Public Policies,Wages and

Reward Systems
• Siddharth Suman 23RJ60R01
• Mahima Jamre 23RJ60R02
 Guiding Principles for Governance - Public policies
provide a set of principles and guidelines that govern
decision-making within the public sector. They serve as a
roadmap for government officials, ensuring consistency
and transparency in their actions

Addressing Societal Issues - Public policies are

instrumental in addressing complex societal issues such as

Importance
poverty, inequality, healthcare disparities, and
environmental degradation. They provide a structured
approach to understanding and mitigating these
challenges.

of Public
Policies
Ensuring Fairness and Justice: Policies play a crucial role in
establishing a fair and just society by outlining rules and
regulations that protect the rights and well-being of
individuals. They contribute to the creation of legal
frameworks that uphold principles of justice and equality.

Economic Stability and Growth: Governments use

economic policies to influence economic stability and
growth. These policies may include fiscal measures,
monetary policies, and trade regulations aimed at
fostering a robust and sustainable economy.
 Economic Stability - Adequate wages contribute to economic stability by
ensuring that individuals can meet their basic needs, such as housing, food,
and healthcare. This stability, in turn, supports overall economic health.

Consumer Spending - Higher wages lead to increased consumer spending,

driving demand for goods and services. This increased demand can stimulate
economic growth and benefit businesses across various industries.

Wages and Poverty Reduction - Fair wages are a key tool in the fight against poverty.
When workers receive wages that cover their essential needs, the incidence
their Importanc of poverty decreases, improving the standard of living for individuals and
families.
e
Labor Market Efficiency - Wages play a role in labor market efficiency by
influencing the supply and demand for labor. A well-functioning labor market
relies on fair wages to allocate resources effectively.
Factors affecting Wages
Education and Skill Level:Individuals with higher levels of education and specialized skills often command higher wages.
Education and training contribute to increased productivity and value in the job market

Location:Wages vary based on geographical location due to differences in the cost of living. Urban areas with higher
living expenses often offer higher wages to compensate for the increased financial demands.

Company Size and Financial Health:Larger and financially stable companies may offer higher wages compared to
smaller or financially strained organizations. The ability to pay competitive wages is often linked to the financial health
of the employer.

Negotiation Skills:An individual's ability to negotiate salary can impact their wages. Effective negotiation can lead to
better compensation packages, especially during job interviews and performance evaluations.
Importance of Reward System
Retention of Top Talent:Competitive reward systems contribute to the retention of top talent. When
employees feel valued and appropriately compensated, they are more likely to remain committed to the
organization, reducing turnover.

Positive Organizational Culture:Reward systems contribute to the creation of a positive organizational

culture. When employees feel appreciated and rewarded, it fosters a sense of belonging and pride in their
work, ultimately shaping a positive workplace environment.

Increased Productivity and Performance:Motivated and engaged employees tend to be more productive
and perform at higher levels. A well-structured reward system provides the impetus for employees to go
above and beyond in their roles, contributing to increased organizational performance.
Challenges and Opportunities
• Inflation and Cost of Living:
Challenge-Public policies may struggle to keep up with inflation, impacting the purchasing power of wages.
Opportunity- Integrating reward systems that include performance-based bonuses can help employees cope with rising
living costs.
• Global Economic Crises:
Challenge- Economic downturns may result in wage c and reduced investment in reward systems.
Opportunity- Implementing policies that provide financial buffers during crises, such as unemployment benefits and
emergency reward programs.
• Minimum Wage Legislation:
Challenge- Establishing an effective minimum wage that meets living standards without burdening businesses.
Opportunity- Crafting policies that balance the needs of low-wage workers while considering the economic sustainability
of businesses.