Introduction to wages and salary administration
- Definition of HRM
- Nature of HRM
- Importance of HRM
- Objectives of HRM
- Role of HRM
- Need of HRM approach
- Wages and salary
- Components of wages
- Importance of wages
- Factors affecting wage and salary administration
- Wage concepts
- Methods of wage payments
Human resource is of paramount importance for the success of any organization. It is a source of strength and aid. Human resources are the wealth of an organization which can help it in achieving its goals.
Human resources management is concerned with the human beings in an organization. It reflects a new outlook which views organization’s manpower as its resources and assets. Human resources are the total knowledge, abilities, skills, talents and aptitude of an organization’s workforce. The value, ethics, beliefs of the individuals working in an organization also forms a part of human resources.
All the resources in the form of money materials methods and machines would be quite insignificant without the human factor is “Men”. In the present complex environment no business or organization can exist and grow without appropriate human resources. So human resources have become the focus of attention of every progressive organization.
Tags: Wages and salary administration, Salary management system, Staff salary management, Staff wage management, Salary and wage administration
[...] During the period of prosperity, workers are paid higher wages because management wants to share the profits with labor Job Requirements: Basic wages depend largely on the difficulty level, and physical and mental effort required in a particular job. The relative worth of a job can be estimated through job evaluation. Simple, routine tasks that can be done by many people with minimum skills receive relatively low pay Management Strategy: The overall strategy which a company pursues should determine the remuneration to its employees. [...]
[...] INTRODUCTION TO WAGES AND SALARY ADMINISTRATION Wages and salary administration refers to the establishment of the sound policies and practices of employee compensation. Services rendered by individual to organization have to be adequately paid for. This compensation generally comprises of cash payments which in addition to wages include pension, bonus for good work and shared wages and salary administration is concerned with the financial aspects of needs motivation and rewards. MEANING OF WAGES AND SALARY Wages represents hourly rates of pay and salary refers to the monthly rate of pay, irrespective of the number of hour put in by employee, wages and salaried are subject to increments they differ from employee to employee, and depend on the nature of job, seniority and merit. [...]
[...] Once the rates of such wages are fixed, it is the obligation of the employer to pay it, regardless of his ability to pay Basic Minimum Wage: A Minimum wage has defined as wage which must provide not only for bare substances of life, but for the preservation of the efficiency of the workers for this purposes the minimum wage must provide for some measure of education, medical requirements etc Nominal or Real wages: Nominal wages are wages plaid or received in terms of money real wages represent the purchasing power of money, real wages may be calculated by dividing the actual money received with denominators such as cost of living or consumer price index Take Home Pay: This represent the amount of money left with the employee after authorized deductions such as those for social security, income tax and other surcharges Fair Wages: Fair wage is a wage which is above the minimum wage but below the living wage. [...]