PANGASIA, HONEYLET P.

BSBA-FM 2

BA 225 Maintenance of Human Resources

1. Discuss the objectives of compensation administration.

- The concept of compensation administration encourages employees to perform tasks for

employers and so companies pay employees wages for the jobs they do. With that, its main
objectives include the following: The efficient management of a productive staff, equal
compensation, and compliance with federal, state, and local standards depending on what
businesses can afford are all priorities. With that, the compensation management should do their
utmost best to attract and recruit talent, motivate their people, maintain moral, and reflect the
current job-market.

2. Describe the basic components of compensation.

- The basic components include the following:

1. Direct Pay

- Base Pay: includes the wages and salaries of the employees

- Variable Pay Incentives: individual, organizational, or group

2. Indirect Pay (are those Benefits)

- Mandatory: provident fund, gratuity leave, health plans, and medical leave benefits.

- Voluntary: vacations, breaks, holiday benefits.

3. Briefly cite the difference between salaries and wages.

- Wages are those generally paid per hour may it be daily or weekly. It doesn't usually include paid
vacations or paid sick days. It depends on the number of hours a person worked or amount of goods
an employee was able to produce.

Salaries, on the other hand, refers to how much you get paid every year or every month. Salary
earners get paid base on their performance and are much more likely to have paid sick days and paid
vacations; medical insurance and education. In short, it is a fixed compensation.

4. What are the determinants of pay rates and how it is established?

- The determinants of pay structures and rates are through:

a. The forces of demand and supply - In a competitive labour market, there are so many
employers and unorganized employees resulting in a situation where a single company or
employee cannot affect the pay rate either by declining to be hired or to employ.
b. Government activities and policies - Government institutions and pay commissions set up
by the government aid in deciding salaries, notably in the public services. The government
agency or wage commission considers the following factors when determining wages.

c. The activities of trade unions. - they are workers formed as an association to enable the
members to participate in groups/teams rather than individual, action against their
employers in issues concerning to their welfare and work conditions. they are formed by
workers seeking promotion of their interests and seek protection, according to the
agreement being made.