Академический Документы
Профессиональный Документы
Культура Документы
EMPLOYEE COMPENSATION
It is a vital part of human resource management. No organization can expect to attract and retain qualified and motivated employees unless it pays them fare compensation. Employee compensation can be classified in three categories :Base or primary(wage n salary) Supplementary(fringe benefits) Incentive(financial n non financial)
To establish a fare and equitable remuneration To attract competent personnel To retain the present employees To improve productivity To control cost To improve union management relations To improve public image of a company
Demand for and supply of labor. Ability to pay. Labor unions. Cost of living Prevailing wage rate Job requirements Productivity State regulation
Wages are paid on the basis of time spent on the job irrespective of the amount of work done. The unit of time may be a day, a week, a fortnight or a month. ADVANTAGES Workers can compute there own remuneration. Regular and fixed earnings, sense of economic security and self confidence. No pressure to speed production thus quality of work can be kept high.
DISADVANTAGESGuaranteed remuneration makes worker in different and complacent. No scope of reward as there is no difference between efficient and inefficient workers. No basis for finding the merits of different employees and basis for promotion cannot be defined.
ADVANTAGE
Direct relation between effort and reward, more hard work is equal to more wage. Workers are provided ample opportunities to utilize there talent and increase there earnings.
DISADVANTAGE
Very difficult to fix piece wage rate, employers often cut the piece rate when they find workers are producing large quantity. Employees may not stress quality so that quality control became necessary.
Its a combination of time and piece wage system. The worker is guaranteed a time rate with alternative piece rate, if the wages calculated at piece rate exceed the time rate, the workers get credit, n vice-a-versa. This method provides a sense of security to employees and at the same time employees given the opportunity to increase his earnings. But rate in this method has to be fixed on the scientific basis.
THANKYOU