HUMAN RESOURCE MANAGEMENT IICHAPTER 6: WAGE AND SALARY ADMINISTRATION. Increments Factors affecting wages • Demand and supply for labour • Ability to pay • Labour unions • Costs of living • Prevailing wage rates • Job requirements • Productivity • State regulations Methods of wage payment • The time rate system It is that system of wage payment in which the workers are paid on the basis of time spent by them in the factory. Objectives of Trade Union: Economic, Non-Economic, Short-Term and Long-Term Objectives Objectives of Trade Union – 11 Important Objectives. Home. Compensation is a tool used by management for a variety of purposes to further the existance of the company. 110-28), which mandated annual increases of $0.50 an hour in the minimum wages of American Samoa and CNMI. Wages, salaries and many employee benefits and services are form of compensation. 6. Improvements in standards of living. Dependency of wages on labor-market conditions. The traditional concept of wage and salary administration emphasized on only determination of wage and salary structures in organisational settings. The fact that there are differences in the rates of interruption in countries causes All managers must be sensitive to State Governments have the power to fix differentminimum rates of wages … According to D.S. The factors affecting employee compensation can be categorized into:-1. Fringe benefits are supplementary compensation made in addition to wages, the object being to stimulate the interest of the workers and to make the job more attractive and conducive. 9. Which of the following factors is not an external influencing factor in wages and salary administration? The costs cannot be charged directly to costs units but must be shared equitably between them. Administration of employee compensation is called wage and salary administration. International HRM. The level of wages is on the horizontal axis, and the number of wage earners is on the vertical axis. Gross Wage Gross wages from employer to the employee are given from the vault. Wage Rate (r per week) Quantity of labour employed. Wage: Wage and salary are often discussed in loose sense, as they are used interchangeably. With our money back guarantee, our customers have the right to request and get a refund at any stage of their order in case something goes wrong. The distribution of wages (hypothetical wage distribution of a population of 56 wage-earners) How to read this figure : Figure 1 shows a hypothetical wage distribution of a population of 56 wage-earners before the introduction of a minimum wage. a. Mechanism of Policies Formulation. Significant amount them are: (i) Remuneration in Comparable Industries; (ii) Firm’s Ability to Pay; (iii) Cost of living: (iv) Productivity; (v) Union Pressure and … Both are now discussed one by one. 4) Labor union: labor union also helps in paying better wages to the workers. WAGE AND SALARY ADMINISTRATION Glossary of Compensation Terms Issued: 08-18-95 Page: 1 of 6 ... consisting of assignment of classes to salary grades based on position classification factors. New posts Search forums. 1. Can term it as compensation management.•. Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. Example? Grade. D. L The demand for labour is downward sloping . Factors Influencing. 1.0 INTRODUCTION OF THE STUDY. 5) Cost of living: wages depends upon the cost of living if it is high wages will also hike. • Both wage and non-wage factors influence workers' job change decisions; • Turnover rates tend to vary by workers' characteristics, (e.g., absolute wage level, age, gender, and education), by industry, and by size of firm; and • Individual employers control only some of factors that influence … Incentives: This is so because only a properly developed compensation system enables an employer to attract, obtain, retain and motivate people of required calibre and qualification in his/her organisation. Wage and Salary Administration is alludes to decide and actualize the successful strategies and practices of worker remuneration working in an association. Compensation is a very important issue in Human Resource Management (HRM) … Mar 17, 2009 #9 Prevailing Wage Level 5. Fair return on capital invested and capacity to pay of employers. It promises and delivers more pay, responsibility, authority, independence and status. TYPES OF WAGES Propounded by Committee of Fair wages (1948)and 15th session of Indian Labour Conference (1957) Minimum Wages Fair Wages Living Wages. Meaning of Personnel Policies 3. Need to induce industries to invest in the countryside. Cash Wages: ADVERTISEMENTS: Cash wages refer to the wages paid to the labour in terms of money. It is irrelevant of the number of hours put in by an employee working in the firm. 1 1 upvote 0 0 downvotes. ... and other decisions affecting pay ... national sources will be used to determine a living wage standard. save Save Copy+of+Wage+and+Salary+Administration.ppt For Later. [Google Scholar] Furr AL, Binkley CJ, McCurren C, Carrico R (2004). Ability to pay. The Prevailing Market Rate Government Legislation on Wages 4. wage, or the wage that makes workers indifferent. SAP HR Overview Wages in Kind: When the labourer is paid in terms of goods rather than cash, is called the wage in kind. Some of the external factors affecting employee compensation are: 1. ii. The Organization’s Ability to Pay Organization decisions on job and wage structures represent a -balancing of the aforementioned forces. Human Resource Management, Text and Cases, 2008, p. 300 Factors Skill based Job based Pay structure Based on ability to perform Based on job performance Employer’s focus Employee carriers wages, Employee linked to skills Job carries wages. Introduction of Personnel Policies 2. States. Average annual salary is $93,000. 1. The Organisation’s Ability to Pay and the Sustaining Strengths 2. Compensation is usually provided through a payroll system that manages and records payment of wages to each employee. The basic purpose and objective of wage and salary administration is to ensure and maintain an equitable wage and salary structure of the employees and workers. increase or maintain morale/satisfaction. The level of appreciation he feels can have a direct impact on his overall performance. R250. Allowances. To review department-wise compensation schemes. