The relative worth of a job is being ascertained through job evaluation. The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary … Basically, it is a written statement consisting the following â of what the job holder proceeds, how it is done, under what conditions it is done and why it is done. Source and Sample Selection:. The wage curve can be relatively straight or curved. The organisation’s ability to pay and the sustaining strengths; 2. Most employers do not pay just one rate for all jobs in a particular pay grade. Step # 1.. The Salaries and Wages section of the Employees: Personnel Administration business area is intended to ensure consistent application of Research Foundation (RF) policies and procedures for salary and wage administration. The wage determination process includes the following: It involves the identification and precisely identifying the required tasks, the knowledge and skills necessary for performing them and the conditions under which they must be performed. 1) There should be a definite plan and system to ensure that differences in pay for jobs are based upon variations in job requirements, means maintaining equity in the distribution of wages and salaries in the organization. The process of determining wages involves a series of interrelated steps. The wage curve shows the relationship between relative worth of jobs and wage rates. Wage determination is a complex process. Salary Formula. The main objective of wages and salary administration is to have scientific study about rational and balanced wages and salary in “Vidarbha Vinkar Shetkari Sahakari Sut Girni Ltd.” . 18:58. It attempts to record and analyse details concerning the training, skills, required efforts, qualifications, abilities, experience, and responsibilities expected of an employee. Wage and salary surveys provide many … 10) Optimization of management and employee interests. This part present case studies on wage and salary administration. The worth of a job is then converted into monetary terms to fix the basic wage for the job. Statement of Scope and Purpose . (ii) The current average pay rates for the grades. The financial institution is anxious to detemine the appropriate wage for the clerical staff it expects to hire. Why wage and salary administration in an organization Main objective is to have a scientific, rational and balanced wage & salary structure In salary administration… But Tanzanian Labour Organization (ILO) defends the term wage … Step # 2. It comprises of jobs of approximately equal nature or importance, as established by job evaluation. A job is rated in order to determine its value relative to all the other jobs in the organization which are subject to evaluation. 7. 3. 6. To acquire qualified competent personnel: Candidates decide upon … Wage Administration Rules 14. V-LRN Videos 12,575 views. These surveys may be carried out by mailed questionnaire, telephone, or personal interviews with other managers and personnel agencies. The existing pay structure should be regularly reviewed and revised. This curve can then be deployed to establish the relationship between the worth of a job and its wage rate at any given point on the line. After preparing a statement of the minimum acceptable qualities necessary to perform a job properly, the actual process of grading, rating or evaluating the job occurs. This curve shows the rates currently paid for jobs within an organisation, the new rates resulting from job evaluation, or the rates for similar jobs currently being by other organisation within the labour market. These surveys may be carried out by mailed questionnaire, telephone, or personal interviews with other managers and personnel agencies. Create a free website or blog at WordPress.com. Most firms either use the results of “packaged surveys” available from the research bodies, employer’s associations, Government Labour Bureaus, etc., or they participate in wage surveys and receive copies of results, or else they conduct their own. Salary payments … The various activities that are involved in the process of wage determination are as under: 1. Pay grading is essential for pay purposes because instead of having to deal with hundreds of pay rates, the committee might only have to focus on a few. If, on the basis of utility, the wages for a specific job are determined below the wages for the same job on other enterprises, following will be its disadvantages: (a) Good persons and persons of merit will not be available. For example, whether there exists a well-established and well-accepted relationship among certain jobs, whether the organisation would recruit new employees after revised wage structure; are the prevailing rates in industry or community inconsistent with the results of job evaluation, what will be the result of paying lower or higher compensation; and what should be the relationship between the wage structure and the fringe benefit structure? 2. Principles of wages and salary administration, Principles of wages and salary administration, Follow The Commerce Lecturer on WordPress.com, Characteristics of a good measure of central tendency, Characteristics or Features of Personnel Management, List of Indian Accounting Standards (Ind AS) with objectives |List of Ind AS 2020. Job Evaluation: 3. Terms of Service 7. The process of determining wages involves a series of interrelated steps. The next step is to assign pay rates to pay grades. Assigning pay rates to each pay grade is usually accomplished with a wage curve. It is considered advisable in the interests of the concern and the employees that the information about average salaries and ranges in the salaries of group should be made known to the employees concerned; for secrecy in this matter may create dissatisfaction and it may also vitiate the potential motivating effects of disclosure. If the plot falls below the line, raises for jobs in this pay grade may be required. Usually, it involves the following: Job analysis offers valuable information for developing a compensation system in terms of what duties and responsibilities need to be carried out. The steps involved in determination of wage rate: A job analysis describes the duties, responsibilities, working conditions and interrelationships between the job and the other jobs associated to it. Copyright 10. (iv) Finally, price the jobs. ... Who? Account Disable 12. It involves collection of essential data regarding jobs and their analysis. Explaining about Wage and Salary Programme to the Employees: Essays, Research Papers and Articles on Business Management, An Ideal Wage Structure of an Employee (with diagram), Development of Wage Structure for Base Wages, Staffing Process: 9 Important Steps involved in Staffing Process, Role of Entrepreneurship in Economic Development, Steps Involved in Wage Determination Process: Job Analysis, Job Evaluation, Wage Survey, Wage Curve and a Few Other Steps. Its objective is to understand the nature and characteristics of the people to be employed on various jobs. There are various steps involved in drawing a wage curve: (i) Find the average pay for each pay grades, since each pay grade may have several jobs. As an alternative, some employers allow the rate for each grade to become wider for the higher pay ranges reflecting the greater demands and performance variability inherent in these more complex jobs. Piece Rate System: Under this system of wage payment, the workers are paid the wages on the … Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Job Analysis 2. Jobs that are similar in terms of classes, grades or points are grouped together. It keeps pace with the changing job content, due to technological changes, it is necessary to make periodic assessment of the job keeping in view of the old job description. A poorly administered wage and salary program … Living wage concept… Conduct the Salary Survey: 4. Job Analysis: It involves the identification and precisely identifying the required tasks, the knowledge and skills necessary for performing them ... 2. For this purpose, ‘wage curve’ is used to help assign pay rates to each pay grade (or to each job). Job Description 5. Organisations, sometimes, may decide to pay more than the maximum of the pay range when employees have exceptional merit or promotional opportunities are scarce. 9) The wage and salary administration should take care of and comply all the rules and regulations laid down by the legislator for protecting the employeesâ interest. The differences between salary and wages are presented in this article in tabular form. In addition to the average wage level for specific job, other information frequently requested includes entry- level and maximum wage rates, shift differentials, overtime pay practices, vacation and holiday allowances, the number of pay periods and the length of the normal work-day and work-week. Fixed compensation periodically paid to regular worker is called as wage or salary or pay. (a) Whether the organisation wishes, or is able, to pay amounts above, below, or equal to the average in the community or industry; (b) Whether wage ranges should provide for merit increases or whether there should be single rates; (c) The number and width of the ‘pay grades’ and the extent of overlap; (d) Which jobs are to be placed in each of the pay grades? If a rate falls well below the line, a pay rise for that job may be required. Regional differences in wages should invariably be maintained. Wage … Job Evaluation 3. 4. It is a factor about which the employees are most sensitive.
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