Wage is fixed based on the value of the amount fixed by wage boards, cost of living in the locality, productivity shown and promised by workers, work to the organization, the scarcity of the skill in the labor market, the difficulties in the job that determine the number of people willing to undertake the job, the affordability of the employer, the extent of prosperity in the industry in a given period and based on the bargaining power of the workers and their unions.
Wage Fixation
Wage is fixed based on the value
of the amount fixed by wage boards, cost of living in the locality,
productivity shown and promised by workers, work to the organization, the scarcity
of the skill in the labor market, the difficulties in the job that determine
the number of people willing to undertake the job, the affordability of the
employer, the extent of prosperity in the industry in a given period and based
on the bargaining power of the workers and their unions. Wage-Productivity
relationship is ordinarily taken as a rational basis for wage revision. An increase
in output per unit of labor is always a ground for workers to press their claim
for higher wages as their due share of the rise in profits.
Wages may be of two types such as
time rate and piece rate. They are fixed with the help of industrial engineering
and personnel departments and are administered by the payroll departments,
according to the provisions of the payment of wages law at rates equal to or
above the minimum wage law. Equal remuneration for equal work without any
discrimination on grounds of gender has been guaranteed by the law. Wage laws
insist that wage be paid in cash and not in kind. They also state that the
maximum permissible wage period would be thirty days. They even specify the
list of deductions permissible, subject to a ceiling. Some of the authorized
deductions are recovery of loans, contributions towards social security
measures like Provident Fund and Employees’ insurance, damages recoverable from
the employees for loss incurred due to the person by the employer, etc.
Incentive Schemes
The term ‘Incentive’ means
inducements offered in order to get better outputs from people. Incentive
schemes are used to enhance the motivation level by tapping the ambitions of
the employees to earn more. Incentives tend to influence individuals to stretch
their capacities and personal objectives and carry out special tasks and take
initiative. Incentives become necessary because people with less ability to
perform a specific task but stronger will or motivation are able to perform
better than people with superior ability and lack of will. Group incentives
have the potential to harness individual efforts towards greater teamwork and
synergy.
Tags : Human Resources Management - Compensation And Productivity
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