Compensation and Wage & Salary Administration.

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<ul><li> 1. . 1 By: Priyanka Saluja. Ranu Chidwal. Mayur Verma. Priyanka Saluja. Ranu Chidwal. Mayur Verma. Nijita Khode. Nijita Khode. </li> <li> 2. 2 </li> <li> 3. Compensation is what employees receive in exchange for their contribution to the organization. Generally, services are offered for three types of rewards(also known as COMPONENTS), that are- 3 1. Pay or Guaranteed Pay. 2. Incentives or Variable Pay. 3. Benefits. 1. Pay or Guaranteed Pay. 2. Incentives or Variable Pay. 3. Benefits. </li> <li> 4. 4 </li> <li> 5. 5 </li> <li> 6. 6 The most important objective of any pay system is fairness or equity. The term equity has three dimensions: </li> <li> 7. 7 Other objectives 1. Attract Talent 3.Ensure Equity 2. Retain Talent 6. Comply with legal rules 5. Control Costs 7. Ease of operation 4. New &amp; desired behavior Ultimate goal is to reward desired behavior and encourage people to do well in their jobs </li> <li> 8. For EMPLOYER For EMPLOYEE Brand image for attracting candidates. Work life balance. Motivating employees for higher productivity and performance. Recognition. Retaining talent. Self esteem. Consistency in compensation. Planning for better quality of life Provoking healthy internal competition. 8 </li> <li> 9. The PS of a company depends on several factors such as, Labor market conditions, Companys paying capacity, Legal provisions. The two essential components of pay structure are:- 1.Basic Wage. 2.Dearness Allowance. 9 </li> <li> 10. The basic wage in India corresponds with what has been recommended by the Fair Wages Committee (1948) and the 15th Indian Labor Conference (1957). While deciding the basic wage, the following criteria may be considered: i. Skills needs of the job; ii.Experience needed; iii.Difficulty of work: mental as well physical; iv.Training needed; v.Responsibilities involved; vi.Hazardous nature of job. 10 </li> <li> 11. It is the allowance paid to employees in order to enable them to face the increasing dearness of essential commodities. 11 </li> <li> 12. DA in India is linked to three factors: 12 </li> <li> 13. 13 Attendence Books Car Card(credit card) City compensatory Club membership Computer Deputation Driver Education ESIS Family Group insurance Leave travel Lunch Medical Night shift Overtime Paternity Pension Provident fund Relocation Servant Tiffin Transport Telephone uniform </li> <li> 14. Workmens Compensation Act,1923 Payment of Wages Act,1936 Payment of Wages Act, 1948 14 </li> <li> 15. 15 </li> <li> 16. Wages - It implies to the remuneration to workers doing manual work. Salaries - It is compensation to office, managerial, technical and professional staff. It is administration of Employee Compensation. It is a systematic approach to providing monetary value to employees in exchange for work performed. 16 Wages - It implies to the remuneration to workers doing manual work. Salaries - It is compensation to office, managerial, technical and professional staff. </li> <li> 17. It denotes the process of managing a companys compensation programme. 17 The goals of wage and salary administration are to design a cost-effective pay structure that will: i.Attract ; ii.Motivate and iii.Retain competent employees. </li> <li> 18. According to D.S.Beach- It refers to the establishment and implementation of sound policies and practices of employee compensation. According to Bewath and Reins- It is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable, and fair manner. 18 </li> <li> 19. The ultimate goal of wage determination process is to establish &amp; maintain an equitable wage structure that enhances the employee commitment to the organization. 19 </li> <li> 20. 20 </li> <li> 21. 21 To establish a fair and equitable remuneration To attract qualified and competent personnel. To retain present employees. To control labor cost. To improve motivation and morale of employees. To project a good image of the company. </li> <li> 22. Wage and salary plans should be sufficiently flexible. Job evaluation must be done scientifically. Wage and salary plans must be always consistent with overall organizational plans. Wage and salary plans being responsive to changing local and national conditions. Wage and salary plans should simplify and expedite other administration processes. 22 </li> <li> 23. Wage and salary systems should have a relationship with: of an INDIVIDUAL 23 </li> <li> 24. HENDERSON identified the following elements of a wage and salary system: 1. Identifying the available: and communicating them to employees. 2. Relating salary to needs and goals. 3. Developing quality, quantity and time standards related to work and goals. 24 Salary opportunities Their costs Estimating worth of its members </li> <li> 25. 4. Determining the effort necessary to achieve standards. 5. Measuring the actual performance. 6. Comparing the performance with the salary received. 7. Measuring the job satisfaction of the employees. 8. Evaluating the unsatisfied wants and unrealized goals aspirations of the employees. 9. Finding out the dissatisfaction arising from unfulfilled needs and unattained goals. 10. Adjusting salary levels. 25 </li> <li> 26. Job needs. Ability to pay. Cost of living. Prevailing wage rates. Unions. Productivity. State regulation. Demand and supply of labor. 26 </li> <li> 27. 27 SALARY Paid to white collared employees. Paid monthly, or bimonthly. Contribution of work can not be easily measured. WAGE Paid to blue collared employees. Daily, weekly or monthly work paid. For jobs which can be measured in terms of money. COMPENSATIO N It is a comparative term. It includes wage and all other allowances and benefits like allowances, leave facilities, housing, travel, and non cost such as recognition, privileges and symbols of status. </li> <li> 28. 28 Thank you </li> </ul>


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