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Wages and Salaries Adm

Wages and Salaries Adm

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Published by Srikanth Avasarala

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Published by: Srikanth Avasarala on Jun 09, 2009
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08/30/2010

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Wages and salaries administration

By: Sheeba Rehman

Compensation management
Compensation is what employees receive in exchange for their contribution to the organisation.
Total compensation = Direct + Indirect Compensation

Base Pay

Incentives

Benefits

Components of employee remuneration
Remuneration Financial Basic wages Incentives, Individual plans Group plans Non-financial

Job context Challenging job Responsibilities Fringe benefits Growth prospects P.F. Supervision Perquisites Medical care Working conditions Car Accident relief Job sharing etc Club membership Health and Paid holidays Group insurance Furnished house Stock option scheme

Concepts of Wages
Minimum Wages Fair Wages Living wages

Objectives of compensation planning
Internal equity External equity Individual equity Attract talent Retain talent Ensure equity New and desired behavior Control costs Ease of operation

Motivation and performance model
Feedback to employees Employees set Goals and expectations Rewards are given Employee considers Equity of Performance rewards

Performance Is rewarded

Employee sets new goals and Expectations based on prior experiences

Importance of an ideal remuneration system
Desire for more pay performance strikes grievances search for options absenteeism turnover psychological withdrawal visits to the Doctor poor mental health

Pay dissatisfaction lower attractiveness of jobs job dissatisfaction absenteeism

Influencing factors of Remuneration
Remuneration External Labour Market Cost of Living Labour Unions Govt. Legislations Society Economy Internal Business Strategy Job evaluation & PA The Employee

Devising a remuneration plan
Job Description Job Evaluation Job Hierarchy Pay Survey Pricing Jobs

The Development of a wage trendline
New key Job B 10 9 Wages 8 or salaries 7 6 5 4 100 200 300 400 500 600 700 800 900 1000 Wage-trend Line Key Job A

Point Values

Challenges of remuneration
Skills-based pay Salary reviews

Remuneration Employee participation Comparable worth

Pay secrecy

Wages Policy in India
Payment of Wages Act, 1936 Industrial Dispute Act, 1947 Minimum Wages Act, 1948 Equal remuneration Act, 1976 Payment of Bonus Act, 1965 Wage Board

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