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: 1. ... pls attach some projects on wage and salary administration . 2. Labor unions. CHAPTER 6 Definitions and Concepts Wage salary administration is essentially theapplication of a systematic approach to the problem ofensuring that employees are paid in a logical, equitableand fair manner and the terms used are Wage, Salary,Earnings, Nominal Wage, Real Wage, Take Homesalary, Minimum Wage, Statutory Minimum Wage, TheNeed-based Minimum Wage, The Living Wage, TheFair Wages, Incentive Wage, Wage … By ‘real wages’, we understand the satisfaction that a labourer gets from spending his money wages in the form of necessaries, comforts and luxuries. This is a picture of how jobs are placed within the salary structure and also provides a visual of how you might move further into the pay range in either a … 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 To recommend changes in wage policies and in the salary or wage level. Introduction Overhead costs also referred to as indirect costs. 1. International Human Resource Management. O Scribd é o maior site social de leitura e publicação do mundo. This suggests a perfectly competitive model. Definite Plan for Wage Administration. Living wage. 2.To set minimum wages for people having weak. Promotion and Career Development: Promotion can be reciprocated as a significant achievement in the life. Factors are divided into sub factors and different degrees of a factor are considered. Relative worth of job done. R100 Q2. Principles of wage and salary administration 3-4 4.0. 5. EXTERNAL FACTORS Labor Laws • Payment of Wages Act, 1936 was passed to regulate payment of wages to certain classes of persons employed in the industry. Wage and Salary Administration 137 (ii) Assignment of point scores and money values is consistent thereby minimizing bias and human judgment. 3. Role. Cost of Living 3. developing countries as per ILO are :1.To abolish malpractices & abuses in wage. Wages and Salary Administration: This is the process of developing and operating a suitable wage and salary programmes. Evaluating its effectiveness . Factors Affecting Employee Compensation – 13 Major Factors Affecting: Demand & Supply of Labour, Ability of Organisation to Pay, Prevailing Wage Rate and a Few Others. A Tinypulse survey from 2013 revealed that transparency was the #1 factor for employee engagement. Growing unemployment and reservation in employment also affect the choice for recruitment and selection of employees in POLITICAL ENVIRONMENT Political environment refers to the factors surrounding the power equation, politics, and government laws, rules and regulations. Quality of Work Life. 8. Legal Provisions: The government had made cretin laws/acts for fixation of minimum wages to the … It also … Union Pressure and Strategies. Grade. Factors influencing wage and salary structure and administration - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. DOI: 10.24105/gjcmp.6.6.1710 61 higher in 2000 to 9.2% reaching the highest point in 2014 of 10.8 % . Labor legislations c. Labor market conditions d. Ability to pay. payment. Diabetes Research and Clinical Practice, 68 (3): 237–243. Common forces at work in the determination of. a) Need for Special Packages of Benefits to executives b) Principles governing the fixation of Wage and Salary Administration 3. a) Basic provisions of Minimum Wage Act 1948 b) Benefits provided under ESI Act 4. a) Duties of Welfare Officer b) Concept of Social Security 5. Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: The organizations ability to pay. Supply and demand of labour. The prevailing market rate. The cost of living. Living wage. Productivity. Higher wages have to be paid by the firm to its workers under the pressure of the trade unions. Cost of living : The wage rates are directly influenced by cost of living of a place. Coverage 15. Capacity of the organization to pay b. 3. 5. Presentation Summary : Wage and Salary Administration Wage and salary administration is the ongoing process of managing a wage and salary structure. Determination of Wages and Salary . 20 views. These are subject to annual increase. Factors Affecting wage and salary Levels. Which of the following factors is not an external influencing factor in wages and salary administration? Wage and Salary Administration. Factors affecting wages Wage policy of the company. Productivity differs from organistation to organisation, industry to industry, region to region etc. Personnel Research - Personnel researches are done by human resource management to gather employees' opinions on wages and salaries, promotions, working conditions, welfare activities, leadership, etc,. There are many choices for exciting careers in Healthcare Management and Administration. Role. To ensure the cooperation of employees on a continuing basis. Economic Conditions 4. Administering wage and salary programmes . The total amount of transport service was calculated by multiplying total 2. a. 8. Meaning of Wages & Salary administration Wage and salary administration refers to the establishment and implementation of sound policies and practices of employee compensation. Compensation may be adjusted according the the business needs, goals, and available resources. inefficiently organised, followed by … Characteristics 6. Compensation may be used to: recruit and retain qualified employees. The review should determine whether the … Factors influencing wage and salary structure and administration Wage differentials 7-9 8.0. Standard Salary Table 1. Wages and salary administration in Nigeria is as old as civil service itself. While there has been progress in Spain’s collective bargaining process, the social changes underway have led to problems of articulation and overlaps in bargaining activities. Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: The organizations ability to pay: Wage increases should be given by those organizations which can afford them. With external competitiveness in mind, you should analyze outlying jobs and employees in your organization’s salary structures to see if you are maintaining internal pay equity. In 2007, Congress passed the Fair Minimum Wage Act of 2007 (P.L. Reward and penalties. It covers: i. It is easier to establish feelings of pay equity and trust in the salary administration system. Examples of extrinsic rewards include wages and salary, fringe benefits, promotions, and recognition and praise from others. Author: Villarejo, Esteban. Society 6. The prevailing market rate. Cost of living b. A trade union is a formal form of association of workers that promotes the harmonious relationship between employer and employees. Consist of : i) Indirect materials ii) indirect wages iii) indirect expenses Overhead – costs, which do not result solely from the existence of individual cost unit. Most applicable to industries where jobs tend to be standardized from one employer to the other and where pay/salary data is amply available for those standardized jobs (i.e., 50% of more of jobs qualify as good “benchmark jobs”) 2. Financial position of the company. For instance, if starting hourly wages for irrigators and hoers are $8.15 and $7.20, respectively, a new minimum wage of $8.00 would bring both to essentially the same starting wage (Figure 7-11). Determination of Fair Wages for Workers: Theoretically, it is very easy to define fair wages but … Supply and Demand of Labour and Levels of Skills 3. Factors affecting the quality of diabetes care in primary health care centers in Tunis. A worker doesn’t simply view his salary as a dollar amount, he sees it as the value his employer places on him as a worker. Productivity. Importance 9. Wages/Salary Structures . So, the opportunity for promotion determines the degree of satisfaction to the employee. M. meras New member. Labour Unions 8. SALARY & WAGE ADMINISTRATION: Concept-Factors affecting Wage &Salary level- Wage Boards & Pay Commissions-Wage incentives- Profit sharing-Bonus-Managerial Compensation. 2) It helps to improve industrial relations by reducing employee doubts and grievances arising out of wages. The concept of nationalism has also had an impact on the country’s bargaining process. Wages, salary and many employee benefits and services (including fringes) are forms of compensation. Factors Affecting Communications and the Roles of Managers; ... (usually management). The Cost of Living Inflation Rate 5. To check all activities of the salary administration group against the company policies. There are four factors that influence the fixing of minimum wage, namely: Wage adjustment vis-à-vis Consumer Price Index (CPI) Needs of workers and their families. Wage and Salary Administration – 5 Steps Involved in Determination of Wage Rate Factors affecting quality of oral care in intensive care units. All these forces have significant influence on wage and salary levels. Iss Salary & Wages (col 14) Include The Salary And Wages 965481 PPT. Other factors, such as changes in the cost of living, the supply and demand of labour and the ability to pay are accorded a secondary importance. A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wages based upon differences in job contents. When wage rates for various jobs are established on a scientific basis, they will constitute a valuable guide for the management to evaluate the performance of the employees in terms of the job. Firm’s Ability to pay. from left to right Q1. 4. Employee Retention and Separation. The main objective of wage and salary administration is to establish and maintain an equitable wage and salary system. Principles 10. between working or becoming unemployed. Determination of Wages and Salary: The starting point of wage and salary administration is the determination of wage and salary levels. external factors influencing retention. Salary … PRODUCTIVITY : Productivity of a candidate or an employee is very important factor which affects the wage or salary rate. Wage salary administration is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable and fair manner. Forums. Demand for and supply of labor. This helps in promotion and transfer of employees. Cost of living. At the same time, the gross wage is used in collective labor contracts and wage statistics in international comparisons. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are; The organizations’ ability to pay. Wages mark hourly rates of pay, and salary marks the monthly rate of pay of an employee. 1. Years of experience. Plot the pay rates for each pay grade. Then fit a line, called a wage line through the points just plotted. This can be done either free hand or by using a statistical method. Price the jobs. Wages along the wage line are the target wages or salary rates for the jobs in each pay grade. Deflation can be caused by a number of factors, all of which stem from a shift in the supply-demand curve. vacation, holiday & sick leave) for employee categories 2, 3, Trade Unions’ pressure on the Management. Determining wage and salary rates based on various factors. Copy+of+Wage+and+Salary+Administration.ppt. on Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries. 6) Demand and supply of labor: it is one of the important factors affecting wages. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations. Factors affecting wages and salaries 5-6 6.0. Economic conditions of the nation. Objectives 7. 9. Hygiene factors are related to the work environment and include: company policies, supervision, salary, interpersonal relations and working conditions. In 2010, Congress temporarily suspended these increases. (iii) Systematic wage differentials according to content of the job can be determined. To recommend to top management the wage policies for the administration of the wage program. The cost of living. Payroll systems are set up and managed by HR or by a contracted payroll company. Responsibility Policies Making 14. In order to avoid raising the complete wage structure a farmer may, without raising the top wage, make minor adjustments all along the wage structure. (iii) Working Conditions. MINIMUM WAGES The minimum wages is that wage which is sufficient tomeet the workers bare necessities. Hi friends have a look on factors affecting wages this also includes 6 case studies also included ppt of the same in single zip file.
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