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  • Wage and Salary Administration

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    Shashi Prakash
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    This document discusses wage and salary administration. It covers establishing sound compensation policies through job evaluation, wage surveys, and developing wage structures. The objectives are to pay employees according to their skills, minimize favoritism, and establish job sequences. This builds employee confidence and makes dealing with unions easier. The major purposes are recruitment/retention, controlling costs, satisfying and motivating employees. Wage determination involves job analysis, surveys, organizational factors, and preparation and administration of wage structures. Principles include having a definite plan aligned with the market that is equitable, clearly established, and promptly pays with scope for revision.

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    This document discusses wage and salary administration. It covers establishing sound compensation policies through job evaluation, wage surveys, and developing wage structures. The objectives are to pay employees according to their skills, minimize favoritism, and establish job sequences. This builds employee confidence and makes dealing with unions easier. The major purposes are recruitment/retention, controlling costs, satisfying and motivating employees. Wage determination involves job analysis, surveys, organizational factors, and preparation and administration of wage structures. Principles include having a definite plan aligned with the market that is equitable, clearly established, and promptly pays with scope for revision.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    701 views11 pages

    Wage and Salary Administration

    Uploaded by

    Shashi Prakash
    This document discusses wage and salary administration. It covers establishing sound compensation policies through job evaluation, wage surveys, and developing wage structures. The objectives are to pay employees according to their skills, minimize favoritism, and establish job sequences. This builds employee confidence and makes dealing with unions easier. The major purposes are recruitment/retention, controlling costs, satisfying and motivating employees. Wage determination involves job analysis, surveys, organizational factors, and preparation and administration of wage structures. Principles include having a definite plan aligned with the market that is equitable, clearly established, and promptly pays with scope for revision.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 11

    Wage and Salary Administration

    Wage and salary administration can be defined as the establishment and implementation of sound policies of employee compensation It covers the following areas Job evaluation Survey of wages and salaries Development of wage structure (contd.)

    Establishing rules Administering wages Changes and adjustments Incentives and profit sharing

    Objectives of wage and salary administration


    Towards the employees: To pay the employees according to their skills thereby eliminating inequalities Favouritism minimised Job sequences and lines of promotion are established Gains employees confidence because the wage structure can be explained to the employees

    Towards the employers: Dealing with the trade union is made easy Systematically plan for control of labour cost Less grievance over wage inequities Attracts and retains qualified employees

    Major purpose of wage and salary administration


    Recruitment and selection Control payroll costs Satisfy people Reduce grievance, quitting etc. Motivate people

    Wage Determination Process


    Job Analysis Wage Surveys Organisational Problems Preparation of Wage Structure Wage Administration Rules

    Factors influencing Wage and Salary Administration


    Organisations ability to pay Supply and demand of labour Prevailing market rate, government laws, trade unions demand, attract quality talent) Cost of living(escalation clause) Living wage Productivity Trade unions bargaining power Job requirement Managerial attitudes Skill levels available in the market

    Principles of wage and salary administration


    Definite plan In line with the prevailing market Equitable process Clearly established procedure Prompt payments Scope for revision Informed to all concerned

    Wages
    Statutory Minimum Wage(minimum wages act of 1948) Basic minimum wages(fixed by tribunals) Minimum wage sustenance as well as preservance of efficiency of the worker Living Wage Fair wage-above the minimum but below the living wage

    Types of wages
    Time rate Piece rate Balance method

    Wage differentials
    Occupational(skills, qualification, responsibility) Inter-firm(Quality of labour, equipment etc.) Regional(geographical differences) Inter-industry(different industry) Differential based on sex(gender)

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