Professional Documents
Culture Documents
refers to the establishment of implementation of sound policy and practices of employee compensation . It includes such areas as job evaluation, survey of wages and salaries analysis, development and maintenance of wage structure, establishing rules for administrating wage payments, incentives, profit sharing, wage changes and adjustments, supplementing payments, compensation costs and other related areas.
Purposes Eliminates inequalities Minimizes chances of favoritism Establishes sequences of jobs and lines of promotions Increases employees motivation and morale To plan and control labor costs To explain basis of wage payment To reduce frustration and grievances to attract qualified personnel
Fringe Benefits Job Contents Incentives PF Perquisites Individual plans Gratuity Company car Job Group plans Medical care Club Responsibilities Accident relief Membership Health and Paid holidays growth Group Furnished house prospects Insurance etc etc.
Supplementary Compensation
Minimum Wages
Fair Wages
Suitable where units of output is not measurable like mental work or office work.
Piece Wage Rate: Remuneration is based on the amount of work done or output of the workers. One unit of output is considered as one piece & specific wages are given as per one unit. Advantages: Ambitious workers get proper utilization of their talent Its a fair method Management can distinguish between efficient & inefficient employees Cost of labor per unit of output can be easily counted Drawbacks: Excessive speed of work leads to health problems