Ppt of wage policy
Transcript of Ppt of wage policy
FORMULATION OF WAGE POLICY - FACTORS TO BE CONSIDERED OVERVIEW
JYOTI RAMESH KATARIYAADMISSION NO. : HPGD/JA 14/0199
SPECIALIZATION: HUMAN RESOURCE
PRIN. L. N. WELINGAKR INSTITUTE OF MANAGEMENT & DEVELOPMENT RESEARCHYEAR OF SUBMISSION : DECEMBER 2015
: I N T R O D U C T I O N :
In all countries, wage policy is a complex and sensitive area of public policy. This is because the relative status of workers in the
society, their commitment to industry and attitude towards management, their morale and motivation towards productivity, their
living standards an in fact their way of life are all conditioned by wages, Hence a policy dealing with this crucial problems cannot
be simply economic, as it has to reckon with the realities of multi-dimensional social phenomenon, in which besides the workers
and the management, the consumer and the society at large, and in consequences the state, are all vitally interested. Wage policy
is a determinant of the shares of the rival claimants to the product of industry and national dividend, but there may often be a
conflicts between private and social interest, There are, of course, theoretical generalisations or principles that may provide
scientific guidelines for framing wage policy. Equally important in this context are the concrete social facts that must be taken into
account in its formulation at any given time. NO principles of wage policy can ever be applied in vacuum and in disregard of the
realities of a situation. Wage policy has to be pragmatic though it does not follow that it has to be unscientific and remain simply a
matter of expediency.
Wage policies are principles acting as guidelines for determining a wage structure
Wage policy refers to all systematic efforts of the government in relation to national wage and salary system
CONCEPTS OF WAGES
MINIMUM WAGES
FAIR WAGES
LIVING WAGES
WAGE : Wage is paid to the assembly line workers or worker at operational level. It is paid hourly/daily/weekly
MINIMUM WAGE:It must provide not only for the bare sustenance of life but for the preservation of the efficiency of the workers by providing some measures of education , medical care etc.LIVING WAGE: It is not only for the bare essentials for the worker and his family but also for comfort protection against ill-insurance for old-age .FAIR WAGE: It is in between minimum wages and living wages but below the living wage
Components of employee remunerationRemunerationFinancialNon-financialBasic wagesIncentives,Individual plansGroup plansFringe benefitsP.F.Medical careAccident relief Health andGroup insurance PerquisitesCarClub membershipPaid holidaysFurnished houseStock option schemeJob contextChallenging jobResponsibilitiesGrowth prospectsSupervisionWorking conditionsJob sharing etc
COMPENSATION MANAGEMENT
COMPENSATION:
Compensation is what employees receive in exchange for their contribution to the organisation.
Total compensation = Direct + Indirect Compensation
Base Pay Incentives Benefits
RemunerationFinancialNon-financialBasic wagesIncentives,Individual plansGroup plansFringe benefitsP.F.Medical careAccident relief Health andGroup insurance PerquisitesCarClub membershipPaid holidaysFurnished houseStock option schemeJob contextChallenging jobResponsibilitiesGrowth prospectsSupervisionWorking conditionsJob sharing etc
RemunerationFinancialNon-financialBasic wagesIncentives,Individual plansGroup plansFringe benefitsP.F.Medical careAccident relief Health andGroup insurance PerquisitesCarClub membershipPaid holidaysFurnished houseStock option schemeJob contextChallenging jobResponsibilitiesGrowth prospectsSupervisionWorking conditionsJob sharing etc
RemunerationFinancialNon-financialBasic wagesIncentives,Individual plansGroup plansFringe benefitsP.F.Medical careAccident relief Health andGroup insurance PerquisitesCarClub membershipPaid holidaysFurnished houseStock option schemeJob contextChallenging jobResponsibilitiesGrowth prospectsSupervisionWorking conditionsJob sharing etc
RemunerationFinancialNon-financialBasic wagesIncentives,Individual plansGroup plansFringe benefitsP.F.Medical careAccident relief Health andGroup insurance PerquisitesCarClub membershipPaid holidaysFurnished houseStock option schemeJob contextChallenging jobResponsibilitiesGrowth prospectsSupervisionWorking conditionsJob sharing etc
WAGE
FINANCIAL NON-FINANCIAL
BASIC WAGES
•Incentives,•Individual plans•Group plansFRINGE
BENEFITS P.F. Medical care Accident relief Health Group insurance
Perquisites Car Club membership Paid holidays Furnished house Stock option scheme
Job context Challenging job Responsibilities Growth prospects Supervision Working conditions Job sharing etc.
COMPONENTS OF WAGE
INFLUENCING FACTORS OF WAGES
WAGES
EXTERNAL INTERNAL
•Labour Market
•Cost of Living
•Labour Unions
•Govt. Legislations
•Society
•Economy
•Business Strategy
•Job evaluation &PA
•The Employee
CHALLENGES OF WAGES
WAGES
SKILLS-BASED PAY
WAGES REVIEWS
PAY SECRECY
COMPARABLE WORTH
EMPLOYEE PARTICIPATI
ON
WAGE PAYMENT SYSTEM
Piece Rate System
Time Rate System
The piece rate system is that system of wage payment in which the workers are paid on the basis of the units of output produced
Total Wages Earned= Output x Piece Rate
The time rate system is that system of wage payment in which the workers are paid on the basis of time spent by them in the factory
Wages Earned = Time spent(Attended) x Wage rate per hour/day/week/month
PRINCIPLES OF WAGES AND SALARY ADMINISTRATION Pays varies as per skills required
General level of wages should be proportionate with existing labour market rates
Equal pay for equal work
1. To recruit persons for a firm
2. To control pay-rolls
3. The elimination of exceptionally low wages
4. To motivate people to perform better
5. To maintain a good public image.
6. Full employment and optimum allocation of all resources
7. The establishment of fair wages standards
OBJECTIVES OF WAGES AND SALARY ADMINISTRATION
Administration of Wages and Salaries
Handled by:- Personnel department – Or committee who’s major functions are
Approval to management on job evaluation methods
Review of basic wage and salary structure
Help in the formulation of wage policies
Co-ordination of relative departmental
Review of budget estimates
HORROR STORIES IN INDIA
• Bharat Ophthalmic Glasses
• National Textile Corporation
• Hindustan Fertilizer Corporation Ltd.Haldia
• Heavy Engineering Corporation
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
The planning commission in February, 1973, set up a
committee of wage policy when face with the dilemma as to
what should be a wage policy which could be applied as a
permanent features of our development strategy
The committee appears to be restricted its scope to the
problems of wage policy only in organised private sector of
the economy leaving out the government sector
RECOMMENDATIONS OF WAGE POLICY
THANK YOU