You are on page 1of 8

Wages and Salaries Administration

A study with reference to FACOR Alloys Ltd, Garividi, Vzm.


DEFINITION: HUMAN RESOURCE MANAGEMENT
According to Flippo, human resource management is the planning, Organizing, directing
and controlling of the procurement, development, compensation, integration Maintenance and
reproduction of human resources to the individual, organizational and societal objectives are
accomplished.
To help the organization to attain its goals by providing well-trained and well-motivated
employees.
To utilize the human resources effectively in the achievement of organizational Goals.
To enhance the job satisfaction and self actualization of employees by Encouraging and
assisting every employee to realize his or her full potential.
To establish and maintain productive, self respecting and internally satisfying working
relationships among all the members of the organization.
To bring about maximum individual development of members of the organization by
providing opportunities for training and advancement.
To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation.
To maintain high employee morale and sound human relations by sustaining and
improving various conditions and facilities.
To manage change to the mutual advantage of individuals, groups, the organization and
the society.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT:


1) Principle of maximum individual development: This principle stresses on the
development of every person working in an organization. By this employees will be able to
develop themselves to the maximum extent of their capabilities. Their abilities, productivity and
efficiency can be used for achieving the objectives of the organization.

2) Principle of scientific selection: For the proper coordination between work and
workers it is necessary to select the right person for the right job. Workers should be selected
after a careful weighing of the requirements of the jobs.

a) Principle of high morale: It is necessary to have a high morale among workers in


an organization.

b) Principle of dignity of labor: Work is worship workers should feel proud feel of
their work or labor.

3) Principle of team spirit: Team spirit must be developed in the workers. They should
work collectively and they should feel collective responsibility for the attainment of the
objectives of the organization.

4) Principle of effective communication: There must be effective channel of


communication between the management and the workers. The orders of higher authorities
should reach the workers, while workers requests and grievances should reach the higher
authorities in a proper way.

5) Principle of fair remuneration: Labor should be given fair and proper compensation
for the work they rendered. They should also give fair incentives to recognize good performance.

6) Principle of effective utilization of human resources: The skill and abilities of


human resources should effectively utilize. Proper training facilities should provide to workers.

7) Principle of participation: This principle emphasis the idea of labor participation in the
management of the enterprise.

8) Principle of contribution to national prosperity: This principle stresses to provide


a higher purpose of work to all the employees and to contribute to national prosperity.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT;


1) Organizational significance
Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotion policies.
Developing the necessary skills and right attitudes among the employees and
performance appraisal etc.
Securing willing cooperation of employees through motivation, participation grievance
handing.

Utilizing effectively the available human resources.

2) Professional significance
Developing people on continuous basis to meet the challenges of their jobs.
Maintaining the dignity of personnel at work place.
Providing proper physical and social environment at the work place to utilize the
capabilities of the people effectively.
Providing environment and incentives for developing and utilizing creativity.

3) Social significance
Maintaining balance between jobs and job sealers in terms of job.
Requirements and job seekers abilities and attitudes.
Providing most productive employment from socio psychological satisfaction can be
derived.
Utilizing human capabilities effectively and matching rewards for the contribution made
by people.

4) National significance

Increase in the size and complexity of organizations.


Rapid technological developments like automation and computerization.
Rise of professional and knowledgeable workers.
Increasing workmen in the work force.
Growth of powerful nationwide trade unions.
Revolution of technology that might affect the work force.

WAGE AND SALARY ADMINISTRATION


INTRODUCTION:
One of the most important factors in Human Resource Management is Compensation
Management. The soundness of compensation management depends upon the amount of wage or
salary is paid to an employee for a fair days work.
Wage and Salary administration refers to the established and implementation of
sound policies and practices employee compensation. Wage and salary administration is one of
the vital areas of the personnel administration. For sound wage and salary policies and programs
are essential. To procure, maintain, develop, promote and transfer employees and to get effective
results from them.
An organization has to balance fairly financial and non financial rewards extrinsic
awards. Effective awards and intrinsic awards. Effective reward system requires not only that the
absolute level of compensation paid by an organization compares favorably but also enquires
that it satisfies the principles of internal equity and equity with the job content. The employees
gets pay satisfaction of the perceived salary is equal to actual salary received and actual salary is
less than perceived salary the employee is dissatisfied with the salary.
WAGE: The remuneration paid by the employer for the services of hourly, daily, weekly and
fortnightly employees.
SALARY: The remuneration paid to the clerical and managerial personnel employed on monthly
or annual basis.
WAGE RATE: It is the amount of remuneration for unit of time excluding incentives, overtime
pay etc.
STANDARD WAGE RATE: Is the amount of wage fixed for the unit of time fixed on the
basis of job evaluation standards.
WAGE SALARY: Is an assembly of all properly evaluated standard wage rate set from in the
sequence according to the job and size of the rate.
FRINGE BENEFITS: Refer to compensation given to the employees over and above wage
rates which often is not directly related to output performance of time worked.

