The main objective of wage and salary administration is to establish and maintain an equitable wage and salary system. This is so because only a properly developed compensation system enables an employer to attract, obtain, retain and motivate people of required calibre and qualification in his/her organisation.

What are the principles of wage determination?

As per the principle of payment by performance productivity of the worker is a high, wage/salary rate will be high. Conversely, it productivity of the worker is low, wage/salary rates tend to be low. Thus, any shift in productivity has its impact on the wage level of the worker.

What is wage administration?

Wage and salary administration is a collection of practices and procedures used for planning and distributing company-wide compensation programs for employees. These practices include employees at all levels and are usually handled by the accounting department of a company.

What are the basic principles of compensation administration?

A general model of compensation administration encompasses the creation and management of a pay system based on four basic, interrelated policy decisions: internal consistency, external competitiveness, employee contributions, and administration of the compensation program.

What are the type of wages?

Types of Wages:

• Piece Wages: Piece wages are the wages paid according to the work done by the worker.
• Time Wages: If the labourer is paid for his services according to time, it is called as time wages.
• Cash Wages: ADVERTISEMENTS:
• Wages in Kind:
• Contract Wages:

  What are components of wage?

  Wages & Allowances (YES) :

  • Basic Pay.
  • Dearness allowance.
  • House rent allowance.
  • City compensatory allowance.
  • Overtime wages (but not to be taken into account for determining the coverage of an employee)
  • Payment for day of rest.
  • Production incentive.
  • Bonus other than statutory bonus.

  What are the objectives of compensation administration?

  Objectives of compensation management are;

  • Acquire qualified personnel.
  • Retain current employees.
  • Ensure equity.
  • Reward desired behavior.
  • Control costs.
  • Comply with legal regulations.
  • Facilitate understanding.
  • Further administrative efficiency.

  What is compensation types duties and responsibilities?

  In other words we can say that Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures, etc.

  How are wages and salaries determined in an organisation?

  Traditional theorists define wage and salary administration as the process by which wage and salary levels and structures are determined in organisational settings. Wages are payments for labour services rendered frequency, expressed in hourly rates, while a salary is a similar payment, expressed in weekly, monthly or annual rates.

  What should be included in a wage and salary plan?

  Wage and salary plans should expedite and simplify administrative process. Workers should be associated, as far as possible, in formulation and implementation of wage policy. An adequate data base and a proper organizational set up should be developed for compensation determination and administration.

  What are the main objectives of wage control?

  The main goal of wage control is to develop and maintain a fair system of wages. This is because an employer can only attract, hire, retain and empower workers of appropriate performance and skills within his / her company through a properly developed compensation system.