2. Wage & Salary Administration An integral part of management. Systematic approach to provide monetary values to employees. It is Administration of Employee Compensation. Aims to establish and maintain an equitable wage and salary structure.
3. Definition According to D.S. Beach-“It refers to the establishment andimplementation of sound policies and practicesof employee compensation.” According to Bewath and Reins-“It is essentially the application of a systematicapproach to the problem of ensuring thatemployees are paid in a logical, equitable andfair manner”
5. Wages Paid to Blue Collared employees. Daily, Weekly or Monthly work paid. Forjobs which can be measured to some extent in terms of money’s worth.
6. Salary Paid to White Collared employees. Paid monthly, or bimonthly. Contribution of work can not be easily measured.
7. Compensation Compensation is a comparative term. Itincludes wage and all other allowances and benefits like allowances, leave facilities, housing, travel and non-cost such as recognition, privileges and symbols of status
8. Concept of Wages Fair Wage Minimum Wage Living WageStatutory Minimum Basic Minimum Need Based
9. Objectives Establish fair and equitable compensation. Attract competent and qualified personnel. To retain present employees. To keep labor cost align with organization ability to pay. To improve motivation and morale of employees. To project good image of the company. To minimize chance of favoritism.
10. Principles Interest of all the parties should be considered. Wage Plans should be flexible and responsive to changes. Differences in wages should be based on logical facts. Consistently align with organization plan. Expedite and Simplify administrative process. In line with prevailing market rates.
12. External Factors • Demand and Supply • Cost of Living • Trade Union’s Bargaining Power • Government Legislation • Psychological and Social Factors • Economy • Technological Developments • Prevailing Market Rates.