Human Resources Management

1. Income

cost
income
purchasing

differentials
inequality
rent

distribution
profits
salary

earn
progressive
standard

Money paid, usually weekly and often in cash,

to a worker for work done is called a wage (or
wages). A (1) . is a regular payment
made to an employee, usually by a bank
transfer or cheque at the end of the month. A
real wage is an actual wage deflated (divided)
by the consumer price index. This gives the (2)
power of an hours work. Skilled work
is usually rewarded by higher pay than unskilled
work. Skills, knowledge and expertise acquired
in education or special training are also known
as human capital, and are usually remunerated.

cost
income
purchasing

differentials
inequality
rent

distribution
profits
salary

earn
progressive
standard

On the contrary, compensating (3) .

are often paid to persuade unskilled people to
take dangerous, dirty, inconvenient or tedious
jobs. Subsistence wages are the minimum
amount needed to support a persons life.
Fortunately, most people in industrial and postindustrial countries (4) rather more
than this. If higher wages tempt people to work
longer hours, this is known as the substitution
effect. But after a certain point, higher wages
mean that workers can afford to work fewer
hours. This is known as (5) ............... effect.

cost
differentials
distribution
earn
income
inequality
profits
progressive
purchasing
rent
salary
Thestandard
(6) . of living is defined as the

level of prosperity in terms of material or

social benefits (which are related to income
and wealth). The (7) .of living is the
amount of money that must be paid for food,
housing, clothing, and so on.
In economics, (8) concerns the
allocation of factors of production land,
which earns (9) .., labour, which earns
wages, and capital, which earns interest
and/or profits and their market prices.

cost
differentials
earn
income
inequality
progressive
purchasing
rent
standard

distribution
profits
salary

Income is the flow of money earned or

collected during a given period,
including wages and salaries, interest
payments, rental income, and (10)
. from business.
(11)

or
redistributive
taxation can reduce income (12)
. Wealth is the net stock of
tangible and financial assets owned at
any particular time.

Human Resources Management

2. Pay

bonus
minimum wage
pay-roll
time and a half

double time
golden handshake incentive
overtime
pay differentials
pay scales
remuneration salary pension
wages

John Bright is the marketing director of

MicroTech, a fast-growing electronic equipment
manufacturer with 600 people on the (1)

He was headhunted from another

company, and his (2) is very high. He
also gets an a large annual (3) if sales
are good, which is of course a big (4) ..
to him. His predecessor was fired but he was
given a big (5) ..: approximately three
years (6) ., plus a full (7) .,
even though he was only 58 years old.

bonus
double time
golden
handshake incentive
minimum wage overtime
pay differentials
pay scales
pay-roll
remuneration salary
pension
MicroTech
has wages
a number of different (8)
time
and a half

.. The cleaners do not earn much more

than the (9) .. And the production
workers are paid according to their skill: there
are strict (10) .. Between fully-skilled
and
semi-skilled
employees.
The
(11)
.. of Paul Gascoigne, the janitor at the
MicroTech headquarters, are not very high, but
he has plenty of opportunities to do (12)
.., which earns him (13) . In
the evenings and on Saturdays, and (14)
.. if he has to work on Sundays.

Income and Pay. Basic Concepts

Income money that an individual or a
business receives in exchange for providing
goods or services or through investing
capital
(or) the flow of money earned or collected
during a given period, including wages and
salaries, interest payments, rental income and
profits from businesses.
Pay money given in return for work done;
salary; wages
Taxation a means by which government
finance their expenditure by imposing
charges on citizens and corporate entities

pay

remuneratio
n

wage
(s)

salar
y

 Remuneration reward for employment in the

form of pay, salary, or wage, including
allowances, benefits (such as company car,
medical plan, pension plan), bonuses, cash
incentives, and monetary value of the noncash
incentives
Wage (often wages) a regular payment,
usually on an hourly, daily, or weekly basis,
made to an employee, especially for manual or
unskilled work
Salary a fixed regular payment made by an
employer, often monthly, for professional or
office work, as opposed to manual work
Real wage the income of an active individual
or group after taking into account the effect of
inflation or purchasing power (Investopedia)

 Consumer price index (CPI / RPI

retail price index Am. E.) a
measure that examines the weighted
average of prices of a basket of
goods
and
services,
such
as
transportation, food and medical
care; it is calculated by taking price
changes for each item in the
predetermined basket of goods and
averaging them; the goods are
weighted
according
to
their
importance. (Investopedia)
Purchasing power the value of a

 Compensating
differentials
(also
called
compensating
wage
differential or equalizing difference)
the difference in wages offered to offset
the desirability or undesirability of the job
if the job is considered undesirable
because of elements of unpleasantness or
risk, the differential is positive in the form
of increased wages to offer incentive to the
employee to take the job.
if the job is considered especially
desirable, the differential is negative in
the form of lower wages

 The substitution effect if the

wages increase, then work becomes
relatively more profitable than leisure
The substitution effect of higher wages
means workers will give up leisure to do
more hours of work because work has
now higher rewards

The income effect if the wages are

higher, a worker can maintain a decent
standard of living through less work
The income effect of higher wages means
workers will reduce the number of hours
they work because they can maintain a
target level of income through fewer hours

 (to do) overtime time spent

working at ones job that is in
addition to ones normal working
hours
money paid for work that is
done in
addition to ones working
hours
Time and a half a rate of pay that
is one and a half times the regular
rate, as for overtime work
Double time a rate of overtime
pay that is twice the regular wage
rate

 Incentive something that encourages a person

to do something or to work harder
Pay scale a range of different amounts paid for a
particular type of work, or for all types of work
within an organization
Golden handshake a clause in an executive
employment contract that provides the executive
with a significant severance package in the case
the executive loses his/her job through firing,
restructuring, or even scheduled retirement
Job security assurance (or lack of it) that an
employee has about the continuity of gainful
employment for his or her work life
usually arises from the terms of contract of
employment, collective bargaining agreement, or labor
legislation that prevents arbitrary termination, layoffs,
and lockouts