WAGES AND SALARY ADMINISTRATION

BY:GARIMA LAHOTI DEVIKA MAROO HARSHITA CHITLANGIA

EMPLOYEE COMPENSATION

It is a vital part of human resource management. No organization can expect to attract and retain qualified and motivated employees unless it pays them fare compensation. Employee compensation can be classified in three categories :Base or primary(wage n salary) Supplementary(fringe benefits) Incentive(financial n non financial)

OBJECTIVE OF WAGE AND SALARY ADMINISTRATION

To establish a fare and equitable remuneration To attract competent personnel To retain the present employees To improve productivity To control cost To improve union management relations To improve public image of a company

FACTORS AFFECTING WAGES

Demand for and supply of labor. Ability to pay. Labor unions. Cost of living Prevailing wage rate Job requirements Productivity State regulation

METHODS OF WAGE PAYEMENT

TIME WAGE SYSTEM PIECE WAGE SYSTEM BALANCE OR DEBT METHOD

TIME WAGE SYSTEM

Wages are paid on the basis of time spent on the job irrespective of the amount of work done. The unit of time may be a day, a week, a fortnight or a month. ADVANTAGES Workers can compute there own remuneration. Regular and fixed earnings, sense of economic security and self confidence. No pressure to speed production thus quality of work can be kept high.

DISADVANTAGESGuaranteed remuneration makes worker in different and complacent. No scope of reward as there is no difference between efficient and inefficient workers. No basis for finding the merits of different employees and basis for promotion cannot be defined.

PIECE WAGE SYSTEM

Remuneration is based on the amount of work done or output of a worker. one unit of output is considered as one piece and a specific rate of wage is paid per piece. A workman is paid in direct proportion to his output. Even called payment by results.

ADVANTAGE

Direct relation between effort and reward, more hard work is equal to more wage. Workers are provided ample opportunities to utilize there talent and increase there earnings.

DISADVANTAGE

Very difficult to fix piece wage rate, employers often cut the piece rate when they find workers are producing large quantity. Employees may not stress quality so that quality control became necessary.

BALANCE OR DEBT METHOD

Its a combination of time and piece wage system. The worker is guaranteed a time rate with alternative piece rate, if the wages calculated at piece rate exceed the time rate, the workers get credit, n vice-a-versa. This method provides a sense of security to employees and at the same time employees given the opportunity to increase his earnings. But rate in this method has to be fixed on the scientific basis.

THANKYOU