Wage and Salary Administration Policies
Wage and Salary Administration Policies in India for MBA MB0043 SMU Assignment The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Its secondary objective is the establishment and maintenance of an equitable labour-cost structure i.
e. , an optimal balancing of conflicting personnel interests so that the satisfaction of employees and employers is maximized is concerned with the financial aspects of needs, motivation and rewards.The term wage is commonly used for those employees whose pay is calculated according to the number of hours worked. Thus, the weekly pay check will fluctuate as the number of hours actually worked varies. The word salary applies to compensation that is uniform from one period to the next and does not depend upon the number of hours worked.Salaried often implies a status distinction, because those who are on salary are generally white-collar, administrative, professional, and executive employees, whereas wage-earners are designated as hourly, non-supervisory, or blue-collar. Wage-earners in some organizations do receive full wage if they are absent for such reasons as sickness, whereas salaried employees, especially at the lower levels, often receive overtime pay when they work over the standard work week.
A job is defined as the collection or aggregation of tasks, duties, and responsibilities that, as a whole, is regarded as the reasonable assignment to an individual employee. A job may include many positions, for a position is a job performed by an individual and hence related to a particular employee. Thus, an employee as his position, but many positions may involve the same assignment of duties and constitute a single job. The job impersonal; the position is personal.