Académique Documents
Professionnel Documents
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Compensation an overview
External Environment
Internal Environment
Compensation
Financial Non-financial
Wage Policy
WAGES
Minimum Wages
These are the wages that ensure more than just adequate sustenance, these ensure
certain medical & other essential requirements of individuals catered to ensure:-
3. 18 yards of cloth per member and for an unit of four members i.e. 18 x 4 = 72
yards cloth per annum.
LIVING WAGES
Ensure more than adequate sustenance to the extent that certain greater needs like
social needs, sanitations, health aspects, and protections from misfortunes.
FAIR WAGES
1. Productivity of Labour
2. Prevailing level of wages
3. Industry Policy to wages & income distribution in the country.
4. Contribution of industry to the economy
The upper limit is fixed on the basis of the above factors and ensures minimum
wages.
2. The compensation of their ratio with the perceived ratios of significant, other
people with whom direct contact is made.
Equity only exists when a person perceives that the ratio of outcomes to inputs is in
equilibrium with respect of self and in relation to others.
reward reward
Equity Moderate Gross
under under
reward reward
Low (L) Med (M) High (H)
Relative - Contribution
This stated that wages should be fixed at subsistence level if the wages were higher
than the subsistence level; there would be an increase in supply of labour and
consequent decrease in level of wages to a subsistence level. If wages were below
subsistence level then labour employed i.e. demand for labour would increase and rise
to subsistence level. According to this theory the wage should be the subsistence
wage.
Karl Marks propounded that labour would never be adequately compensated as the
profits of capitalists could only be considered if labour was under paid.
Wages represent hourly rates of pay, and salary refers to the monthly rate of pay,
irrespective of the number of hours put in by an employee. Wages and salaries are subject
to annual increments. They differ from employee to employee, and depend upon the
nature of job, seniority, and merit.
Incentives:
Also called ‘payments by results’, incentives are paid in addition to wages and salaries.
Incentives depend upon productivity, sales, profit, or cost reduction efforts.
Fringe Benefits:
These include such employee benefits as provident fund, gratuity, medical care,
hospitalization, accident relief, health and group insurance, canteen, uniform, recreation
and the like.
Perquisites:
These are allowed to executives and include company car, club membership, paid
holidays, furnished house, stock opinion schemes and the like. Perquisites are offered to
retain competent executives.
Non-monetary benefits:
Rewards:
People join organizations expecting rewards. Firms distribute money and other benefits in
exchange for the employee’s availability, competencies and behaviours.
Compensation—PP Slide
You can refer to the following link for the below inserted power point slide. For referring
to the link please refer to the below mentioned address:-
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ystems—Power PPoint
Compensation SSystems—Power
((Compensation lides)
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