wage period as may be prescribed.
Where such rates are fixed by the month or the day, the manner of calculating wages for a
month, or for a day, as the case may be, may be indicated.
In fixing or revising minimum rates of wages different rates may be fixed for (i) different
scheduled employments; (ii) different classes of work in the same scheduled employment;
(iii) adults, adolescents, children and apprentices; (iv) and different localities. Different rates
of minimum wages. The Appropriate Government may refrain from fixing minimum rates of
wages in respect of any scheduled employment in which there are in the whole state less
than one thousand employees in such employment. MINIMUM WAGES ACT, 1948: ITS
OBJECTIVES Objects: The object of the Act is to promote the welfare of workers by fixing
minimum rates of wages in certain industries where labour is not organised and sweated
labour is most prevalent. The Act seeks to prevent exploitation of workers by ensuring that
they are paid the minimum wages which would provide for their subsistence
7) various approaches in designing compensation: 1. Performance Related Compensation
2. Competency Related Compensation 3. paradox of performance related compensation 4.
Merits 5. Attracting top talent 6. Identifying employee rankings 7. increasing productivity
and efficiency 8. Generating team-friendly competition 9. Demerits: 10 Subjectivity of
application 11 Perceived favouritism 12 Use of resources better spent elsewhere 13
Managerial burden 14 Morale implications 15 Unfounded expectations 16 Negative
competition:

8) CORPORATE COMPENSATION POLICY:1. Corporate Compensation Policy and

Community Concerns 2. Strategy of Wage Increases 3. Rationality and Hygiene Factors 4.
Internal Equity 5. External Equity 5. Payroll Analysis and Policy Correctives 6. Wage and
Salary Administration Function 7. Corporate Compensation Structure 8 Managerial
Compensation 9 J. Wages and Income Policy