SALARY AND WAGE ADMINISTRATION

Effort Performance Organisation al goals Individual goals

Reward Fig: Rewards and motivations

Types of Rewards
Intrinsic Rewards and Extrinsic Rewards Intrinsic Rewards: Job satisfaction Pride in ones work Being a member in a team Job enrichment

Extrinsic Rewards: Wage/salary Fringe benefits Welfare measures Promotions Incentives Financial vs. Non-financial Rewards Financial Rewards: Wage/salary Allowances Incentive payment Bonuses Profit sharing

Non-financial Rewards Canteen facilities Conveyance facilities Medical care Paid vacations Paid sick leaves

Performance based and membership based rewards

participate in decision making

Financial Performance based Piece work Commission Incentive pay Performance bonus Merit pay plan Membershi p based Basic pay DA HRA Protection programme s for Pay time not worked

Non-financial Preferred office furnishing Flexible work schedule Preferred leave Own secretary

Job freedom

More responsibility Interesting work

Opportunities for personal growth Diversity of activities

Impressive job titles Conveyance facilities

Medical care

The soundness of compensation management depends upon the amount of wage/ salary paid to an employee. Pay is the motivation to the employee. Formulation of sound remuneration policy attract right personnel in right position. There are several factors which affect pay satisfaction they are:

Skill
Experience Training Effort Age Seniority Education Company loyalty Past performance Present performance Level Difficulty Time span Amount of responsibility

Perceived personal job input

A
Outcomes of referent others Perceived job characteristics

Perceived amount that should received

Status Security

Perceived non monitory outcomes

Wage history Perceived pay of referent others Actual pay rate

B Perceived amount of pay received

A-b------pay satisfaction A>b----pay dissatisfaction A<b-----guilt, inequity, discomfort

performance Desire for more money Strikes Grievances Pay Dissatisfaction Search for a higher paying job Absenteeism

Turnover
Job dissatisfaction

Psychological withdrawal Dispensary visits Poor mental health

Lower attractiveness of job

Absenteeism

Labour conference held at New Delhi 1957 The living wage The fair wage Incentive wage Wage rate Standard wage rate

 To acquire qualified and competent personnel To retain the present employees To secure internal and external equity To ensure desired behaviour

To protect in public as a progressive employers

To simplify collective bargaining

To promote organisational feasibility

 Wage and salary plans should be flexible Job evaluation must be done sufficiently

These must be consistent with overall organisational plans

These should conformity with social and economic objectives These should be responsive to the changing local and national conditions

The Elements of Wage and Salary System Identifying available salary opportunities Relating salary to needs and goals Developing equality Measuring actual performance

Measuring job satisfaction

Finding dissatisfaction

Factors Affecting Wage/Salary Levels Remuneration in comparable industries Firms ability to pay Cost of living Productivity Union pressure and strategies Government legislations