The wage payment is an important factor affecting the labor management relations. Workers are very much concerned with the rates of wages as their standard of living is linked to the amount of remuneration they get. Managements, however, do not come forward to pay higher wages because cost of production goes up and profits decrease to that extent. A number of factors, thus, influence the remuneration payable to the employees. The factors influencing Wage and Salary Administration Ā can be categorized into (i) External Factors and (ii) Internal Factors. 1. External factors influencing Wage and Salary Administration Demand and supply : The labor market conditions or demand and supply forces operate at the national and local levels and determine organizational wage structure. When the demand of a particular type of labor is more and supply is less then the wages will be more. On the other hand, if supply of laborĀ Continue reading
Abey Francis
Abey Francis, a freelance writer and a professional blogger who enjoys
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focus on international management, International trade finance,
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management in enterprises and cross-culture studies.
Wage and Salary Administration
Wage and salary administration affect levels of employee commitment to the organisation. However, fascinating the individualās job assignment is, the employee must be paid. Pay affects the way people work-how much and how well. A large part of the compensation that people receive from work is monetary. Although managers are expected to conserve money and distribute it wisely, many employees feel that they should get more of it for what they do. Wages, salaries and many employee benefits and services are form of compensation. Administration of employee compensation is called wage and salary administration. According to D.S. Beach āWage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organizational problems, development and maintenance of wage structure, establishing rules for administrating wages, wage payment incentives, profit sharing, wageĀ Continue reading
Wage Payment Systems
The system of wage payment is the method adopted by organizations Ā to remunerate workers. It is the way of giving financial compensation to the workers for the time and effort invested by them in converting materials into finished products. It indicates the basis of making payment to the workers, which may be either on time basis or output basis. The selection of the system depends on the type and nature of the concern and its products. The different methods of wage payments are as follows : 1. Time Wage System Ā Time wage system Ā is the oldest method of wage payment. The āTimeā is made a basis for determining wages of a person. The wages are paid according to the time spent by workers irrespective of his out put of work done. The wage rates are fixed for an hour, a day, a week or a month. The time spentĀ Continue reading
The Concept of Fringe Benefits
The human concept of labor has been recognized widely in the industrial world. The employer, though not bound, provides several benefits and services to the employees, working in the organization to maintain and promote the employeesā favorable attitude towards the work and work environment, because maintenance of favorable attitude towards the work and work environment, because maintenance of favorable attitude is an essential part of motivation and high morale. Such benefits and services, being a part of wage and salary administration, include all expenditure incurred to benefit employees over and above regular wages and direct monetary incentives related to output and are generally referred to as fringe benefits. The real wages of workers are increased by the benefits provided by the employer and thus, they are regarded as supplement to their wages. Many years ago, benefits and services were labeled āfringeā benefits because they were relatively insignificant or fringe componentsĀ Continue reading
PEST Analysis of DELL Computers
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the political, Economic, Social, and technological factors of the external macro-environment. Such factors usually are beyond the firmās control and sometimes presents themselves as threats. For this reason, some say that āPESTā is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. In the following, the analysis of the political, economic, social and technological factors leads to a description of the macro environment of Dell computers. Political Environment The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government orĀ Continue reading
PEST Analysis of Nokia
Nokia Corporation engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company has four main business functions or segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. PEST Analysis of Nokia PEST analysis identifies the political, economic, social and technological factors that of which directly affect a company. Political Factors Political/Legal environment are usually considered as one because they are enforced by the nationās government. It is vital for Nokiaās operation because different nations with their respective government have different Political/Legal platforms respectively; Nokia operating on Ā global level must abide to ground rules and regulation in different markets of host countries around the world. To its success, Nokia surveys itsĀ Continue reading