PREMIUM RATES: Refer to special rates to certain period such as over time, Sundays and
holidays.

NEED FOR THE STUDY


Many organizations today, in order to competent enough to meet the challenges
need to continuously changes to develop wage and salary administration. Thus they are
supposed to adopt well built wage and salary administration.
They need for the study is that the performance of wage and salary administration is to be
studied in order to make changes if any, in order to retained the employees and also to
attract.
The new employees to meet the challenges of the organization.
The study also aims at evaluating the practical wage and salary administration under
taken by the organization in their work environment to improve their working skills.

OBJECTIVES OF THE STUDY


The present study has been conducted with the following objectives :
To have an over knowledge of FACOR Alloys Limited.
To study the fluctuations in wage and salary policies of FACOR management and
employee satisfaction.
To compare the wage and salary administration practices between workers and officials
of M/s FACOR.
To study the strategies adopted in the wage and salary administration practices of FACOR
during the challenging situation faced by it and to come out if such situations.

METHODOLOGY
The study, will be conducted through questionnaire method, and personal interaction of
the employees. The methodology adopted for the present study shall be schedule method through
a questionnaire aimed at eliciting information in line with the objectives of the study. 100
samples will be taken for the study. It involved the gathering of information initially from two
sources.
Primary data
Secondary data

Primary data:
Primary data shall be collected from the office staff, workers and employees in the
company through a structured schedules and personal interviews. It includes first hand
information from within the company. The schedule is especially designed to find out various
compensation and benefits package spot to motivate and retain the employees within the
company.

Secondary data:
Secondary sources include the information from the management of the company
annual reports of the company, various books and journals and the internet web sites.

Sample:
Data collected from selected outlets.
Information available from the past records of the company.
The universe of present study is FACOR ALLOYS, VZM., The researcher has taken six
departments for study and took 10% total of the employees in those 6 departments.

LIMITATIONS OF THE STUDY


The study made in FACOR ALLOYS Limited shall be confined to determine
wage and salary method and practices being followed
The lack of availability of information.
The collected one may not give the complete information.
As time period is 2 months, it is very difficult to get a clear picture.

Proposed Questionnaire
NAME OF THE EMPLOYEE:
DESIGNATION:
1) The job provides a satisfaction .

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree


2) The salary assured good feeling and motivation.
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
3)

The quality wage structure is key to success.

4)

a) Strongly agree b) Agree c) disagree d) Strongly disagree


Rewards should be given on the basis of better performance of the employee.

5)

a) Strongly agree b) Agree c) disagree d) Strongly disagree


Compensation commensurate with all levels of employee.

6)

a) Strongly agree b) Agree c) disagree d) Strongly disagree


Creation of organization policies to all employees

a) Strongly agree b) Agree c) disagree d) Strongly disagree


7) Company much concern about employees.

a) Strongly agree b) Agree c) disagree d) Strongly disagree


Recognition of employees contribution.

a) Strongly agree b) Agree c) disagree d) Strongly disagree


9) Provision of medical benefits are satisfactory.

10) The Wages and salary system for all Employees in FACOR is satisfactory.
a) Strongly agree b) Agree c) disagree d) Strongly disagree

11) Wage & Salary structure implemented according to Qualification & Experience.

8)

a) Strongly agree b) Agree c) disagree d) Strongly disagree

a)Strongly agree b)Agree

c) disagree d) Strongly disagree

12) Bonus & Incentives are they relative to the employees contribution.

a) Strongly agree b)Agree

c)disagree

d) Strongly disagree

13) Are you getting your pay as per the loss.


a) Yes

b) No

14) Are Employees paid for overtime if their work overtime above their contracted
hours.
a) Yes

b) No

15) Are Employees given benefits like accident insurance and hospitalization on time and
when needed.
[
]
a) Yes

b) No

16) Are Employees getting gratuity according to loss while leaving the job.

17) Your option about management contribution in getting loans from provident fund. [

a) Yes

b) No

a) Excellent b) Fair c) Good


.

d) Poor

18) Your option about your contractors contribution to get benefits entitled by you from
the management
[
]
a) Excellent b) Fair c) Good

d) Poor

19) Your option about the Trade Unions participation and solving wage disputes of the
management.
[

a)More Involvement b) Partial c) Less


20) How is the Employer, Employee relations in the organization.
a) Excellent b) Fair c) Good

d) Poor