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AGE AND SALARY DMINISTRATION

Click to edit Master subtitle style -PRESENTED BY KIRAN K. KHOT

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INTRODUCTION

WAGE AND SALARY ADMINISTRATION IS ONE OF THE VITAL AREAS OF PERSONNEL ADMINISTRATION. FOR SOUND WAGE AND SALARY, POLICIES AND PROGRAMMES ARE ESSENTIAL TO PROCURE, MAINTAIN, DEVELOP, PROMOTE AND TRANSFER EMPLOYEES AND TO GET EFFECTIVE RESULTS FROM THEM. WAGE AND SALARY ADMINISTRATION REFERS TO THE ESTABLISHMENT AND IMPLIMENTATION OF SOUND POLICIES AND PRACTICES OF THE EMPLOYEE COMPENSATION.

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It includes areas like job evaluation, surveys of wages and salaries , wage payments, incentives , supplementary payments , etc. A wage is the remuneration paid for the service of labor in production, periodically to an employee/worker. On the other hand salary is the weekly or monthly rates paid to clerical administrative and professional employees.

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Definition
to YODER and HENEMAN :wages are the compensation of wage earners, the numerous employees who use the tools and equipments for their employers to produce goods and services that are sold by their employers. According to P. M. Stochank:Wage is that labors remuneration which creates the utility.
According

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Objectives to employees
To

establish a fair and equitable remuneration offering similar pay for similar work. Chances of favoritism are minimized. Attract and retain the services of desirable employees. Reward employees according to reward and merit. Get improved employee moral and productivity. Pay employee according to the importance and difficulty of the job. Facilitate employee organizational flexibility. Explain to employees how and why they are paid. To improve motivation and moral of the employees.

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Objectives to employer
Incorporate

legal requirements. Simplicity collective bargaining. To attract qualified and competent personnel. Facilities payroll administration, budgeting and wage and salary control. To control labor and administrative cost in line with the ability of the organization to pay. It reduce friction and grievances of workers over wage and salary control.

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Types of salary/wages
There are two types of salary/wages: 1)Base compensation: It refers to monetary payments to employees in the form of wages and salaries. Base compensation is, a fixed and non-incentive payment on the basis of time spent by an employee on the job. 2)Supplementary compensation: Supplementary compensation signifies incentive payment, based on actual performance of an employee or a group of the employees. The term compensation administration or wage and salary administration denotes the process of managing a companys compensation programme.
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Procedure of wage and salary administration


1) Job analysis: ) Formulation of job description and job specification. ) Job is thoroughly analyzed and identified through time and motion and other studies in terms of its requirements, difficulties, responsibilities , etc. ) Job descriptions are prepared to state the characteristics of the job 2) Job evaluation: )Job evaluation is the operation of evaluating a particular job in relation to other jobs either within or without the organization. )Thus, relative value of all the job is determined and job structure is prepared. 4/15/12

3) Pricing job structure: Then the prices are related or determined for each job. Pricing job structure to form wage and salary, legislation, existing wage rates, union demands, ability to pay, productivity, cost of living and labor cost. 4) Method of wage payment: When the wage structure has been priced, methods of wage payment should be set up to pay employees. 5) Evaluation of wage and salary administration: The last step is to evaluate the efficiency of the wage and salary administration, principles, policies, procedures, etc. in view of stated objectives as given above.

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U O Y K N A H T
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