RENUMERATION

Reward
Salary
Wage
Reward system
 Rewarding
 Labour performance management and
evaluation should relate to rewarding
system directly.

 Czech legislation distinguishes 3 basic

following terms:
 Reward
 Salary
 Wage
 Reward
It means…
 …rewarding of work - based on agreement
or work besides employment,
 rewards for elected councillor and in case of
special reward method
(agents, observers, representatives etc.),

 and also "extra tariff" forms of wage –

incentive payment.
Terms salary and wage do not include
following…
 …other payment coming from employment

- especially refunds of wage, compensation,

travelling expenses, capital yields (shares,
obligations) and rewards for being on standby
duty.
 Minimal Wage Scale

 …statutory orders that protect employees

in case of situation when an employer has no
arranged collective agreement that sets wage
– wage scale.
 Factors determines salary
The system of companies should consider
following factors:
 Work value – wage scale belongs to wage (salary),
 Unusual working conditions
– bonus of tariff character,
 Performance and work negotiating
– wage contains forms of wage,
 Value of work – wage contains a range of wage
scale or special form of wage.
 Salary Policy
The impact of factors on reward policy:
 valid legislation focused on rewarding,
 relationship relating to wage in other companies
in certain region,
 prosperity of a company – what rewards
– salaries (wages) the company can pay to its
employees.
 technology requirements and installation
in a company (high technology needs required
education and qualification and active approach
to innovations),
 requirements of labour unions and employees,
 production efficiency or provided services
efficiency,
 added value to product or service.
 Reward Policy
It helps with decision making and negotiating and
at the same time it focuses on following aspects:
 competitiveness of reward – relation of wage
and reward compared with other organizations
in the market,
 merit reward – remuneration according to
merit, labour performance, education etc.,
 individual or team rewarding,
 flexibility,
Armstrong, M.: Human Resource Management
 structure of total reward – basic and flexible
parts of wage,
 employee benefits,
 company priorities,
 transparency,
 checking,
 neutrality - relate to sex,
 delegating competences to line managers etc.
 Reward management
 Traditional way-controlled organization
- big companies prefer employees loyalty and fixed salary
and distinguishes according to performances.
 Flexible and organised way-controlled
organization
- medium companies and organizations prefer maximum
individual rewarding and refuse colective rewarding.
 Flexible and unorganised way- controlled
organization - small and medium companies without
own reward policy,
- caused by past and earlier decision making,
- distinguished by individual wages.

Livian, Y.F., Pražská L.: Human Resource Management

Thank you for your attention